# Singapore Construction Contracts — Reference ## Table of Contents 1. [PSSCOC (Public Sector Standard Conditions of Contract)](#psscoc) 2. [SIA Conditions (Singapore Institute of Architects)](#sia) 3. [Building and Construction Industry Security of Payment Act (SOP Act)](#sop-act) 4. [BCA Regulatory Framework](#bca) 5. [SIArb (Singapore Institute of Arbitrators)](#siarb) --- ## PSSCOC {#psscoc} ### Overview - Standard form for **Singapore government projects** - Administered by BCA (Building and Construction Authority) - Two editions: **Construction Works** and **Design & Build** - Employer: typically a government agency (LTA, PUB, JTC, HDB, NParks, etc.) ### Key Features | Feature | Detail | |---------|--------| | Contract type | Re-measurement (Construction Works) or Lump Sum (D&B) | | Superintending Officer (SO) | Engineer-equivalent; appointed by Employer | | SO's authority | Acts as Employer's agent (NOT neutral like FIDIC 2017 Engineer) | | Variations | SO may issue variation orders; valuation per contract rates or fair rates | | EOT | Contractor must apply within 28 days of delay event | | Liquidated damages | Specified in Contract Data; deducted from payments | | Defects Liability Period | Typically 12 months (maintenance period) | | Retention | 5% capped at specified limit; half released at completion, half after DLP | | Dispute resolution | Mediation → Arbitration (SIA Arbitration Rules or SIAC) | ### Key Clauses — Construction Works Edition | Clause | Subject | Key Points | |--------|---------|------------| | 2 | SO's duties | Authority from Employer; acts as agent | | 7 | Assignment & subcontracting | Written consent required for assignment | | 14 | Variations | SO instructs; Contractor must comply | | 14(4) | Valuation of variations | Contract rates → fair rates → daywork | | 20 | Possession of site | Employer grants possession per programme | | 23 | EOT | 28-day notice requirement; SO assesses entitlement | | 24 | Liquidated damages | Deducted per day/week of delay | | 25 | Completion certificate | SO certifies when works substantially complete | | 27 | Defects | Contractor must rectify during maintenance period | | 32 | Interim payments | Monthly valuations by SO | | 33 | Final account | Submit within period stated; SO certifies | | 34 | Set-off | Employer may set off amounts owed | | 37 | Determination by Employer | Listed defaults; notice required | | 38 | Determination by Contractor | Non-payment, suspension, employer default | | 40 | Settlement of disputes | Mediation → Arbitration | ### EOT Under PSSCOC - **28-day notice** from commencement of delay event - Must include: cause, expected duration, mitigation measures - SO assesses and grants/refuses within reasonable time - Grounds: variations, exceptionally adverse weather, employer's default, force majeure, unforeseen ground conditions (if applicable) - **Concurrent delay**: SO may apportion — Singapore approach allows partial EOT ### Variations Under PSSCOC - SO may instruct additions, omissions, changes - Valuation hierarchy: contract rates → analogous rates → fair valuation → daywork - Contractor must comply first, dispute valuation later - No automatic entitlement to profit on variations (depends on contract) --- ## SIA Conditions {#sia} ### Overview - Standard form for **Singapore private sector** building works - Published by Singapore Institute of Architects - Current edition: **SIA Conditions 9th Edition (2010)** with amendments - Tripartite structure: Employer, Contractor, Architect (and QS) ### Key Features | Feature | Detail | |---------|--------| | Contract type | Lump sum (with provisional/prime cost sums) | | Architect | Contract administrator; certifies payments, variations, completion | | QS role | Valuation of variations; interim and final accounts | | Clerk of Works | Employer's site representative | | Nominated subcontractors | Architect may nominate; Contractor must employ (with right to object) | | Payment | Architect certifies interim payments; 30 days to pay | | Retention | Typically 5% capped; released progressively | | DLP | Typically 12 months | | Dispute resolution | Mediation → Arbitration (SIA Arbitration Rules) | ### Key Clauses | Clause | Subject | Key Points | |--------|---------|------------| | 1 | Definitions | Key defined terms | | 2 | Architect's duties | Certification, instruction, supervision | | 11 | Variations | Architect instructs; valuation by QS | | 14 | Contract sum adjustment | Provisional sums, PC sums, prime cost | | 23 | EOT | Written notice required; Architect certifies | | 24 | Delay certificate & LDs | Architect issues delay certificate; LDs apply | | 25 | Completion certificate | Architect certifies substantial completion | | 27 | Maintenance & defects | Contractor rectifies during DLP | | 30 | Certificates & payment | Architect certifies; Employer pays within 30 days | | 31 | Payment terms | Interim, progress, final payments | | 32 | Set-off and counterclaim | Employer's right to set off | | 33 | Determination by Employer | Default, insolvency, abandonment | | 34 | Determination by Contractor | Non-payment, employer interference | | 37 | Arbitration | Disputes referred to arbitration | ### SIA vs PSSCOC Key Differences | Feature | SIA | PSSCOC | |---------|-----|--------| | Sector | Private | Public (government) | | Administrator | Architect | Superintending Officer | | Payment cert | Architect certifies | SO certifies | | Nominated subcon | Yes (extensive provisions) | Less common | | Payment period | 30 days from certificate | Per contract terms | | Dispute resolution | Mediation → Arbitration | Mediation → Arbitration | | Standard of independence | Architect has dual role (employer's agent + certifier) | SO is Employer's agent | --- ## SOP Act {#sop-act} ### Building and Construction Industry Security of Payment Act (Cap. 30B) ### Purpose - Ensures **timely payment** in the construction industry - Creates a **right to progress payments** regardless of contract terms - Provides **statutory adjudication** as fast-track dispute resolution for payment disputes ### Key Provisions | Section | Subject | Key Points | |---------|---------|------------| | 5 | Right to progress payments | Every person who carries out construction work has a right to payment | | 6 | Amount of progress payment | Based on contract terms; if silent, based on value of work done | | 10 | Payment claims | Served by claimant on respondent; must state claimed amount | | 11 | Payment responses | Respondent must serve response within 21 days (or contract period) | | 12 | Entitlement to make adjudication application | If payment response not served, or dispute on amount | | 13 | Adjudication application | Must be made within 7 days after entitlement arises | | 15 | Adjudication response | Within 7 days of receiving the application | | 17 | Determination | Adjudicator determines within 7-14 days | | 21 | Direct payment from principal | If respondent fails to pay, claimant may seek payment from higher-tier party | | 22 | Lien on unpaid goods | Right to lien on unfixed goods | | 36 | No contracting out | Provisions cannot be contracted out of | ### Critical Timelines | Action | Timeline | |--------|----------| | Payment claim | Per contract or monthly (last day of month) | | Payment response | 21 days from payment claim (or contract period, whichever shorter) | | Adjudication application | Within 7 days after entitlement arises | | Adjudication response | 7 days from receiving application | | Adjudicator's determination | 7 days (extendable to 14 days with consent) | | Payment of adjudicated amount | 7 days from determination | ### Key Principles 1. **Pay first, argue later** — adjudication decisions must be complied with; challenge in court/arbitration later 2. **Cannot contract out** — any clause purporting to exclude SOP Act rights is void 3. **Repeat claims** — claimant can serve fresh payment claim for same work in next payment cycle 4. **"Smash and grab"** — if no payment response served, respondent cannot raise reasons for withholding in adjudication ### 2018 Amendments (Key Changes) - Expanded definition of "construction work" - Clarified cross-contract set-off limitations - Strengthened adjudication enforcement provisions --- ## BCA Regulatory Framework {#bca} ### Building and Construction Authority - Statutory board under Ministry of National Development - Regulates construction industry in Singapore - Website: https://www1.bca.gov.sg/ ### Key Functions - Building plan approval and permits - Contractor registration (financial grading: CW01-CW02, L1-L6, A1-A2, C1-C3) - Construction quality management (CONQUAS) - Safety regulations (WSH Act coordination) - Green building requirements (Green Mark scheme) - Buildability and constructability requirements - Procurement frameworks and standard contract forms ### BCA Official Resources & Downloads #### Standard Contract Forms - **PSSCOC landing page**: https://www1.bca.gov.sg/growth-and-transformation/procurement/standard-contract-forms/public-sector-standard-conditions-of-contract-psscoc/ - **PSSCOC for Construction Works 2020 (8th Ed, Jul 2020)** [PDF]: https://www1.bca.gov.sg/docs/default-source/docs-corp-procurement/psscoc-for-construction-works-2020.pdf - **PSSCOC for Design & Build 2020 (7th Ed, Jul 2020) — List of Amendments** [PDF]: https://www1.bca.gov.sg/docs/default-source/docs-corp-procurement/list-of-amendments-psscoc-design-build-2020.pdf - **Standard Contract Forms overview**: https://www1.bca.gov.sg/growth-and-transformation/procurement/standard-contract-forms/ - Note: PSSCOC Construction Works Cl 4.5(2) was amended on 21 June 2024 — always check the latest List of Amendments #### Procurement Frameworks - **Procurement main page**: https://www1.bca.gov.sg/growth-and-transformation/procurement/ - **Collaborative Contracting**: https://www1.bca.gov.sg/growth-and-transformation/procurement/progressive-procurement-approaches/collaborative-contracting/ - **Early Contractor Involvement (ECI)**: https://www1.bca.gov.sg/growth-and-transformation/procurement/progressive-procurement-approaches/early-contractor-involvement-eci/ - **NEC4 Contract launch in Singapore**: https://www1.bca.gov.sg/resources/newsroom/launch-of-nec4-contract-for-construction-and-engineering-projects-in-singapore/ #### Circulars - **BCA Circulars page**: https://www1.bca.gov.sg/resources/circulars/ - Check for circulars on: cost-sharing schemes, material cost adjustments, ex-gratia frameworks, COVID/geopolitical disruption relief #### Safety & Standards - **Building Control Act**: https://www1.bca.gov.sg/safety-and-standards/building-control-act/ - **Construction Quality (CONQUAS)**: https://www1.bca.gov.sg/safety-and-standards/construction-quality/ - **Applications & Licences**: https://www1.bca.gov.sg/safety-and-standards/applications-and-licenses/ #### Growth & Transformation - **Industry Transformation Map (ITM)**: https://www1.bca.gov.sg/growth-and-transformation/built-environment-industry-transformation-map-itm/ - **Manpower**: https://www1.bca.gov.sg/growth-and-transformation/manpower/ - **Grants & funded programmes**: https://www1.bca.gov.sg/growth-and-transformation/grants-and-funded-programmes/ - **e-Services / Key Construction Info**: https://www1.bca.gov.sg/e-services/key-construction-information/ ### Contractor Registration | Grade | Tendering Limit | |-------|----------------| | CW01 | Up to $325,000 | | CW02 | Up to $650,000 | | L1 | Up to $1.3M | | L2 | Up to $3.25M | | L3 | Up to $6.5M | | L4 | Up to $13M | | L5 | Up to $40M | | L6 | Up to $85M | | A1 | Up to $200M | | A2 | Unlimited | | C1-C3 | Civil engineering (separate grading) | --- ## SIArb {#siarb} ### Singapore Institute of Arbitrators ### Membership Pathway | Level | Requirements | |-------|-------------| | Associate | Entry-level; relevant qualifications | | Member | Entry Course + experience | | Fellow | Fellowship Assessment Course + substantial experience | ### Entry Course - Covers: arbitration law, procedure, evidence, drafting awards - Assessment: written examination - Prepares for appointment as arbitrator in construction disputes ### Fellowship Assessment Course - Advanced: complex arbitrations, multi-party disputes, expert evidence - Mock arbitration exercises - Assessment: written + oral components ### SIArb Arbitration Rules - Commonly used in Singapore construction arbitrations - Referenced in both SIA and PSSCOC as dispute resolution mechanism - Administered by SIArb secretariat - Compatible with SIAC (Singapore International Arbitration Centre) for international disputes ### SMC Conflict Avoidance Board (CAB) - Standalone rules by Singapore Mediation Centre - Can be plugged into any contract - 4 functions: dispute avoidance, informal assistance, mediation, determination - Primary emphasis on **dispute avoidance** (proactive) vs FIDIC DAAB (reactive) - Cheapest ADR mechanism available - Combines avoidance + mediation + determination in one framework