Case and Legislation Notes: Premature Service of Payment Claims Under the Building and Construction Industry Security of Payment Act— Audi Construction Pte Ltd v Kian Hiap Construction Pte Ltd

12 Pages Posted: 14 Jan 2019

See all articles by Benjamin Joshua Ong

Benjamin Joshua Ong

Singapore Management University - School of Law

Date Written: September 1, 2018

Abstract

In Audi Construction Pte Ltd v Kian Hiap Construction Pte Ltd, the Singapore Court of Appeal considered a payment claim to have been validly served although it was served earlier than the contractually stipulated date. This was because the service of the payment claim was "effective" only from the contractually stipulated date, and the claimant had had a "good reason" to serve the payment claim early. This note critically examines the reasoning in Audi vis-à-vis the existing law, the principle of freedom of contract, and the intentions of the parties in that case. In the absence of future judicial elaboration on the "effective service" and "good reason" doctrines, there is a risk that, in future, respondents may draw on these doctrines to delay or frustrate the attempts of claimants to recover payments rightly due to them. Moreover, given that the Court had found that the doctrine of estoppel would have operated in favour of the Claimant anyway, the creation of the "effective service" and "good reason" principles was not necessary.

Suggested Citation

Ong, Benjamin Joshua, Case and Legislation Notes: Premature Service of Payment Claims Under the Building and Construction Industry Security of Payment Act— Audi Construction Pte Ltd v Kian Hiap Construction Pte Ltd (September 1, 2018). Singapore Journal of Legal Studies, Sep 18, pp 128–139, Available at SSRN: https://ssrn.com/abstract=3315131

Benjamin Joshua Ong (Contact Author)

Singapore Management University - School of Law ( email )

55 Armenian Street
Singapore, 179943
Singapore

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