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In Adjudication

South Africa and UK: Adjudication bonds – The missing link in construction dispute resolution?

by and 4 Mins Read

In brief The construction industry faces challenges in enforcing adjudication decisions, limiting its effectiveness outside the UK. Adjudication bonds, emerging from the PFI market, offer a solution by guaranteeing payment of adjudicated sums. These bonds, typically 10-20% of contract value, ensure immediate payment upon noncompliance, reducing the need for lengthy legal proceedings. Successful implementation requires careful drafting and integration into existing contracts. Adjudication bonds incentivize compliance, enhance adjudication’s credibility, and improve project cash flow. This…

In Construction

Hong Kong: Navigating the new construction industry security of payment legislation

by and 7 Mins Read

Overview and Key Provisions In brief On 27 December 2024, the Construction Industry Security of Payment Ordinance (CISPO) was gazetted, following a nine-year consultation process. This long-anticipated legislation will cover construction contracts entered into on or after 28 August 2025. Similar legislation has been in place for some time in various other jurisdictions, such as Australia, Singapore and the United Kingdom. CISPO seeks to remedy improper payment practices in the construction industry by improving contractual…

In Construction

Singapore: Making variation claims – the importance of written records

by , and 4 Mins Read

Written records are of primary importance in construction projects. Not only do they obviate disputes as to alleged happenings, but they also help focus the parties’ attention on any potential adjustment of the contract sum. In Vim Engineering Pte Ltd. v. Deluge Fire Protection (SEA) Pte Ltd. [2021] SGHC 63, the General Division of the Singapore High Court (SGHC) held that a contractor is not entitled to claim for variation works that were carried out pursuant to…

In Construction

Singapore: First Court of Appeal Decision on whether an employer can set off its claim for liquidated damages against a contractor’s payment claim

by , and 7 Mins Read

In Range Construction Pte Ltd v Goldbell Engineering Pte Ltd [2021] SGCA 34, the Singapore Court of Appeal (SGCA) considered, for the first time, whether an employer has the right to set off its claim for liquidated damages against a contractor’s payment claim in an adjudication under the Building and Construction Industry Security of Payment Act (SOPA). The contractor’s payment claim was submitted on 2 December 2019, and the applicable statute was the pre-amendment Building and Construction…