Study on adjudication challenges in Singapore's construction industry: An in-depth analysis of payment disputes and judicial review

Abstract

Adjudication under the Building and Construction Industry Security of Payment Act (SOP Act) is crucial for resolving payment disputes in Singapore's construction sector. Despite its effectiveness, parties often resort to litigation to challenge adjudication decisions. This study presents a comprehensive analysis of adjudication challenges in Singapore's construction industry, based on recent court cases from 2014 to 2024. The research identifies seven main causes of challenges, including payment disputes, contractual matters, and procedural issues. Analysis shows that only 26% of applications to set aside adjudication decisions were granted by the court, highlighting the need for procedural clarity and consistency. Results emphasize the importance of procedural adherence by all parties, with instances of prematurely lodged Adjudication Applications indicating potential shortcomings. The study recommends ongoing evaluation and refinements to the adjudication framework to improve its effectiveness in addressing payment disputes. Additionally, the introduction of a mathematical model offers a structured framework for stakeholders to quantitatively assess adjudication challenges in Singapore's construction industry. These insights are valuable for industry practitioners, policymakers, and researchers involved in dispute management within the construction sector.