Construction & Infrastructure

Nature of dispute

Construction disputes between contractors and sub-contractors can arise from unclear contractual terms, project delays, failure of compliance with the pre-set project standards or cost overruns. These issues may be protracted which can result in costly delays for everyone involved.

Disagreements can also arise between MSCT, property developers and/or homeowners over the construction, renovation or maintenance of the property. These disputes may be damaging to the reputation of the contractor, developer or MCST and may affect their relationships with their clients.

How we can help

Mediation

Mediation is a voluntary process where a neutral third-party, the mediator, facilitates the disputants’ negotiation process for a private and amicable settlement.

For such disputes, parties can mediate under SMC’s Commercial Mediation Scheme (for claims above $60,000) or the Small Case Commercial Mediation Scheme (for claims less than or equal to $60,000).

Fees

Parties pay the mediation fees below for the Commercial Mediation Scheme and Small Case Commercial Mediation Scheme.

COMMERCIAL MEDIATION SCHEME FEE
(For disputes above $60,000)
A non-refundable filing fee of $267.50 is to be borne by each party, applicable to all mediations administered by the Singapore Mediation Centre.
Sum in dispute Mediation fees
Above $60,000 and up to $100,000 $963 per party per day
Above $100,000 and up to $250,000 $1,284 per party per day
Above $250,000 and up to $500,000 $2,942.50 per party per day
Above $500,000 and up to $1,000,000 $3,477.50 per party per day
Above $1,000,000 and up to $2,500,000 $4,547.50 per party per day
Above $2,500,000 and up to $5,000,000 $5,617.50 per party per day
Above $5,000,000 and up to $10,000,000 $6,901.50 per party per day
Above $10,000,000 and up to $20,000,000 $8,292.50 per party per day
Above $20,000,000 and up to $50,000,000 $9,897.50 per party per day
Above $50,000,000 $12,037.50 per party per day
* The figures above are in Singapore dollars and inclusive of GST.
SMALL CASE COMMERCIAL MEDIATION SCHEME FEE
(For disputes up to $60,000)
Each party shall be required to pay a non-refundable filing fee of $26.75. The filing fee will be set-off from the mediation fee upon confirmation of the mediation.
Sum in dispute Mediation fees
Up to $20,000 $214 (hourly rate of $53.50)
Above $20,000 and up to $40,000 $299.60 (hourly rate of $74.90)
Above $40,000 and up to $60,000 $385.20 (hourly rate of $96.30)
* The figures above are in Singapore dollars and inclusive of GST.

** Each party will be charged a mediation fee for up to 4 hours of mediation. When the mediation extends beyond the 4 hours, each party will be charged at the applicable hourly rate as indicated above for each additional hour (or part thereof).

Please note that if parties choose their own mediator(s), the selected mediator(s) may charge his/her commercial rates and the above mediation fee will not be applicable.

For more information, please refer to the respective mediation procedures and fees on the Documents & Forms page:

Adjudication

The adjudication regime that SMC administers is governed by the prevailing Building and Construction Industry Security of Payment Act (“Act”), Building and Construction Industry Security of Payment Regulations (“Regulations”) and SMC Adjudication Rules.

The prevailing legislation can be found here.

Lodging an adjudication application

Parties should consider getting legal advice before filing an Adjudication Application.

A Party must complete the applicable prescribed form and ensure that it complies with the prevailing Act and Regulations.

A Claimant can either:

  • submit two (2) signed copies of the Adjudication Application Form, two (2) sets of the accompanying documents and payment by hand.

or

  • submit by email to smc_sop@sal.org.sg under the prevailing Supplementary Rules for Electronic Adjudication Lodgment.

SMC does not accept lodgement by fax or post.

All lodgments shall be made during SMC’s opening hours as follows:

Monday to Friday
(excluding Public Holidays):
9.00am to 4.30pm
Eve of Christmas/New Year/ Chinese New Year: 9.00am to 12.00pm

Notice

SMC is the Authorised Nominating Body which administers adjudication applications under the Building and Construction Industry Security of Payment Act. As a neutral administrator, SMC is unable to assist or advise parties pertaining to the process, completion of forms and/or accompanying documents, or possible outcomes of the adjudication. Should parties require assistance or clarification in relation to these matters, you are encouraged to seek independent legal advice. You may wish to view the participating law firms with adjudication expertise or visit The Law Society of Singapore.

Payment for the Adjudication Application Fee and the deposit for the Adjudicator Fee (“Fees”)

A Claimant can either make payment via:

  • A cheque of a law firm or cashier’s order (if the deposit is more than S$5,000) and made out to: “Singapore Mediation Centre” if they are submitting the Adjudication Application by hand.

or

  • A telegraphic transfer to SMC, as per the details here.

More information is available on the BCA’s website.

For more information, please refer to the adjudication rules, procedure, fees and other information on the Documents & Forms page:

Neutral evaluation

Alternatively, SMC also offers neutral evaluation where an unbiased third party hears your case either through written briefs and/or oral presentations.

SMC works with a distinguished panel of neutral evaluators comprising former Supreme Court judges, judicial commissioners and senior counsel with extensive experience and knowledge in deciding legal issues.

This adjudicatory process, where the neutral evaluator considers the merits of your case, such as technical evaluations or points of law, allows contending parties to better understand the strengths and weaknesses of their case.

Parties can choose whether to have a binding opinion or not and opt for a documents-only evaluation or an evaluation with hearing(s). Where parties choose to have a binding opinion, neutral evaluation allows parties to have a speedy and cost-effective ruling, avoiding hefty litigation or arbitration bills. The process is entirely private and confidential.

Fees

Parties will have to pay SMC’s administrative fee, which is dependent on the sum of the dispute set out below.

SMC’S ADMINISTRATIVE FEE
Sum in dispute Mediation fees
Up to $500,000 $749
$500,001 to $1,000,000 $1,070
$1,000,001 to $5,000,000 $1,605
Above $5,000,000 $2,140
* The figures above are in Singapore dollars and inclusive of GST.

In addition, they will have to pay the neutral evaluator whose rate may range from $500-$1,200 per hour depending on their experience. The cost of the neutral evaluation will depend on the total number of hours spent by the neutral evaluator, which in turn is dependent on the nature and complexity of the dispute.

Other optional expenses include charges for venue and refreshments.

For more information, please refer to the neutral evaluation rules and fees on the Documents & Forms page:

Nature of dispute

Infrastructure needs in Asia are on the rise, with a projected $2.3 trillion to be spent on infrastructural projects each year from 2016 to 2030, according to the Asian Development Bank.

Often, when issues arise from such projects, parties may have differing opinions for resolving the issues and require the knowledge of technical specialists. If such disputes are not resolved quickly or managed well, they can result in increased costs or project delays.

How we can help

SMC is one of the Authorised Appointing Bodies (AAB) under the Singapore Infrastructure Dispute-Management Protocol (SIDP), which was launched following the deliberations of a Working Group convened by the Ministry of Law which included SMC.

As an AAB under the SIDP, SMC provides parties with access to a panel of highly-regarded professionals with diverse expertise and experiences who may be engaged as Dispute Board (DB) members.

Parties will also have access to other value-added services including the appointment of DB members, provision of meeting facilities, escrow services and administrative services.

One key feature of the SIDP is dispute avoidance. It is thus strongly recommended that the SIDP be adopted from the start of the project as a collaborative tool to enable early and efficient management of differences and disputes.

The SIDP sets out a carefully-tailored procedure for the appointment and involvement of a DB. The DB will follow the project from start to finish and assist in managing potential disputes through a range of dispute avoidance and dispute resolution processes such as mediation, rendering an opinion and/or making a formal determination.

SIDP is designed and recommended for construction or infrastructure projects of more than $500 million in value and can be easily incorporated into any construction or infrastructure contract using the model clause.

For more information, please refer to the protocol on the Documents & Forms page:

To begin a dispute resolution process

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    Download the Commercial Mediation Scheme Request for Mediation form here.

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    Send the completed form to SMC by fax at +65 6333 5085 or email to enquiries@mediation.com.sg.

  • 4

    Payments should be made either via cheque or bank transfer. Cheque to be made payable to “Singapore Mediation Centre”.

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    Download the Small Case Commercial Mediation Scheme Request for Mediation form here.

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    Send the completed form to SMC by fax at +65 6333 5085 or email to enquiries@mediation.com.sg.

  • 4

    Payments should be made either via cheque or bank transfer. Cheque to be made payable to “Singapore Mediation Centre”.

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    An applicant must complete the Adjudication application form (AA-1) and ensure that it complies with the Act.

  • 3

    A Claimant can either:

    • submit two (2) signed copies of the Adjudication Application Form, two (2) sets of the accompanying documents and payment by hand.

    or

    • submit by email to smc_sop@sal.org.sg under the prevailing Supplementary Rules for Electronic Adjudication Lodgment
  • 4

    SMC does not accept lodgement by fax or post.

  • 5

    All lodgments shall be made during SMC’s opening hours as follows:

    Monday to Friday
    (excluding Public Holidays):
    9.00am to 4.30pm
    Eve of Christmas/New Year/ Chinese New Year: 9.00am to 12.00pm

     

  • 6

    A Claimant can either make payment via:

    • A cheque of a law firm or cashier’s order (if the deposit is more than S$5,000) and made out to: “Singapore Mediation Centre” if they are submitting the Adjudication Application by hand.

    or

    • A telegraphic transfer to SMC, as per the details here.

To begin a dispute resolution process

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  • 2

    For enquiries and application for the Singapore Infrastructure Dispute-Management Protocol, please contact enquiries@mediation.com.sg.

For more information, please contact SMC at