Construction Claims Using Security Of Payment (“SOP”) Act

Dear visitors,

For debt recovery in Singapore, it does not always mean to refer to debt collection agency coming to your office or your home doors – screaming, mocking or embarrassing you. They have their limits and constraints to use the full extent of law against you if you know how to handle them. For us,  there are three major areas of claims or debt recovery  that can be categorised as follows:

1) Construction  Claims:

For construction claims or debt recovery exceeding S$10,000/- and to millions of dollars, the BCA Industry Security Of Payment (SOP) Act, came into effect 1 Oct 2005 can apply. The main principles of SOP Act are as follows:

1.1) To improve by upholding rights of parties’ entitlement to progress payment for work done and goods/services supplied.

1.2) To provide quick and low-cost resolution of payment disputes through adjudication.

1.3) Any party who has carried out construction work or supplied goods or services is entitled to payments.

1.4) “Pay when paid” clause used in is being made unenforceable.

The above is just a summary of Security Of Payment, for more details do contact us for more discussion. Besides SOP Act 2005, one has to know other construction law pertaining to the knowledge of Singapore Institute of Architects Conditions of Contract (SIACOC) and Public Sector Standard Conditions of Contract (PSSCOC) are equally important in any VO (variation order) and EOT (extension of time) claims as well as serving notice of EOT and force majeure to protect one’s own company interests.

If you are the building or M&E subcontractors and are facing issues due to non-payments from main contractors for many months, take this opportunity now to call and discuss with us. Do not delay further as you will face even more cash flow issues as the days pass by.

2) Small Claims Recovery:

For small claims, it has to depend on whether the amount you want to recover is more or less than S$10,000.00. For less than S$10,000.00, it can be handled at Small Claims Tribunal or some of us call it, “small claims court”. Proper and have to ensure before any success. For more than S$10,000.00, substantial documentation and records have to put in place before ensuring the victory of the debt recovery including mutual agreement from both parties to proceed to claim each other.

You can be a supplier or retailer, when there is a contract being agreed or a PO being issued, you have the legal rights to recover your monies after your goods delivered or services rendered. Hence, you do not have to keep spending time and effort calling and calling or arguing and reasoning with the company or the person who owes you the monies. Be bold and take the route to recover your monies by contacting us. If what is written here speaks about you, then you should really call or email us now. Do not delay further.

Take particular note here, if  the monies you want to recover is less than S$10,000.00, it can be done within one year time frame under the Small Claims Tribunal guideline. As such, do not delay further, resulting in total loss of your monies to recover. Contact us ASAP.

3) Recovery Of Monies From Cheating Cases:

For this type of debt recovery, it involves police and CAD investigation to recover your monies via restitution from the conmen, swindlers or scam syndicates.

Your police report has to be properly prepared and structured out before presenting it to the police station to maximize your success rate of recovery of monies from restitution. Furthermore, time and effort are taken to email and follow up with IO (Investigation Officer) and ASP (Assitant Superintendent) to ensure close monitoring and progress. The amount of monies being cheated will be no limit, it can be a from tens of thousands to a few million dollars!

A lot of people shy away from reporting police as they think is troublesome and tiring. However, the burning question is, if you have assistance to recover substantial monies being cheated, why wait and sit around. Contact us.

One very big case in July 2012 whereby a conman cheated a IT guy over $850,000.00 on a fake condominium sale, in which we handled, check it out on the link below:

With the global downturn and little hope of recovery in near future, little or no cash-flow into company due to non from clients (be it developers, main contractors, etc….) in construction industries and other non-construction industries, it is indeed very cash crunch for one to survive in such dire situation on non or little cash-flow circumstances. OR the other two situations mentioned above, one must be willing to take the initiative and the courage to recover one’s own monies.

One must also understand, it is not by sheer effort and strength of calling, calling and keep calling your debtors’ clients will get your monies back from them. There are skill and techniques involved, be it from a few thousand dollars to a few hundred thousand dollars. It requires good writing skill to put records of events that had happened, good documentation and proper paperwork for goods and services rendered.

Thank you for your time reading the above. In summary of all the above, we provide debt recovery and retailers, applying construction law from Security Of Payment, SIACOC and  PSSCOC for construction claims as well as cheating cases. Believe it, you have taken the important step so far. Do click on our Testimonials tab to find out more.

For free consultation of your particular case before signing of any agreement with us , you can email us  at or call (65) 9047 1152 for more details. Check it out at Debt Recovery Singapore.


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