SOPA adjudication in Singapore: your questions answered
Your main contractor has rejected your payment claim — or simply ignored it. Under Singapore’s Building and Construction Industry Security of Payment Act, you have statutory rights. This guide explains exactly what they are and how to use them.
Tan Joo Seng
Founder & Director. Tyto LLC
What is SOPA and who does it protect?
The Building and Construction Industry Security of Payment Act (SOPA) is a Singapore statute that gives contractors, sub-contractors and suppliers a fast statutory route to recover money owed for construction work or materials supplied. It applies to most construction contracts and supply contracts in Singapore.
SOPA was designed to address a longstanding problem in the construction industry: main contractors withholding progress payments from sub-contractors, leaving downstream parties in severe cash flow difficulty while disputes dragged on for years. SOPA short-circuits this by giving the unpaid party access to a binding determination — typically within seven weeks.
Who does SOPA cover? SOPA protects any party who has carried out construction work or supplied goods under a contract that relates to construction work in Singapore — this includes main contractors, sub-contractors, sub-sub-contractors, and suppliers of materials or plant.
What is a payment claim?
A payment claim is a formal document served by the claimant (the party who has done the work or supplied the goods) on the respondent (the party who owes payment). It sets out the amount claimed and the work or goods it relates to.
Under SOPA, a payment claim must be in writing and must be served in accordance with the contract. It should identify the contract and describe the work done or goods supplied during the relevant period. There is no prescribed form — but the document must comply with SOPA’s requirements to trigger the statutory regime.
Practical tip: Always mark your payment claims clearly as being made under the Building and Construction Industry Security of Payment Act. While this is not strictly required, it removes any ambiguity about whether the statutory regime applies.
What happens after a payment claim is served?
Once a payment claim is served, the respondent has 14 days to serve a payment response if the contract is silent on the period to provide a payment response, or such period as specified in the contract (subject to a maximum of 21 days). The payment response must either accept the claimed amount or set out the amount the respondent proposes to pay and the reasons for any difference.
If the respondent fails to serve a payment response, or serves one that does not pay the full amount claimed, the claimant may lodge an adjudication application.
Practical tip: Always mark your payment claims clearly as being made under the Building and Construction Industry Security of Payment Act. While this is not strictly required, it removes any ambiguity about whether the statutory regime applies.
The adjudication process - step by step
Payment claim served
The claimant serves the payment claim on the respondent under the contract.
Payment response deadine
The respondent serves a payment response within the period stated in the contract or within 14 days if no period is stated in the contract.
Dispute Settlement Period
A seven-day period starting after the payment response period ends. The respondent may amend a payment response or serve a payment response in this period.
Adjudication window opens
The day after the Dispute Settlement Period end, the claimant may lodge an adjudication application. This window is open for 7 days only.
Adjudication application lodged
The claimant lodges the adjudication application with a Singapore Mediation Centre (SMC) authorised nominating body.
Adjudicator appointed
The nominating body appoints an adjudicator within 7 days of the application being lodged.
Adjudication response
The respondent may lodge an adjudication response within 7 days from the date when the adjudication application is served on it.
Determination issued
The adjudicator issues a determination within 14 days (or a longer time if agreed by the parties) after the period when the respondent may lodge an adjudication response.
Payment
The respondent must pay the adjudicated amount if any within the time it is ordered to do so in the determination.
What if the respondent doesn't pay after a determination?
If the respondent fails to pay the adjudicated amount within the required period, the claimant may apply to the Singapore Courts to enforce the determination as if it were a court judgment. The Courts will generally enforce a determination unless the respondent can show a valid ground to set it aside — and these grounds are narrow.
Important warning: SOPA deadlines are strictly enforced. If you miss the 7-day window to lodge your adjudication application, you lose the right to adjudicate that payment claim. The window cannot be extended. If you are approaching this deadline, contact us immediately.
Common questions
Can SOPA be used for claims for retention sums?
Yes, provided that the conditions for the release of the retention sum under the construction contract have been satisfied.
Does SOPA apply if the construction contract does not have any payment claim or certifiation mechanism?
Yes. In such cases, the statutory deadlines in the Act will apply.
Does SOPA apply to supply contracts?
Yes. but with important differences. The respondent can provide its objection at any time before the date for payment. There is no dispute settlement period. Always verify which regime applies to your contract.
ABOUT THE AUTHOR
JS
Tan Joo Seng
Founder & Director, Tyto LLC · SMC Senior Adjudicator · Panel Arbitrator: SIAC, SIArb
IN THIS GUIDE
01
What is SOPA and who does it protect?
03
The adjudication process – step by step.
02
What is a payment claim?
04
What if the respondent doesn’t pay?
05
Common questions
Have a specific question about this topic ?
Book a free 30-minute consultation — we’ll give you plain advice with no obligation.