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PF3203 FACTS ISSUES

(A) Whether the Contractor BC is entitled to payment in respect of the Interim

Certificates 1 to 5
(B) Whether the order, given by the Architect in respect of the extra drainage works,

is a Direction. If not, what is it? And does it entitle the Contractor BC to claim anything against the Employer RR (for example, an increase in the contract sum and extension of time) LAW APPLICABLE (A) SIA Cl. 31(1) Interim Payments The Contractor shall be entitled to interim payments for the Works carried out []. BCISP Act S5 Entitlement to progress payments Any person who has carried out any construction works [] under a contract is entitled to a progress payment. SIA Cl. 31(13) Effect of Architects Certificate [] in the absence of fraud or improper pressure or interference by either party, full effect by way of Summary Judgment or Interim Award or otherwise shall, in the absence of express provision, be given to all decisions and certificates of the Architect [] whether for payment or otherwise, until final judgment or award, [] such decisions and certificates shall be binding on the Employer []. SIA Cl. 31(16) Payment of Contractor The Contractor will be paid Interim Payment on the date immediately upon the expiry of 35 days after the date the tax invoice is submitted to the Employer. BCISP Act S8. (1)(b)(i) Due date for payment Where a construction contract provide for the date on which a progress payment becomes due and payable, the progress payment becomes due and payable on the date immediately upon the expiry of 35 days after the Contractor submits to the Employer a tax invoice for the progress payment. SIA Cl. 37(6) Interest

An arbitrator or the Courts shall have power to award interest at full commercial rates in favor of the Contractor to take account of under certification or underpayment at any stage of the contract []. BCISP Act S8. (5)(a) Due date for payment The interest payable on the unpaid amount of a progress payment that has become due and payable shall be at the rate specified in or determined in accordance with the terms of the contract. Conclusion The Best Contractors Pte Ltd is entitled to payment in respect of the Interim Certificates 1 to 5 regardless of the Rich Realty Pte Ltds claim on the defects of another building. And the payment becomes due and payable on the date immediately upon the expiry of 35 days after the BC submits the tax invoice to the RR. Interest may apply where reasonable. (B) SIA Cl. 1(3)(f) Principal Directions The principle matters under the Contract in respect of which the Architect shall have power to give directions as to alter or vary a previous direction. Cl. 1(4)(a) Principal Instructions The principal matters under the Contract in respect of which the Architect shall have power to give instruction are [] to vary the permanent work where this is desired by the Architect []. Cl. 1(5) Classification by Architect not binding [] if after 28 days from receipt of an order expressed as a direction [] the Contractor has not disputed its classification [], the Contractor shall be conclusively deemed to have undertaken to comply with the direction without an increase in the Contract Sum []. Cl. 12 Variations and Valuation of Additional Payments o 12(2)(a)&(f) Definition of variation The term variation shall mean the addition of further work or changes in the plans, layouts, or dimensions of the works. o 12(3) Measurement of variations All variations required by the Architect shall be valued by measurement or calculation by the Quantity Surveyor []. o 12(4) Valuation of variations

Variations shall be valued as closely as possible on the basis of the Contractors prices []. o 12(5)(a) Payment of variations The value of all variations shall be deducted from the Contract Sum and shall be payable to the Contractor on interim certificates in accordance with Cl. 31 of these Conditions provided that the variation has been ordered in writing by the Architect or confirmed in writing by or to the Architect in accordance with the requirements of Cl. 1(1) of these Conditions, and that in the case of a written direction the Contractor has protected his position pursuant to clause 1(5) of these Conditions. Cl. 23(1)(f) Grounds for Extension of Time The Contract Period and the Date of Completion may be extended and recalculated [] by such further periods and until such further date as may reasonably reflect any delay in completion which, not withstanding due diligence and the taking of all reasonable steps by the Contractor to avoid or reduce the same, has been caused by Architects instruction under clause 1(4)(a) []. Conclusion Under clause 1.4, the Contractor can classify the Architects order as an Instruction; hence, under clause 1.5, within 28 days upon receipt of such order from the Architect, the Contactor should send his dissent to the Architect. Under clause 1.3, the Architect is entitled to alter his previous direction and change it to an instruction. If that is the case, the Contractor is then entitled to additional payments on the interim certificate for extra drainage works and extension of time. Failing to do so would entitle the Contractor to interest where reasonable; and the Employer may not be entitled to claim for liquidated damages.