Singapore legislation
Section 24
of Building and Construction Industry Security of Payment Act 2004
Section 24
Direct payment from principal
(1)
Where a respondent fails to pay the whole or any part of the adjudicated amount to a claimant in accordance with section 22, the principal of the respondent may pay the whole or any part of the outstanding amount in accordance with the procedure set out in subsection (2).
(2)
The procedure by which the principal may make payment to the claimant is as follows:
the principal must serve a notice of payment on the claimant stating that direct payment must be made, and serve a copy thereof on the respondent and the owner (if the principal is not the owner);
the respondent must, if the respondent has paid the adjudicated amount to the claimant, show proof of such payment to the principal and the owner (if the principal is not the owner) within 2 days after receiving the notice mentioned in paragraph (a);
if the respondent fails to show proof of payment in accordance with paragraph (b), the principal is entitled to pay the whole or any part of the outstanding amount of the adjudicated amount to the claimant.
(3)
Where the principal is a licensed housing developer under the Housing Developers (Control and Licensing) Act 1965 with a Project Account opened under section 9 of that Act, the claimant is not entitled to exercise the lien under section 25 or suspend work or supply under section 26 for 21 days after being served the notice of payment under subsection (2)(a) by the principal, unless the principal had previously defaulted on any payment to the claimant under this section in relation to the same contract.
(4)
Any payment by the principal under this section —
may be treated by the principal as payment to the respondent in reduction (by the amount of the payment) of any amount that the principal owes, or may in future owe, to the respondent in connection with the construction work, or the goods or services, concerned; or
may be recovered by the principal as a debt due from the respondent.
(5)
Where the principal has paid the whole or any part of the adjudicated amount under this section, the subsequent setting aside of the relevant adjudication determination does not affect any rights conferred on the principal under this section.