Singapore legislation
Clause 24
of Building and Construction Industry Security of Payment Bill
Clause 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 make payment of the amount outstanding, or any part thereof, in accordance with the procedure set out in subsection (2).
(2)
The procedure by which the principal may make payment to the claimant shall be as follows:
the principal shall serve a notice of payment on the claimant stating that direct payment shall be made, and serve a copy thereof on the respondent and the owner (if the principal is not the owner);
the respondent shall, if he 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 receipt of the notice referred to in paragraph (a); and
if the respondent fails to show proof of payment in accordance with paragraph (b), the principal shall be entitled to pay the outstanding amount of the adjudicated amount, or any part thereof, to the claimant.
(3)
Where the principal is a licensed housing developer under the Housing Developers (Control and Licensing) Act (Cap. 130) with a project account opened under section 9 of that Act, the claimant shall not be 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 adjudicated amount or any part thereof under this section, the subsequent setting aside of the relevant adjudication determination does not affect any rights conferred on the principal under this section.