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Construction Demand Letter for Singapore

Construction Demand Letter Template for Singapore

A Construction Demand Letter in Singapore is a formal written communication demanding payment for construction work performed under a contract. It serves as a crucial pre-litigation document that complies with the Building and Construction Industry Security of Payment Act (SOPA) and Singapore's construction law framework. The letter typically details the outstanding payment, references the relevant contract terms, and specifies the consequences of non-payment.

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What is a Construction Demand Letter?

A Construction Demand Letter is a critical document used in Singapore's construction industry when payment for completed work remains outstanding. It serves as a formal notice before initiating legal proceedings under the Building and Construction Industry Security of Payment Act (SOPA). The letter should clearly state the payment claim, reference relevant contract provisions, and specify the timeline for payment. It's an essential step in the payment dispute resolution process and can be used by contractors, subcontractors, or suppliers seeking payment for work completed or materials supplied.

What sections should be included in a Construction Demand Letter?

1. Recipient Details: Full name, address, and position of the recipient

2. Project Reference: Specific details of the construction project including contract number and location

3. Payment Details: Amount owed, payment history, and payment terms from the contract

4. Breach Description: Clear description of the payment breach or default

5. Demand Statement: Specific demand for payment including exact amount and deadline

6. Legal Consequences: Statement of intended legal action if demand is not met

What sections are optional to include in a Construction Demand Letter?

1. Previous Communications: Summary of prior attempts to resolve the matter - include when there has been significant prior correspondence

2. Interest Claims: Details of interest claimed on outstanding amounts - include when contract allows for interest charges

3. Alternative Resolution Options: Proposed alternative settlement options - include when willing to negotiate or accept partial payment

What schedules should be included in a Construction Demand Letter?

1. Payment Records: Documentation of payments made and outstanding

2. Contract Excerpts: Relevant sections of the construction contract

3. Progress Certificates: Certified completion of work stages

4. Previous Correspondence: Copies of relevant prior communications

5. Supporting Documentation: Any additional evidence supporting the claim

Authors

Alex Denne

Head of Growth (Open Source Law) @ Ƶ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

Singapore

Publisher

Ƶ

Document Type

Demand Letter

Cost

Free to use
Relevant legal definitions


























Clauses




















Industries

Building and Construction Industry Security of Payment Act (SOPA): Primary legislation governing payment disputes in construction industry, including payment claim procedures and timelines

Building Control Act: Regulates building works and construction standards in Singapore

Building Maintenance and Strata Management Act: Governs the maintenance and management of buildings and common property

Contract Law of Singapore: Fundamental principles governing contract formation, performance, and remedies in Singapore

Limitation Act: Sets time limits for bringing legal claims and enforcement actions

Singapore Standards for Construction: Technical standards and specifications for construction works in Singapore

BCA Regulations: Building and Construction Authority's regulatory requirements for construction projects

Public Sector Standard Conditions of Contract (PSSCOC): Standard contract terms for public sector construction projects

Mediation Act: Framework for mediation proceedings in Singapore

Arbitration Act: Governs domestic arbitration proceedings in Singapore

Singapore International Arbitration Act: Regulates international arbitration proceedings in Singapore

Architects Act: Regulates architectural services and professional conduct

Professional Engineers Act: Governs engineering practice and professional standards

Licensed Builders Requirements: Licensing conditions and obligations for construction companies

Employment Act: Basic employment terms and working conditions in Singapore

Workplace Safety and Health Act: Occupational safety and health requirements for construction sites

BCA Guidelines: Best practices and technical guidelines issued by Building and Construction Authority

CIJC Guidelines: Construction Industry Joint Committee guidelines for industry practices and standards

Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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