Question 1

The works for the Construction of Punggol Mall were completed. The Superintending Officer ("SO") issued a Substantial Completion Certificate. Thereafter, there was an inspection by the Authorities prior to issue of the Temporary Occupation Permit ("TOP"). The Authorities requested for handrails to staircases for safe use of the staircases. The SO instructed the Contractor to carry out the installation of handrails to all staircases as a variation. Upon completion of the variation work, the Contractor submitted a Payment Claim in accordance to the contract. The SO inspected the handrail work and was not satisfied with the work and required changes. As the handrail was not completed to SO's satisfaction, the SO did not certify payment and no Payment Response was issued. In compliance with the Security of Payment Act ("SOP Act"), the Contractor issued a Notice of Intention to apply for Adjudication followed with an Application for Adjudication. Assume that the PSSCOC 2014, SOP Act, SOP (Amendment) Act and SOP regulations apply. SO sought your advice as follows:

a) As the handrails were not completed to SO's satisfaction, SO was of the view that (i) the Contractor does not have a right to submit a Payment Claim, (ii) there was no obligation to issue a Payment Response, and (iii) the Contractor was not entitled to apply for Adjudication.

Do you agree with the SO's three views above? Give your reasons. (20 marks)