Construction Settlement Agreement Template for Singapore

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Key Requirements PROMPT example:

Construction Settlement Agreement

"Need a Construction Settlement Agreement to resolve a payment dispute with our subcontractor ABC Construction Pte Ltd over defective works in our commercial building project, with a settlement sum of SGD 2.5 million to be paid in installments by March 2025."

Document background
A Construction Settlement Agreement is utilized when parties involved in a construction project in Singapore need to resolve disputes or claims without proceeding to litigation or arbitration. This document typically arises from issues such as payment disputes, delays, defects, or variations in construction work. The agreement must align with Singapore's construction laws and regulations, including the Building and Construction Industry Security of Payment Act (SOPA) and the Building Control Act. It provides a comprehensive framework for settling all outstanding issues, defining payment terms, establishing completion obligations, and securing mutual releases from future claims.
Suggested Sections

1. Parties: Identification of all parties involved in the settlement, including full legal names and registration details

2. Background: Brief history of the construction project, disputes, and circumstances leading to settlement

3. Definitions: Key terms used tHRoughout the agreement

4. Settlement Sum: Agreed settlement amount and payment terms

5. Release and Discharge: Mutual release of claims and obligations

6. Representations and Warranties: Statements of fact and assurances from both parties

7. Confidentiality: Terms regarding non-disclosure of settlement terms

Optional Sections

1. Outstanding Works: Details of any remaining construction work to be completed (include when settlement includes completion of remaining works)

2. Defects Liability: Ongoing obligations regarding defects (include when settlement includes future defect rectification)

3. Third Party Rights: Provisions regarding subcontractors or other third parties (include when settlement affects third party rights)

4. Tax Provisions: Treatment of GST and other tax implications (include when settlement has significant tax implications)

Suggested Schedules

1. Schedule of Outstanding Payments: Detailed breakdown of settlement sum and payment schedule

2. Schedule of Outstanding Works: List of remaining works to be completed

3. Schedule of Known Defects: List of identified defects and rectification requirements

4. Original Contract Documents: Reference copies of relevant original contract documents

5. Dispute Documentation: Summary of disputes and claims being settled

6. Form of Release: Template for formal release documentation

Authors

Alex Denne

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

Industries

Building Control Act (Cap. 29): Primary legislation governing building works, building standards and safety requirements in Singapore

Building and Construction Industry Security of Payment Act (SOPA): Legislation facilitating payment for construction work done and establishing a fast and low-cost adjudication system to resolve payment disputes

Building Maintenance and Strata Management Act: Legislation governing the proper maintenance and management of buildings and common property

Contracts Act (Cap. 53): Fundamental legislation governing contract formation, validity, and enforcement in Singapore

Limitation Act (Cap. 163): Legislation setting time limits for bringing legal actions, including construction-related claims

Building Control Regulations: Detailed regulations implementing the Building Control Act, covering technical requirements and procedures

Building Control (Buildability and Productivity) Regulations: Specific regulations promoting efficient building methods and productivity in construction

Building Control (Environmental Sustainability) Regulations: Regulations ensuring environmental standards and sustainable practices in construction

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

SIA Standard Forms: Singapore Institute of Architects standardized contract forms widely used in the construction industry

PSSCOC: Public Sector Standard Conditions of Contract providing standardized terms for public construction projects

SCMC Guidelines: Singapore Construction Mediation Centre guidelines for alternative dispute resolution in construction

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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