Demise of the Dual-Track Regime under the Building and Construction Industry Security of Payment Act
Ng Guo Xi & Avril Tay
 SAL Prac 17
It was generally understood in the context of the Building and Construction Industry Security of Payment Act (Cap 30B, 2006 Rev Ed) (“SOP Act”) that there was a dual-track system for progress payments under a construction contract. However, the recent decisions by the Court of Appeal in Shimizu Corp v Stargood Construction Pte Ltd  1 SLR 1338 and Far East Square
Pte Ltd v Yau Lee Construction (Singapore) Pte Ltd  2 SLR 189 now make clear that this system does not exist and that the underlying contract governs a contractor’s entitlement to payment under the SOP Act. In doing
so, the Court of Appeal abolished the notion that there could be a separate, statutory entitlement to payment under the SOP Act. This article attempts to unpack the concept of the “dual-track” system and explore the implications of both decisions by the Court of Appeal.