New mediation centre for construction industry disputes

The Singapore Construction Mediation Centre (SCMC), a dedicated mediation centre for construction companies to resolve disputes more quickly, was launched on 12 March by the Singapore Contractors Association (SCAL).

The centre was set up following an increasing demand for mediation in construction disputes—which include mostly common payment disputes, defects and liquidated damages between main and sub-contractors—as reported by Channel News Asia.

“Time management is crucial to achieve profitability in construction projects,” said SCAL president Kenneth Loo at the centre’s launch ceremony. “Hence, it is essential that parties involved in disputes move quickly to resolve them with minimum impact on the respective companies.”

Minister of State for National Development Zaqy Mohamad, who was the guest of honour at the launch, added, “The construction value chain involves many stakeholders with different interests. We recognise that disputes will happen from time to time. However, we should always strive to encourage the early and amicable resolution of potential disputes.”

The inaugural panel of SCMC mediators comprises 24 individuals who hold high management positions in companies within the construction industry and have experience in mediating construction disputes.

To seek mediation through SCMC, at least one of the parties in the dispute has to be a SCAL member or registered under SCAL’s Singapore List of Trade Subcontractors. SCAL currently has about 3,000 members.

Mediation fees range from SGD800 to SGD4,300 per day per party, depending on the claims amount. — Construction+ Online