Recovering Payment & Variation Claim

Recovering Payment & Variation Claim

09 April 2021, Singapore – Following the webinar ASPRI organised in January which saw Mr David Shanmugam talked about the updates to the COVID-19 (Temporary) Act, the Association once again partnered with the Counsel from Netto & Magin LCC to bring our members a webinar titled, “Recovering Payment & Variation Claim” on 9 April 2021.

In the first part of the webinar, Mr Shanmugam explained that most contractors were often asked to perform work which they considered they were entitled to payment in excess of the original sum. To claim the excess payment, one must be prepared to prove the following:

1. That it is extra work not included in the work for which the contract sum is payable
2. That there is a promise expressed or implied to pay for the work
3. That any agent who ordered the work was authorised to do so
4. That any condition precedent to payment imposed by the contract has been fulfilled

Mr Shanmugam then stated that there is no one accepted definition of “variation. However, in a lump sum contract, “variation” may be defined as work not expressly or impliedly included in the work for which the lump sum is payable.

In the second part of the webinar, Mr Shanmugam discussed the various possible scenarios that companies could face when performing their contractual obligations. He cited numerous examples to give the attendees a better understanding of the dos and don’ts.

Before the webinar was concluded, ASPRI members managed to ask Mr Shanmugam several questions and clarified their concerns and doubts. The webinar was attended by over 50 ASPRI member companies and they have found it to be insightful.

Resources:

1. Presentation slides by Mr Shanmugam 1
2. Presentation slides by Mr Shanmugam 2
3. Webinar recording