Contractor Entitlement To Payments Under UAE And Singapore Law

Abstract

This study aimed to investigated and compare legal frameworks in Singapore and the UAE focusing on contractor payment rights, statutory protection, and mechanisms to ensure timely payment. A structured legal research methodology which incorporated doctrinal, non-doctrinal, and comparative approaches was employed to analyse contractor payment rights in Singapore and the UAE. Singapore’s system, driven by the Security of Payment Act (SOPA), the SOPA offers robust statutory protections that ensure contractors’ rights to progress payments and have access to adjudication, effectively mitigating payment delays and disputes. In contrast, the UAE relies on broader principles of good faith under the UAE Civil Transactions Law and provisions of standard forms of contract such as FIDIC and Dubai Municipality contracts. Even though UAE’s frameworks provide structured payment terms, they lack the efficiency and enforceability of Singapore’s statutory approach. Dispute resolution mechanisms also differ, with Singapore’s adjudication offering cost-effective and timely solutions, whereas the UAE's reliance on arbitration can be time-consuming and expensive. It could be argued that UAE could benefit from improvements such as the introduction of a statutory framework akin to SOPA to enhance contractor protection and improve efficiency. In both jurisdictions, further advancements such as the use of digital tools for claims processing and additional safeguards for subcontractors could strengthen the existing system.