NEC4 contract for Singapore construction projects will foster collaborative approach

The new NEC4 form features Optional Y clauses specific to Singapore (12-page / 169KB PDF), known as Y(SG) clauses. The new clauses are intended to help facilitate the use of NEC contracts in Singapore construction projects and allow the contract to be used in line with key Singapore legislation such as the Building and Construction Industry Security of Payment Act 2004 and the Contracts (Rights of Third Parties) Act 2001.

Construction law experts Bernard Ang and Isabelle Chan, both of Pinsent Masons, and Chen Han Toh of Pinsent Masons MPillay, the Singapore joint law venture between MPillay and Pinsent Masons, assisted the NEC drafting committee in drafting the Y(SG) clauses. 

According to Ang, the form is likely to encourage mutual trust and cooperation within Singapore’s construction industry, as demonstrated by the adoption of the NEC suite of contracts by developers in other markets, including the Hong Kong Special Administrative Region (SAR).

“Given the NEC’s positive impact in Hong Kong SAR, the Y(SG) clauses will usher in a new mindset of collaborative contracting in Singapore and put the NEC in a pole position to support the successful delivery of construction projects in Singapore,” Ang said.

Toh said the new form was an exciting development for Singapore that could potentially transform the market’s approach to construction and engineering projects.

“The NEC’s focus on mutual trust, good management, and a collaborative approach to risk management aligns with our vision for the future of the industry. We eagerly anticipate the positive impact this will have on our work,” he added.