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Singapore: The Second Persero Case

Christopher Seppälä, partner at White & Case in Paris, reports on a judgment of July 16, 2014 of the Singapore High Court enforcing a "binding" but not "final" decision of a dispute adjudication board under the FIDIC Conditions of Contract for Construction 1999 (the so-called "Red Book"). He says it is to be welcomed as it will facilitate the cash flow of contractors in the construction industry.

PT Perusahaan Gas Negara (Persero) TBK v CRW Joint Operation (Indonesia) emphasises the importance, when interpreting the FIDIC disputes clause, of giving effect to its intention to facilitate the cash flow of contractors, and denies that failure to comply with a "binding" but not "final" decision of a dispute adjudication board is to be interpreted as giving rise to a dispute separate from the one underlying the dispute adjudication board decision itself.

A detailed article on this case entitled "Singapore Contributes to a Better Understanding of the FIDIC Disputes Clause: The Second Persero Case" will be published in the January 2015 issue of The International Construction Law Review. An adapted version of the condensed article herein was published in the November 10, 2014 issue of Global Arbitration Review.

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