Design and Build Agreement (Singapore)
DESIGN AND BUILD AGREEMENT
Date: [Agreement Date]
PARTIES
This Design and Build Agreement ("Agreement") is entered into between:
(1) [Employer Name] (UEN: [Employer UEN]) of [Employer Address] ("the Employer"); and
(2) [Contractor Name] (UEN: [Contractor UEN], BCA Licence No.: [BCA Licence]) of [Contractor Address] ("the Contractor").
1. PROJECT AND SCOPE
1.1 Project: [Project Name]
1.2 Site: [Site Address]
1.3 The Contractor shall carry out and complete the design and construction of the Works in accordance with the Employer's Requirements, the Contractor's Proposals, and the Contract Documents.
1.4 Employer's Requirements: [Employers Requirements]
2. DESIGN OBLIGATIONS
2.1 The Contractor assumes full design responsibility for the Works and warrants that the completed Works will comply with the Employer's Requirements and all applicable Singapore building codes, including the Building Control Act 1989 (Cap. 29), the Fire Safety Act 1993 (Cap. 109A), and regulations issued thereunder.
2.2 The Contractor shall appoint a Qualified Person (QP) as required by the Building Control Act to submit and obtain approval of building plans from the Building and Construction Authority (BCA).
2.3 Where applicable, the Contractor shall design the Works to achieve [Employers Requirements] including any Green Mark certification requirements under the Building and Construction Authority's Green Mark Scheme.
3. CONTRACT SUM AND PAYMENT
3.1 Contract Sum: [Contract Sum] (inclusive of GST at the prevailing rate).
3.2 The Contract Sum is a lump sum and includes all design fees, construction costs, preliminaries, overheads, and profit.
3.3 Payment Schedule: [Payment Schedule]
3.4 Retention: [Retention Rate] of each progress payment, to be released: 50% upon issuance of Temporary Occupation Permit (TOP) and 50% upon expiry of the Defects Liability Period.
3.5 Payment Claims and Responses: All payment claims and payment responses shall comply with the Building and Construction Industry Security of Payment Act 2004 (Cap. 30B) ("SOPA"). Payment response periods shall be as prescribed by SOPA.
4. PROGRAMME AND COMPLETION
4.1 Possession of Site: [Possession Date]
4.2 Completion Period: [Completion Period] from the date of possession of site.
4.3 Defects Liability Period: [DLP]
4.4 Liquidated Damages: In the event the Contractor fails to complete the Works by the Completion Date, the Contractor shall pay to the Employer liquidated and ascertained damages at the rate of [Liquidated Damages], which the parties agree is a genuine pre-estimate of the Employer's loss.
5. INSURANCE AND BONDS
5.1 The Contractor shall, at its own cost, maintain throughout the contract period: (a) Contractor's All Risks (CAR) insurance covering the full replacement value of the Works; (b) Public liability insurance with a minimum limit of S$5,000,000 per occurrence; and (c) Professional Indemnity insurance for design liability with a minimum limit of S$2,000,000 per claim.
5.2 The Contractor shall provide a performance bond of 10% of the Contract Sum from a licensed financial institution approved by the Employer.
6. VARIATIONS
6.1 The Employer may instruct variations to the Works. Variations must be instructed in writing. The Contractor shall provide a variation quotation within 14 days of a variation instruction. No variation work shall be carried out without the Employer's written acceptance of the quotation, except in cases of emergency.
7. DISPUTE RESOLUTION AND GOVERNING LAW
7.1 This Agreement is governed by and construed in accordance with the laws of Singapore.
7.2 Any dispute shall first be referred to mediation at the Singapore Mediation Centre. If not resolved within 28 days of referral, either party may refer the dispute to adjudication under SOPA, or to arbitration before the Singapore International Arbitration Centre (SIAC) in accordance with the SIAC Rules.
EXECUTION
Signed by [Employer Name] (Employer):
Signature: _________________________ Name: _________________________ Designation: _________________________ Date: _________________________
Signed by [Contractor Name] (Contractor):
Signature: _________________________ Name: _________________________ Designation: _________________________ Date: _________________________
Employer
________________
Signature
Contractor
________________
Signature
What Is a Design and Build Agreement (Singapore)?
A Design and Build Agreement in Singapore records the terms the parties accept and the commitments each makes to the other.
Under a design and build procurement model, the employer engages one Design and Build Contractor who produces the design, obtains regulatory approvals from BCA, and constructs the works — eliminating the traditional separation between architect and main contractor. The Qualified Person (QP) appointed under Section 8 of the Building Control Act 1989 must be a registered architect under the Architects Act 1991 (Cap. 12) or a registered professional engineer under the Professional Engineers Act (Cap. 253), and assumes statutory responsibility for the design's compliance with the Building Control Regulations 2003 and the Singapore Code on Accessibility in the Built Environment.
The Building and Construction Industry Security of Payment Act 2004 (SOPA), administered by the BCA, governs progress payment claims and adjudication for design and build contracts. Under SOPA, the contractor has a statutory right to serve payment claims at regular intervals, and the employer must respond with a payment response within the prescribed timeline. Failure to serve a payment response entitles the contractor to apply for adjudication, and the adjudicator's determination is temporarily binding until resolved by arbitration or litigation.
Standard form contracts commonly used for Singapore design and build projects include the Singapore Institute of Architects (SIA) Design and Build Contract, the REDAS Design and Build Contract (for private developers who are members of the Real Estate Developers' Association of Singapore), and the Public Sector Standard Conditions of Contract (PSSCOC) Design and Build variant for government projects administered by the Building and Construction Authority.
Professional indemnity insurance is a critical element of Singapore design and build arrangements. The Design and Build Contractor must maintain professional indemnity coverage for design liability because the contractor, not a separate consulting architect, bears design risk. The Board of Architects Singapore and the Professional Engineers Board Singapore require registered professionals to maintain minimum levels of professional indemnity insurance as a condition of their practising certificates.
The Real Estate Developers Association of Singapore (REDAS) publishes a standard form Design and Build Contract widely used for private residential and commercial developments. Government agencies including the Housing and Development Board (HDB), the Land Transport Authority (LTA), and JTC Corporation use the Public Sector Standard Conditions of Contract (PSSCOC) Design and Build variant for public sector projects. Each standard form allocates risk, payment, variation, and dispute resolution mechanisms differently, and parties should select the form appropriate to the project type and procurement authority.
When Do You Need a Design and Build Agreement (Singapore)?
A Design and Build Agreement is needed when a Singapore project owner (the employer) seeks single-point responsibility for the design and construction of a building or infrastructure project, avoiding the coordination risks inherent in the traditional procurement model where the architect and main contractor are engaged separately.
Private residential and commercial developments in Singapore frequently adopt design and build procurement when the employer prioritises speed and cost certainty. The employer issues an Employer's Requirements document specifying the functional and performance requirements, and the Design and Build Contractor responds with a Contractor's Proposals document containing the design, specifications, programme, and lump sum price. The BCA Plan Approval process under the Building Control Act 1989 and the URA Development Application under the Planning Act 1998 (Cap. 232) are handled by the contractor's appointed QP.
Government and public sector projects in Singapore administered by agencies such as the Housing and Development Board (HDB), the Land Transport Authority (LTA), and JTC Corporation commonly use design and build procurement under the PSSCOC framework. The Government Procurement Act 1997 (Cap. 120) and Government Procurement Regulations apply to the tender process for public sector design and build contracts.
Industrial and infrastructure projects — including factories, warehouses, data centres, and telecommunications infrastructure in Jurong Industrial Estate and Changi Business Park — use design and build contracts where the employer requires turnkey delivery including mechanical, electrical, and plumbing (MEP) systems, fire protection systems compliant with the Fire Safety Act 1993 (Cap. 105A) administered by the Singapore Civil Defence Force (SCDF), and IT infrastructure.
Addition and alteration (A&A) works to existing buildings in Singapore may also use design and build agreements where the scope includes both design modifications (requiring BCA Plan Amendment approval) and construction works. The agreement must address the contractor's responsibility for structural assessments of the existing building under the Building Control (Periodic Structural Inspection of Existing Buildings) Regulations.
Projectss involving green building certification under BCA's Green Mark scheme benefit from design and build procurement because the contractor controls both design decisions (energy efficiency, sustainable materials) and construction execution (waste management, commissioning) required to achieve the targeted Green Mark rating — Certified, Gold, GoldPLUS, or Platinum.
What to Include in Your Design and Build Agreement (Singapore)
A Singapore Design and Build Agreement must address the following elements to comply with the Building Control Act 1989, SOPA 2004, and standard industry practice as recognised by the Singapore Institute of Architects (SIA), the Real Estate Developers' Association of Singapore (REDAS), and the Building and Construction Authority (BCA).
Party identification requires the employer's and contractor's full legal names and UEN numbers registered with ACRA. For joint ventures, each JV partner's details and the lead JV partner must be specified. The agreement should confirm the contractor's registration with BCA under the Contractors Registration System and specify the contractor's BCA registration grade (e.g., CW01 Grade A1 for unlimited tendering limit or CW02 for civil engineering works).
Employer's Requirements and Contractor's Proposals form the contractual design basis. The Employer's Requirements document sets out the functional brief, performance specifications, site constraints, and regulatory requirements. The Contractor's Proposals respond with detailed design drawings, specifications, a construction methodology statement, and a programme. The agreement must specify the order of precedence between these documents in case of conflict — typically the Employer's Requirements prevail unless the Contractor's Proposals expressly state otherwise with the employer's written approval.
Contract sum and payment schedule define the lump sum price in Singapore dollars, the breakdown of design fees and construction costs, and the schedule of progress payments linked to milestones or monthly valuations. SOPA Section 10 requires payment claims to be served at regular intervals (typically monthly), and the employer must issue a payment response within 21 days of the payment claim. The agreement should align its payment terms with SOPA's mandatory timelines to avoid adjudication disputes.
Qualified Person appointment under the Building Control Act 1989 must be addressed. The Design and Build Contractor appoints the QP (architect or professional engineer) who submits building plans to BCA for Plan Approval under Section 5 and obtains the Permit to Commence Building Works under Section 6. The agreement should clarify whether the QP is the contractor's employee or a sub-consultant, and allocate professional indemnity insurance obligations accordingly.
Design liability and fitness for purpose are central to design and build contracts. Unlike traditional construction contracts where the architect warrants only reasonable skill and care, the design and build contractor typically warrants fitness for purpose — a higher standard meaning the completed works must be fit for the employer's stated purpose. The agreement should explicitly state the design liability standard (fitness for purpose or reasonable skill and care) and specify the professional indemnity insurance coverage amount and duration.
Programme and liquidated damages define the contractual completion date, interim milestones, and the rate of liquidated damages (LAD) payable per day of delay. Under Singapore law as affirmed by the Court of Appeal, LAD clauses are enforceable if they represent a genuine pre-estimate of the employer's likely loss from delay. The agreement should specify extension of time (EOT) provisions for delays caused by employer variations, force majeure, and other qualifying events.
Variations and change management must establish a formal process for the employer to instruct design or construction changes, the contractor's obligation to provide a cost and programme impact assessment before commencing variation works, and the valuation methodology for variations — typically based on contract rates where applicable and reasonable rates where no contract rate exists.
Insurance requirements must specify Contractors' All Risks (CAR) insurance, third-party liability insurance, workmen's compensation insurance under the Work Injury Compensation Act 2019 (WICA) administered by MOM, and professional indemnity insurance for design liability. The forms-legal.com Design and Build Agreement template for Singapore includes dedicated sections for all insurance obligations and BCA compliance requirements.
Defects liability period (DLP) — typically 12 to 24 months from the date of completion — establishes the contractor's obligation to rectify defects at its own cost. The agreement should define the notice procedure for defects, the response time for the contractor, and the employer's right to engage alternative contractors if the design and build contractor fails to rectify within the stipulated period.
Dispute resolution should specify Singapore law as the governing law and either SIAC arbitration under the Arbitration Act 2001 (Cap. 10) or litigation in the Singapore courts as the dispute resolution mechanism. SOPA adjudication operates as a parallel statutory mechanism for payment disputes regardless of the contractual dispute resolution clause.
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Reference this free template in an article, syllabus, or research note:
Forms Legal. (2026). Design and Build Agreement (Singapore) (Singapore) [Legal document template]. Forms Legal. https://forms-legal.com/singapore/business/construction/design-and-build-agreement-singapore
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title = {Design and Build Agreement (Singapore) (Singapore)},
year = {2026},
howpublished = {\url{https://forms-legal.com/singapore/business/construction/design-and-build-agreement-singapore}},
note = {Free legal document template. Based on Companies Act 1967 (Cap. 50)}
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Frequently Asked Questions
Traditional procurement in Singapore separates design responsibility (held by the consulting architect or engineer appointed by the employer) from construction responsibility (held by the main contractor appointed through competitive tender). The employer manages two primary contracts and bears the coordination risk between designer and builder. Design and build procurement consolidates both responsibilities in a single Design and Build Contractor who produces the design and constructs the works. The employer deals with one contractual counterparty, reducing interface risk and typically accelerating the project programme because design and construction can overlap. Under the Building Control Act 1989, the Qualified Person remains personally responsible for regulatory compliance regardless of the procurement model. The SIA Conditions of Contract (9th Edition) is commonly used for traditional procurement, while the SIA Design and Build Contract or REDAS Design and Build Contract is used for design and build projects.
The Building and Construction Industry Security of Payment Act 2004 (SOPA) applies to all construction contracts for works carried out in Singapore, including design and build contracts. Under SOPA Section 4, a construction contract is defined broadly to include any agreement for carrying out construction work or supplying goods or services in connection with construction work. Design and build contracts fall squarely within this definition because they involve both design services and construction work. The contractor has the right to serve monthly payment claims under SOPA Section 10, and the employer must serve a payment response within the prescribed timeline. Failure to respond entitles the contractor to apply for adjudication under SOPA Section 12. Adjudication determinations are temporarily binding and enforceable as a judgment debt. SOPA applies regardless of whether the contract is based on a standard form (SIA, REDAS, or PSSCOC) or a bespoke agreement. However, contracts for residential building work for an owner who intends to reside in the property are excluded from SOPA under Section 4(2)(a).
A Singapore Design and Build Contractor must carry multiple insurance policies. Contractors' All Risks (CAR) insurance covers physical loss or damage to the works during construction, including materials on site and in transit. Third-party liability insurance covers claims by third parties for personal injury or property damage arising from the construction activities. Workmen's compensation insurance is mandatory under the Work Injury Compensation Act 2019 (WICA) administered by MOM for all workers, including subcontractor employees, engaged on the project. Professional indemnity insurance covers the contractor's design liability — a critical requirement for design and build contracts because the contractor assumes design risk that would normally sit with the consulting architect in traditional procurement. The professional indemnity policy should cover the design and build contract value and typically runs for six to twelve years beyond project completion to cover latent defect claims. BCA registration requirements and the Architects Act 1991 and Professional Engineers Act specify minimum professional indemnity coverage for registered professionals.
Under the Building Control Act 1989, a Qualified Person (QP) is a registered architect under the Architects Act 1991 (Cap. 12) or a professional engineer under the Professional Engineers Act (Cap. 253) who is appointed to prepare building plans and supervise building works. In a design and build project, the QP is appointed by the Design and Build Contractor rather than the employer. The QP submits building plans to BCA for Plan Approval under Section 5, applies for the Permit to Commence Building Works under Section 6, supervises the works to confirm compliance with the approved plans and Building Control Regulations 2003, and applies for the Temporary Occupation Permit (TOP) and Certificate of Statutory Completion (CSC). The QP bears personal statutory liability for design compliance regardless of the contractual arrangements between the employer and contractor. The design and build agreement should clearly identify the QP by name and registration number, define the QP's duties, and confirm professional indemnity insurance coverage.
The employer may instruct design changes (variations) after signing the design and build agreement, subject to the variation provisions in the contract. The SIA Design and Build Contract and REDAS Design and Build Contract include formal variation clauses requiring the employer to issue a written variation order, the contractor to assess the cost and programme impact, and the employer to approve the variation before the contractor proceeds. Variations that change the building's gross floor area, height, setback, or use may require amended planning permission from URA under the Planning Act 1998 and amended Plan Approval from BCA under the Building Control Act 1989. The contractor is entitled to additional payment for variations valued at contract rates where applicable or at reasonable rates agreed between the parties. The contractor is also entitled to an extension of time if the variation causes delay to the completion date. Excessive variations that fundamentally alter the scope of works may constitute a breach of the implied term not to prevent or hinder completion, potentially entitling the contractor to treat the contract as repudiated.
Contractor insolvency during a Singapore design and build project triggers significant consequences for both parties. Under the Insolvency, Restructuring and Dissolution Act 2018 (IRDA), the contractor may be placed in judicial management (as a rescue mechanism) or wound up by the court. The employer's rights depend on the insolvency clause in the design and build agreement — most standard form contracts (SIA, REDAS, PSSCOC) give the employer an automatic right to terminate upon the contractor's insolvency. Upon termination, the employer may engage a replacement contractor to complete the works and claim the additional cost from the insolvent contractor's estate. The employer should arrange independent valuation of the works completed to date and materials on site. The employer's claim against the insolvent contractor for additional completion costs, liquidated damages, and defect rectification costs ranks as an unsecured claim in the liquidation unless a performance bond or parent company guarantee is in place. A performance bond — typically 10% of the contract sum issued by a bank or insurer — provides a direct payment mechanism that is independent of the contractor's insolvency.
Singapore design and build contracts typically provide for dispute resolution through a tiered mechanism. The first tier is negotiation between senior representatives of the employer and contractor within a specified period (typically 28 days). The second tier is mediation, commonly through the Singapore Mediation Centre (SMC) or the Singapore International Mediation Centre (SIMC). The third tier is arbitration under the Arbitration Act 2001 (Cap. 10) for domestic contracts or the International Arbitration Act (Cap. 143A) for international contracts, administered by the Singapore International Arbitration Centre (SIAC) or the Singapore Institute of Architects Arbitration Panel. Alternatively, litigation in the Singapore High Court (Construction Division) may be specified. Separately, the Building and Construction Industry Security of Payment Act 2004 provides a statutory adjudication mechanism specifically for payment disputes — this operates in parallel with the contractual dispute resolution mechanism and produces temporarily binding determinations that can be enforced as judgment debts. The employer and contractor cannot contractually exclude SOPA adjudication.
A performance bond in a Singapore design and build contract is a financial guarantee — typically 10% of the contract sum — issued by a bank or insurance company in favour of the employer, securing the Design and Build Contractor's performance of its contractual obligations. If the contractor defaults (fails to complete the works, abandons the project, or becomes insolvent), the employer can call on the performance bond to recover losses without waiting for the outcome of arbitration or litigation against the contractor. Singapore law distinguishes between conditional (default) bonds and unconditional (on-demand) bonds. An on-demand bond — standard in Singapore government contracts under the PSSCOC — allows the employer to call the bond by presenting a written demand without proving the contractor's default. A conditional bond requires proof of breach before the bank or insurer will pay. The Court of Appeal has affirmed that unconscionability is a ground for restraining a call on an on-demand bond, in addition to fraud. The bond amount, type (on-demand or conditional), issuing institution, and validity period (typically until 12 months after project completion) should be specified in the design and build agreement.
This template is provided for informational purposes only and does not constitute legal advice. Laws vary by jurisdiction and change over time. Consult a qualified attorney for advice specific to your situation.Full disclaimer
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