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Circular No: C&P/103/04/tl

22 April 2020

COVID-19 (Temporary Measures) Act Provisions relating to Temporary Reliefs Commences on 20 April 2020

The COVID-19 (Temporary Measures) Act 2020 was passed in Parliament on 7 April 2020 which will provide temporary relief from legal action for those who are unable to perform certain types of contracts (which include Construction & Supply Contracts) due to the measures that are implemented to contain the spread of COVID-19.

The Act offers temporary relief from legal action, on a just and equitable basis, for 6 months after the Act commences on 20 April 2020 (i.e. until 19 October 2020). The period of relief may be extended to up to a year. It will cover obligations to be performed on or after 1 February 2020 which are affected by reason of COVID-19, for contracts entered into before 25 March 2020.

Companies intending to obtain temporary relief under the Act are to:

  1. Confirm that they are eligible for relief.
    - Visit http://www.mlaw.gov.sg/covid19-relief for more information
     
  2. Serve notice for Relief on the other contracting party / parties
    - Use the form at http://www.mlaw.gov.sg/covid19-relief/notification-for-relief
    - The Notification for Relief must also be served on any guarantor for surety for the obligation in the contract, and/or the issuer of any related performance bond

There may be disagreements on whether there is an inability to perform the contract or whether that inability is materially caused by COVID-19. The parties are to:

  1. Discuss and try to reach a mutual agreement
  2. If parties are unable to reach a compromise on their own, after a Notification for Relief is served, either party can make an Application for an Assessor’s Determination,
  3. Application to be made to Panel of Assessors for COVID-19 Temporary Relief (PACT) appointed by Ministry of Law (MINLAW) via https://www.mlaw.gov.sg/covid19-relief/application-for-assessor

For more details, please refer to the following press release from MINLAW:

  1. Press Release from MINLAW dated 20 April 2020 (Click here)
  2. Infographic on COVID-19 (Temporary Measures) Act 2020 (Click here)
  3. Guides on COVID-19 (Temporary Measures) Act 2020 (Click here)

SCAL has sought SCAL’s legal counsel to assist in summarising the key points of the COVID-19 (Temporary Measures) Act 2020 which we attached herewith for your information. Please note that the summary should not be regarded or relied upon as legal advice. Member are advised to consult their own legal counsel where necessary.

We are also pleased to inform members of a webminar on “COVID-19 Temporary Measures Act and its implication for Construction and Supply contracts” which will be held on 24 April 2020, Friday, 10am to 12pm. The speakers will examine the scope of the Act, the reliefs and measures afforded under the Act and how affected parties may avail themselves of the reliefs under the Act. The webminar is complimentary for the first two attendees per company for SCAL members and SLOTS registered contractors. Please click here for more details and for online registration. You will receive an acknowledgement with dial-in details for the webminar. For any enquiries pertaining to the webinar, please contact Ms Ange Gan (ange@scal.com.sg) or Ms Tan Wei Xuan (weixuan@scal.com.sg) at telephone 6793 9020.

Thank you.

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