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Circular No: C&P/42/03/tl

17 March 2021

REMINDER: COVID-19 (Temporary Measures) Act 2020 (“the Act”) Part 2 Notification for Relief (NFR)  

The relief period for construction contracts and supply contracts under Part 2 of the COVID-19 (Temporary Measures) Act 2020 (“the Act”)  will end on 31 March 2021. We would like to urge ALL members to serve the COTMA Part 2 notification for relief (NFR) before 31 March 2021.

By serving Part 2 NFR of the Act, it provides contracting parties with a defence against any claims for breach of contract or damages (e.g. liquidated damages) arising from the inability to perform an obligation due to COVID-19, where the inability occurs from 1 February 2020 to the expiry of the prescribed period. Also, the other party to the contract cannot commence or continue court proceedings or insolvency proceedings against the defaulting party during the prescribed period.

Please note that the defence to a claim for liquidated damages and defence to a claim for a breach of contract will survive the expiry of the prescribed period. In other words, if the NFR is served before 31 March 2021, defaulting parties can still enjoy the relief, for any inability happening on or before 31 March 2021 due to COVID-19 events, even after 31 March 2021.

The party seeking relief must serve a NFR on the following parties, where applicable:

  • The other party or parties to the contract;
  • Any guarantor or surety for the obligation in the contract; and
  • The issuer of a performance bond or equivalent for the performance of the obligation.

The service of the NFR should be done through MinLaw’s website, preferably through the electronic system, at https://www.mlaw.gov.sg/covid19-relief/notification-for-relief.

You may refer to MinLaw’s website at https://www.mlaw.gov.sg/covid19-relief/faq/construction or the attached infographic for more information on the reliefs available under Part 2 of the Act.

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