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Circular No: C&P/244/11/tl

5 November 2020

THE COVID-19-TEMPORARY-MEASURES-AMENDMENT-NO-3-BILL

  1. PART 8a (EXTENSION OF TIME FOR CONSTRUCTION CONTRACTS); AND
  2. PART 8b (TEMPORARY MEASURES FOR COST-SHARING IN CONSTRUCTION CONTRACTS)

SCAL has continuing been providing feedback to government on the challenges and financial hardship faced by contractors. We had highlighted on the need to provide and legislate the Extension of Time (EoT) and prolongation costs relief for contractors both for public and private sector projects.

We are pleased to inform members that key principles of our recommendations have been incorporated in the COVID-19 (Temporary Measures) (Amendment No. 3) Bill that was passed in Parliament on 3 November 2020. Details of the Bill are in BCA’s circular attached.

Under the Amendment, stakeholders in the built environment (BE) sector affected by the COVID-19 pandemic will be provided additional relief measures as follows:

  1. A universal Extension of Time (EOT) of 122 days, to address delays that arose during the period between 7 April 2020 and 6 August 2020 for construction contracts under Part 8A;
  1. Co-sharing of additional non-manpower-related costs between contracting parties due to project delays caused by COVID-19 under Part 8B; and
  1. Relief on the date of delivery of possession in agreements for the sale and purchase of housing, commercial and industrial property under Part 8C.

Both relief measures (A) and (B) are scheduled to come into effect in end November 2020. Further details of these amendments, together with the necessary changes in subsidiary legislation, are still being worked out and will be announced later. MND will separately provide more details on relief measure (C) on the relief for extension of date of delivery of possession for developers.

For any enquiries, you may contact BCA at https://www.bca.gov.sg/feedbackform/ on the above. SCAL will keep members updated on latest developments and announcements.

 

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