30 Sep 2021
Ref No: 300921 (1)
This circular informs on the extension of the prescribed period for legislative relief (“relief period”) related under Part 2, Part 8B and Part 10A of the COVID-19 (Temporary Measures) Act (“the Act”) from 30 September 2021 to 31 December 2021.
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Construction firms affected by COVID-19 can seek temporary relief from legal and enforcement action for construction contracts or supply contracts, or any performance bond granted thereto, by serving a Notification for Relief (“NFR”) at MinLaw’s website (https://www.mlaw.gov.sg/covid19-relief/notification-for-relief) by 31 December 2021.
The defaulting parties (e.g. contractors or clients) will continue to be provided with defences to a claim for a breach of contract, including disregarding of liquidated damages, through filing a NFR.
If an agreement cannot be reached and there is a dispute as to whether the relief triggered by the NFR applies, either party may submit an application for an Assessor’s determination up to two months after the end of the relief period, i.e. latest by 28 February 2022.
Cost-sharing relief will apply to non-manpower qualifying costs, which arise due to delays caused by COVID-19 during the period from 7 April 2020 to 31 December 2021. The cost-sharing percentage remains at 50% of the qualifying costs, subject to a monthly cap of 0.2% of contract sum per month and a total 1.8% of the contract sum. There is no change to the monthly cap of 0.2% and overall cap of 1.8%.
Contractors can apply for an Assessor to seek a determination to adjust the contract sum for the increase in foreign manpower salary costs, in respect of Work Permit Holders, due to COVID-19 during the period from 1 October 2020 to 31 December 2021 (a 3-month extension), if contracting parties are unable to reach an amicable outcome. Contractors may submit an application for an Assessor’s determination up to two months after the end of the relief period, i.e. latest by 28 February 2022.
Our Warmest Regards,