COVID-19 (Temporary Measures) Act will be extended to 30 September for construction firms.
Construction firms are set to enjoy another six months of reprieve from legal and enforcement actions for their contractual obligations.
In a release issued on 26 March, the Ministry of National Development (MND) revealed that it will introduce amendments to COVID-19 (Temporary Measures) Act, to allow the relief period to be extended to 30 September.
The present relief period will end on 31 March.
It shared that it will introduce the COVID-19 (Temporary Measures) (Amendment No. 2) Bill 2021 in Parliament on 5 April.
The ministry encourages parties to the contract “to negotiate and resolve their differences in an amicable and mutually beneficial manner” during the relief period.
If passed into law, the relief period for Options to Purchase (OTP) as well as Sale and Purchase Agreements (S&P) will also be extended for three more months, up to 30 June.
“This will assist purchasers of residential, commercial and industrial properties who require more time to make their payments,” said MND.
“Developers and purchasers who are unable to perform any of their contractual obligations are encouraged to negotiate and reach a compromise.”
MND noted that while construction works have restarted, firms continue to face challenges.
“Labour cost has increased due to restrictions in the inflow of migrant workers. Firms are also operating at lower capacity due to the need to comply with safe management measures,” it said.
With the built environment sector adversely affected by COVID-19, the government provided significant financial assistance via a $1.36 billion construction support package, legislative relief and manpower support.
It added that it will continue to support the sector “to ensure that no single segment of the built environment value chain bears a disproportionate share of the burden due to COVID-19”.
Victor Kang, Digital Content Specialist at PropertyGuru, edited this story. To contact him about this story, email: victorkang@propertyguru.com.sg
