# Further Extension of Relief Periods under the COVID-19 (Temporary Measures) Act for Specified Categories of Contracts in the Built Environment Sector

- **Source:** Ministry of National Development
- **Published:** 2021-03-26T06:00:00.000Z
- **Author:** Ministry of National Development
- **Original:** https://www.mnd.gov.sg/newsroom/press-releases/view/further-extension-of-relief-periods-under-the-covid-19-(temporary-measures)-act-for-specified-categories-of-contracts-in-the-built-environment-sector
- **Topics:** Government & Policy, Regional Markets

## Featured rationale

The extensions may reduce near-term enforcement and payment pressures on contractors and property purchasers, potentially limiting disrupted projects and distressed transactions.

## AI summary

Proposed legislation would extend contractual relief for construction agreements to 30 September 2021 and for property purchase agreements to 30 June 2021.

## Original article

The Built Environment (“BE”) sector has been adversely impacted by COVID-19. In response, the Government has intervened in an unprecedented way, including providing significant financial assistance through a $1.36 billion construction support package, manpower support, and legislative relief through the COVID-19 (Temporary Measures) Act (the “Act”). Our objective is to ensure that no single segment of the BE value chain bears a disproportionate share of the burden due to COVID-19.

While construction works have restarted, challenges for firms persist. 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. In this regard, we will continue to support the sector to help firms tide through this period.

Part 2 of the Act provides temporary relief for a prescribed period, upon service of a Notification for Relief, from stipulated types of legal and enforcement actions in relation to the inability to perform contractual obligations due to COVID-19. Part 8B of the Act requires the co-sharing of additional non-manpower-related qualifying costs between contracting parties due to delays caused by COVID-19. The Government previously announced that the prescribed periods for legislative relief (“relief periods”) under Part 2 and Part 8B of the Act would end on 31 March 2021. 

Given the uncertain outlook of the industry, the Ministry of National Development will be introducing the COVID-19 (Temporary Measures) (Amendment No. 2) Bill 2021 in Parliament on 5 April 2021. If passed by Parliament, the Bill and its accompanying subsidiary legislation will allow the Government to extend the relief periods under Part 2 and Part 8B of the Act in the following manner[1] : 

(a) Extension of relief period under Part 2 of the Act

(i) The relief period for construction contracts or supply contracts, or any performance bond granted thereto, will be extended for an additional six months, up to 30 September 2021. Construction firms affected by COVID-19 can seek temporary relief from legal and enforcement action. 

During this period, parties are encouraged to negotiate and resolve their differences in an amicable and mutually-beneficial manner. 

(ii) The relief period for Options to Purchase, and Sale and Purchase Agreements, will be extended for an additional three months, up to 30 June 2021[2]. 

This will assist purchasers of residential, commercial and industrial properties who require more time to make their payments. Developers and purchasers who are unable to perform any of their contractual obligations are encouraged to negotiate and reach a compromise. 

(b) Extension of relief period under Part 8B of the Act 

(i) The relief period will be extended for an additional six months, up to 30 September 2021. Cost-sharing relief under Part 8B will now apply to qualifying costs, which arise due to delays caused by COVID-19 during the period from 7 April 2020 to 30 September 2021. This extension will allow the industry to stabilise and ride out the lingering impact of the pandemic.

Further details on the processes under the Act can be found at: http://www.mlaw.gov.sg/covid19-relief .

Annex A 
Annex B
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[1] The relief period under Part 8 of the Act will remain unchanged, and end on 31 March 2021. Applications for relief under Part 8 must be filed before 31 May 2021.
[2] For the purposes of the relief under the Act, HDB’s agreements for lease (AFLs) will have the same treatment as sale and purchase agreements.

## Chinese translation

> Translation model: grok_cli

### 进一步延长《冠病（临时措施）法令》下建成环境行业特定类别合约的救济期

建成环境（“BE”）行业受到冠病严重影响。为此，政府采取了前所未有的干预措施，包括通过13.6亿新元建筑业支援配套提供重大财政援助、人力支援，以及通过《冠病（临时措施）法令》（下称“该法令”）提供立法救济。我们的目标是确保建成环境价值链中没有任何单一环节因冠病而承担不成比例的负担。

虽然建筑工程已重启，企业仍面临挑战。因外籍劳工流入受限，劳动力成本上升。企业也因需遵守安全管理措施而以较低产能运营。有鉴于此，我们将继续支援该行业，帮助企业渡过这一时期。

该法令第2部规定，在送达救济通知后，于订明期间内，就因冠病而无法履行合约义务所涉及的特定类型法律与强制执行行动提供临时救济。该法令第8B部要求合约各方就因冠病造成延误而产生的额外非人力相关合资格费用进行分摊。政府此前宣布，该法令第2部及第8B部下的立法救济订明期间（“救济期”）将于2021年3月31日结束。

鉴于行业前景不明朗，国家发展部将于2021年4月5日在国会提出《2021年冠病（临时措施）（第2号修订）法案》。若获国会通过，该法案及其附属法例将使政府得以按以下方式延长该法令第2部及第8B部下的救济期[1]：

(a) 延长该法令第2部下的救济期

(i) 建筑合约或供应合约，或其项下提供的履约保函的救济期，将再延长六个月，至2021年9月30日。受冠病影响的建筑企业可就法律与强制执行行动寻求临时救济。

在此期间，鼓励各方以友好及互利方式协商并解决分歧。

(ii) 购买选择权以及买卖协议的救济期，将再延长三个月，至2021年6月30日[2]。

这将协助需要更多时间付款的住宅、商业及工业物业买家。无法履行任何合约义务的发展商与买家，鼓励协商并达成折中方案。

(b) 延长该法令第8B部下的救济期

(i) 救济期将再延长六个月，至2021年9月30日。第8B部下的费用分摊救济现将适用于因2020年4月7日至2021年9月30日期间由冠病造成延误而产生的合资格费用。此项延长将使行业得以稳定并渡过疫情的持续影响。

有关该法令下程序的更多详情，请参阅：http://www.mlaw.gov.sg/covid19-relief 。

附件A
附件B
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[1] 该法令第8部下的救济期维持不变，于2021年3月31日结束。第8部下的救济申请须在2021年5月31日前提交。
[2] 就该法令下的救济而言，建屋发展局的租赁协议（AFL）将与买卖协议获得同等待遇。