Additional measures to support the construction sector

Singapore, 4 May 2021 – The Multi-Ministry Taskforce has announced further tightening of Singapore border measures with India due to the rapidly deteriorating COVID-19 situation in the country. This move impacts the flow of Indian workers into Singapore as well as companies in the construction sector that are dependent on them.

As part of Building and Construction Authority’s (BCA) continued effort to support the industry through this period as well as to mitigate the impact from the latest development, the government will provide the following support measures to help the construction sector:

A time-limited flexibility to recruit workers from the People’s Republic of China (PRC) without having to enroll in Overseas Testing Centres (OTCs) for skill certification

From 7 May 2021, BCA and Ministry of Manpower (MOM) will introduce a temporary scheme for six months to allow new PRC Work Permit Holders (WPHs) to obtain their skills certification in Singapore. As some OTCs in PRC have not resumed operations, prospective workers have not been able to obtain their skills certification to qualify as basic-skilled construction workers in Singapore. Upon implementation of this temporary scheme, employers will be permitted to bring in PRC WPHs without skills certifications, but they must comply with the other prevailing entry approval and work pass requirements. Employers can submit their applications to BCA’s Approved Training and Testing Centres (ATTCs) from 7 May 2021. The list of ATTCs accepting applications will be made known to the construction sector within the next two weeks.

Public sector to grant additional 49-day Extension of Time (EOT) to eligible construction contracts for delays due to COVID-19

To help ease contractors’ cashflow and relieve anxiety on being unable to meet project timelines, government agencies will be granting a 49-day EOT to eligible public sector construction contracts that are delayed due to loss of productivity for the period from 7 August 2020 to 31 December 2020. This is in addition to the earlier 122 days of EOT provided under Part 8A of the COVID-19 (Temporary Measures) Act (COTMA). No claim for this EOT is required from contractors.

Public sector to provide 0.1 per cent of awarded contract sum for every month of delay as payment for cost sharing of non-manpower related cost increases under Part 8B of COTMA

To facilitate quicker disbursement of cost sharing of non-manpower related costs increase under Part 8B of COTMA for eligible contracts up to awarded contract sum of S$100 million, the public sector will provide 0.1 per cent of the awarded contract sum for every month of delay (i.e., 50 per cent of the monthly cap of 0.2 per cent) as payment for qualifying costs. There is no need for contractors to put up detailed substantiation on qualifying cost incurred for this 0.1 per cent. Contractors who wish to claim beyond the 0.1 per cent can continue to submit claims with substantiation, through a simplified computation method developed by the Trade Associations and Government agencies.

BCA will continue to study additional measures to help the construction sector cope with rising costs arising from the tight labour situation. These will be rolled out progressively.

– Construction+ Online

Source: BCA