Derek Loh comments in BT: “Contract relief proposal a big help for construction, but costs still key worry”

In a news story on the impact of the COVID-19 (Temporary Measures) Bill on the construction industry published by the Business Times on 2 April 2020, TSMP Head of Construction and Engineering Derek Loh said that the Bill must be a welcome one for contractors as it goes a long way towards resolving the uncertainty of whether they will be able to obtain relief for the Covid-19 outbreak.

“The reliefs granted are significant and includes time extensions and prohibitions against demands on performance bonds.”

Nonetheless, it would appear that the Bill is not a magic wand that will forgive all failings with a simple wave, he added.

“Contractors will, when seeking relief, be required to demonstrate that their non-performance was materially caused by Covid-19. A simple invocation of Covid-19 in and by itself would not be enough,” noted Mr Loh.

Still, “the Bill also puts in place a quick and conclusive process where any disputes as to the failure to perform or inability to perform can be determined independently and readily without any protracted court or legal proceedings”.


TSMP law corporation