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”.