Extends Completion Of Commercial Projects Impacted By COVID-19

Gov’t Extends Completion Of Commercial Projects Impacted By COVID-19

SINGAPORE – The authorities have implemented additional temporary relief measures to free real estate developers from the burden of paying additional costs and fines for failing to meet agreed construction timelines due to COVID-19, according to a press release issued by the Ministry of National Development on Thursday (8 October).

“While almost all construction projects have restarted, the full resumption of on-site operations remains a challenge with workers being placed under quarantine if they have come in close contact with a positive COVID-19 case,” wrote the Ministry.

Building efficiency may have also slowed down as traditional worksite practices have to be modified to protect the health of construction workers with public health measures like safe distancing.

As a result, property developers and building contractors are worried that they would face additional costs and financial penalties if they fail to fulfill the timeline obligations stated in their agreements.

Therefore, the government has prolonged the Project Completion Period (PCP) of commercial, industrial, and residential projects by a further six months, with immediate effect on Thursday.

The extension is on top of the temporary relief measures revealed on 6 May 2020 and applies to plots sold by the government or land parcels that were directly alienated or whose lease were renewed by the Singapore Land Authority (SLA).

The eligibility criteria for the PCP extensions is similar to what was announced previously. For instance, the plot was awarded by the government on or prior to 1 June 2020, or the land parcel was directly alienated or whose lease was renewed by the SLA before the same date. In addition, the commercial property’s original timeline for completion lapsed on or after 1 February 2020.

No application is needed. Qualified real estate developers will be notified by the concerned government agency.

“With these additional support measures, the government expects developers to continue to similarly provide relief and support to their main contractors. We will also continue to closely monitor the impact of the COVID-19 pandemic on the progress of work within the construction industry, and on the property sector.”

If necessary, the authorities will impose additional relief measures to help market players so that they will not suffer an excessive burden caused by the virus outbreak, added the Ministry.

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