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Singapore Building Sector Hails Proposed Law to Aid Firms Unable to Fulfil Contracts

Infra News - Published on Fri, 03 Apr 2020

Image Source: Strategic Research Institute, SteelGuru
The Covid-19 (Temporary Measures Bill, which the Singapore Government intends to fast-track, proposes to temporarily make it an offence for an organisation or individual to take legal action against a party who is not fulfilling their contractual obligations, as long as that party gives notice that their inability to fulfil the contract has been due to the pandemic. It is scheduled to be introduced, debated and passed in a single sitting on April 7. If Parliament and the President approve, the proposed law is expected to come into force mid-April and expire a year later. Industry experts said that the upcoming Bill will not just provide relief to businesses and individuals who are unable to fulfil their contractual obligations due to the pandemic, it would allow Singapore’s economy to bounce back more readily after the crisis.

News of the Bill, therefore, came as a huge relief to the construction industry because one of the five categories of contracts covered pertains to construction contracts or supply contracts.

This means if the law is passed, they will not have to face paying liquidated damages for incomplete projects arising from supply and labour shortages, among others. Liquidated damages are amounts set out in contracts that are payable if a contract term is breached.

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Posted By : Yogender Pancholi on Fri, 03 Apr 2020
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