What is causing construction deadlines to be missed in Singapore?

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Singaporean Construction Firms Face Missed Deadlines Due to COVID-19 Related Disruptions

Construction firms in Singapore are facing significant challenges in meeting project deadlines, primarily due to a combination of a manpower shortage and disruptions in the supply of materials stemming from the COVID-19 outbreak. These issues have led to a critical manpower crunch, particularly for companies heavily reliant on Chinese workers, and have also halted the timely delivery of essential construction materials.
Manpower Shortages Exacerbated by Travel Restrictions

Singapore's Ministry of Manpower implemented a halt on issuing new visas to Chinese nationals from January 31. Furthermore, Chinese work permit holders require special approval to enter Singapore and must undergo a mandatory 14-day stay-at-home notice upon their return. These stringent measures have severely impacted the availability of labour, a problem that was already present for some firms before the outbreak intensified.
Production and Shipment Delays from China

The COVID-19 outbreak has caused production to cease at factories in China, directly affecting the timely arrival of necessary materials for ongoing construction projects in Singapore. This interruption in the supply chain means that essential components are not reaching project sites as scheduled, contributing to potential delays.
Exploration of Contractual Relief and Official Guidance

In response to these unforeseen circumstances, some construction firms are seeking legal counsel regarding the invocation of force majeure clauses within their contracts. These clauses typically cover unexpected external events that prevent parties from fulfilling their contractual obligations. The Building and Construction Authority (BCA) has advised contractors involved in public sector projects to submit claims for extensions of time if their work progress is delayed due to the COVID-19 outbreak. The BCA has also engaged with Government Procuring Entities to prepare for evaluating such claims and has sought the support of the Real Estate Developers’ Association of Singapore (Redas) for private sector projects facing similar impacts.

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What is causing construction deadlines to be missed in Singapore?

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