Happy Lunar New Year!
2020 to 2021 were uncharacteristically difficult, uncertain, and stressful times – no thanks to a microscopic, miniscule organism - SARS-Cov-2.
The zodiac sign tiger is a symbol of strength, exorcising evils, and braveness. Let’s hope that the tiger knocks out SARS-Cov-2 and we can all return to normality.
On the adjudication front, the number of adjudication applications lodged in 2021 was around 340 while the number of adjudication review applications was around 20. The total numbers are markedly lower than pre-covid numbers which hovered above the 500 mark. This perhaps a sign of the effectiveness of COTMA.
Wishing everyone a healthy, happy and prosperous year of the Tiger.
Tan Joo Seng
3 Feb 2022
Part 10A of COTMA was passed by parliament on 11 May 2021 and commenced operation on 6 August 2021.
It provides a statutory framework for a party in a construction contract who has incurred an increase in foreign manpower salary cost due to the Covid-19 pandemic to apply for an adjustment of the contract sum.
Parties who intend to apply for relief under Part 10A should take note of these important dates:
What is a downstream sub-contractor’s recourse if the upstream main contractor gives only oral instructions for variation works although the subcontract requires written instructions?
What are the implications to a downstream sub-contractor if it decides to carry out variation works based only on the main contractor’s oral instructions? Will it have a right to claim for additional payment?
These are frequently encountered issues in the construction arena, and they arose for the High Court’s consideration in this case.