RELIEF FOR INCREASE IN FOREIGN MANPOWER SALARY COSTS UNDER PART 10A OF THE COVID-19 TEMPORARY MEASURES) ACT.
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:
1. The construction contract must have been entered into before 1 October 2020 or automatically renewed on 1 October 2020.
2. The construction contract must still be in force as at 10 May 2021.
3. The construction works must not be certified complete as at 10 May 2021.
4. The increase in the foreign manpower salary costs must have been incurred in the period 1 October 2020 to 30 September 2021.
5. The application to the Part 10A assessor must be made on or before 14 October 2021.
The Building and Construction Authority (BCA) has provided detailed guides and forms to inform and educate relevant parties about how Part 10A works and how an application can be made to a Part 10A Assessor. The relevant materials can be found in this link to the BCA’s website.
Tan Joo Seng
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