Labour crunch and supply delays: Some construction firms in Singapore feeling the strain of COVID-19

As part of measures to curb the spread of COVID-19 here, the Manpower Ministry said earlier this month that all work pass holders with travel history to China within the last 14 days willbefore entering the country. The majority of the 30,000 work pass holders from China have not returned according to Manpower Minister Josephine Teo. Those who return will be placed on a 14-day leave of absence.

Adding to its manpower woes, there has been a “sharp rise” in the number of Bangladeshi and Indian workers requesting to return home, a company spokesperson told CNA. Not just construction raw materials, companies are also facing a shortage of face masks, including the N95-type masks, which workers don as part of their protective gear during operations such as cutting and cement mixing, said SCAL’s president Ng Yek Meng.

Ms Spring Tan, partner at Withers KhattarWong, said the law firm has spoken to four clients with “preliminary inquiries, not specifically on the option of invoking force majeure but whether they can get EOT to complete their projects”. Invoking force majeure clauses may be an option, but it remains an unknown “whether or not will succeed as grounds for EOT under these circumstances”, Ms Tan told CNA.Amid concerns about possible project delays due to COVID-19, the Building and Construction Authority has informed contractors involved in public sector projects that they may submit claims for EOT under the contract provisions.

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