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SINGAPORE: Some contractors, tenants, and homeowners affected by contractual delays or breaches due to the coronavirus situation can now apply for assistance as amendments to the COVID-19 (Temporary Measures) Act went into effect on Wednesday (September 30).
The amendments improve a legal mechanism, known as Part 8 of the Act, for the parties to obtain redress if they are affected by delays or non-performance in construction, supply or related contracts. These must be “materially caused by COVID-19,” the Ministry of Law (MinLaw) said in a press release.
This was one of the second sets of amendments to the Act passed in Parliament in early September.
In June, the first amendments were passed requiring landlords to provide more rent exemptions to small and medium-sized businesses affected by COVID-19.
READ: Updates to Rent Relief Measures as Amendments to Temporary COVID-19 Legislation Passed
READ: Amended COVID-19 Laws Passed Requiring Landlords Give SME Tenants More Rent Exemptions
WHO CAN REQUEST RELIEF
Under Part 8 of the law, parties can seek redress in three situations.
People who have rented property for use in construction work can request assistance if they are liable to their suppliers for additional rental costs due to a delay or breach of contract, MinLaw said.
For example, a contractor may have leased goods, such as scaffold material or hand drills, to a supplier to perform work under a construction contract with a third party.
In the second scenario, tenants of non-residential properties can apply for the tax relief if they are unable to carry out or complete renovation or refurbishment works during their franchise period due to the COVID-19 situation.
Third, non-residential property owners can request relief if they are unable to surrender possession or allow use of the property on the date stipulated in a lease or license, due to coronavirus-related delays in a construction contract. separated.
READ: Construction demand to plummet this year after COVID-19 paralyzes projects
THE EVALUATOR CAN ADJUST THE CONTRACTUAL TERMS
To mitigate the impact of a delay or breach of contract on the applicant, an evaluator appointed by the ministry can adjust the contractual terms.
For example, when a contractor is responsible for additional rental costs for the equipment, the appraiser may adjust the date by which the lessee must return the property, or the rental fee payable for the time the property is held.
Similarly, the appraiser can extend the franchise period in cases where the tenant of a non-residential property is unable to carry out or complete the renovation during the franchise period.
For all applicants eligible for relief, the affected contract must have been entered into before March 25 to be eligible for relief.
Leases or licenses renewed as of March 25, either automatically or in exercise of a renewal right in the contract, are also eligible.
Additionally, the affected contract must be in effect at any time between February 1, 2020 and March 31, 2021, and the delay or default in construction, supply or related contract must also occur within that period.
Requests for relief must be submitted by May 31, 2021.
Once an application is submitted, neither party to the contract can initiate judicial or arbitration proceedings, or proceedings under the Construction and Building Industry Payment Security Act (SOPA) regarding the matter, MinLaw said. .
Similarly, a request for redress under Part 8 of the Act cannot be made if court, arbitration or SOPA proceedings have already been initiated.
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EXPANDED POWERS FOR RENTAL RELIEF ASSESSORS
The amendments that go into effect Wednesday also expand the powers of rent relief consultants, allowing them to make decisions on unresolved disputes related to the actual amount of rent to be waived under the rent relief framework.
This will apply when the amount is affected by maintenance and service charges, especially if they are not included in the lease or license; when the amount could be offset with assistance previously provided by the owner; when the tenant occupies the property for only part of the relief period; And when there are multiple subtenants on the same property, not all may be eligible for exemptions.
Landlords or tenants seeking determination of a rental relief advisor should submit their requests by October 14, if they received the notice of cash award from the Internal Revenue Authority of Singapore (IRAS) or a copy of the notice on Wednesday or earlier, MinLaw said.
If they received the IRAS notice after Wednesday, they must submit their applications within 10 business days.
Overdue applications can still be considered on a case-by-case basis, the ministry added.
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