COVID-19 Relief Framework for Construction Firms Facing Higher Foreign Manpower Costs Comes into Operation

Part 10A of the COVID-19 (Temporary Measures) Act (“Part 10A“) has come into operation on 6 August 2021, along with the COVID-19 (Temporary Measures) (Part 10A Relief) Regulations 2021. Part 10A provides a framework for parties to construction contracts to apply for relief from their contractual counterparties if they are affected by an increase in cost for work permit holders as a result of a COVID-19 event, such as border control quotas set by the Government limiting the inflow of foreign workers. 

In this Update, we recap the key features of the Part 10A framework and highlight the Part 10A Regulations.