SINGAPORE - Construction firms will have a further six months of reprieve from legal and enforcement action for their building and supply contracts.

The Ministry of National Development (MND) said on Friday (March 26) that it will be introducing amendments to the law allowing for the relief period to be extended to Sept 30. The current relief period ends at the end of this month.

MND said that it will be introducing the Covid-19 (Temporary Measures) (Amendment No. 2) Bill 2021 on April 5, when Parliament sits next.

"During this (relief) period, parties are encouraged to negotiate and resolve their differences in an amicable and mutually beneficial manner," the ministry said.

If passed, the law will also extend the relief period for Options to Purchase, and Sale and Purchase Agreements for an additional three months, up to June 30.

MND said: "This will assist purchasers of residential, commercial and industrial properties who require more time to make their payments.

"Developers and purchasers who are unable to perform any of their contractual obligations are encouraged to negotiate and reach a compromise."

The built environment sector, which also covers real estate, environment services and security, has been adversely impacted by the pandemic, and MND noted that while construction works had resumed, the outlook for the industry remained uncertain and challenges persisted for firms.

It acknowledged that labour costs had gone up due to restrictions in the inflow of migrant workers.

Firms were also operating at lower capacity due to the need to comply with safe management measures.

MND said that the Government has provided significant financial assistance through a $1.36 billion construction support package, manpower support and legislative relief, but it will continue to do more.

"Our objective is to ensure that no single segment of the built environment value chain bears a disproportionate share of the burden due to Covid-19," the ministry added.