A crisis is looming and may break out sooner than expected in the real estate industry, no thanks to recent government rulings that seem to side one stakeholder over another.
The grouse of contractors is that, under the Extension of Time (EOT) provided for in the Covid-19 Act specifically to allow for an extended grace period against litigation, developers are granted exactly 167 days whereas none is allowed for contractors yet.
Another serious grouse is that contractors have been shouldering all extra expenses and costs from SOP compliance at worksites since March 2020.
These costs — such as for Covid-19 swab tests, cleanliness and social distancing — are beyond contractors’ obligations, and yet, we have to spend to move on.
No one can tell when the expenses will cease, as the current Covid-19 pandemic is moving into its fourth wave of infection. Contractors cannot go on without knowing when they will be reimbursed.
Media Title: The Edge
Date: 26 Apr 2021