×

Support Measures FAQs

Updated on 6 July 2020

Co-sharing of Prolongation Costs
[Revised on 27 June]
Will there be any co-sharing of the additional costs borne by contractors?

Public sector will take the lead to co-share on an ex-gratia basis, 50% of the prolongation cost for delays due to (i) the Circuit Breaker and Controlled Restart, and (ii) loss of productivity in compliance with COVID-Safe requirements for public sector construction contracts. The co-sharing will be up to 0.2% of contract sum per month of delay, capped at 1.8% of contract sum. Please refer to https://go.gov.sg/bca-circular-coshare-prolongation-costs for more details.

BCA is also working with Real Estate Developers’ Association of Singapore (REDAS) to encourage developers undertaking private sector projects to lend their support and similarly practise such shared responsibility.

[Revised on 27 June]
Will consultants be eligible to claim for prolongation costs due to the Circuit Breaker / Controlled Restart?

No. However, we recognise that Consultants will incur additional costs as well, which is why the enhanced Jobs Support Scheme (JSS) previously announced covers consultants.

[Added on 27 June]
What are the items that may be claimed under the support for prolongation costs?

Generally, this cover non-manpower operating expenses incurred due to delays arising from (i) the Circuit Breaker and Controlled Restart, and (ii) the loss of productivity in compliance with the COVID-Safe requirements. Please refer to https://go.gov.sg/bca-circular-coshare-prolongation-costsfor more details.

[Added on 27 June]
The co-sharing of prolongation costs only applies to public sector construction projects. Will the private sector construction projects be provided with similar support?

BCA is working with the Real Estate Developers’ Association of Singapore (REDAS) to encourage developers undertaking private sector projects to lend their support and similarly practise such shared responsibility.


Covid-Safe Accommodation Criteria Support
[Revised on 27 June]
What form of assistance is provided for Construction Temporary Quarters (CTQs) or Temporary Occupation License Quarters (TOLQs) under the COVID-Safe Accommodation Criteria?

The Government provides cashflow assistance for contractors to build CTQs / TOLQs in order to comply with the COVID-Safe Accommodation requirement. Firms may apply for government’s Temporary Bridging Loan Programme (TBLP) to secure low-interest loans in building CTQs/TOLQs. Application for the loans may be made through preferred local banks.


Extension of Time (EOT)
[Revised on 27 June]
How does a contractor / consultant handle an application for Extension of Time (EOT) arising from the circuit breaker?

An application for EOT has to be assessed according to specific contract provisions. We encourage firms to seek their own legal advice on the interpretation of the contract provisions and the COVID-19 (Temporary Measures) Act 2020.

The public sector has advised Government Procuring Entities to take a sympathetic view when evaluating contractors’ applications for EOT. BCA is also working with REDAS to encourage developers undertaking private sector projects to offer similar support and similarly practise such shared responsibility.


Job Support Scheme (JSS)
[Revised on 27 June]
Will Jobs Support Scheme (JSS) still apply for companies who have received BCA’s approval to start work?

All BE Construction and Consultancy firms as defined below will qualify for the enhanced JSS. This is applicable regardless whether firms have started works. For the enhanced JSS, the Government will co-fund 75% of the first $4,600 of gross monthly wages for each Singapore Citizen and Permanent Resident employee from BE construction / consultancy firms, covering wages from Jun to Aug 2020. The payout will be in Oct 2020.

Qualifying Criteria:

  • Built Environment contractors must classified under SSICs 41, 42, or 43.
  • Built Environment consultants must be:
    • Registered with the Public Sector Panel of Consultants (PSPC); or
    • classified under SSICs 71111, 71113, 71121, or 71125

Foreign Worker Levy Waiver and Rebate
[Revised on 27 June]
Will construction companies be eligible for the extended Foreign Worker Levy waiver and rebate if their projects have yet to restart?

The Foreign Worker Levy waiver and rebate in Jun and Jul 2020 are applicable regardless whether construction firms have started works, subject to MOM’s conditions. For more details, pls refer to MOM’s website.


Swab Tests Support
[Added on 27 June]
Are clients, consultants, RTOs and REs eligible for the swab tests cost support?

The Government will fund the cost of swab tests for construction projects until 31 March 2021. The above-mentioned personnel are eligible for the swab tests cost support?


Co-funding Salaries of Safe Management Officers (SMOs)
Is there co-funding of Safe Management Officers (SMO) salary for FM personnel?

The SMO wage support scheme is only applicable to SMOs appointed at construction project sites. It is not applicable for those appointed at office/commercial workplaces.

[Added on 27 June 2020]
In order to qualify for the SMO wage support scheme, does the SMO need to be a new hire or can he/she be an existing staff?

The supportable SMO can be a new hire or an existing staff, provided that he/she fulfils the qualifying criteria.

[Added on 27 June 2020]
Why doesn’t the SMO wage support scheme cover the period from June to August 2020? Why does the SMO wage support scheme only commence in Sep 2020?

The Government is already providing the Jobs Support Scheme (JSS) to support manpower costs from Jun to Aug 2020. As such, the SMO wage support will commence thereafter.

[Added on 27 June 2020] 
On SMO wage support, is there a support cap on number of eligible employees within a company?

There is a support cap of one SMO for each construction project as per COVID-Safe Worksite requirements. For example, a company with 5 project sites can be supported for 5 SMOs. These SMOs must meet the qualifying criteria.


Advance Payment for Public Sector Construction Contracts
[Added on 30 June]
Does the “Circular on Advance Payment for Public Sector Construction Contracts to Facilitate the Restart of Works”, dated 29 Jun 2020,  apply to all construction contracts

No. It only applies to public-sector projects undertaken by Government agencies. As such, it does not apply to projects under private entities. Nonetheless, contractors could discuss the arrangement with their clients.

[Added on 30 June]
Does the “Circular on Advance Payment for Public Sector Construction Contracts to Facilitate the Restart of Works”, dated 29 Jun 2020, apply to maintenance contracts (eg. maintenance of lifts, air-cons etc) or term contracts? 

No, it only applies to public sector construction contracts.

[Added on 30 June]
Is it mandatory for main contractor to claim for the Advance Payment (AP)?

It is not mandatory for main contractors to claim for AP.

 As most construction works have been suspended during the Circuit Breaker (CB) and restart period, most contractors would not receive much progress payment until works resume.

Hence, we strongly encouraged main contractors to assist and work out a mutually acceptable arrangement with their subcontractors or suppliers such that they will have cashflow to tide over this period. Main contractors can also claim AP from the Government agencies so as to be disburse to the subcontractors or suppliers who may be in need of the AP. We hope to avoid a situation where main contractors fail to claim AP, and their subcontractors and suppliers suffer from cashflow issues during this period.

[Added on 30 June]
Are suppliers (e.g. rental of equipment etc) entitled to the same AP as subcontractors? 

It is dependent on the payment arrangement stated in the contract and whether the stop work period has affected the payment for material or equipment suppliers. For example, if the main contractor is paying for the rental of equipment during the stop work period, there is no need to pay equipment suppliers the AP.

[Added on 30 June]
If I carried out the project without any subcontractors or suppliers, am I also entitled to claim for the AP? 

Yes.

[Updated on 6 July]
What is the deadline for the submission of the claim? Will I still be eligible for the claim if I were to submit it after the deadline?

The claim for first tranche (i.e. April 2020) and second tranche (i.e. May 2020) must be submitted by 30 April 2020 and 8 June 2020 respectively. Subsequently, main contractors are allowed to submit AP claims at monthly intervals, until approval to restart is obtained from BCA. The main contractor shall only submit claim for one month of AP each time. Late claims will not be entertained by the agencies.

[Updated on 6 July]
How is the apportionment of AP to the main contractor and subcontractors/suppliers computed.

From government agency to main contractors:
The amount of AP covering CB period from 7 April 2020 to 4 May 2020 would be computed based on 50% of the average monthly amount of certified progress payments in past 3 months received by the main contractor, capped at 2.5% of contract sum or $5 million, whichever is lower. The amount of each subsequent AP shall be calculated based on (i) AP amount certified in previous tranche or (ii) 50% of the average monthly payment based on past 3 most recent certified monthly payments, if no AP was certified in previous tranche. Each AP quantum shall be capped at 2.5% of the awarded contract sum or $5mil, whichever is lower. The total cumulative AP for each contract is capped at 5% of the awarded contract sum or $10mil, whichever is lower.

From main contractors to subcontractors/suppliers:
Main contractors need not equally apportion the payment to their subcontractors or suppliers. Main contractors can use similar computation to decide how much AP to be apportioned, i.e. to provide AP quantum based on 50% of what the subcontractor should be receiving during the CB (estimated using average monthly payment to the subcontractors in the past 3 months) for CB period from 7 April 2020 to 4 May 2020 or estimate the AP amount based on (i) the AP amount certified in previous tranche or (ii) 50% of the average monthly payment based on past 3 most recent certified monthly payments, if no AP was certified in the previous tranche.

[Added on 30 June]
How do we compute the amount of AP for newly awarded projects that do not have any progress payments or less than 3 certified progress payments thus far?

It can be computed based on the cashflow projection for the project or the available numbers of certified progress payment or a combination of the two methods.

[Added on 30 June]
What can the main contractor do if the AP received from the government agency is lesser than the sum of subcontractors’ AP claim? 

The amount of AP to the main contractor is computed based on (i) AP amount certified in previous tranche or (ii) 50% of the average monthly payment based on past 3 most recent certified monthly payment, if no AP was certified in previous tranche. Main contractors may use similar computation to decide how much AP to be apportioned to their subcontractors / suppliers. Notwithstanding, main contractors are not expected to pass down to their subcontractors / suppliers more than what they have received from the government agencies. For example, if the AP received from the government agency is $1mil, the main contractor may apportion amount received to their subcontractors and suppliers involved in the construction works during the CB. The basis of using 50% of average monthly amount of certified progress payments in past 3 months is just one of the methods to estimate the amount of progress payment that the contractor is supposed to receive during the CB. The exact amount that the subcontractor/supplier would receive still depends on the actual amount of AP received by the main contractor from the government agency. However, the main contractor shall use his best efforts to apportion the AP on a fair basis.

[Added on 30 June]
Is this AP claim over and above the progress claim for work done during CB, which the main contractor will be claiming separately?

Yes, this AP claim is in addition to the progress claim for work done, if any, during the CB. Contractors can submit the claim for AP in their regular progress payment claim or as a standalone payment claim.

[Added on 30 June]
Upon submission of the AP claim, when will the AP certificate be issued and when will the AP be made to the main contractor?

The issuance of the payment certificate and payment will be made in accordance to the main contract provisions or as advised by the government agencies.

[Added on 30 June]
When should main contractor pay the AP to subcontractors or suppliers?

The main contractor shall pay the AP to subcontractors or suppliers according to the terms stated in their respective subcontracts. Main contractor shall submit Payment Responses issued to their subcontractors or suppliers, to the government agency, within 14 days of the receipt of the Payment Certificate of AP from the government agency.

[Added on 30 June]
Can the main contractor request for a security deposit (SD) or performance bond from subcontractors or suppliers for the AP?

For contracts where there are already existing provisions such as security deposit (SD) and/or retention monies to safeguard main contractor’s interest, main contractors can rely on the existing provisions.

 To minimise risks, if the AP amount to the subcontractors or suppliers exceeds the amount under the existing security deposit and/or retention monies, main contractors may discuss with their subcontractors or suppliers on suitable mechanisms to safeguard the AP provided. During this difficult period, we appeal to all members of the construction sector to support each other. Without the AP, some subcontractors or suppliers could face cashflow problems and may become insolvent.

[Updated on 6 July]
What if the main contractor does not pass down the AP to their subcontractor or supplier?

Where a main contractor fails to pass on the AP to its subcontractors or suppliers, the AP shall be recovered in full in the next immediate progress payment. The main contractor’s performance assessment will also be accorded a “Poor” rating by the Government agency.

BCA may review the CRS registration status of the CRS registered contractor upon feedback on failure to pass down the AP received. 

Popular e-Services

CWRS

The Construction Workforce Registration System (CWRS) is an online portal for CoreTrade and Multi-skilling registration and the renewal of Direct R1 eligibility.

Online Registration for Verification System

ORV allows you to register the workers for Identity Verification and check your registration status online.

Online PTO System

Lift and escalator owners, contractors and Authorised Examiners (AEs) can apply for and view applications for Permit to Operate (PTO) here.