COVID-19 Outbreak Has Taken Toll On Construction Firms

With the coronavirus outbreak causing supply chain disruptions and labour shortages, some construction firms in Singapore are starting to seek deadline extensions for their projects.

Earlier in the month, the Ministry of Manpower required all work pass holders with travel history to China in the past 14 days to secure approval from authorities before entering Singapore as part of measures to contain the spread of COVID-19. Thereafter, the returning workers will be placed on a 14-day leave of absence.

“Even before COVID-19, there’s already a shortage of workers as the industry, which was in a downturn previously, slowly recovers and is seeing more construction projects,” said Kenneth Loo, Executive Director and Chief Operating Officer of Straits Construction Singapore.

Teambuild Construction Group said it suffered a “significant impact” considering that most of its workers with expertise in areas like reinforced concrete works, come from China, reported CNA.

Adding to the firm’s manpower woes, the number of Indian and Bangladeshi workers requesting to return home also increased following news that five workers from Bangladesh tested positive for COVID-19.

Then there is also the issue of late delivery of machinery as well as raw materials like steel coils and tiles as factories in China that were closed for an extended period following the Chinese New Year have been slow to restart.

With this scenario, industry players are concerned about potentially missing their deadlines.

Teambuild Construction Group revealed that it is “currently seeking all possible assistance” for an extension of time (EOT) due to the outbreak’s “substantial” impact to the company.

It was previously reported that some local construction companies are seeking legal advice on invoking the force majeure clause.

Ref: Property Report