Contract Management: EOT & COST-SHARING (Under COTMA)
Transcript of Contract Management: EOT & COST-SHARING (Under COTMA)
C o n t r a c t M a n a g e m e n t :E O T & C O S T - S H A R I N G( U n d e r C O T M A )
E D W I N L E E , P A R T N E R
E L D A N L A W L L P
R O A D M A P
01 COTMA 122 DAYS EOT vs CONTRACTUAL EOT
02 EOT FOR ACTIVITIES OUTSIDE OF 7 APRIL to 6 AUG 2020?
03WHAT IF CONTRACTOR IS ALREADY IN DELAY? (CONCURRENT DELAY)
04 PROVING ENTITLEMENT TO COST-SHARING CLAIM
06 CLAIMING IN ADJUDICATION AND OTHER PROCEEDINGS
07 NOTIFICATION OF RELIEF TO AVOID LD
PART 8A:
122 DAYS EOT
1 2 2 D A Y S O F E O T
• Completion date for “construction works” is extended by 122 days
• Extension covers the period 7 April 2020 to 6 August 2020
N o O v e r l a p
• If Contract provides for grant of EOT, contractual grant of EOT takes
precedence, i.e. 122 days will be less whatever has been granted under the
contract
• Some contracts may have provisions for EOT – eg. SIA (“shortage of labour”,
“shortage of goods”), PSSOC (“compliance with requirements of law,
regulations, or public authority”)
• Claiming contractual EOT (which may have notification requirements) no
longer so important for period 7 April 2020 to 6 August 2020
• But should claim for contractual EOT if delaying event entitles contractor to
prolongation costs
P e r i o d O u t s i d e 7 A p r i l - 6 A u g
• If the delaying event falls outside 7 April – 6 August 2020,
contractual EOT should be applied for
C o n c u r r e n t D e l a y :
• What if the contractor was already in delay, and would not have
completed the works before 6 August 2020?
• Contractor would still be entitled to this 122 days of universal EOT
PART 8B:
COST-SHARING
P R O V I N G E N T I T L E M E N T
Pre-Conditions to entitlement to Cost-Sharing:
1. “unable to complete any of those construction
works by the completion date”
2. “inability is to a material extent caused by a
COVID-19 event”
3. “incurred or incurs any qualifying cost” in
connection with the performance of the
construction works
* ”COVID-19 event” includes compliance with SG law or that of another
country that is made by reason of Covid-19: Section 2, COTMA.
P E R I O D O F C L A I M
• Prescribed period where cost-sharing
may be claimed is 7 April 2020 to 31
March 2020 (>11 months)
• This is longer than the earlier ex-gratia
cost sharing grant for public-sector
contracts, under BCA Circular 25 Sept
2020 (which was for 9 months only)
• But note the pre-conditions
highlighted earlier
C L A I M I N A D J U D I C A T I O N
• Cost-sharing claim “must”* be claimed in a
payment claim
• May be submitted to adjudication under
the SOP Act
• But may also be claimed as a “debt due” in
arbitration or court proceedings
* Section 39D(6)
A D J U D I C A T I O N
• Overrides Section 17(2A) of the SOP Act
preventing claims for loss or expense
• Adjudication Determination is interim
and temporary only
• Cost-sharing entitlement and amount
may be challenged in arbitration/ court
proceedings
W H A T A B O U TL I Q U I D A T E D
D A M A G E S ?
• Outside the 122 days of EOT
• If there is delay
• And no other entitlement to EOT
• Liquidated damages for delay will apply
• Eg. Contractor may claim cost-sharing up till 31 March
2021, but Employer may also seek to impose liquidated
damages for delay during the same period.
• To avoid imposition of LD before 31 March
2021, Contractor should claim relief under Part
2, Section 6 of COTMA.
• To obtain relief, Notification for Relief under
COTMA must be issued before 31 March 2021.
T H A N K Y O U
E D W I N L E E ,
P A R T N E R , E L D A N L A W L L P
e d w i n l e e @ e l d a n l a w . c o m
w w w . e l d a n l a w . c o m
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