Mr Pritam Singh (Aljunied): Sir, in August last year, HDB confirmed that it had completed 72% of BTO projects that were delayed due to COVID-19 disruptions. In addition, 28% of the BTO projects delayed by the pandemic remain under construction. For these projects, around 22,000 affected households will progressively receive their keys by the first quarter of 2025 or earlier.
Sir, the pandemic did not just affect the contractors who build our BTO flats. It also affected contractors who are involved in other major HDB works, such as electricity load upgrading projects, car park upgrading projects, amongst others, all of which are multi-year projects. In my constituency of Eunos in Aljunied Group Representation Constituency (GRC), one particular car park upgrading project has been ongoing for a considerable period of time, with the expected completion date of the project extended two times already.
Can the Minister share how many of such HDB improvement projects, including those undertaken on HDB’s behalf by Town Councils, have been affected by contractors facing difficulties, as manifested by the number of extensions requested, and how many remain uncompleted?
Contract extensions also come with an increase in costs that were not considered originally for HDB projects that are undertaken by Town Councils. Re-tendering a partly-completed project at current prices means that costs will have to be incurred. Would HDB consider helping contractors and Town Councils with additional support to complete these projects, the disruptions of which could not have been anticipated at the time of tender, if necessary?
The Senior Minister of State for National Development (Ms Sim Ann): To Mr Pritam Singh’s question on the challenges and delays in implementing upgrading works, various factors may contribute to delays, including unforeseen site conditions, manpower availability, cashflow issues and disruptions in supply of materials. For projects managed by HDB, HDB will work with the relevant contractor to understand the causes for the delays and render the appropriate assistance to get the project back on track. If the contractor can no longer fulfil its obligations, it may novate the contract to another firm, subject to HDB’s approval. As a last resort, HDB can also exercise its right to terminate the contract and appoint another firm to complete the project.
Ministry of National Development
5 March 2024
https://sprs.parl.gov.sg/search/#/sprs3topic?reportid=budget-2376
Office of the Leader of the Opposition 