Estimated Backlog of Delayed Ongoing HDB Neighbourhood Renewal Projects

Ms Ng Ling Ling asked the Minister for National Development (a) to date, how many ongoing HDB neighbourhood renewal projects have been delayed by more than six months; (b) what is the estimated backlog of these projects; (c) how long will it take to clear this backlog; and (d) whether support for raw material prices will be extended to contractors working on these projects to ensure that they can complete these projects within budget.

Neighbourhood Renewal Programme (NRP) projects are implemented by Town Councils from announcement to completion of the projects. This includes calling and awarding tender for the projects, and monitoring project progress. There are currently 32 NRP projects under construction.

The COVID-19 pandemic has posed severe challenges for the construction industry. With the introduction of stringent safe management measures at worksites and tightening of border controls for foreign workers, many private and public sector construction projects have been delayed. To date, 18 out of the 32 NRP projects under construction have been delayed by more than six months, in part or in full, due to the COVID-19 situation. All 18 projects have resumed construction works progressively since October 2020 and are estimated to be completed within the next two to three years.

Support for raw material prices is applicable for HDB Build-To-Order (BTO) projects which have a contractual provision for protection of price fluctuation of certain materials. As NRP project works are generally not as complex or extensive, we understand that Town Councils do not include such a contractual provision for the contractors in their tenders. The support measure for raw material prices will thus not be applicable.

Nonetheless, NRP contractors affected by COVID-19 can tap on other relief measures provided under the COVID-19 (Temporary Measures) Act (COTMA), and Town Councils will assess if the relief measures (for example, prolongation and manpower costs) are applicable to their NRP contracts. In addition, BCA had announced on 3 November 2020 the universal Extension of Time (EOT) of 122 days for public and private sector construction contracts affected by COVID-19. Town Councils can also review further EOT periods with the contractors accordingly.