The construction companies handling projects in the Singapore Housing Board market have been offered new hopes with the lock-in supplies and prices for raw materials. This new move of the Government in the country is expected to bring construction progress on track while minimizing delays for target home buyers.
The new measures include the extension in steel price protection duration from HDB for additional nine months. As a result, the contractors in the area now do not need to worry about steel price fluctuations, and they can run their projects smoothly.
HDB is also expected to provide few additional supplies to the contractors for concrete materials so that they can lead local precast production. Note that these supplies will now be available at the same price as contractors have opted in project tender, including sand, cement, and other accessories.
Earlier, the steel price protection was provided by HDB for 18 or 22 months, and it used to cover the duration of various structural works that were delayed due to the Covid-19 situation.
With the available extension of nine months, the contractors that started their structural works during the month of January in the year 2020 will also be protected against steel price fluctuations up to March 2022.
In a recent statement, experts from HDB stated that almost 35 ongoing projects would be benefited from this new extension.
Note that in the month of January 2021, the steel prices rose by almost 25%, whereas the concrete material prices were high by 15%.
Feedback from Singapore Contractors Association was also routed to HDB, stating that steel quantities ordered by construction contractors are low due to restricted progress in the construction activities.
On the other side, considering the movement control order of Malaysia, the construction contractors are relocating precast production to Singapore or are planning to switch to the traditional cast-in-situ method for construction activities.
It is observed that these contractors have previously considered small quantity orders for concrete materials from HDB, mainly due to their pre-casters lying overseas. But at present, they may need more materials, and HDB is now ready to provide them a higher quantity, even at the same price as committed in the initial tender.
Contractors that are willing to relocate their precast production to Singapore will receive assistance from HDB to process their application for land. The requests will be handled under a temporary occupation license to lead storage and production of various precast components.
With the ongoing market conditions, the contractors are expected to apply for additional material supplies right from the month of October 2021.
This positive move in the market came due to the busting of the main contractor associated with five popular Built-To-Order projects in the country; this situation caused indefinite delays for the 2900 home buyers. The affected projects were Marsiling Grove, West Coast Parkview, Senja Ridges, Senja Heights, and Sky Vista, and the main contractors for these were Greatearth Construction and Greatearth Corporation.
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