The impact of the movement control order on building sites
This is the third in our series of articles on the impact of the Movement Control Order (“MCO”) on building projects. In this article, we look at several Frequently Asked Questions (“FAQs”) from the standpoint of the Standard Form of Building Contracts (2019 Edition) issued by the Asian International Arbitration Centre (“AIAC”) [“AIAC SFC”].
FAQ (1): Does the MCO entitle the Contractor to an Extension of Time (“EOT”) under the AIAC SFC?
Yes. The Contractor is entitled to EOT in the event Covid-19 is considered one of the “Time Impact Events” under Clause 23.8, provided the mechanisms for an EOT application are complied with.
FAQ (2): Which “Time Impact Events” under AIAC SFC are applicable to the MCO?
There are a few. The “Time Impact Events” under AIAC SFC are divided into “Non-Employer’s Events” set out at Clause 23.8(b) and
“Employer’s Events” set out at Clause 23.8(c).