BCA Further Extends Ex-Gratia Cost Sharing for Diesel and Bitumen Until 31 December 2026

© WongPartnership LLP

DISCLAIMER: This update is intended for your general information only. It is not intended to be, nor should it be, regarded as or relied upon as legal advice. Court decisions referred to herein may be subject to further appeal at the time of publication, and subsequent developments in the law, including new legislation, amendments, court decisions or practice directions, may affect the accuracy or relevance of the matters discussed. We are under no duty to update this publication to reflect any such changes in the law. You should consult a qualified legal professional before taking any action or omitting to take action in relation to matters discussed herein.

WongPartnership LLP (UEN: T08LL0003B) is a limited liability law partnership registered in Singapore under the Limited Liability

Partnerships Act 2005.

ENERGY, PROJECTS &

CONSTRUCTION

OCTOBER 2026

BCA Further Extends Ex-Gratia Cost Sharing for

Diesel and Bitumen Until 31 December 2026

On 30 September 2026, the Building and Construction Authority (BCA) issued a circular announcing the further extension of ex-gratia cost sharing for diesel and bitumen in ongoing critical public sector construction contracts until 31 December 2026, in response to the continued impact of the Middle East conflict. The covered period now runs from 1 March 2026 to 31 December 2026.

The ex-gratia 50% cost-sharing of Direct Additional Costs by Government Procuring Entities (GPEs) is extended in view of the continued elevated prices of diesel and bitumen.

In addition to the extension, the circular introduces claims submission deadlines. To encourage timely submission of claims to GPEs, eligible contractors are required to follow the claims submission deadlines below:

(a)

For Direct Additional Costs incurred in March 2026 to June 2026, claims must be submitted to

GPEs by 31 December 2026;

(b)

For Direct Additional Costs incurred in July 2026 to September 2026, claims must be submitted to GPEs by 31 March 2027; and

(c)

For Direct Additional Costs incurred in October 2026 to December 2026, claims must be submitted to GPEs by 30 June 2027.

Apart from the further extension and the claims submission deadlines stated above, the cost-sharing rate, eligibility, claims and pass-down procedures are unchanged from those set out in BCA’s earlier circular dated 29 July 2026, and are as summarised in our earlier updates on this cost-sharing framework, available here, here and here.

If you would like information and/or assistance on the above or any other area of law, you may wish to contact the Partner at WongPartnership whom you normally work with or any of the following Partners:

TAY Peng Cheng

Head – Energy, Projects & Construction

Lesley TAN

Partner – Energy, Projects & Construction

Construction | Infrastructure

WPG MEMBERS AND OFFICES

- contactus@wongpartnership.com

SINGAPORE

-

WongPartnership LLP

12 Marina Boulevard Level 28

Marina Bay Financial Centre Tower 3

Singapore 018982

t +65 6416 8000

f +65 6532 5711/5722

CHINA

-

WongPartnership LLP

Shanghai Representative Office

Unit 1015 Link Square 1 222 Hubin Road

Shanghai 200021, PRC t +86 21 6340 3131

f +86 21 6340 3315

INDONESIA

-

Makes & Partners Law Firm

Menara Batavia, 7th Floor

Jl. KH. Mas Mansyur Kav.

Jakarta 10220, Indonesia t +62 21 574 7181

f +62 21 574 7180

w makeslaw.com

MALAYSIA

-

Cheang & Ariff

Advocates & Solicitors

Loke Mansion 273A, Jalan Medan Tuanku 50300 Kuala Lumpur t +60 3 2691 0803

f +60 3 2693 4475

w cheangariff.com

-

Foong & Partners

Advocates & Solicitors 13-1, Menara 1MK, Kompleks 1 Mont' Kiara

No 1 Jalan Kiara, Mont' Kiara 50480 Kuala Lumpur, Malaysia t +60 3 6419 0822

f +60 3 6419 0823

w foongpartners.com

MIDDLE EAST

-

Al Aidarous Advocates and Legal Consultants

Abdullah Al Mulla Building, Mezzanine Suite 02 39 Hameem Street (side street of Al Murroor Street)

Al Nahyan Camp Area

P.O. Box No. 71284

Abu Dhabi, UAE t +971 2 6439 222

f +971 2 6349 229

w aidarous.com

-

Al Aidarous Advocates and Legal Consultants

Oberoi Centre, 13th Floor, Marasi Drive, Business Bay

P.O. Box No. 33299

Dubai, UAE t +971 4 2828 000

f +971 4 2828 011

PHILIPPINES

-

Gruba Law 27/F 88 Corporate Center 141 Valero St., Salcedo Village

Makati City 1227, Philippines t +63 2 889 6060

f +63 2 889 6066

w grubalaw.com wongpartnership.com