During the Covid-19 virus crisis, it is important for contractors to protect themselves from possible legal action by adhering to the provisions of current contracts, lawyers advise.
“The virus and its economic impact will almost alter pre-existing plans for owners, developers, general contractors, subcontractors, and everyone else down the chain,” according to Balch & Bingham LLP. “While many are understanding of these circumstances, there are ways to ensure you are protected going forward.” They advise:
· Review on-going contracts and locate their delay, force majeure, change order, termination, suspension and other relevant provisions.
· Comply with time-sensitive notice requirements. This includes supply agreements and insurance policies. When there is uncertainty over whether to invoke a provision in a document, consider putting the other party on notice to protect your rights.
· Scrupulously document developments. “Proving delays, labor shortages, supply interruption, and other project impacts tomorrow will depend on the evidence being created (or not being created) today.” Simple email or daily notes are acceptable to record the impacts from COVID-19.
· Check your insurance coverage. Business interruption insurance typically includes complex provisions and exclusions.
· Anticipate operational problems. “Administrative tasks might be easily completed from home while supply chains may be severely limited by a reduced and quarantined workforce thousands of miles away.” Anticipate likely problems and try to plan for them.
Related Stories
| Sep 10, 2014
Perry named new director of OSHA’s Standards and Guidance Directorate
Bill Perry has been named new director of the OSHA’s Directorate of Standards and Guidance, effective Aug. 24, 2014.
| Sep 10, 2014
ASHRAE proposes verification for energy standard
The ASHRAE/IES energy standard would have multiple compliance options to ensure verification of delivered building envelope performance under a new proposal.
| Sep 2, 2014
Micro-apartment concept can’t get traction in Boston suburb
Micro-apartments are gaining acceptance in nearby Boston and in places such as San Francisco and New York, but Weymouth, Mass., officials and neighbors were not receptive to a proposal for tiny dwellings this summer.
| Sep 2, 2014
Montreal borough leader urges city to issue green roof guidelines
The mayor of Montreal's Saint-Laurent borough wants Quebec's housing authority to speed up its plan to publish construction guidelines for green roofs.
| Sep 2, 2014
Proposed federal rules would create more stringent healthcare facility safety rules
A key change is a requirement that buildings over 75 feet tall have sprinkler systems throughout the structure. Existing buildings would have 12 years to install them.
| Sep 2, 2014
Construction unions, housing activists press New York mayor on affordable apartment projects
A group of New York City construction unions have joined forces with affordable housing activists to pressure Mayor Bill de Blasio to require organized labor on construction of 80,000 lower-cost apartment units.
| Aug 27, 2014
Houma, La., will tap FEMA grants to raise hurricane resilience standards on public buildings
The Houma-Terrebonne Civic Center and other public buildings in Houma, La., would be renovated to withstand Category 3 hurricane winds according to a plan being considered by the Parish Council.
| Aug 27, 2014
Napa Valley assesses impact of structural retrofits on buildings after earthquake
About 30 inspection teams of two inspectors each have conducted at least quick exterior inspections of downtown Napa, Calif., buildings since a magnitude 6.0 earthquake struck the region.
| Aug 27, 2014
Liberty Building Forensics cautions hotel building teams on moisture, mold issues
Liberty Building Forensics Group, a building forensics firm warned building teams working on hotel projects to be on guard against moisture intrusion and mold.
| Aug 27, 2014
Requirement for site safety inspectors hampering construction in New York City
New York City’s regulation that requires contractors to hire independent safety inspectors for job sites is holding up projects worth millions of dollars, contractors say.
