Contractors should scrutinize contracts carefully amid Covid-19 crisis

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.

New York City has two very large buildings dedicated to answering the 911 calls of its five boroughs. With more than 11 million emergency calls annually, it makes perfect sense. The second of these buildings, the Public Safety Answering Center II (PSAC II) is located on a nine-acre parcel of land in the Bronx. It’s an imposing 450,000 square-foot structure—a 240-foot-wide by 240-foot-tall cube. The gleaming aluminum cube risesthe equivalent of 24 stories from behind a grassy berm, projecting the unlikely impression that it might actually be floating. Like most visually striking structures, the building has drawn as much scorn as it has admiration.