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
Codes and Standards | Aug 3, 2020
Report aids local governments on policy options, pathways to electrify new buildings
Document focuses on switching appliances and equipment away from natural gas, propane.
Codes and Standards | Jul 30, 2020
Institute for Market Transformation acquires Energy-Efficient Codes Coalition
Goal is to achieve net-zero construction by 2050.
Codes and Standards | Jul 29, 2020
Crackdowns grow on construction firms that fail to follow COVID-19 guidelines
States, cities, and OSHA enforce social distancing, hand-washing regulations.
Codes and Standards | Jul 28, 2020
California utility adopts climate emergency declaration
Sacramento-region company commits to working towards carbon neutrality by 2030.
Codes and Standards | Jul 27, 2020
Updated Energy Plus and OpenStudio building energy modeling tools released
Software offers performance enhancements.
Codes and Standards | Jul 23, 2020
North Carolina will stop relying on FEMA flood mapping
State will identify flood zones on its own.
Codes and Standards | Jul 22, 2020
New version of IAPMO’s Water Demand Calculator is available
Enhanced features include selection between single- and multifamily buildings.
Codes and Standards | Jul 22, 2020
Mobile app calculates sound transmission for wood-framed assemblies
American Wood Council tool for floor-ceiling assemblies.
Codes and Standards | Jul 22, 2020
Architecture billings remain in negative territory, begin to stabilize
Fewer architecture firms report declining billings this month.
Codes and Standards | Jul 20, 2020
N.Y. construction firm to pay $1.5 million to settle sexual harassment claim
Managers said to demand sex for pay and OT opportunities.