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 | Jul 16, 2020
Tips to make optimal use of salvaged materials
Integrated teams, staging warehouse, and looking early and often, among recommendations.
Codes and Standards | Jul 15, 2020
Georgia gives the go-ahead for tall mass timber construction
Standards review scheduled to be completed by July 2021.
Codes and Standards | Jul 15, 2020
Softwood-lumber duties boost expenses amid COVID-19 outbreak
Little hope this year for resolution of trade dispute with Canada.
Codes and Standards | Jul 14, 2020
Metal Construction Assn. releases three EPD updates
Pertain to Metal Composite Materials, Insulated Metal Panels, and Roll Formed Aluminum and Steel Cladding.
Codes and Standards | Jul 13, 2020
5 must reads for the AEC industry today: July 13, 2020
4 technologies for improving building sanitation and tech's ever-evolving impact on the multifamily space.
Codes and Standards | Jul 9, 2020
Funding opportunity for field validation of high-impact building technologies
Dept. of Energy program targets dynamic interactions with electric grid.
Codes and Standards | Jul 8, 2020
Standards for reducing risk of COVID-19 in senior living communities
AIA releases strategies and illustrations for the sector.
Codes and Standards | Jul 6, 2020
Guide presents benefits of public-private partnerships
Discusses process from project conception to construction.
Codes and Standards | Jul 1, 2020
COVID-19 public health guidelines may be downplaying building systems solutions
Emphasis on cleaning surfaces overlooks importance of mechanical infrastructure.
Codes and Standards | Jun 30, 2020
WELL building institute steps up health safety rating for hotels and resorts
Certification body forms advisory group of industry leaders and health experts.