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 | May 31, 2019
Pankow Foundation releases report, tools for embodied carbon impacts
Focus is on MEP and tenant improvements.
Codes and Standards | May 24, 2019
USGBC receives funding for LEED for Cities and Communities Program
Bank of America provides $500,000 grant to certify 15 U.S. cities.
Codes and Standards | May 24, 2019
AIA updates Interiors Contract Documents
Six revised documents available for interior construction projects.
Codes and Standards | May 23, 2019
Northern California casino offers a template for resilient microgrids
Solar power with batteries and backup generators provide weeks of self-reliance.
Codes and Standards | May 23, 2019
Austin creates innovative plan to boost affordable housing
Approach includes loosened zoning, incentives for higher density in lower-cost and mixed-income developments.
Codes and Standards | May 20, 2019
Effort launched to develop better process for zero-carbon retrofits in multifamily sector
Rocky Mountain Institute, Dept. of Energy, California Energy Commission join forces.
Codes and Standards | May 20, 2019
Property lenders shouldn’t invest for 30 years in most of Florida, expert warns
Climate ignorance driving some ‘insane’ deals.
Codes and Standards | May 17, 2019
NIMBYism is the biggest multifamily construction barrier
National Apartment Assn. report assesses reasons for difficulty in creating more apartments.
Codes and Standards | May 17, 2019
Dept. of Energy to award up to $33.5 million for advanced construction R&D
Focus is on techniques to reduce energy bills.
Codes and Standards | May 16, 2019
Mixed reviews on targeted tax break for San Francisco neighborhood
“Twitter tax break” may have worsened some of the area’s problems.