Contract negotiations - COVID-19
The impact of COVID-19 on development and construction projects has been swift and significant. A large majority of construction projects have either stopped temporarily or suffered delays due to the effects of social distancing measures on onsite working practices, as well in the broader supply chain of labour, plant and materials.
Are project delays causing complex contract negotiations?
We can help.
In the event that the current COVID-19 outbreak causes delay, disruption and/or increased cost to a project, the employer may face claims from the contractor. Thankfully, a pandemic outbreak is a rare occurrence, and unlikely to have been foreseeable at the time the contract was agreed.Â
To mitigate risk and protect parties from disruption or delay related losses, we can help address the unique range of issues presented. Our expert project management, quantity surveying and contract administration team are experienced in dealing with dynamic and complex scenarios, and have been supporting clients throughout the current pandemic.
How we can help
Contract review
To understand how the contract allocates risk for delay and disruption.
Ensure the correct contract procedures are adhered toÂ
The issue and receipt of notices to ensure that the correct contract procedures are adhered to, and where relevant, ensuring that the impact of these notices to broader development agreements are understood.
Contingencies to mitigate the effects of COVID-19
Ensuring that appropriate contingencies are put in place by the Contractor (and project team) to mitigate the effects of COVID-19.
Record creation
Keeping clear, relevant and contemporaneous records relating to the effects of COVID-19 on a project.
Recognising risk in supply chain
Recognising that the reduction in activity could raise the risk of supply chain insolvencies.
Overcome COVID-19 contractual challenges
It is essential to understand the contractual position in relation to the rights of each party / relevant contract clauses and to ensure that communication, notices, records and decisions are made in a timely and professional manner.
Collaboration across the entire project team and regular, open communication is particularly important. This will ensure that the team is more effective in dealing with the unique challenges presented by Covid 19.
Looking forward
Taking the next step?We're here to navigate this with you.
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Emerging from COVID-19 – We're ready. Are you?
Read articleTrading through a pandemic creates complex challenges and - for those that know how to take it - unique opportunity. CEO of our Consulting business, John Chubb shares his approach and how a resilient, reliable, and manoeuvrable mindset can mean not only surviving, but succeeding.