Construction Challenges During COVID-19: Suspensions, Delays, Workforce Depletion, and Other Considerations

Description

Construction legal experts anticipate the effects of COVID-19 restrictions and precautions on contractors, architects, and construction workers for current and future projects will be significant. As infections and restrictions grow, labor and material shortages may escalate. This will delay and otherwise impact ongoing construction projects.

Construction contracts have many clauses that may come into play for any construction project which is affected by supply chain and labor shortage problems, as well as government-mandated orders for isolation/quarantine. Most construction contracts for large projects, including the typical AIA forms, have provisions making "time of the essence" in the agreement. The scheduling of the contractor's work is a high priority in most contracts.

Counsel to property owners, developers, and contractors should review contracts now to determine their clients' and companies' rights and obligations against current and evolving regulations. Counsel must prepare now to advise clients as the virus impacts contractors' ability to keep projects on schedule and within budget.

There will be an increase in claims relating to contractual scheduling and project obligations, mediations, arbitrations, and litigation over contract terms addressing delay, suspension, force majeure, termination, changes, indemnification, liquidated damages, and other issues.

Listen as our authoritative panel of construction law attorneys discusses legal considerations and best practices for the industry during and after this current crisis.