Minimising Exposure to Delays and Losses Arising from COVID-19
The global COVID-19 pandemic continues to impact the construction industry on a scale never before seen. Governments’ responses to this crisis frequently change, as events rapidly evolve. Most construction sites are now closed and those that remain open face travel and other restrictions that affect manpower, plant and material availability.
Continued uncertainty around the COVID-19 pandemic means the true social and financial impacts are yet to be fully understood. But it is clear that the potential for unprecedented consequences has never been higher. For that reason, flexible and effective management is needed to minimise exposure to delays and losses.
Depending on the contract; delays caused by COVID-19 are likely to entitle a party to an extension of time. Nevertheless, that party must both evidence these delays and demonstrate they critically delayed the Works. This is done through a delay analysis. Whether or not additional costs will be recoverable will be down to the actual wording of the contract and the laws applicable in the specific country, so a thorough understanding of the available contractual mechanisms will be required.
In response, FTI Consulting has developed a range of practical measures and tips to help you manage the evolving situation. Please contact us for further help on any of the areas below.
- Under which Clause(s) could a claim be forwarded, and recovery be maximised?
- Is a causal link between COVID-19 and the claimed event established?
- Have all the relevant notices been served?
- Is there potential for relief outside of the Contract?
- What communications are needed under the contract? How are they to be managed remotely?
May 6, 2020
Senior Managing Director, Global Leader of Construction Solutions
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