Stacy Bercun Bohm and Daniel Miktus wrote an article for Builder Magazine aimed at guiding construction project owners through the uncertainty resulting from the COVID-19 pandemic.
“The first step an owner can take in proactively managing project risks caused by coronavirus is reviewing its construction contracts, and especially those provisions relating to force majeure, emergencies, delay, cost increases, labor or material supply chain disruptions, insurance, suspension, and termination. While it is unlikely that the contract will specifically reference a pandemic, most are probably vague enough to cover a labor or supply disruption due to an unforeseen act, and many contract forms provide relief to the contractor in the event the project is shut down or otherwise impacted by a government entity. Contracts may also address escalation in material costs and the party responsible for the increase.”