How to Prepare for Potential Construction Disputes Resulting From COVID-19

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Some steps to take in preparing for potential disputes arising from the effects of COVID-19.

August 24, 2020
Helga A. Zauner & Sonia Desai - Construction Executive

Every industry has been affected by the COVID-19 pandemic, and construction is no exception. While construction work was deemed essential in some places, it has been limited only to pandemic-related projects in others.

In the current climate, construction companies face a myriad new challenges, including concerns about health and safety, delays resulting from employee illnesses, supply chain disruptions and increased prices for materials, as well as contract delays or cancellations by concerned contract owners. Contractors must keep their employees safe and institute what could be costly best-practice measures, while facing potential claims from employees if they get sick due to a company’s perceived lack of response to the dangers of the coronavirus.

Stakeholders in the construction process need to prepare for potential disputes and understand their rights and responsibilities. This includes understanding applicable clauses in construction contracts and subcontractor agreements as well as business interruption clauses and other provisions in insurance contracts. Stakeholders may need to seek professional counsel to help them understand their rights and responsibilities in potential disputes.

Reprinted courtesy of Helga A. Zauner & Sonia Desai, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.

Ms. Zauner may be contacted at helga.zauner@weaver.com
Ms. Desai may be contacted at sonia.desai@weaver.com



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