Post COVID 19

CONSTRUCTION CLAIMS

POST COVID 19 – CONSTRUCTION CLAIMS

All over the World Construction Projects are impacted by the Public Health measures endeavoring to contain the effects of the COVID 19 Virus.


Sites have been closed, many areas have had enforced lockdowns, funding challenges now are delaying planned projects and the impact on the construction supply chain is yet to be fully seen.


There are always the risk of litigation, mediation, arbitration and insurance claims but Post Covid -19 there is most definitely an increase in all of these activities and those who prepare early will deal with disputes faster and more effectively.


The best plan of action is to prepare for the worst and be ready to defend your rights and company reputation.


Expert advice should be sought to review the contracts to determine recovery choices and the contractual obligations you must be fully aware of and prepared for.


Bankruptcies, project funding cancellations or reductions could impact any recovery even if you are in the right and entitled.


Working with your Project Partners to address the impact of the Pandemic is the immediate action to be taken and amending contracts and agreements if possible is recommended, to avoid disputes and the most likely legal costs that follow.


Review all your insurance policies and consult with your attorney, consultant ,broker and insurance company to see if any coverage already exists.


Analyze your risks and review insurance that can be put in place to further protect your company.


If you find you can make a claim prepare fully and submit your claim as early as possible.


The importance of Notices is often overlooked but even more now with the impacts of the Pandemic ALL contractual notices should be placed as contractually required and in the correct time frame.


Failure to place notices will most likely result in having valid claims refuted later for delay damages, loss and expense.


There is always the responsibility to mitigate disruptions and damages but with Covid – 19 ensure these steps are well documented for the file and record.


Ensure suppliers record all impacts to their supply chain in writing and what steps they and you have taken to overcome them.


Alternatives to impacted suppliers should be studied, reviewed and proposed to show that all efforts are being taken to reduce the delays to the project.


Communicate, communicate, and communicate to ALL the parties involved what is happening and the efforts being taken so that all are in the loop regarding the effort to mitigate the pandemic impact.


Commence documenting your losses progressively as they are being incurred , the full damages will only be known when the project is completed but by then you will be properly documented and prepared to claim and support your entitlements.


There is a lot of administration work to document in real time and to categorize projects and types of damage. Photocopies, reports, photos all need to be labeled, filed and in order.


Outsource support as needed to help with all these tasks at the end of the day a dollar spent early is better than the many dollars that would be needed to recover data historically and the increased risk of losing any claims submitted


Prepare for your claims minimize risk and maximize the potential recovery of damages, loss and expenses later.

The information provided above is general in nature, has been prepared for informational purposes only and does not constitute legal advice. All parties need to evaluate their specific project conditions, contract, local codes and ordinances and contact their attorney or consultant to understand and apply these and other general principles for their project. The information is intended but not guaranteed to be correct, complete, and up-to-date. No representations or warranties are made, express or implied, that this information is correct, complete, or up-to-date.

Author

COLIN ANTHONY ADDLEY MCIOB, MAIB, MSAIB

Colin is a highly experienced Professional Quantity Surveyor and Project Manager with over three decades in the International construction and Marine Industry.

He is a specialist in the fit out sector having executed many prestigious, Luxury high quality and Technically Complex Projects.

He is also a creative writer having penned many industry related articles.

By: admin | December 16, 2020