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 impact 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.