All construction contracts mention specific dates in terms of the estimated time of completion, which often doesn’t count in the fact that additional time may be needed due to justified delays in construction. At the time, there is a global problem meddling with the construction process – Coronavirus pandemics. There were shortages in labor ever before the virus stroke and with the fallout, that shortage is dramatically increasing as a consequence. Shortage in labor employees is not the only problem as construction companies are also facing shortages in construction materials.
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What Does Your Construction Contract Say?
The majority of companies from the United States are importing their construction materials, thus relying on international companies and often overseas transportation. Coronavirus has affected and is still affecting numerous sectors and industries, while construction is also heavily suffering. In case of delays regarding Coronavirus, contractors need to check their contracts and look into the case of the outbreak in regards to their estimated time of completion. If the contract is covering unplanned delays in case of an emergency such as Coronavirus, contractors should be able to painlessly delay their date of completion for construction projects.
Coronavirus as a Force Majeure in Construction Contracts
Force Majeure is a clause in construction contracts that addresses situations and case scenarios that could happen and result in delays in the estimated time of completion, and which can’t be controlled. Coronavirus outbreak causing the shortage of construction materials, supplies and labor workers is one of such cases. Most contracts cover unpredicted situations that can’t be controlled so contractors may rely upon that clause to avoid additional expenses on their own cost, which would mean that construction companies are losing a lot of money due to delays. Clause addressing cases that can’t be controlled should be a part of every construction contract.
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