Whether you are legally responsible will depend on steps you take now. Learn what COVID-19 riders smart owners, general contractors and subcontractors are seeking and what contract administration steps, like proactively asking for financial assurances, you should be taken to help protect your company’s financial viability.
Learn about what COVID riders are appearing from an owner’s, general Also learn how clauses beyond force majeure, should be looked at in your existing contracts that including emergency and safety clauses, change of law, extended suspensions, and ramifications of potential terminations by the owner as well as the contractor.Gain an understanding on how you can use an acceleration /de-escalation index to manage material prices and labor costs as well as delaying setting costs through using allowances and unit costs. Considering clarifying and updating your contingency clauses to clarify what they can and cannot be used for drawing upon.
Coronavirus has brought unprecedented risk to your standard construction contracts that you are used to using.You will fail if you do not update your standard contract as well as your internal operating procedures, including contract negotiation and administration.Small oversights that you might have gotten away in the past that might now put your company in jeopardy. Now is the time to proactively and comprehensively review your contracts and contract administration procedures is now.
Learn what commons standard construction contracts must be updated in light of COVID risk, including indemnification, liquidated damages, consequential damages, allowable costs, notice of claims that have taken on an event greater importance in light of COVID-19 risk at the prime and subcontract levels. Understand the importance of addressing inefficiencies, delays, as well as labor and supply shortages. Learn what contract negotiation strategies you should take to spot key contract clauses as well as contract administration processes you should have in place.
Brian Perlberg is Executive Director and Senior Counsel for ConsensusDocs, a coalition of 40+ construction organizations dedicated to drafting best practice construction contracts. Mr. Perlberg serves on the ABA Forum on the Construction Industry Steering Committee for the Contract Documents, National Construction Dispute Resolution Committee (NCDRC) of the Arbitration Association of America (AAA), the Advisory Board to Construction SuperConference, and WPL Publishing.