In order to survive the new normal, your construction company will need to change your operating, contract negotiation, and contract administration procedures to survive. You can proactively minimize our risk by taking such steps as assessing the project financing and viability of your project owners, contractors, subcontractors, and suppliers. You will have to look beyond your force majeure clause and revise your contracts to price out or provide contingencies.
Learn tools in creating a COVID Rider or considering standard escalation or de-escalation clauses, and strategies to get owners to agree to more balanced contracts. Come up with plans to give proper notice for potential claims include workforce disruption, delays and inefficiencies, and plan for supply chain disruptions. Contract strategies such as utilizing the cost of the work contracts, unit costs, or allowances will be presented. Gain insights on how you should flow down subcontract and supplier clauses appropriately.
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.