Client Alert – Coronavirus (COVID-19) - Guidance for Contractors
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The potential impacts of the Coronavirus pandemic to the construction industry are wide reaching. So, what can contractors facing such impacts do to avoid losses, mitigate the impacts, and prepare for what’s to come? Review each contract carefully for contract clauses that address rights in the event of unforeseen conditions. Various terms may be used; for example, your contract may or may not use the phrase “force majeure”. If there is a “force majeure” clause, scrutinize it carefully to…
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“Families First Coronavirus Response Act”: Emergency Paid Leave for Construction Employers with Fewer Than 500 Employees
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COVID-19 has already taken a toll on construction projects across the nation. Construction industry participants, including general contractors, now face risks and challenges that are exceedingly difficult to anticipate and plan for. The spread of this virus has and will continue to create new labor force issues and amplify existing ones. On March 18, 2020, the House of Representatives passed H.R. 6021, the “Families First Coronavirus Response Act,” which, contains provisions related to mandatory paid leave for employers with fewer than…
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Coronavirus is Here: What Does That Mean for Your Project and Your Business?
Alexander Gorelik, Associate, Joshua E. Holt, Associate,
Brian N. Krulick, Partner,
Shoshana E. Rothman, Partner,
A. Michelle West, Associate,
Brian S. Wood, Partner,
Smith Currie COVID-19 Resource Center
Force Majeure and Excusable Delays
Modern construction contracts commonly contain provisions addressing risks of delays resulting from “force majeure” (translated from French as “superior force”) and other events and circumstances beyond the control of the parties to the contract. Examples of these clauses can be found in ConsensusDocs 200 Section 6.3 and Federal Acquisition Regulation Section 52.249-14. ConsensusDocs 200, Section 6.3 states in part...
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ConsensusDocs Addresses Coronavirus Delay Risk Explicitly, Other Standard Documents Do Not
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ConsensusDocs contracts, such as ConsensusDocs 200 Owner/Constructor Agreement with General Conditions, section 6.3.1(j) explicitly allows for delays that are reasonably due to epidemics. The American Institute of Architects (AIA) A201 nor any other standard construction contracts, explicitly mention epidemics or pandemics.The AIA A201 does have a catch all that allows for...
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