Construction Projects and Disputes: A Look Beyond the COVID-19 Lockdown
The impact of COVID-19 on construction projects will vary significantly from jurisdiction to jurisdiction depending on a myriad of factors, including the severity of the pandemic, the nature and significance of government orders issued to address the virus, and the effect of government action taken to mitigate financial hardships resulting from the virus. Companies must carefully weigh the considerations for a project on a case-by-case basis based on the contract language, the applicable law, and the particular facts and circumstances. And they must consider both where the project is located and all associated jurisdictions.
This first part of a three-part White Paper sets out an overview of some of the recurring issues facing construction industry participants. It seeks to convey a global perspective on these issues, as major companies, particularly those with global operations, must have an understanding of the legal challenges presented by the virus to proactively address the challenges it presents across jurisdictions.
Part II, which will be issued shortly after this part, will provide an overview of the impact COVID-19 has had, and likely will continue to have, on specific industry sectors, as they relate to construction projects. It will also set out salient insurance issues project participants need to consider.
The final part, which will be issued shortly after Part II, looks beyond the lockdown to examine what effect the pandemic may have for new or suspended projects as well as issues that may require formal dispute resolution. It also discusses some prudent strategies that companies may wish to follow in navigating the long-term fallout from the pandemic.