Construction Projects

Construction Projects and Disputes: A Look Beyond the Lockdown, Part III

Even as the world gradually eases out of lockdown, deals are rekindled and services are remobilized, no one doubts that the impact of the pandemic will continue to be felt for months and, some say, possibly years ahead. The impact of COVID-19 on construction projects will vary significantly from jurisdiction to jurisdiction depending on a range 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.

This final part of a three-part White Paper  looks in detail beyond the lockdown in three ways. First, what are the lessons learned for future project planning from a contracting, financing, and due diligence perspective? Second, what types of disputes can be expected to arise from the pandemic? Third, what strategies might be employed to weather the storm and minimize the impact of the pandemic on a project and the business of a construction industry participant?

Part I, published on May 1, 2020, set out an overview of some of the recurring issues facing construction industry participants. It sought 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, published on May 12, 2020, provided a transactional and disputes-focused overview of the impact of COVID-19 on a select number of key sectors within the construction industry:  real estate development, oil and gas, renewable energy, social infrastructure, transportation infrastructure, and telecoms. It also reviewed the typical insurance policies that cover construction projects and how they may or may not apply to a project that suffers financial consequences as a result of COVID-19.

Read the full White Paper.

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