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Construction Challenges During COVID-19: Suspensions, Delays, Workforce Depletion, and Other Considerations

Recording of a 90-minute CLE webinar with Q&A

This program is included with the Strafford CLE Pass. Click for more information.
This program is included with the Strafford All-Access Pass. Click for more information.

Conducted on Wednesday, June 3, 2020

Recorded event now available

or call 1-800-926-7926

This CLE course will address the impact of COVID-19 on private and federal construction projects and the legal implications that may arise from business interruptions due to restricted supply chains and a depleted workforce. The panel will further address how to proactively handle prospective construction delays, suspensions and inefficiencies and when and how to invoke force majeure.

Description

Construction legal experts anticipate the effects of COVID-19 restrictions and precautions on contractors, architects, and construction workers for current and future projects will be significant. As infections and restrictions grow, labor and material shortages may escalate. This will delay and otherwise impact ongoing construction projects.

Construction contracts have many clauses that may come into play for any construction project which is affected by supply chain and labor shortage problems, as well as government-mandated orders for isolation/quarantine. Most construction contracts for large projects, including the typical AIA forms, have provisions making "time of the essence" in the agreement. The scheduling of the contractor's work is a high priority in most contracts.

Counsel to property owners, developers, and contractors should review contracts now to determine their clients' and companies' rights and obligations against current and evolving regulations. Counsel must prepare now to advise clients as the virus impacts contractors' ability to keep projects on schedule and within budget.

There will be an increase in claims relating to contractual scheduling and project obligations, mediations, arbitrations, and litigation over contract terms addressing delay, suspension, force majeure, termination, changes, indemnification, liquidated damages, and other issues.

Listen as our authoritative panel of construction law attorneys discusses legal considerations and best practices for the industry during and after this current crisis.

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Outline

  1. Overview of key delay and suspension principles
  2. Key FAR clauses in light of COVID-19
    1. Changes: 52.243-4
    2. Stop-Work Order: 52.242-15
    3. Suspension of Work: 52.242-14
    4. Termination for Convenience of the Government: 52.249-2
    5. Default: 52.249-10
  3. Key AIA A201 clauses in light of COVID-19
    1. Evidence of the Owner’s Financial Arrangements: § 2.2
    2. Indemnification: § 3.18.1
    3. Changes In the Work: Article 7
    4. Delays and Extensions of Time: § 8.3
    5. Failure of Payment: § 9.7
    6. Partial Occupancy or Use: § 9.9
    7. Contractor Termination: § 14.1
    8. Termination by the Owner for Cause: § 14.2
    9. Suspension by the Owner for Convenience: § 14.3
  4. Questions and answers

Benefits

The presentation will:

  • Inform you about key delay and suspension principles to apply in connection with COVID-19 impacts
  • Guide you through key FAR provisions applicable to COVID-19 and discuss how to preserve your rights
  • Explain how the AIA A201 form of general conditions may respond to issues created by COVID-19
  • Discuss common law doctrines that may excuse performance failures triggered by supply chain disruptions, economic shocks and other COVID-19 impacts

Faculty

Blake, David
David A. Blake
Partner
Seyfarth Shaw

Mr. Blake has been practicing construction law since 1994. He holds an undergraduate degree in architecture, and he has...  |  Read More

Newland, James
James R. Newland, Jr.
Partner
Seyfarth Shaw

Mr. Newland represents clients in construction litigation and transactions, government contracts, international...  |  Read More

Rochwarg, Leah
Leah A. Rochwarg
Partner
Seyfarth Shaw

Ms. Rochwarg's practice focuses on transactional and litigation matters throughout Massachusetts and nationally...  |  Read More

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