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ARTICLE · 30 APRIL 2020

COVID-19 – Local government contracts and force majeure clauses

The general conditions contained in many local government contracts will likely contain a "Force Majeure" clause.

AustraliaCoronavirus (COVID-19)

Introduction

Local Governments, as part of their day to day functions, enter in contractual relationships in a wide variety of circumstances. These contracts often arise after a tender process where the conclusion of that process is a signed contract.

These contracts extend to the procurement of goods or services, property, asset management, engineering and governance.

As a consequence of COVID-19 local governments have faced massive disruption to contracts that they are parties to. It may mean that the local government or the contractor are currently unable to perform their obligations under the contract.

In many cases local governments have already advised contractors to cease performing their obligations.

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The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

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