The rapidly growing coronavirus pandemic poses an increasing
concern for business continuity, especially within the construction
industry.
With cancellations of events around the world and uncertainty in
impending lockdowns and international border closures, it is
critical for businesses to thoroughly review the rights and
obligations in their existing project agreement contracts. For
those dusting off executed agreements in force for projects, there
are five different provisions that should be reviewed with careful
consideration:
1. Force Majeure:
The force majeure clause is often in the boilerplate near the
end of a typical project agreement. Is there a specific reference
to an "epidemic" or "pandemic" as a force
majeure event? If not, is there language in the force majeure
clause covering "any other causes beyond the party's
control"? How broadly is a force majeure event defined? What
happens in a force majeure event – for example, does a force
majeure event
