Construction Industry At Core Of Post-COVID-19 Debates

Who is in the best position to sustain the loss? And what outcome is in the overall best interests of industry, economy and the public at-large? Governments will grapple with these issues in the context of COVID-19 in the months and years to come. And the construction industry, willing or not, will find itself at the core of these debates as it deals with COVID-19 related cost and schedule impacts caused by work stoppages, disruption of labor resources and productivity, disturbed supply chains and varied safety requirements.

Owners and contractors contractually allocate cost and schedule risks with express insurance requirements, indemnity provisions and clauses covering change and variation, force majeure and change in law. These provisions vary the allocation of risk by providing contractors with complete relief for costs incurred, overheads and profits to express bars against relief for schedule or cost impacts and everything in-between. Frequently, in the case