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ARTICLE · 24 MARCH 2020

COVID-19: Delays May Affect Construction Project Schedules And Budgets

Ultimately, the rights and obligations of the parties will be largely governed by the terms of their contract.

United StatesReal Estate and Construction

On March 16, Boston mayor Martin Walsh issued an order halting all construction projects in the city, citing concerns with worker safety and a need to slow the spread of COVID-19. While a similar order has not yet been issued in Connecticut, owners, contractors and lenders across the State are wondering how delays arising from the COVID-19 epidemic will affect project schedules and budgets. In short, it depends on your contract.

Section 8.3.1 of the standard American Institute of Architects A201 General Conditions of the Contract for Construction ("AIA General Conditions") provides that a contractor delayed by "causes beyond the Contractor's control" is entitled to an extension of the date for substantial completion of the work for a reasonable period of time (as determined by the Architect). Further, the contractor has the right under Section 14.1.1 of the AIA General Conditions to terminate the contract if the work is stopped for 30 consecutive days because a court,

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