COVID-19 Checklist for Const. Projects

March 19, 2020
COVID surrounding the earth.

To prepare for any possible challenges presented by any delays or cost increases as a result of COVID-19, Eversheds Sutherland highlighted some considerations and action items for construction development teams. 

  1. Pay attention to COVID-19 outbreaks in your project areas, and closely watch associated supply chain disruptions, labor impacts, or governmental actions such as quarantines or restrictions. 
  2. Review all Force Majeure provisions including extensions of time, exclusions of costs, and caps on delays. 
  3. Check your insurance to see whether or not you carry business interruption, or another insurance product that could mitigate damages in the event of a construction delay or COVID-19 related shutdown of your project. 
  4. Keep detailed records of construction progress and any delays or increased costs. 
  5. Reassess and closely monitor your construction budget.
  6. Review all construction, development, and financing documents to determine the parties’ respective payment obligations for cost increases or delays.
  7. If you anticipate delays to your construction project, plan ahead of time and prepare to discuss the situation with your development partners.