Construction COVID-19 issues to be aware of:
During this COVID-19 outbreak, you may wish to re-look at your contracts to ensure you are adequately managing your risk.
Items to consider
Safety: With reduced plant and site workforce, safety becomes more important than ever.
- With a reduced crew, are all people still working competent for the work performed?
- Are your safety policies and procedures still relevant with the team you have?
- In the event you have fewer supervisors, does your team have sufficient, adequate and competent supervision?
- Liquidated Damages: If you have a contract with liquidated damages, you may wish to have a quick discussion with your general contractor as well as your lawyer to determine if the clauses still apply or will be modified.
- Schedules: It is expected that there will be delays from lack of personnel and performance from other trades. Similar to liquid damages, it is recommended that you have a conversation with the GC and possibly your lawyer to determine how to best mitigate risk on the project.
We have already heard of some site closures in the US and in Canada. In the US, some cities have permanently closed job sites. You may wish to consider the following:
- Material and Equipment on site: For most commercial projects, billing is done on substantial completion in whole or in part (progress). Material on site that is not erected and installed is typically yet not billable. You may wish to consider only supplying the site what you can erect and complete in a small period of time.
- Determine now, in the event of a site closure what you can invoice, notice the GC will provide and what you can remove from the site.
If you need legal assistance, and don‘t currently have legal support, Dan Leduc from Norton Rose Fulbright provides legal services to CISC members at a discounted rate.
COVID-19 Frequently Asked Questions to Assist Employers
April 6, 2020 – DELOITTE: COVID-19: Orchestrating the recovery of organizations and supply chains Preparing for recovery and “the new normal” starts now | DELOITTE : COVID-19 : Orchestrer la reprise des organisations et des chaînes d’approvisionnement La préparation en vue de la reprise et de la « nouvelle normalité » commence dès maintenant
In this latest piece, Deloitte Canada examines the responsibility that company leaders have to not only respond to the current COVID-19 pandemic, but to also consider how their organization will recover and thrive after the crisis is over.
Given the complexity of the pandemic, there is reason to believe that the recovery phase will require unprecedented levels of coordination and collaboration during a challenging and potentially protracted recovery period. Planning for this recovery now – even under uncertainty as the crisis continues to unfold – will be repaid in more precise and considered actions, and a stronger bounce back. Furthermore, the actions that a company takes during this recovery period can set the foundation for sustained growth and performance long after the pandemic is over.