How COVID-19 have significantly impact on the construction industry
The COVID-19 pandemic and its consequences continue to have a significantly impact on the
construction industry. From supply chain disruption, to the effect of changes in laws, an
increased focus on health and safety, workforce restrictions, contractor claims (for relief, time
and money), suspension of construction projects, and associated difficulties experienced by both
developers and contractors: COVID-19 is rapidly bringing about an erosion of industry profit
margins, a cash-flow crisis, significant cost and time overruns, and mounting financial losses
throughout the industry.
In the context of COVID-19, contractors use force-majeure as an excuse for the delay and it is
questionable whether it is a force majeure event or not. This report provides an explanation for
the argument of force majeure in the new normal context of COVID-19 in view of a contract
specialist working on behalf of the Employer. Then, the report discusses how contract
administrators defend/address a fully-fledged disruption claim advanced by the contractor who
has indeed suffered a considerable erosion of his profit margin.
As a result of the Covid-19 pandemic, parties to a project are faced with a very difficult position
of having to establish and assess claims for delay and/or disruption and to determine the
corresponding EOT to be granted or compensation to be allowed. Thus it requires thorough