Owners and contractors trying to understand the full impact of COVID-19 on their projects are likely turning to delay or force majeure provisions in their construction contracts to assess their rights or liabilities for continued performance. An event of force majeure is a circumstance that prevents someone from fulfilling a contract, and many articles recently have been written addressing the contours of typical force majeure clauses. Continue Reading Temporary Impracticality or Frustration of Construction Contracts During the COVID-19 Pandemic
This webinar provides a practical review of the impacts of COVID-19 on public and private construction contracts. Coverage includes the clauses covering delay, impact, acceleration, suspension of the work, changes and termination, whether express or constructive. The program focuses on the practical aspects of how best to manage the current situation, notice requirements, documenting claims, and consideration of risk management practices.
Wednesday, April 1, 2020
1:00 p.m. to 2:00 p.m. Eastern
12:00 p.m. to 1:00 p.m. Central
11:00 a.m. to 12:00 p.m. Mountain
10:00 a.m. to 11:00 a.m. Pacific
James Newland, Partner at Seyfarth Shaw
David Blake, Partner at Seyfarth Shaw
Leah Rochwarg, Partner at Seyfarth Shaw
*CLE Credit for this webinar is approved in the following states: CA, IL, NJ and NY. CLE Credit is pending for GA, TX and VA. Credit will be applied for, but cannot be guaranteed, in all other eligible jurisdictions. Please note that in order to receive full credit for attending each webinar, the registrant must be present for the entire session.
On Wednesday, March 25, 2020, Seyfarth attorneys Sara Beiro Farabow and Teddie Arnold will present in an 8-part webinar hosted by the Association of General Contractors, which will include a discussion of various topics salient to the outbreak of the COVID-19 virus. The webinar is titled, Navigating the Outbreak, Part III: The Contractual and Related Legal Protections and Risks for Construction Companies and will commence at 2:00 p.m. EDT. This webinar will identify the facts that you need to establish in order to qualify for the relief that a typical force majeure clause, how to give timely notice and still retain the flexibility to respond to rapidly changing events, and how owners are likely to treat claims for additional time, money or both, including claims for extended home office overhead or acceleration. You will also learn about the practical strategies that companies are implementing and the proactive steps they are taking to deal with potential price escalations.
To register for the webinar, please visit: https://na.eventscloud.com/ereg/index.php?eventid=537770&.
The impact of COVID-19, the ensuing delays and changes in the work, protecting the contractor’s cash flow, and avoiding a default termination are now top of mind for every construction contractor. This article reviews delay principles, changes in the work, default and convenience terminations, illness of key personnel, stop work orders, and other considerations related to claims and defenses arising from COVID-19. Contractors must be alert to the practical aspects of entitlement and recovery under the clauses that come into play. Continue Reading COVID-19’s Impact on the Government Construction Contractor’s Performance: Recognizing and Implementing the Appropriate Claims and Defenses
On Wednesday, March 25, James Newland is presenting COVID-19 and Your Construction Project—Delay, Suspension and Changes Claims, a Federal Publications Seminars webinar.
The program will provide a thorough review of the potential impacts of COVID-19 on construction contracts with the federal government and private owners. Coverage includes the clauses covering delay, impact, acceleration, suspension of the work, stop work orders, changes and termination (whether express or constructive); as well as the mechanics of the clauses and the cases construing them. The program focuses on the practical aspects of how best to manage the current situation, notice requirements, documenting claims, and consideration of risk management practices.
For more information and to register, visit the Federal Publications Seminars website here.
With the exponential spread of COVID-19, owners, contractors, and design professionals are recognizing the substantial impact this pandemic will have on the construction industry. Several states issued shelter-in-place orders, resulting in the suspension of some construction work. In some states, this has resulted in work stoppages on some of our nation’s largest infrastructure projects. The financial impact of these work stoppages will be significant. As a result, parties to construction agreements have looked to their force majeure clauses for guidance on how these issues should be addressed. Continue Reading Coronavirus Pandemic: My Construction Agreement Has a Force Majeure Clause, So Now What?
Illinois Governor J.B. Pritzker issued a shelter-in-place Executive Order on March 20, 2020, the latest in a series of restrictive statewide actions that he has implemented in the effort to prevent further spread of COVID-19, commonly known as the coronavirus. Governor Pritzker’s Executive Order follows the imposition of statewide restrictions on the size of public gatherings, a suspension for bars and restaurants offering dine-in service, and school closures. It currently extends through April 7, 2020. Continue Reading Illinois Governor Issues Shelter-in-Place Order in Response to the Coronavirus that Spares the Construction Industry
On March 13, 2020, President Trump declared a national emergency in response to the coronavirus (COVID-19) outbreak. Such a declaration has significant implications on the contracting community navigating the federal procurement process. While contractors are undoubtedly trying to manage existing contracts in light of labor and supply chain disruptions, many will be looking at the procurement landscape for business opportunities. Federal procurement law contains a number of provisions that authorize streamlined procurement procedures for major disasters or national emergencies. This article addresses the procedures that federal agencies may employ during a national emergency such as COVID-19. Because these procedures do not often look like typical procurement procedures, contractors should be mindful of the rules to better position themselves as they seek out opportunities. Continue Reading Federal Procurement Procedures During a National Emergency
Globally, many developers and contractors are scrambling to identify available contractual relief as the Coronavirus (COVID-19) disrupts cross-border supply chains. US businesses will recall a similar effort just eighteen months ago, when the Trump Administration announced increased tariffs on $300 billion of Chinese goods. That trade war prompted companies to scrutinize remedies and mitigate associated project risks by tapping alternative sources originating in other Asian countries and Canada. Once again, construction industry stakeholders should reexamine delay provisions in pending and future contracts to mitigate risks arising from project disruptions caused by COVID-19.
This article provides an overview of US case law interpreting the doctrine of force majeure in the context of disease-related delay claims. Drawing on that guidance, we then identify practical considerations for applying existing force majeure or related delay provisions and how they may be modified for future projects. Continue Reading Managing Project Risk Associated with the Coronavirus Outbreak Through Force Majeure Provisions
On February 22, 2020, Leah Rochwarg and Wendy Wendrowski will participate as panelists in a program at the American Society of Civil Engineer’s Construction Institute Summit regarding a design professional’s obligation to indemnify its client (to compensate its client for losses sustained because of the design professional’s acts or omissions). While many design contracts include an obligation for the design professional to indemnify and hold its client harmless from such losses, it is less common for a design contract to include an explicit obligation for the design professional to defend its client (to pay up front the client’s costs to defend against an action to recover such losses). The panel discussion will focus on different states’ rules of interpretation regarding the issue of whether an indemnity provision that does not expressly include a duty to defend nonetheless implicitly includes such an obligation.
Find more information about the Construction Institute Summit on the American Society of Civil Engineer’s website.