Introduction

Those entering into new construction contracts should include custom language addressing the parties’ respective rights and responsibilities related to COVID-19. Many articles and webinars have focused on how traditional contract clauses in existing contracts may respond to COVID-19 issues. The fit is not always clear. Some guesswork is involved and creativity is called upon as square pegs are coaxed into round holes. While there is a need to perform that retrospective analysis to assess how COVID-19 issues will play out under existing contracts, there is no need to propagate uncertainty in new contracts. Indeed, such uncertainty can cause parties to shy away from new contracts or include significant contingencies, neither of which supports an industry trying to recover from the pandemic.

This article addresses custom COVID-19 language for new construction contracts. The principles discussed can be applied to any construction contract. This article is based on two construction contracts for which I successfully drafted and negotiated custom COVID-19 language. One is a private project and the other is a public project. Some of the views expressed during those negotiations are weaved into the discussion to provide both sides’ perspective.
Continue Reading COVID-19 Language for New Construction Contracts: A Practical Approach

Force Majeure, Commercial Impracticability, and Frustration of Purpose

The outbreak of COVID-19 has been one of the most disruptive events to the global economy in recent memory. Businesses across every sector of the economy are scrambling to determine the legal repercussions of government travel restrictions, labor shortages, supply chain interruptions, financing impacts, and market price

On Wednesday, June 3, at 1:00 p.m. Eastern, Seyfarth partners David Blake, James Newland, and Leah Rochwarg are presenting “Construction Challenges During COVID-19: Suspensions, Delays, Workforce Depletion, and Other Considerations,” a 90-minute CLE webinar for Strafford. The webinar will address the impact of COVID-19 on private and federal construction projects and the legal implications that

Seyfarth partner James Newland moderated “COVID-19’s Impact on Construction Projects,” a webinar in the Airport Construction Strategy Webinar Series. Airports Council International North America, Airport Consultants Council, and the Associated General Contractors of America teamed up to transform the Airport Construction Strategy Summit into a webinar series to help airport owners, design and engineering professionals,

The 2019 novel coronavirus and the disease it causes (“COVID-19”) is changing the landscape of construction projects across the country. COVID-19 orders from governors and other public officials are impacting projects by requiring new health initiatives, such as social distancing and the use of personal protective equipment, requiring residents to stay at home and self-quarantine

To help airport owners, design and engineering professionals, and the contractor community, ACI-NA, ACC, and AGC have teamed up to transform our Airport Construction Strategy Summit into a webinar series that is taking place April 14, April 28, May 12, and May 26. The COVID-19 pandemic has impacted a range of critical elements of project

Owners and contractors trying to understand the full impact of COVID-19 on their projects are likely turning to delay[1] 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,

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

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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