Caught by the Virus – What Are the COVID-19 Effects on Your Construction Contract?

    View Author April 2020

    The coronavirus disease 2019 (COVID-19) has caused, and will continue to cause, significant disruption to the construction industry. Its effects will likely result in delay, cost overruns, changes in the schedule of the works and, in extreme cases, total prevention of performance. Parties should be particularly aware of any force majeure, extension of time, suspension or change in law clauses in their contracts, which may alleviate risk or protect a party’s position. However, as these clauses vary from contract to contract and strict compliance is generally required to protect a party’s interests, a timely review of contracts is imperative.