COVID-19 IMPACT – IT’S NOT ONLY ABOUT THE POSSIBILITY OF RECOVERING TIME!

We are in unprecedented times, amid a pandemic that has seen the rapid spread of the coronavirus (Covid-19) across the globe in a matter of weeks. This has resulted in extensive delay and disruption to the supply chain for construction projects in the Middle East region, including, amongst other issues, shutdown of manufacturing facilities, delays to exports and deliveries, border closures, travel restrictions and 14-day quarantine periods.

This article aims to provide some practical guidance to those contractors and subcontractors that have experienced delay and disruption caused by government actions reacting to Covid-19.

Typically, the standard forms of construction contract used in the Middle East are based on a version of FIDIC 99 (Red and Yellow books), as such, these have been used as the basis for this article. These standard conditions contain provisions that expressly set out the contractual remedies available should these circumstances arise. These provisions are included in Sub-clause 8.4 [Extension of Time for Completion], Clause 17 [Risks and Responsibility] and Clause 19 [Force Majeure].

To read more, download the full article.


Originally published in ME Construction News.

This publication presents the views, thoughts or opinions of the author and not necessarily those of HKA. Whilst we take every care to ensure the accuracy of this information at the time of publication, the content is not intended to deal with all aspects of the subject referred to, should not be relied upon and does not constitute advice of any kind. This publication is protected by copyright © 2019 HKA Global Ltd.

A contractor’s entitlement to extension of time and/or payment of additional costs following government actions implemented as a consequence of Covid-19 will depend on the specific wording of the contractor’s contract; the impact of the actions on the contractor’s supply chain, resources and performance; and its ability to demonstrate the effects of these through its contemporaneous records.”
Jeffrey Badman, Partner HKA
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