Construction and Engineering Contractors: Essential Guide to Navigating the Covid-19 Crisis
Construction and Engineering Contractors: Essential Guide to Navigating the Covid-19 Crisis
The Covid-19 pandemic has generated an unprecedented crisis in the construction industry, severely impacting contractors and engineers. In the face of this situation, it is crucial to take strategic measures to protect both employees and the viability of projects.
Priority: the safety of your team
- Telecommuting: Implement telecommuting for indirect staff, ensuring the continuity of administrative and management operations.
- Suspension of work: Suspend on-site work for direct workers, whenever possible, prioritizing their health and safety.
Exhaustive review of contracts
- Force Majeure or Fortuitous Event: Identify if your contracts include Force Majeure or Fortuitous Event clauses, which could provide a legal framework to address interruptions caused by the pandemic.
- Activation of clauses: Activate the Force Majeure or Fortuitous Event clauses in your contracts with the Employer, formally notifying the total suspension of the contract to avoid possible disputes over Disruption.
- Negotiation with subcontractors and suppliers: Review contracts with subcontractors and suppliers, applying the relevant clauses or negotiating contract suspensions in the absence of such clauses.
Adaptation to legal and contractual changes
- Labor regularization: Ensure compliance with legal modifications in the working day decreed by the government, avoiding sanctions and protecting workers' rights.
- Economic compensation: Evaluate if your contract or local legislation allows you to request economic compensation for delays and additional costs incurred due to the pandemic.
- Request for time extension (EOT): Request a Time Extension (EOT) to adjust contractual deadlines once activities resume, considering the inevitable impacts of the crisis.
Final recommendations
- Professional advice: Seek the support of legal and project management experts to assess the specific conditions of your project and contract, ensuring compliance with local laws and regulations.
- Up-to-date information: Stay informed about the latest government regulations and guidelines related to the pandemic, adapting your strategies and operations accordingly.
The Covid-19 crisis presents significant challenges, but also opportunities to demonstrate resilience and adaptability. By implementing these recommendations and seeking professional advice, construction and engineering contractors can successfully navigate this situation and emerge stronger.
Note: This article is for informational purposes only and does not constitute legal or professional advice.
About Fractal - Ingenieros & Abogados
Fractal—Ingenieros & Abogados is a boutique firm that specializes in Project Management and Construction Law. It is focused exclusively on the Construction Industry.
Our comprehensive services include independent consultancy and advice on claims, contracts, risks, integrity, and project control. We cater to various clients, including law firms, claims consultants, commercial and multilateral banks, fiduciary and insurance companies, arbitration and adjudication courts, dispute boards, project owners, equipment and materials suppliers, national and foreign investors, and engineering and construction companies.