The best time to protect against the adverse impacts of a force majeure event, such as a pandemic, are during the financing and contracting portions of upcoming projects.
How to Prepare for Potential Construction Disputes Resulting From COVID-19
Stakeholders in the construction process need to prepare for potential disputes and understand their rights and responsibilities. This includes understanding applicable clauses in construction contracts and subcontractor agreements as well as business interruption clauses and other provisions in insurance contracts.
Crossing the Line: Contractor Liability and Mechanic’s Liens
Each jurisdiction has its own rules for filing liens. General or subcontractors should confirm they have the right to record a lien, verify the information in the lien and know applicable laws.
General Indemnity Agreements: Can the “Impenetrable” Be Breached?
General contractors should be aware of obligations under the general indemnity agreement when making a claim on a surety bond, and acknowledge their obligation to repay the surety.
Proof and Calculation of Damages
A court case demonstrates the importance of documenting project delays, additional work and actual cost data in real time as a contractor’s failure to do so may have cost it $1 million.
The Accepted Work Doctrine: Something Every Contractor Should Be Aware Of
Contractors are generally not liable to third parties for injuries caused by dangerous conditions related to the contractor’s work. But know the accepted work doctrine has been abolished by many states.
Advice for Navigating Construction Contracts During COVID-19
Before filing a claim for cost or delay due to the pandemic, review the contract for a force majeure provision. If none, there may be other basis, such as unavailability of labor and materials and social distancing rules that impeded work.
Arbitration May Have Greater Consequences Than Anticipated
A project owner loses in arbitration against the general contractor. Can claims then be filed against the subcontractors?












