COVID-19 and the Construction Industry: Looking Beyond Force Majeure to Recover Time and Costs for Delay

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Robert A. Gallagher
James Diwik
James Diwik
Troutman Sanders

Jamey B. Collidge

Much has been written about whether and how COVID-19 qualifies as a force majeure event, and some additional information can be found here. But typical force majeure provisions entitle contractors to only schedule relief. While force majeure clauses may limit exposure to liquidated or consequential damages for delays, contractors who incur increased costs resulting from COVID-19 related delays should carefully evaluate the entirety of their contractual rights to not only an extension of time, but also recover prolongation costs. To assist in this endeavor, this article looks beyond force majeure to other potentially relevant contractual provisions. Potential remedies under the various contractual clauses discussed below will depend on the specific contractual language and project-specific facts. Continue reading “COVID-19 and the Construction Industry: Looking Beyond Force Majeure to Recover Time and Costs for Delay”

Continuous Cessation of Labor on Construction Projects Can Trigger Statutory Remedy Deadlines

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Luke Nicholas Eaton

This article was originally published in the April 2020 issue of ConsensusDocs Construction Law. It is republished here with permission.

State and local governments throughout the country continue to issue orders in response to the novel coronavirus (COVID-19) outbreak. Many states have ordered the shutdown of all businesses, with various exceptions such as businesses that are “essential” and/or “life-sustaining.” Each jurisdiction has provided a list and/or guidance on what kinds of businesses must close and what can remain open. Pepper Hamilton continues to monitor these orders and update its “COVID-19 – State Business Impact Tracker” map, an interactive tool that shows shutdown orders by state. The Business Impact Tracker can be accessed at https://covid19.pepperlaw.com/. Continue reading “Continuous Cessation of Labor on Construction Projects Can Trigger Statutory Remedy Deadlines”