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Coronavirus contract webinar

I was provided the following link to a Coronavirus contract webinar (1 Apr) from Turner & Townsend who are quantity surveyors for one of my work’s projects.

Coronavirus contract webinar

Built_intelligence_webinar

Everything I have seen so far seems to suggest that it is likely companies under JCT will seek a force majeure event, potentially receiving additional time but not money.  Under NEC it looks like clause 19.1 – prevention.  This being an event which stops the completion of works on time, that that could not of been prevented or foreseen.  This would link to a compensation event under clause 60.1(19).

The Built Intelligence website seems to have quite a few other interesting free resources which could help people looking for some CPD.

No longer being on site it is harder to get a handle on how the issue is being dealt with.  It would be good to hear what other people are experiencing.

Categories: Uncategorized
  1. 25/03/2020 at 2:43 pm

    I saw a similar article from the NEC agreeing with that in essence (which typically I can’t upload in a comment but have added to the WordPress library I think). The article raises two interesting points on clause 19: it emphasizes the role of the PM in managing the implementation of any changes, and; it highlights that any delay must affect the completion date as agreed in the programme, or the project as a whole, not just a small part of it.

    The former point gives the PM the power to issue new direction to mitigate the effect of the virus (which in itself may be considered change of scope but may be a preferable option in some cases). The latter point means that contractors will have to prove that no work can be done and that they can’t possibly make up any time before the completion date – something which they may be contractually obliged to attempt. For a relatively new project could this mean no claims can be made till a ways down the line when completion eventually looms?

    Leading on from the latter point – option X2, if selected, allows for a compensation event in the case of changes in the law impacting the project. Were travel to be made illegal for example then contractors would be able to use this clause. This doesn’t (yet) apply to the UK, where travel is very strongly discouraged but not illegal, but this may change.

    • Richard Farmer's avatar
      Richard Farmer
      16/04/2020 at 3:32 pm

      If a subcontractor wanted a legal prohibition on working they could use The Coronavirus Act 2020 and apply to the secratry of state for permission to gather in line with schedule 22 Part 2 papragrpah 5. They would probably be prohibited under 5 (1) (a) and therefore be subject to a legal requirement. I regret I have only just regained access to the blog so missed this event. Was it good? Does it shed any more light on the situation?

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