ADR

Signing a Construction Contract in the Middle of the Coronavirus Pandemic . . . Two Contract Clauses to Consider

Practice area:

There is rightfully a lot of buzz in the construction industry about force majeure clauses.  Authors are writing about how far and how much they protect contracting parties from unforeseen and uncontrollable events that cause delay.

While the standard AIA, ConsensusDocs, or other industry form contract time extension and/or force majeure clauses will likely provide some relief as to time extensions in appropriate situations, contracting parties may be best served to acknowledge the uncertainties our industry is confronting by crafting specific language for delays and increased costs resulting from the COVID-19 pandemic.

Sample language for consideration:

Notwithstanding the requirements and obligations set forth in the Contract Documents and this Agreement, Contractor shall be entitled to an extension of the Contract Time and an equitable adjustment of the Contract Price, due to labor shortages, material escalation, or otherwise, for the performance of Subcontractor’s Work due to events and conditions beyond Contractor’s control, including the present

Pierce Atwood Attorneys Attend Construction Industry Dispute Resolution Meeting in Washington, DC

Last week, John Bulman and I attended the National Construction Dispute Resolution Committee’s (NCDRC) Annual Meeting in Washington, DC. The NCDRC is an advisory committee formed by the American Arbitration Association (AAA) to engage in discussion with a wide variety of construction industry associations about the AAA Rules and dispute resolution processes generally. The American Institute of Architects (AIA) graciously hosted the meeting at its offices.

Representatives from the following organizations were present: