In light of the Covid-19 pandemic the CLC has relased new guidance on dealing with construction claims and disputes.
With the entire world suffering with the impact of Covid-19, we have seen governments throughout the world taking a different approach in trying to control, manage and reduce the risk of spreading the virus – which as we all know has had dramatic impact both on people’s health and the world’s economy.
The United Kingdom’s government, in trying to control and reduce the risk of the virus, has implemented a number of approaches including a tiered system along with national lock downs – although, throughout the UK government has encouraged the construction and civil engineering industry to continue. Whilst sites are able to continue in some fashion, this will no doubt have impacts on progress and productivity – which will inevitably further impact margins, cash flow and liabilities.
The Oander Contract Advisory Team has worked with a number of our contractor and sub-contractor clients in reviewing their current operating procedures to ensure they could return to site whilst trying to reduce the impact and likelihood of disruption, frustration and prolongation claims from their sub-contracts.
Whilst the year has progressed, our Contract Advisory team have been reviewing contracts which has seen the introduction of multiple variances of new clauses in varying forms trying to deal with the risk of Covid19 and the impact this may have on a construction project.
Oander’s Contract Advisory and Disputes Director, Jon Shaw has said “we have seen the clauses evolve throughout the year and it is vital that our clients engage when tendering and prior to executing contracts to ensure they fully understand the risk and potential implication of the risk to both the project and the contractor’s margin. Understanding your obligations is vital in correctly administering the contract and nine times out of ten, to readily achieve full and proper entitlement”
With the Construction Industry Leadership Board having issued a number of guidelines and recommendations to try and reduce the volume of expected disputes, it is positive to see the construction industry trying to work collaboratively in trying to continue to deliver projects, although Jon notes that “with complex projects, high transfers of risk and wafer thin margins, Contractors cannot afford to stand by and wait”. The Oander team continues to review and provide claim input to enable commercial teams to start collating information in the correct form, manner and detail to enable a robust and detailed claim to be produced. As Jon is at pains to stress: “a successful dispute and adjudication is won on evidence, records, records, records and records again”.
If you have an issue on a project, however big or small, please do call the Oander’s Contract Advisory and Disputes Director, Jon Shaw, or Oander’s Managing Director, Ben Davies on 01342 718758 to see how we can assist.
