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  • Overview

    It is of course difficult if not impossible to predict the future impact of Covid-19 on productivity, time and costs. There are a myriad of direct and indirect factors that will impact the ability to take a project to completion. This will continue for some time, as the knock on effects of unavailable specialists materials and trades could become increasingly pronounced, for so long as the supply chain remains out of sync. 

    We have been experiencing enquiries in existing construction contracts whether contractors are able to claim time and expense for delays caused by Covid-19. As ever it depends on the precise terms in each case, and also how employers are prepared to treat such events. Existing contract terms do not necessarily provide relief under force majeure for example. As far as we can see, employers in the main seem to be acting reasonably so far certainly with regard to extensions of time, but the ability to claim under new contracts, whether for time or expense, will need to be expressly provided for - ‘unforeseeability’ will no longer be able to be prayed in aid, although further changes in the law may be. This may well change the type or basis of contract being used.

    A number of people are actively considering the role that a costs plus based arrangement can have in fairly sharing risks. Such arrangements allow an element of hindsight to be applied, when assessing whether costs were reasonably incurred in the circumstances that actually occurred, as opposed to trying to price for what remain very uncertain conditions in the coming months. 

  • Related Services

    Construction & Engineering

    Construction & engineering dispute resolution

    Our highly experienced construction lawyers resolve construction disputes at an early stage. Where formal legal processes are required, we minimise the disruption, ensure their cost-effectiveness and get you the best commercial result.

    Dispute Resolution

    Our team of experienced and highly specialist lawyers includes experts in contractual, commercial and international disputes, insolvency, shareholders’, directors and partnership disputes, in disputes arising from construction/engineering projects and we also act for clients seeking to protect or defend intellectual property/IT rights.

Newsletter Sign Up

I would like to receive newsletters, event invitations and publications from Thomson Snell & Passmore by email on the following topics (tick all those that apply) and consent for my data to be processed for this purpose.

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Get In Touch

By submitting an enquiry through 'get in touch' your data will only be used to contact you regarding your enquiry. If you would like to receive newsletters from Thomson Snell & Passmore please use the separate form below.

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