The Effect of COVID-19 on Commercial Property

A few years ago, US Secretary of State Donald Rumsfeld, made a statement about unknown knowns and known unknowns, which is an example of the struggle of trying to articulate uncertainty into a decision-making process. In recent weeks, clients and property lawyers have been attempting to distinguish the known/unknowns caused by COVID-19 whilst trying to provide some new definitions and certainty into agreements.

COVID-19: Managing construction contracts

Contractors that are concerned that they could face delays or increased costs as a result of COVID-19 should consider whether they have any express entitlements to relief under their contract.  This article will consider the possible entitlements under JCT and NEC standard form contracts.

JCT

Force majeure typically excuses one or both parties from performance of the contract following the occurrence of events that are outside the parties' control.

Coronavirus – Construction sites shutting down 

With Government policy that construction sites should remain open during the coronavirus lockdown, a health and safety law expert believes it’d be wise for bosses to consider stopping operations to avoid needless risks and breaches of health and safety.

David Mayor, Insurance Associate at Forbes Solicitors, explains:

“Although we are already seeing some construction sites close because of staff absences and supply chain disruption caused by coronavirus, the Minister for Business and Industry Nadhim Zahawi is urging construction sites to remain open. He makes the point that some jobs, such as building, cannot be done working from home....

The Effects of COVID-19 on the Property and Construction Sector

The challenging times in which we currently find ourselves is also affecting the property development and construction sector and many businesses are seeking assurances from funders, contractors, supply chains and professional support services.

The number of developers and construction firms closing their sites is growing, even though the Government have said they can stay open.

Same Rules - Different Game: Procurement Policy During The Coronavirus Outbreak

The coronavirus outbreak has produced a lot of government action targeted at keeping infections down and that has in turn affected a lot of organisations, their contracts with each other and their plans for future procurement.

For buyers subject to the Public Contracts Regulations 2015 (PCR) or the equivalents in specific sectors, the government has issued two Procurement Policy Notices: PPN 01/20 about Responding to COVID-19 and PPN 02/20 about Supplier Relief.

Part 3: Delays due to COVID-19 – Act quickly and formally request extensions of time

In Part 2 of our Construction Disputes series, we explored tactics for managing delays in construction projects from the perspective of an Employer.  We are currently experiencing unprecedented times with COVID-19 and the construction sector is experiencing significant disruption. 

Registered Providers - Are E-signatures a valid option as a contingency for COVID-19?

For all those working in Housing & Regeneration, COVID-19 poses a concern not only for personal safety of family, friends, colleagues and partners, but also for keeping Development Programmes running and 'on-target' and meeting Homes England's March deadlines. We are working with our clients to achieve such deadlines in these challenging times and so we explore in this article the legal and practical elements of utilising E-signatures for Registered Providers.