The economic fallout of COVID-19 is forcing contractors to juggle their need to keep employees safe while at the same time keeping projects running efficiently. That means, no matter how hard we try, there will inevitably be impacts to construction projects and contractors will need to submit requests for extras to recover damages. And, while COVID-19 seems to be changing almost everything, it hasn’t impacted the legal basis for claiming damages or the requirement of needing to link project damages with accounting records. The ability to recover damages is dependent on two things. The first relates to having a legal basis for recovery and the second being able to link the damages to the event.
What contractors need to track to be eligible to recover
Contractor impacts caused by the current pandemic potentially include the following:
Suspension of the work
Termination of the work
Equipment supply disruptions
Late delivery of materials required to complete the work
Partial delivery of materials required to complete the work
Cancelled delivery of materials required to complete the work
Lack of workforce to proceed efficiently
Labor productivity impacts caused by social distancing
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