The rapid spread of COVID-19 (also known as coronavirus) has raised questions as to the contractual obligations of parties, particularly in the construction industry where delays or suspensions in projects can result in significant increases in overhead and cost. Contractors and owners need to know how the spread of COVID-19 and the subsequent government shutdowns may affect their projects. This article will discuss notice requirements and the right to time extensions and increases to contract sums under: (1) force majeure clauses; (2) suspension clauses; and (3) emergency clauses in the AIA A201 General Conditions and federal regulations. This article is a general overview for contractors and owners. Contracts for ongoing projects should be reviewed individually to determine your rights and obligations as it relates to claims for additional compensation and/or time due to the threat of COVID-19.
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