5 New Scenarios Regarding COVID Construction Claims

September 1, 2020

female construction worker with hardhat holding notebook outside at construction site

image credit: bernatets photo/shutterstock.com

The construction industry has started picking up the pieces from COVID-19. Together, we have learned new lessons and developed new strategies for the future. Since this pandemic is unique, as disputes start to occur, we will start to see how the courts take precedent on COVID-19 cases. Here are 5 new construction scenarios to consider that could potentially lead to a claim.

1. Projects in Distress and Adjudication

This pandemic is likely to cause an increase in the number of insolvencies in the construction industry among certain classes of Owners, Contractors, and Trade Contractors. 

2. Obligations vs Government Guidelines

The tension between contractual obligations and non-binding government guidelines are expected to increase. As of now, there is no legal precedent on which party bears the risk of changes.

3. Compliance with Guidelines/Regulation

How the contract may allocate responsibility for ensuring compliance and assuming liability for any failures.

4. Resequencing and Changing Work Methods

Pandemic or governmental orders issued have changed methodologies and resourcing plans for the near future, including professional distancing requirements.

5. Worker Mobilization and Remobilization

Further project delays due to slow return to work laborers and in conjunction with the social distancing measures.

Traditional claim scenarios—as well as the ones listed above—will move the construction industry forward. As we all adapt to the new scenarios that in the past we had never considered, our future going forward will be stronger with more developed strategies.

If you have any questions about how the COVID-19 pandemic affects your corporate insurance policies and/or Surety Bonds going forward, you may reach out to TSIB today! You may also download our Committed to Our Clients brochure below to learn about how TSIB creates successful outcomes for our clients . 

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Topics: Claims, Construction Trends

Written by The TSIB Team

All Authors and TSIB