Knowledge Corner

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.

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. 

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.

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

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

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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