COVID-19: Beyond Notification…What Next?


August 18, 2020

Construction Workers

Much has already been written about the impact of the current COVID-19 pandemic on construction contracts, in particular with regards to notification and force majeure. However, in commercial terms, the most significant impacts of the virus may yet to be felt.

Whether or not the pandemic is a neutral event under your contract or is a specified risk, or even if your contract is silent on the matter, there are certain steps that should have been taken and processes implemented to manage the risks associated thereto. In this article we briefly look at some of the areas you should be considering to mitigate those upcoming risks.

Securing your supply chain

What strategies have you developed to address supply chain interruptions?

Within the Asia Pacific region, as globally, a significant risk exists with regards to securing supply chains for resources and materials. With lockdown implemented in multiple countries across the region, major disruptions to the supply of materials, equipment and labour are not only being experienced, but can be expected to continue for a significant period. Furthermore, it is expected that many of the world’s governments will initiate infrastructure projects to stimulate their economies, once the pandemic is under control, which is likely to put significant further stress on already weakened supply chains.

With this in mind, do you know:

  • Where the major resources for your project originate from, and has that region been impacted by the virus?
  • If there are alternatives (suppliers, products etc.)?
  • If a change in specification could be agreed to for alternatives?

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