Covid-19 has affected every industry mostly in a negative form resulting in the delay of projects, loss of capital, and almost every sort of economic damage to the manufacturing and construction industry arising issues in contracts resulting time frame and a lot more.
Most Common issues arising in Construction & Engineering Contracts.
1) Time frame
Time frame is the most important part of a construction contract as it defines the completion date of the projects which directly impacts the financials of the project, Hence the contractor should be very careful while signing the contractor about such clause and should avoid any breach to keep the contract voidable. On failing to complete the project in the specified time frame, the contractor may be forced under the law to complete the projects as soon as possible and pay the employer compensation for delaying the project.
2) Force Majeure
It is a contractual term giving refuge to the party performing the contractual obligation due to reasons beyond its control like tsunami, earthquake, or any other natural disaster. It is crucial to decide whether Covid-19 to be considered in force majeure or not.
It may be a force majeure for certain industries like construction and manufacturing