Even though many places are slowly opening back up across the country, the impacts from the pandemic are already in full force.
Many states, including the state of Arizona, continued construction projects during the shutdown, but the projects including the contracts have seen changes due to the pandemic.
Timing of the Project
Every construction contract specifies a date when the project needs to be completed. And even though many construction projects continued during the pandemic, there has been a delay in the projects.
These delays could impact the time listed on the contract. So, what happens then?
When delays do pop up, it needs to be addressed immediately and every party listed on the contract needs to be aware.
With projects taking longer to finish, some contracts may need to be amended. Luckily, most people are very understanding during this difficult time.
How to Notify Of Construction Delays
Most contracts will state how to notify others of the delay. Usually, a written notice is needed.
The notice needs to contain detailed information such as how much extra time is needed and when the anticipated due date is. It might not be possible to give a new updated completion date, but staying in contact and keeping everyone up to date on the progress is beneficial.
When all else fails, always resort to the contract to know what to do when you do hit a delay.
More About Construction Delays
Delays are anticipated at times, so they are usually already discussed and categorized in the construction contract.
The categories consist of non-excusable delays and excusable delays. Of course, the pandemic is categorized as an excusable delay.
Under the excusable delay category, there are two sub categories that include compensable excusable delays and non-compensable excusable delays.
To allow contractors to not only receive more time for the project, but also more money to finish it, this will fall under a compensable delay.
But to allow contractors to ONLY receive more time for a construction project and not additional funds, this will fall under a non-compensable delay.
Suspensions and Terminations
Unfortunately, not every construction project is going to survive and many will need to be suspended or terminated.
The owner usually has the right to make this decision, and if the construction project is suspended for a lengthy amount of time, the contract could be terminated.
But again, always resort back to the terms of the contract. A proper construction contract will include detailed information about the suspension and termination of a project.
Need an Attorney to Review Contracts?
When dealing with construction contracts, always seek the expertise of a professional lawyer who understands Phoenix construction law.
The team at Murphy Cordier Plc in Arizona is complete with skilled lawyers who can help with all drafting and reviewing construction contracts.