With construction sites re-opening and others going out for proposals, it is imperative that everyone in a business, from estimator to project manager to laborer understands the new normal on project sites. Across the board, proper precautions must be taken on job sites in accordance with the requirements and recommendations of the CDC, OSHA, and local and state governments. These regulations, guidelines, and orders will have an impact on both cost and schedule. Questions abound. Who is paying for the necessary PPE? What about the suspension costs? How has the schedule been impacted by the shutdown, and are we getting a new finish date? Unfortunately, owners, construction managers, contractors, and subcontractors are all arriving at different answers.
Cohen Seglias’ Construction Contracts & Risk Management Group prepared sample notice letters for use on jobs where construction has or is about to resume under pre-existing contracts. Also included in this packet is sample language to add to change orders and monthly releases.
Additionally, with many companies still bidding and entering into contracts for new work, sample language to include in your proposal to help protect you in the event of a future shutdown or new guidelines is also included in this package. When bidding, remember that COVID-19 is not likely going to be considered a force majeure event due because it should be anticipated when developing your proposal. We suggest that the parties on a project discuss the use of an allowance to cover these costs. A letter to that effect is also enclosed.
These forms may need to be revised to fit particular circumstances. The attorneys of Cohen Seglias stand ready to provide assistance when needed. Please do not hesitate to contact us.