{"id":5658,"date":"2020-05-14T08:37:52","date_gmt":"2020-05-14T08:37:52","guid":{"rendered":"https:\/\/www.jadek-pensa.si\/?p=5658"},"modified":"2020-05-14T08:50:03","modified_gmt":"2020-05-14T08:50:03","slug":"how-will-the-pandemic-affect-meeting-obligations-from-construction-contracts","status":"publish","type":"post","link":"https:\/\/jadek-pensa.si\/en\/how-will-the-pandemic-affect-meeting-obligations-from-construction-contracts\/","title":{"rendered":"How will the pandemic affect meeting obligations from construction contracts?"},"content":{"rendered":"

Health and safety of personnel<\/strong><\/p>\n

Already in the general provisions, a FIDIC contract states the constructor\u2019s obligations as being responsible for the safety of all its operations and activities on the construction site; it goes on to determine in other sections their specific obligations regarding ensuring health and safety on the construction site. In particular, one of the contractor\u2019s obligations is to comply with the applicable health and safety regulations and Laws to ensure that suitable arrangements are made for all necessary welfare and hygiene requirements and for the prevention of epidemics<\/em>. This illustrates that the contractor\u2019s obligations are somewhat more definitively set than the obligations of ensuring safety in the workplace stipulated in the ZDR-11<\/sup>\u00a0and the ZVZD-12<\/sup>.<\/p>\n

Delays and extension of the time for completion<\/strong><\/p>\n

a) What happens if the pandemic causes the contractor to have difficulties in mobilizing personnel or there are issues with the supply chain?<\/em><\/p>\n

If the contractor is facing delays due to unforeseeable shortages of personnel or supplies, caused by the pandemic or government measures, the contractor will be able to request an extension of the time for completion. This FIDIC provision stipulates the option of extending the time for the completion, but does not also specify that the contractor is entitled to any financial compensation.<\/p>\n

Let us imagine a hypothetical example in which delays occur due to repeated health and safety inspection of the worksite (e.g. use of protective equipment and other measures for preventing an epidemic). These kinds of delays caused by the authorities are also regarded as a justifiable reason for a delay, affording the contractor the right to seek an extension of the time for completion of the works.<\/p>\n

b) What happens if the contractor is incurring additional delays and costs, because the employer i.e. engineer is working remotely and is mostly absent from the worksite, which leads to most of the decisions being passed with a delay? <\/em><\/p>\n

In this event, the contractor may explore remedies under Sub-Clause 8.4(e) of the FIDIC Red Book, which provides the contractor with an entitlement to an extension of the time for completion in the event of any delays, impediments, or preventions caused by or attributed to the employer, the employer\u2019s personnel or the employer\u2019s other contractors on the site.<\/p>\n

c) Adjustments for changes in legislation<\/em><\/p>\n

FIDIC contracts are standardized contracts that must be subjected to mandatory statutory provisions in force. Any changes to the legislation after the base date4<\/sup> can constitute a reason for a change of the contract pursuant to Sub-Clause 13.7 of the FIDIC Red Book (Adjustments for changes in legislation). <\/em>If the changed legislation demanded of the contractors that they ensure special security measures on construction sites, such as e.g. safety masks, disinfectants, adjusted working hours, additional premises and similar, then said adjustments could constitute as adjustments for changes of legislation pursuant to Sub-Clause 13.7.<\/p>\n

d) What if government measures or an epidemic causes the execution of the works on site to become impossible?<\/em><\/p>\n

If continuing works has become impossible due to government measures (e.g. quarantine, curfew, inaccessibility of the worksite due to movement restrictions etc.), then the relationship between the parties may well be handled through the changes in Laws provisions as set out under Sub-Clause 13.7, as explained above<\/em>.<\/p>\n

Further, or in the alternative, an investigation needs to be made whether this situation could qualify as force majeure<\/em>, as defined under Sub-Clause 19.1 of the FIDIC Red Book. This Sub-Clause stipulates that a force majeure means any exceptional event of circumstance that:<\/p>\n