The year has been rough for many as COVID-19 has impacted all industries, but especially the construction industry. The current pandemic has been responsible for stalling and suspending construction projects.
This is where the power of a contract comes into play.
Written Construction Contracts
Contracts are in place to protect parties during a construction project. When things come up out of their control such as the pandemic, a contract can ensure all parties are protected.
A contract should always include a suspension clause. This clause will include details about what should happen if the project needs to be suspended.
COVID-19 related suspensions can cause additional cost, time, and payment delays. Always look at your contract to know the proper steps to take when suspensions happen.
Things to Consider
Before a project is officially suspended, some things need to be addressed.
– Does the party have the right to suspend the project?
– Has the party provided any written notice documenting the timeline of the suspension?
– Will the suspension have critical effects on the construction project?
– What are the additional costs needed due to the suspension?
Move Forward with a Claim
You may need to move forward with a claim if the suspension ends up turning into a long ordeal. In doing so, always calculate the amount of loss due to the suspension. Claims should be filed in a timely manner and all parties involved in the contract should be alerted within 7 days.
If you are going to move forward with a claim you should always consult with an attorney who specializes in construction law. They will be able to walk you through the proper steps needed to successfully file a claim.
Construction Law in Arizona
Arizona is known for its demanding construction industry. If you are involved in a construction project and unfamiliar with Arizona construction law then you should meet with the team at Murphy Cordier PLC.
Located in the greater Phoenix area, Murphy Cordier PLC has a team of experienced lawyers who know all things construction law and can help you navigate through a suspended project.