We are in unprecedented times, amid a pandemic that has seen the rapid spread of the coronavirus (Covid-19) across the globe in a matter of weeks. This has resulted in extensive delay and disruption to the supply chain for construction projects in the Middle East region, including, amongst other issues, shutdown of manufacturing facilities, delays to exports and deliveries, border closures, travel restrictions and 14-day quarantine periods.
This article aims to provide some practical guidance to those contractors and subcontractors that have experienced delay and disruption caused by government actions reacting to Covid-19.
Typically, the standard forms of construction contract used in the Middle East are based on a version of FIDIC 99 (Red and Yellow books), as such, these have been used as the basis for this article. These standard conditions contain provisions that expressly set out the contractual remedies available should these circumstances arise. These provisions are included in Sub-clause 8.4 [Extension of Time for Completion], Clause 17 [Risks and Responsibility] and Clause 19 [Force Majeure].
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Originally published in ME Construction News.
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