IS COVID-19 COVERED UNDER FORCE MAJEURE IN YOUR CONSTRUCTION CONTRACT?

-
Image result for contract force majeure


With the perpetual spread of coronavirus (COVID-19), businesses are on high alert with their course of business activities, the effect on their employees and clients, and their contractual obligations.  A vital clause to revisit in a business’ contract is force majeure.
A force majeure is a contractual clause found in most construction contracts.  This clause will excuse the performance of a party or parties when an unforeseeable circumstance or event occurs that is beyond the control of the contracting parties.  Unforeseeable events may include war, influenza outbreaks, governmental action (such as mandated shutdown), or Acts of God (such as hurricanes or earthquakes).  COVID-19 may be considered a type of force majeure, dependent on the contractual force majeure language in a contract and the performance being prevented by the virus.  
During these times, it is vital for businesses to revisit their contractual relationships and recognize not only their rights, remedies, and obligations but also those of their clients, suppliers, or business partners.  Failure to provide timely notice to other parties of a delay in activities could result in a waiver of a force majeure contract defense or a breach of contract.  If it has not done so already, COVID-19 will impact the future of your business.  Protecting your business during this economic turn is crucial. 


Contact us:
(954) 567-1776
Visit us:
www.sotolawgroup.com
Follow us:
www.facebook.com/sotolawgroupfl/
https://www.linkedin.com/company/the-soto-law-group-p.a./
The hiring of a lawyer is an important decision that should not be based solely upon advertisements. Before you decide, ask us to send you free written information about our qualifications and experience. Additionally, the information above is not intended to be legal advice. Please consult with an experienced lawyer if you have a specific issue or dispute.
Office locations: 2400 E. Commercial Boulevard, Suite 400, Fort Lauderdale, FL 33308
2901 Q. Street, NW Suite 2, Washington, D.C. 20007


Location: Fort Lauderdale, FL, USA

Comments

Post a Comment

Popular posts from this blog

A SUBCONTRACTOR’S HOSTILE WORK ENVIRONMENT CAN BE A GENERAL CONTRACTOR’S LIABILITY

-
     In December 2013, the Sixth Circuit Court of Appeals held that a general contractor could be liable under Title VII for a hostile work environment claim brought by a subcontractor’s employee under a “joint employer theory.” EEOC v. Skanska USA Building, Inc. , No. 12-5967 (6 th Cir. Dec 10, 2013). In Skanska , the subcontractor’s employees complained directly to the general contractor about the hostile work environment, alleging that they were the subject of racial slurs and epithets including “the n-word” and were subjected to graphic depictions such as a picture of a Caucasian person shooting an African-American posted in the port-a-potty. The alleged offenders were employees of the general contractor, other subcontractors, and third parties. Despite having knowledge of the complaints, the general contractor took no action to remedy the problem, instead directing the subcontractor to fire the complaining employee due to them being a “poor fit.”      Why was the general con
Read more

What is Next If your Employee Tests Positive for COVID-19?

-
Image
  What is Next If your Employee Tests Positive for COVID-19? OSHA ( Occupational Safety and Health Administration ) and the CDC ( Center for Diseases Control ) have published and revised guidelines on how to proceed if an employee shows symptoms or tests positive for COVID-19. I.                    Immediate Response   If an employee shows symptoms or has tested positive with COVID-19, employer should require employee to self-isolate and monitor symptoms as well as consult with his/her doctor immediately. In most situations you do not need to shut down the workplace. However, do close off any areas that could be contaminated or were used for an extended period of time by infected persons. The CDC recommends waiting 24 hours before cleaning and disinfecting to minimize others from being exposed to respiratory droplets. Any member or staff who has a COVID-19 patient in his home must inform his supervisor so that the Employer can take proper safety measures. II.             
Read more

Paycheck Protection Program

-
Image
Dear Client and Friends, Click down below to answer some questions concerning the CARES Act and how to apply to the  Paycheck Protection Program as prepared by the U.S. Senate Small Business Committee. The Soto Law Group is committed to our clients and to provide uninterrupted service. We are continuing our business operations but are taking preventative measures consistent with CDC, federal and state government recommendations/orders. We continue to work diligently to respond to our clients’ needs seamlessly via telephone, e-mail, and video-conference. You can count on us. All the best to you and yours. For further questions, feel free to contact us or visit our website. Contact us: (954) 567-1776 Visit us: www.sotolawgroup .com Follow us: www.facebook.com/sotolawgroupfl/ https://www.linkedin.com/company/the-soto-law-group-p.a./ The hiring of a lawyer is an important decision that should not be based solely upon advertisements. Before you deci
Read more