Covid19 – Construction & Building Projects 

He waka eke noa: We are all in the same canoe when dealing with the effects of Covid19.

The unwelcome but unavoidable project delays and costs because of Covid19 are a risk that all project stakeholders will need to accommodate.  Designers and contractors should focus on prompt, full, and timely communication with their clients, whether projects are in design phase or underway on site.  The problems of restricted site access, choked-up supply chains, reduced or compromised human resources, and re-starting stalled projects will be difficult to manage and resolve. Some businesses, clients and projects will not continue. 

Good record-keeping by contractors and consultants is a must. Claims for costs and time extensions arising out of difficulties should be “ring-fenced” so that they can be settled – perhaps in part – to maintain cashflow and momentum, with the difficult issues put aside for later resolution. 

This would be a good time for project stakeholders to re-acquaint themselves with the payment claim and response requirements of their contracts, and of the Construction Contracts Act.

All involved have a common interest in dealing with the risks to their businesses and their projects.

Your focus should be on managing your business, and your projects; if your records and management are thorough, disputes can be more cost effectively resolved.  

Covid19 – Building Contractor v Owner – Disputes over Lockdown Costs and Times 

Claims for Covid19 Lockdown costs/times should be “ring-fenced” so that they can be resolved cost-effectively. The outcomes will depend on the contract terms and project circumstances. Contractors will need to verify the costs and timelines, and Owners may have a view about how they are shared.

Negotiation is preferable, but adjudication on these narrow issues may be better: it is independent, enforceable, and avoids potential damage to goodwill or the progress of the project. The process, timelines and terms are defined by the Construction Contracts Act.

With 40 years experience as an architect and 25 in dispute resolution, my focus is to help others avoid, understand, and resolve building disputes.  If appointed by one party only, I would provide an independent opinion; if appointed by agreement between the parties I would act as an Adjudicator under the Construction Contracts Act to provide a binding determination.