ARE WE REALLY ENTITLED TO EOT AND COST DUE TO COVID -19 PANDEMIC? Article by Uditha Tharanga
Introduction
The outbreak of (“Coronavirus”) COVID-19 is increasingly and adversely affecting both the employers and the contractors who are most likely facing complete shutdowns of site operations or unexpected delays in the supply of resources. It is not unlikely to see in the future that many of the construction sites would be closed for all operations on the grounds of health and safety. The obvious questions from a contractor’s end will be about his entitlement to extension of time and related costs. The obvious questions from an employer’s end will be as to who shall bear the risk of the pandemic. The answer depends on the contract and the governing law. Perhaps, you may not find any provision related to a current pandemic in your contract. It is not very uncommon that people come for advice on a contract that has no provision for EOT at all. This article, therefore, examines the entitlement of both the Contractor and the Employer in most of those situations, but particularly in light of standard and un-amended clauses of the FIDIC (1999)1 Red Book, the FIDIC 19872 Red Book, and the UAE Law.