Construction contracts should be written to address all reasonably foreseeable events, including infectious diseases such as the novel coronavirus, an attorney writes. He offers five steps to help ensure that contracts account for risk from the virus and other outbreaks.
American Institute of Architects contract forms lay out five situations in which contractors can invoke force majeure provisions for a project delay claim, two attorneys write. Two of those conditions, "unusual delay in deliveries" and "other causes" justifying a delay, could be applicable to delays caused by a coronavirus pandemic, they write.
Relatively little case law exists concerning whether the force majeure doctrine applies to project delays caused by a disease outbreak, an attorney and law clerk write. Owners, contractors and subcontractors need to ensure that risk allocation in contracts is fair and reasonable so that projects are delivered successfully, they write.
Freight brokers can post a surety bond or use a trust fund in case of payment problems. The Treasury Department does "an excellent job of policing" sureties, but trust funds have "no regulation behind them" and are subject to "a lot of fraud," said a broker trade group executive.
Regulators in Virginia have issued bond forfeiture and permit revocation notices for two coal mines owned by West Virginia's governor and his family. The regulators say the mines have committed numerous environmental and public safety violations.
NASBP launches its podcast, "Let's Get Surety," for anyone with an interest in surety
When NASBP SmartBrief readers indicated last year that they wanted a podcast focused on the surety bond product and surety industry, NASBP listened. Today, NASBP is excited to announce the launch of its podcast series, "Let's Get Surety: Let Me Hear Your Bonding Talk." NASBP podcast listeners receive an insider's look at the surety industry, surety bonds, and how surety affects our everyday lives. Mark your calendars and plan to listen on the second and fourth Tuesday of each month, when host Kat Shamapande, NASBP Director of Professional Development, along with fun co-hosts and engaging guests, share surety stories, unique approaches to challenges in the surety industry, legislative updates, trends and tips. NASBP leadership and staff describe the details of what's in store for the NASBP podcast listeners in a video on the podcast's site. Check out the first NASBP podcast episode, "A Look at NASBP's Be Guaranteed to Succeed Campaign and Surety Stories." Access the free NASBP podcast episodes from any of these systems: Apple Podcasts, Google Podcasts, Spotify, Stitcher or SuretyLearn. Be guaranteed to succeed!
March 18 NASBP Virtual Seminar: Who will bear the cost of construction delays caused by the coronavirus and other risks
Don't miss this NASBP Virtual Seminar presented by Peter Strniste Jr., a partner at Robinson+Cole. Join us at 2 p.m. Eastern on March 18 for The Ten Riskiest (and Most Negotiated) Construction Contract Terms. Strniste will review the construction contract terms that address significant project risks, including an analysis of who will bear the risk and cost for coronavirus construction delays. This important and timely topic presents an exciting opportunity for you to host this NASBP Virtual Seminar for your construction clients or to share the information on how they too can register to participate in this live or recorded Virtual Seminar. This Virtual Seminar is sponsored by Old Republic Surety. Register.
Construction workers who witness events such as a death, injury or building collapse can be at risk for mental issues and might need additional assistance from employers. It's important for companies to be proactive and have a plan in place to help workers cope after traumatic jobsite incidents, experts say.
Founded in 1942, NASBP is the association of and resource for surety bond producers and allied professionals. NASBP producers specialize in providing surety bonds for construction contracts and other purposes to companies and individuals needing the assurance offered by surety bonds.