Coronavirus-related construction shutdowns, restrictions in the US | Government contractors can proactively address risks by reviewing contracts | Send project delay notices now, open communications about coronavirus' impact
March 25, 2020
CONNECT WITH NASBP
Targeted news for surety, construction, and allied professionals
A law firm is offering a list of construction shutdowns in the US that it is updating as the coronavirus pandemic causes disruption in the industry. Last week, Boston put all public and private construction projects on hold and allowed a week for securing sites, and only skeleton crews are allowed onsite for safety purposes for the duration of the suspension.
Federal contractors should be proactive about checking contracts for excusable delay provisions or changes clauses that can offer relief if work is interrupted because of the coronavirus pandemic, three attorneys write. "When an excusable delay occurs, unless the government decides to terminate the contract for its convenience, the contractor will be required to resume contract performance once the cause for the excusable delay has ended or is removed," they write.
Contractors affected by the coronavirus pandemic need to send a delay notice right away to open communications with the contracting party, an attorney writes. Important steps include following any requirements for how the notice must be sent, explaining contractual grounds and outlining the effects on project performance, he writes.
Insurance agents should ensure they are familiar with products' "unique or most used benefits" and educate clients about how those products can meet their needs during the coronavirus outbreak, a sales training expert writes. Blogs, YouTube channels and social media business pages are valuable avenues through which agents can share such information, he writes. After logging in, NASBP members can access the Producer Communications Toolkit from the NASBP Be Guaranteed to Succeed microsite.
The Families First Coronavirus Response Act includes provisions requiring most small businesses between 25 and 500 employees to provide paid leave under the Family and Medical Leave Act, as well as paid sick leave. Small businesses with fewer than 50 employers can seek an exemption if the law's requirements would threaten business viability.
NASBP Blog: COVID-19 impacts on federal contracts: Confirming acceptability of performance delays
This uncertain situation of the coronavirus pandemic leaves sureties wondering how to verify whether a contractor's delay is acceptable to the government or a risk of loss. David Robbins, partner, Crowell & Moring, and leader in government contracts and False Claims Act practices at his firm, explains what surety industry participants might want to request and prepare the principals to provide. Read more.
April 1 NASBP Virtual Seminar: Force Majeure: Navigating the Impact of the Coronavirus Pandemic on Contract Performance Obligations
Holley, left, and Niesley (NASBP)
Don't miss the NASBP Virtual Seminar presented by attorneys Robert Niesley and Colin Holley of Watt, Tieder, Hoffar & Fitzgerald. Join us at 2 p.m. Eastern on Wednesday, April 1, for "Force Majeure: Navigating the Impact of the Coronavirus Pandemic on Contract Performance Obligations." As the tragic and devastating impacts of the coronavirus (COVID-19) pandemic continue to mount and as the government and private sectors ramp up efforts to address the spread of the disease, we are seeing disruption of construction projects on a massive scale. Niesley and Holley will discuss the doctrine of force majeure, the legal theory, the contractual reality, common law alternatives, and strategies to assert or not assert force majeure as a defense to nonperformance. Register for this stand-alone NASBP Virtual Seminar or register for the NASBP 2020 Virtual Seminar Annual Subscription, the entire set of Virtual Seminars for 2020, and save! This Virtual Seminar is sponsored by Old Republic Surety. Register.
New episode of NASBP "Let's Get Surety" podcast reveals value of social media in surety
The coronavirus pandemic is likely to have increasing effects on all areas of construction and lead to claims and litigation, an attorney says. Among the issues that are likely to arise are timely performance and worker protection, he says.
Celebrate what you've accomplished, but raise the bar a little higher each time you succeed.
Mia Hamm, professional soccer player, Olympic gold medalist March is Women's History Month
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.