By: Josh Penwell, Senior VP, Contract Underwriting at Merchants Bonding Company
Experts anticipate the COVID-19 pandemic will have a major impact on the construction industry. It is important for contractors to be diligent in understanding the impact and what they can do now to protect themselves and their balance sheets.
For protection, contractors should look into the extension of the time/delay clause associated with new work/contracts. Many projects are already getting delayed. Contractors should make sure they would be allowed extension of time or additional compensation if projects get delayed due to quarantines, labor shortages, material/supply delays and/or price escalations that could occur.