Consequences of COVID-19

Karanovic & Partners Holds a Webinar on Construction in the SEE/CEE

Karanovic & Partners, along with Pinsent Masons and 3lite, held a webinar centered around making claims under FIDIC Red 1999 edition as a consequence of the COVID-19 pandemic and force majeure events on construction projects in Southern and Eastern Europe.

The speakers included Franka Baica and Ermina Delić Kamenčić, Senior Associate* Ana Luković from Karanovic & Partners, Partner Charles Blamire-Brown from Pinsent Masons, and Partner Vladimir Milovanović and Senior Associate David Čolić from 3lite. The speakers explored issues around claims for additional time and cost, Force Majeure clauses, delay damages, termination, suspension of works, and maintaining appropriate records.

One of the key takeaways from the session is that although developers and construction companies did not have adequate time to prepare for measures introduced after the appearance of the novel coronavirus, they must now work together to minimize the effects of the disruptions. Although the outbreak of COVID-19 impacted the construction sector, our speakers firmly believe that FIDIC Red provides a good mechanism for making and dealing with claims arising from events such as COVID-19 and that using those mechanisms is an essential part of effectively managing the contract.

The COVID-19 measures affected many construction projects throughout the region and many of them experienced disruption either as a delay or shortages. FIDIC contracts and in particular, FIDIC Red 1999 edition, provides various mechanisms for dealing with such disruptions and those mechanisms should be used. The real test for contractors, whichever defence they decide to use, is to show that a specific COVID-19 measure is the actual cause of delay. Having that in mind, both parties should follow the contract claims procedures strictly and claims should be well substantiated and made with the aim of reaching an agreement.”, said Ana Luković.

 

*independent Attorney at Law in cooperation with Karanovic & Partners