Covid-19 has affected every industry mostly in a negative form resulting in the delay of projects, loss of capital, and almost every sort of economic damage to the manufacturing and construction industry arising issues in contracts resulting time frame and a lot more.
Most Common issues arising in Construction & Engineering Contracts.
1) Time frame
Time frame is the most important part of a construction contract as it defines the completion date of the projects which directly impacts the financials of the project, Hence the contractor should be very careful while signing the contractor about such clause and should avoid any breach to keep the contract voidable. On failing to complete the project in the specified time frame, the contractor may be forced under the law to complete the projects as soon as possible and pay the employer compensation for delaying the project.
2) Force Majeure
It is a contractual term giving refuge to the party performing the contractual obligation due to reasons beyond its control like tsunami, earthquake, or any other natural disaster. It is crucial to decide whether Covid-19 to be considered in force majeure or not.
It may be a force majeure for certain industries like construction and manufacturing specially M-Sand Construction where manpower is required to meet the timeframe of the project because time is the essence in construction projects
3) The doctrine of Frustration:
The doctrine of frustration relieves the promiser of any contractual obligation in case unable to perform under the agreement due to an event occurred outside their sphere. It is very difficult to list all the situations in which Doctrine of frustration is applicable but it is only considered effective when the performing party is affected by the event occurred and it is impossible to carry out the work in that period and the parties have not considered the event while signing the contract.
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