This Construction Forecast presents trends and potential hurdles from issues we are hearing “on the street” and offers insight from a legal counsel perspective.
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Many contractors and trade contractors will need more time and money to finish projects because of the delay associated with COVID-19. But not all contractors have sent claims for additional time or money or otherwise complied with terms of their contract to receive such additional time or money. Contractors and trade contractors should review their contract and take the necessary steps to ensure they are in position to receive extra time or money for COVID-19-related delays under their contract.
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As the economic fallout from the pandemic spreads, it will likely impact cash flow on a project. The Michigan Builders Trust Fund Act imposes strict obligations on how contractors must handle payments, with stiff penalties for any violations. It is critical that contractors familiarize themselves with the Builder Trust Fund Act’s requirements or else risk finding themselves—and their principals—liable for any violation.
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Lenders are requiring additional equity for home mortgages and pulling back from the hospitality sector. Contractors should understand how the effects of tightening financial markets will trickle down and affect their operations.
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As companies reopen, there is still fear about COVID-19 among the workforce. Companies should be familiar with their options if workers do not want to return
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Based on math alone, it is likely that someone on a job site will contract COVID-19. How can companies protect themselves if an employee of a downstream contractor becomes infected?
Hilger Hammond will continue to engage with the construction industry to understand what is affecting you and help you navigate through it. If you have any questions concerning any of these topics, please contact us.
