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PHOTO: SUPPLIED Property and construction lawyer Julia Flattery says it is highly unlikely a contractor entering into a contract in the coming months could argue successfully that supply chain problems caused by coronavirus were not foreseeable.

Special clauses in contracts protecting people and companies from events beyond their control like a pandemic may help constructors now facing delays to materials from China, a legal property specialist says, but that protection may be limited.

Commercial property and construction legal specialist Julia Flattery, associate at Duncan Cotterill, said she was not aware of any clients who had invoked ‘force majeure clauses’  at this stage, but a handful of projects in Christchurch and nationwide had served notices of delayed completion.

She was not able to say which projects as the information was confidential. Flattery said these projects were expecting at present two to three months delay.

If the delay fell under “force majeure” provisions in the construction contract – unforeseeable circumstances that prevented a contract being fulfilled – the constructor should be entitled to an extension of time, increased costs and would not incur penalties.

Developers and contractors are asking for advice now on submitting documents for upcoming tenders and how to deal with potential supply issues in the contract, property lawyer Julia Flattery says.
MARTIN DE RUYTER Developers and contractors are asking for advice now on submitting documents for upcoming tenders and how to deal with potential supply issues in the contract, property lawyer Julia Flattery says.

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