Many industries throughout the world have been affected by the COVID-19 pandemic, and the construction industry was not immune. According to a RICS Economics study, as of Q1 2021, 6.9% of residential projects, 6.9% of infrastructure projects, and 10.3% of non-residential projects, globally, had been permanently cancelled since the onset of COVID-19, and numerous others had experienced delays.¹  A Turner & Townsend survey of globally-based owner and contractor managers, published in February 2021, indicated that half of respondents were reporting increased contractual disputes due to COVID-19 impacts.²  The pandemic also appears to have caused an increase in the number of projects exercising Forced Majeure clauses, which are meant to protect the parties involved if a contract cannot be performed due to causes outside the control of the parties and could not be avoided by exercise of due care.³  Finally, according to a 2021 report, “third-party or force majeure events” became a new issue listed as one of the top three causes of disputes globally in 2020.⁴

Breakwater Forensics has also seen an increase in the number of construction disputes that include COVID-19 claims in our engagements. Breakwater personnel can assist in resolving COVID-19 claims related to delay, disruption, termination, and added costs.

1: RICS Q1 2021: Global Construction Monitor.
2: Article by Debra K. Rubin for ENR.com, dated February 11, 2021.
3: Article by David J. Marmins of the American Bar Association, dated March 19, 2020.
4: Arcadis 2021 Global Construction Disputes Report.