Managing construction projects impacted by the COVID-19 pandemic: a contractual perspective

The Coronavirus Disease (COVID-19) had severe, unforeseen, and prolonged implications on construction projects as well as many other industries. This resulted in severe effect on the supply of material, manufacturing, availability of human resources, and other factors which collectively negatively affected construction processes. To this end, there is a lack of comprehensive studies and understanding concerning that the contractual implications and remedies associated with the COVID-19 pandemic. This paper addresses this knowledge gap. The authors utilise a multi-step research methodology that comprised: (1) studying the contractual interpretation of COVID-19 under the American Institute of Architects (AIA) A-201-2017 as a widely used standard form of contract in the United States; (2) determining the associated contractual remedies for COVID-19; (3) comparing how the aforementioned two issues are handled under the Federation of International Construction Engineers (FIDIC) Red Book 2017, as being a much utilised international standard form of contract that is adopted by the World Bank; (4) developing guidelines and recommendations to be used by owners, contractors, project managers, and contract administrators in planning, handling, and mitigating the contractual implications of the current pandemic; (5) investigating the applicable legal doctrines and principles; and (6) solidifying the research steps and overall research outcomes using the input of legal experts who also helped investigate the relevant common law legal principles that could be associated with COVID-19. The results of this research should promote effective and efficient project management practices under the current new normal and similar interrelated conditions.