Latent Impacts of COVID-19 on Large Construction Projects
New, complex disputes are on the horizon in international arbitration
The impacts of COVID-19 on large construction projects have mirrored those experienced by other industries — stalled projects, supply chain delays, dramatic shifts in workforce availability, and restrictions on travel — yet construction companies have risen to the challenge.
The pandemic helped push rapid digital transformation and technology initiatives, with many businesses implementing online contracts, clauses, and recordkeeping; virtual credentialing and trainings; site inspections via drone; and more. The construction industry has also already begun to address the initial wave of claims arising from COVID-19 related to top-line issues such as subcontractor payments for workers affected by illness and site shutdowns. All this in addition to the heavy costs of sanitization, testing, transport, and social-distancing protocols for multinational teams.
