Covid-19

Question 1

What was the impact of Covid-19 on your projects?

Answer 1

Delays = due to site shut downs

H+S Requirements = increased H+S protocols due to CIF recommendations regarding Covid-19

Question 2

What are the relevant clauses in RIAI in relation to Covid-19?

Answer 2

Clause 30 - Delay and Extension of Time
a) Force Majeure ‘an event or effect that can be neither anticipated nor controlled’.
Claimed for time, no cost.

Other potentially relevant clauses =
Clause 4 - Variations arising from Legislative Enactments
Clause 36 - Wage and Price Variations

Some Clients took a hard stance of no additional costs and this was discussed with the Contractor and no claim submitted for cost.

We did get a claim for additional costs submitted in relation to the additional H+S protocols required. In this case, the Client was willing to contribute a percentage. So we reviewed the claim alongside the CIF recommendations and agreed a cost.

Question 3

How would you account for Covid-19 in future projects?

Answer 3

Well, its no longer an unforeseen so its not force majeure.

In future projects:

• Ensure that H+S requirements are captured within the preliminaries
• Liaise with Client solicitors to ensure bespoke wording is captured in the contract conditions and ensure agreement with all parties

Question 4

How was Covid-19 dealt with under GCCC?

Answer 4

DELAY:
Where the conditions of contract in use are a standard form of PW-CF1 – PW-CF5 inclusive, Item 15 of the Schedule, Part 1K. (…or other Public Authority exercising Law). As such, makes provision for delay within the circumstances.
Notification under Clause 9.3 (Delay and Extension of Time)

COST:
Schedule Part 1K - “In relation to cost, the Public Works Contracts do not provide an entitlement to the Contractor to recover costs associated with a delay arising from site closure in the current circumstances.”

Office of Government Procurement published a form of letter of agreement to be used for a Covid-19 Ex Gratia payment by the employer.

Acceptance of such ex gratia payment by the Contractor will be on the basis that it is paid without admission of any responsibility on the part of the Employer for such costs under or in connection with the Contract, and without altering either party’s rights or duties and without creating a precedent.

The ex gratia payment will be in respect of a portion of certain permissible items of the Contractor’s Preliminaries, unavoidably incurred and reasonable and vouched, to be reviewed on a project by project basis with individual Contractors by the Employer. Examples of such permissible preliminary costs include costs associated with insurance premiums and with maintaining the security of the closed site and the
performance of any on-going health and safety obligations in relation to the closed site.

Question 5

Have there been any cost implications as a result of Covid?

Answer 5

Initially, we had a tender return in May 2020 for a circa €10m project which was priced competitively with a huge drop in MC preliminaries in the tender returns. This was due to the uncertainty at the time.

However, in the second half and particular the final quarter of the year we noticed a pick up in tender returns. From discussions with MC and colleagues, this is due in the most part to a labour shortage. Many MC’s were finding it difficult to secure labour due to the Covid payment which increased the price.