Covid / Brexit

Question 1

How has Covid affected the various BS competencies?

Answer 1

• Limited visits by surveyor: either cannot visit, external inspections only, or limited internals (building pathology, inspection, legal/reg, works progress, housing maintenance, measurement)
• Additional H&S policies to follow (PPE, protecting vulnerable people)
• Affected labour and supply chain (con tech and env services)
• Video inspections hindered progress and quality inspections, items may go missed
• Possibility of a return to lockdowns. Must have policies and procedures in place proactively, to continue business

Question 2

How has Covid affected contract admin?

Answer 2

JCT issued two guidance documents in April/September 2020:
- Do not just “walk off site”
- Difference between “effect of the virus” and “government action”
- Gov told industry to develop a “Site Operating Procedure”, and continue as and where possible
- Site could get shut down if not following that SOP. Would mean contractor is not “using best endeavours” to limit delay
- Lack of labour/materials does not allow EoT, but it would if caused by statutory undertaker
- Timing of WHO declaring pandemic is important, could be “force majeure”

Question 3

Was Covid a force majeure event?

Answer 3

No guaranteed answer, but RICS article June 2020 says it “is likely to be a force majeure event, particularly under a JCT or NEC Contract.”

BUT while JCT says “force majeure does allow EoT”, does not define force majeure events, nor would it allow loss and expense.

Remember the JCT says “contractor must use best endeavours to avoid delay”!

Question 4

How has brexit affected the various competencies?

Answer 4

• Trade deal with EU meant no quotas or tarriffs, but has added “rules of origin” administrative burdens to import/export materials. Short term impact on cost/availability. But “should not be long term”
• Impact on labour - no freedom of movement, and construction is heavily reliant on foreign labour (33% of London workforce is foreign). Made worse by job losses from covid
• Knock-on effect to logistics (labour again). Costs of labour gone up