Update April 3, 2020
As we continue to cope with these challenging times AGC is working to keep you informed on issues that affect you.
This afternoon City of Mobile Mayor Stimpson announced a “Safe at Home” Order along with a curfew beginning at 10:00 PM on April 4th.Click link to view City of Mobile Safe at Home Order April 3 2020 which DEEMS CONSTRUCTION AS AN ESSENTIAL BUSINESS. I would suggest that you give each employee letters on your letterhead deeming your employee essential. I have attached Sample letters and cards for your use, click link to view: Essential Worker Letter Sample 1 , Essential Business Letter Sample , Essential_Work_Certification_Card_Form.02
I have also attached the City of Mobile Permitting Procedures COVID 19 Announcement which were forwarded to me by Shayla Beaco with the City of Mobile .
Friday afternoon April 3, 2020, Governor Ivey also issued a statewide Stay at Home order Final Alabama Statewide Order-4.3.2020 to become effective Saturday at 5:00 PM going through April 30th. Please view the above link and pages 4 and 5 where CONSTRUCTION is included AS AN ESSENTIAL BUSINESS.
Please make sure your employees and crew are taking the social distancing and other safety rules seriously. Help Protect your employees and the public from COVID19 . Click link to view s a Sample Safety Plan: Sample Plan for COVID-19 Exposure Prevention, Preparedness, and Response – 03.31.2020
Please visit our AlabamaAGC website for more information: https://www.alagc.org/covid19resources
We have also been notified of recent contract documents circulating that has language added that puts the burden of loss on the contractor.
Please read your contract documents carefully and make sure you eliminate any such wording.
AIA contract document A201:
Add new 8.3.4 to A201: “Owner and Contractor recognize the existing and potential extraordinary measures being taken by governments, companies, and individuals due to COVID-19 and the potential impacts from the same on this Project. Owner shall not be liable to Contractor for extended overhead or any other delay damages, and the GMP shall not be increased, due to shortage of labor, materials or other causes of COVID-19.”
ConsensusDocs Addresses Coronavirus Delay Risk Explicitly, Other Standard Documents Do Not
By: Brian Perlberg. ConsensusDocs Executive Director & Senior Counsel.
ConsensusDocs contracts, such as ConsensusDocs 200 Owner/Constructor Agreement with General Conditions, section 6.3.1(j) explicitly allows for delays that are reasonably due to epidemics. The American Institute of Architects (AIA) A201 nor any other standard construction contracts, explicitly mention epidemics or pandemics. The AIA A201 does have a catch all that allows for an extension of time for “other causes that the Contractor asserts, and the Architect determines justify delay.” Given today’s concerns, a specific reference to epidemics, like the one in ConsensusDocs is much more preferable. Moreover, in states like New York, there is case law that would preclude a claim under the AIA A201 language, but would allow it under a ConsensusDocs contract because epidemics are specifically articulated.
Going forward, you should consider including an escalation clause, like what is in the ConsensusDocs 200.1 Time Impacted Materials Addendum to help address volatile cost concerns. Look to the AGC of America COVID-19 webpage at https://www.agc.org/coronavirus-covid-19 for additional helpful resources, such as a sample notice of delay letter. Contact AGC Sr. Counsel Brian Perlberg at brian.perlberg@agc.org if you have additional questions.
Although working remotely, AGC is dedicated to helping you. Please contact me on my cell: 251-610-6715
Or email: charlotte@agcmobile.org
Please stay safe and Healthy!