b'the effect of construction companyThe industry has now moved fromout. Construction companies need to bankruptcies and insurance claims forwork stoppage orders to return-to-workprepare for and become engaged in this business interruption. approval that has seen job sites in theprocess. The key to finding solutions is province start up again. As the industryworking collaboratively with all sectors of In many cases, construction workreturns to work, many of the issuesthe industry. stoppages have already had significantthat surfaced during the work stoppage effects on project schedules, costs andare still unresolved and will most likelyConstruction companies must realize productivity. Industry experts are pointingrequire legal decisions. TCA members arethat this is a novel situation with no one to the need for construction companiesreminded to keep detailed records on howhaving any experience from the past, to keep detailed records of these eventsthe events associated with the pandemic,explains Ackerley. A fair-minded approach and the impact they are having onincluding government action, have projects. Issues such as absenteeism,impacted their work on project contracts. to resolution of challenges without finger delays in decision-making, increasedpointing is the best way to proceed. cost of materials and general productivityThere is no question the future for theThe pandemic is no ones fault and the losses need to be documented to ensureconstruction industry in Ontario willindustry should respect the reality of companies are prepared in advancebe rocky as contract issues are sortedshared risk.of legal or other discussions to resolve potential disputes.Work stoppages have also led to increased costs for demobilization and remobilization of job sites, security and other safety measures for demobilized job sites as well as storage and protection of materials and equipment. A proactive approach to dealing with contract issues that will arise due to COVID-19 will better prepare companies to tackle these challenges. Most importantly, companies need to approach resolution of contract disputes on a collaborative basis involving all parties on the project. FORCE MAJEURE The issue of force majeure (FM) and its applicability to the current pandemic is currently being debated. One opinion is that the COVID-19 pandemic should fall under the FM contract clauses. Ackerley disagrees and sees a difference between the pandemic and the terms of FM. FM comes into play when acts of God prevent work from being done. Typically FM events are resolved by providing contractors with more time to complete their work. However in this instance, the pandemic was not the event that caused the work stoppage. Work was stopped by government and for that reason there is a case for providing contractors with both time and additional costs, states Ackerley.FM versus the government stop work order has a whole range of possible legal scenarios. The current project contracts do not address the far-reaching issues that arose out of the pandemic. Arguments on both sides of this issue will take time within the courts. Again resolution will have to be determined with no prior experience with this type of event.BUILDERSDIGEST Quarter 2 202015'