“Even if one construction business is not particularly hard hit, its subcontractors or suppliers down the supply chain may be adversely aff ected to a more signifi cant degree”


By Neil Kelly, Partner, MacRoberts Solicitors


I


t is diffi cult to say how badly the construction sector in Scotland and the rest of the UK will be aff ected by the coronavirus. One thing is certain, however – the eff ect could be damaging and signifi cant. It is clear that the construction


sector is likely to be one of the worst aff ected business sectors.


It has been predicted that up to a third of the UK population might contract the virus. The need for self-quarantine if you have travelled to an aff ected area, or if you are displaying symptoms, may not have a severe eff ect on those who can work from home. Construction work, however, can’t usually be carried out from the kitchen table or another spot at home. Further, construction projects usually


have to rely on a complex supply chain. So, even if one construction business is not particularly hard hit, the fi rm’s subcontractors or suppliers down the supply chain may be adversely aff ected to a more signifi cant degree, thus aff ecting how and when the construction business can fulfi l its obligations. If a business is aff ected by the coronavirus, this may cause delay or disruption to construction works due to be carried out by it. In such an eventuality, the business might be entitled to an extension of time for carrying out its work, thus avoiding a claim for damages for late completion. An extension of time does not automatically mean that there will also be an entitlement to claim additional


payment as a result of such delay or disruption. Much will depend upon the terms of the particular contract.


T e contract: Delay and programming


Does the contract require you to give notice or early warnings if your works have been or are going to be delayed by the eff ects of the virus? Many contract forms also contain programming obligations under which it is necessary to submit revised programmes in the event of delay. The message here has to be – make sure you submit the necessary notices and revised programmes in accordance with the requirements of the particular contract. Such submissions may be a condition precedent to entitlement which means that you may have no claim if you don’t follow the notice provisions correctly. In addition, following the contract requirements may be the only way you have of avoiding a claim for delay damages either for breach of contract at common law or by way of liquidate damages fi xed under the contract.


LEGAL HELPLINE


As a SELECT Member, you have access to a legal helpline provided via MacRoberts, who can provide specialist legal advice in the fi elds of commercial contracts. Twenty minutes of advice is provided free of charge. More complex queries that require


further time can be dealt with for a fee agreed between the Member and MacRoberts. T is service is available from 8.30am to 6.00pm Monday to Friday, excluding public holidays.


0141 303 1111 CALL THE HELPLINE ON


Claims for additional payment If a claim is possible under the terms of the contract, here again it will be normal for there to be a contractual requirement that notice of a claim for


Continued on page 18 >>> FURTHER INFORMATION


●Please note that, as the coronavirus situation is changing on a daily basis, Members are advised to check the latest offi cial advice from the Scottish Government, which can by found by going to www.gov.scot/news/ workplace-advice- contained-in-new-


coronavirus-guidance ●Check out NHS Inform at www.nhsinform.scot ●Visit Health Protection Scotland’s website at www.hps.scot.nhs.uk ●We also advise reading the simple steps employers should consider by the Advisory, Conciliation and Arbitration Service


(Acas), which can be found at www.acas.org. uk/coronavirus and include information about sickness absence and pay. ●T ere is also a new helpline supplying tailored advice for Scottish businesses which can be contacted on 0300 303 0660.


CABLEtalk APRIL/MAY 2020 17


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