Legal implications of the coronavirus for your construction project

16. March 2020

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We are receiving more and more enquiries from concerned clients and contractors who are concerned about the impact of the coronavirus on the processing of their construction projects. What needs to be considered now.

In particular, how they have to behave and what monetary and construction time consequences threaten if the situation worsens, for example because construction sites have to be closed completely or entire construction site occupations are quarantined.

We have localised some of the possible cases and presented them below. If one of these case groups applies to your construction project or if you are currently confronted with other building law issues relating to the coronavirus, please contact us so that the right steps can be taken as quickly as possible to safeguard your rights.

I. Standstill of the construction site due to suspension by the authorities

If the construction site has to be shut down due to an official act, for example because employees on the construction site are infected or this has been ordered by the authorities as a precautionary measure, it must be examined on a case-by-case basis whether this can affect the construction execution deadlines, whether those involved in the construction can claim additional costs, compensation or damages or whether the basis for the construction contract has even been completely withdrawn. In particular, a distinction must be made here between VOB/B and BGB construction contracts. We can support you with all these questions at short notice.

It is also important to consider public law, i.e. the legal relationship with the body that has ordered a construction freeze or a quarantine. In each case, it must be quickly investigated whether primary legal protection measures under administrative law must be initiated or whether urgent proceedings before the administrative court must be initiated to maintain construction operations. We will also be happy to support you here. You should also act promptly in each case so as not to miss any administrative deadlines, particularly with regard to possible recourse against the public body.

Ultimately, it will also be necessary to check whether compensation claims exist under the Infection Protection Act and which deadlines must be observed here.

Please contact us in such cases so that the necessary steps can be taken in good time.

II. Absence of personnel and excessive delivery times for materials

In many cases, it is within the contractor's sphere of risk if a large proportion of their personnel fall ill and they are also unable to procure replacement personnel at short notice. This may be assessed quite differently in the current context of the coronavirus pandemic. A legal examination is required in each individual case. It is also conceivable that there will be long-term, global material shortages and that there are no longer any alternative purchasing options. Here, too, a legal review is required to examine who bears the corresponding risks, who is liable for any costs incurred and whether it is possible and sensible to terminate the construction contract.

III. Do I need to act?

You should definitely contact us promptly in the case groups described. In certain circumstances, even if none of the cases described have yet occurred, it may also make sense to address formal instructions on certain procedures and preventive measures either to employees or other parties involved in the construction. We will also be happy to assist you with this review and the preparation of corresponding formal instructions. *** Translated with www.DeepL.com/Translator (free version) ***

Please feel free to contact us at any time if you have any questions regarding building law in connection with your construction project.

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