Analysis of the Global Impact of the Pandemic (COVID-19) on Construction Industry: Possible Scenarios

After the first infection of the Novel Coronavirus Disease (COVID-19) pandemic in December 2019 in Wuhan city in China, it is spreading all over the world. Currently the pandemic cases are increasing globally and its impact on many industries including the construction is increasing. In the case of construction, projects of all types and sizes are at risk and industry participants must consider the impacts the pandemic that may have on projects. These days, the health warning so often heard is “wash your hands”. From the construction industry health perspective, the current warning for stakeholders is “read your contract” prior to proceeding to the next steps. This study assessed the possible impacts of COVID-19 on construction industry with two proposed scenarios namely; ‘Force Majeure’ and Changes in Law’. From the scenarios, remedies provided to the stakeholders in construction industry from the globally applicable contract forms including FIDIC, JCT or NEC provisions on how to mitigate the impact of the pandemic on the industry. The study attempted to provide guidance to the industry stakeholders, to policy makers, and authorized officials to manage the problem with their contractual provisions.

Keywords: COVID-19; Construction industry; Force majeure; Changes in law