Coronavirus update #4: Mitigation and recovery methods to overcome the impact of COVID-19

Contractors have a duty to mitigate the impact of delays under the general conditions of most Australian Standard Contracts.[1] The purpose of mitigation is to minimise the losses caused on the project due to various delays.

Consider the following:

  1. Alternative critical suppliers (where supply chain is disrupted).
  2. Adjustment to the construction programme by way of re-sequencing where possible.
  3. Open multiple work phases if possible.
  4. Use double shifts / change of working hours based on the agreement of the clients and contractors. This needs to be adapted within the general conditions of the contract.
  5. Preparing for an early approval on critical Design milestones.
  6. Preparing for an early approval on the Authority Approvals.
  7. Minimise variations to the project.

If you need further guidance on this matter, please get in touch with our experienced Sr Consultant Praveen Deshpande – praveend@solidsupport.com.au

[1] Standards Australia 2005, AS 4000-1997 General Conditions of Contract, March 2005 edn, Standards Australia.