COVID-19 AND… FORCE MAJEURE IN CONSTRUCTION CONTRACTS

Is the COVID-19 Virus a Force Majeure Event?

Yes, it is. The Covid 19 pandemic is a circumstance which was not contemplated by any of the parties at the time of entering the construction contracts. It is exceptional, beyond any one’s control and cannot be attributed to any of the parties to a contract. Because of the Covid 19 virus, the Minister of Health invoked powers under the Public Health Act (Cap. 281) and issued rules under statutory instruments aimed at combating the spread of the Covid19 virus. The rules prohibit the entry into Uganda of some people, restrict public gatherings and movement of people within Uganda. Most of the foreign contractors in Uganda require their personnel to travel to Uganda which is now outlawed and the workers on site cannot move or congregate at the construction sites. These orders by Government make the implementation of construction projects impossible and therefore the Covid 19 virus and rules by the Government of Uganda are a force majeure event and or circumstance.

What is Force Majeure?

The FIDIC Conditions of Contract, 1999 define force majeure to mean an exceptional event or circumstance which is beyond a party’s control, which such party could not have anticipated before entering into such a contract, which having arisen, such party could not have reasonably avoided or overcome and which is not substantially attributable to the other party.

READ THE FULL ARTICLE HERE: Covid 19 And The Fidic Sub-clause 19 On Force Majeure In Construction Contracts