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Mitigation Obligation to Reduce COVID-19 Damages in Construction

The world finds itself in the middle of a global health emergency, not one created on a production stage but a real-life pandemic with a high risk of spread and impact as declared by the World Health Organization.’ The construction industry is experiencing exorbitant disruptions in project activities due to COVID-19 that have substantial effects on schedule due to supply delays, labor shortages, and social-distancing constraints. The resulting financial impacts from the contagion will be discussed and potentially litigated over time between parties in a contract. Depending on the duration of the pandemic and associated orders, damages could continue to rise significantly, which could cause owner and contractor dissension. Such injuries may differ depending on where work is being performed.

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