Impacts of the Corona Virus (COVID-19) Pandemic on the Construction Industry
Description
The novel corona virus was discovered on January 9th in Wuhan province in China. Ever since then until its declaration as a pandemic by WHO, it has sadly destroyed peoples’ lives, devastated nations, disrupted businesses & our normal ways of lives. Global ways of life, routine activities, travel, trade & interactions have been impeded in a manner never experienced in our immediate history. In Ethiopia, where our economy is highly connected to the world economy, the disruptions are obvious in none other than the construction industry. As one of the biggest employers in the Ethiopian economy as well as its biggest contributor to annual GDP, this disruption is affecting many clients and construction firms alike. With these severe disruptions under its belt and impacts to our economy still to be felt, is its occurrence considered a FORCE MAJEURE in the Construction Industry? If not, what should the contracting parties and the Government do to mitigate the adverse impacts of this unexpected exceptional event? This paper is prepared with the aim of responding to the above questions and at the end recommends actions to be taken by the different stakeholders of the Construction Industry. Briefly addressed below are the result of the assessment of the different Conditions of Contracts on the pandemic, Impacts of the current Corona Pandemic on the construction Industry, Actions required from the Project stake holders during the pandemic, Possibility of Claims from the Contractor’s side, Impacts of the Pandemic on Consultants’ Services and Conclusions & Recommendations.
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Impacts of the Corona Virus (COVID-19) Pandemic on the Construction Industry
Description
The novel corona virus was discovered on January 9th in Wuhan province in China. Ever since then until its declaration as a pandemic by WHO, it has sadly destroyed peoples’ lives, devastated nations, disrupted businesses & our normal ways of lives. Global ways of life, routine activities, travel, trade & interactions have been impeded in a manner never experienced in our immediate history. In Ethiopia, where our economy is highly connected to the world economy, the disruptions are obvious in none other than the construction industry. As one of the biggest employers in the Ethiopian economy as well as its biggest contributor to annual GDP, this disruption is affecting many clients and construction firms alike. With these severe disruptions under its belt and impacts to our economy still to be felt, is its occurrence considered a FORCE MAJEURE in the Construction Industry? If not, what should the contracting parties and the Government do to mitigate the adverse impacts of this unexpected exceptional event? This paper is prepared with the aim of responding to the above questions and at the end recommends actions to be taken by the different stakeholders of the Construction Industry. Briefly addressed below are the result of the assessment of the different Conditions of Contracts on the pandemic, Impacts of the current Corona Pandemic on the construction Industry, Actions required from the Project stake holders during the pandemic, Possibility of Claims from the Contractor’s side, Impacts of the Pandemic on Consultants’ Services and Conclusions & Recommendations.
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