Law360 quoted McGuireWoods Richmond partner George Keith Martin in a March 15, 2022, story on the challenges faced by the construction industry as a result of the COVID-19 pandemic.
The article noted that one of these challenges stems from disruptions in the supply chain and the difficulties in agreeing on the temporal aspects of contracts, given the uncertainty of the time it will take to obtain materials. The primary concern for negotiating parties is who assumes the risk if certain contractual timing milestones are unmet.
“If you are a contractor or developer, you are keenly focused on supply chain issues and how that might impact your ability to deliver the project in a timely manner,” said Martin, who practices construction, real estate and local government law.
Another challenge is the labor shortage, as construction companies scramble to find enough workers to complete projects. “We definitely need to train more people to go into that area,” Martin said of the construction sector. “Because of the demand, there are some contractors who are not in a position to work on projects. They’re stretched.”