The COVID-19 pandemic has had a significant impact on the global construction industry. A large number of intended projects have been reduced in scope, deferred, or canceled in their entirety, as owners look to save costs and the financial viability of planned investments in energy and infrastructure projects comes under renewed and closer scrutiny. Projects that are already underway have experienced the impact of the pandemic to varying degrees. On certain projects, the works have been completely suspended. For others, while the works are progressing, owners and contractors are facing a myriad of evolving challenges, including fabrication facility shutdowns and supply chain disruptions or delays, lockdowns, travel restrictions, labor shortages, enhanced health and safety measures, reduced productivity and cashflow problems. Naturally, these issues are impacting the works and causing delays, disruptions and additional costs.

While a contractor’s immediate focus will naturally be to look for relief under its construction contract, there is, in certain scenarios, the alternative option of seeking relief under an international investment treaty, which is worthy of consideration.

To read the full article, please download the PDF below.