Construction and Infrastructure Project Challenges in the Asia-Pacific

Covid-19 has significantly impacted numerous Asian-Pacific construction projects, and disputes will proliferate when project owners and contractors try to divide the ensuing financial ramifications.

FREMONT, CA: Travel restrictions, supply chain disruptions, quarantine regulations, border closures, and legal changes have a direct impact on infrastructure projects. It examines whether force majeure is a defence to culpability and how to phrase force majeure claims. Additional, frequently disregarded legal authorities can, based on the situation, offer a better path to relief.

The first line of defence is frequently force majeure when faced with a performance issue brought on by COVID-19. There will likely be a force majeure clause in many contracts, but it's crucial to remember that even if there isn't an express clause, force majeure can still apply depending on the existing laws. This is due to the possibility of force majeure or a related legal doctrine under general law. Therefore, the existence of force majeure must be evaluated in light of both the contract and applicable legislation.

In most common law jurisdictions, including Australia and Singapore, force majeure is solely contractual, implying that without a force majeure clause in the applicable contract, force majeure is completely inapplicable.

In other legal systems, the concept of force majeure is derived from statute, and contractual force majeure clauses may be replaced or supplemented by statutory rights.