Who bears the costs of delay, and what might those be?
As of April 4, 2020, at midnight, only a very limited scope of construction projects will be allowed to proceed in Ontario. This, due to an Order passed by the Government of Ontario (the “COVID-19 Order”). In this article we will review the contractual consequences of this province wide, government ordered, shut down.
As we have reiterated before, the starting point is the contract or subcontract between the parties. We will address the issue from the perspective of the Owner/Contractor relationship, although our comments apply to every rung of the construction ladder. Subcontractors and suppliers should consider whether they are governed by the prime contract or other subcontracts above them, in determining what provisions apply to their circumstance.