Contracts Bulletin: COVID-19 Contract Addenda - Considerations for the Subcontractor

Subcontractors, whether they hope to present their own COVID-19 addendum or have recently had a COVID-19 addendum included by a general contractor or owner, should consider the following information before signing on the dotted line:

• Increased Cost and Time. How a COVID-19 addendum addresses increased costs and time for performance under the original construction contract is likely the most important aspect of the addendum.
• Safety Protocols. A COVID-19 addendum should address safety measures that will be taken at the jobsite
• Liability. A COVID-19 addendum presents an opportunity for an owner or general contractor to shift COVID-19 liability to the subcontractor.
• Sample Addendum to Construction Agreement.

Practically every construction project a contractor or subcontractor has been involved in over the past several months has been affected by COVID-19. As a result, COVID-19 contract addenda have become increasingly popular. While a potential trap for the unwary subcontractor, a COVID-19 addendum can also provide an opportunity to recover time, costs, and money.

Contracts Bulletin No. 5.5 was prepared by SMACNA’s general counsel. All members are encouraged to read this latest update.