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IACCM Contract Management Forum

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erdemir engineering management and co...
2020-02-09 09:11:49

Force Majeure due to Coronavirus

Can coronavirus considered as a force majeure in contract management ?
 
 •  Parker Hannifin Corporation, Aerospace Group  •   2020-02-13 22:43:22
I would say yes. This 'Act of God' is causing many companies to shut-down temporarily.
 
 
 •  Martin Baker  •   2020-02-18 13:29:30
Yes - in most cases it will be ( unless of course the contract excludes medical issues or similar)
 
 
 •  Norfolk County Council  •   2020-02-18 15:46:34
Might be worth considering what your response was to previous pandemic flu etc and treating similarly
 
 
 •  Capgemini  •   2020-02-20 20:32:38
yes, I considered a supervening fact, would be impossible to predict the existence and its effects when signing a Contract...
 
 
 •  Petronas  •   2020-03-06 08:23:39
for me it depends, if the party is from Wuhan, China where the local authorities have declared shutdown or curfew then it may be considered. however if the party is from somewhere not directly impacted with the virus then No. They need to show evidences of the impact which is hindering their obligation to perform the work.
 
 
 •  Pacific Gas and Electric Company  •   2020-03-29 03:53:29
I would describe COVID-19 as an unforeseeable event. It would depend on the nature of a unique good or service to determine if a force majeure clause would apply.
 
 
 •   2020-04-30 20:39:27
All depends on how your Force Majeure paragraph is drafted. Is your company qualified as "essential?" That could also come into play as well.
 
 
 •  Supreme Energy  •   2020-08-25 10:39:31
Depending on the clauses/articles in the Contract. From my experiences in managing the contract, endemic or pandemic is considered as one of the causes for Force Majeure. However, from what I see so far in my project, there is common grounds to avoid for activating FM. Collaboration between parties is essential on how we deal with this unprecedented situation since declaring force majeure only bring lose-lose situation while each party involved in the contract knew that resilience is the most important to keep their business going.
 
 
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