Interpreting Contractual Rights to COVID-19 Remedies: An Analysis of Cases

Abstract

The construction industry has been adversely impacted by the COVID-19 pandemic including significant delays on projects and outbreaks of COVID-19 on site. UK legal cases interpreting contractual rights to COVID-19 remedies are analyzed in this paper. The analysis of UK legal cases regarding potential contractual rights to COVID-19 remedies including change in law, force majeure, and frustration has revealed the barriers to recovery of losses. Instead, construction companies could consider focusing on more commonly used contract provisions, for example, extensions of time and prolongation claims or compensation events. The UK Supreme Court has ruled on the possibility of payment from business interruption insurance. Even the UK government has failed to comply with public procurement law under pressure of the COVID-19 pandemic. The High Court in London has ruled that landlords are entitled to recover rent and service charges owed to them by tenants whose businesses were mandated to close by coronavirus restrictions.