They stressed that the presidential directive for a lockdown has impacted on contracts and poses danger for the construction industry.
Painting a graphic picture of the complexity of the situation and its impact on construction, the President, Nigerian Institute of Builders, , Kunle Awobudu, said most of the existing contracts did not really envisage COVID-19 and therefore the force majeure clause may not be relevant. “In every building project, there are three major targets, namely that projects must be kept within the budget. In most of the contracts signed these days, it is categorically stated that fluctuations are not palliated that is you cannot come back and review the price.
At the projects level, Tor said, it is beyond the control of the parties in a contract, for instance, employers/clients and contractors. They can, however, seek protection under the force majeure clause where it forms part of the conditions of the contract. “As construction project cost experts, quantity surveyors do incorporate risk management plan into their cost structures and it could be used to mitigate the effects of the pandemic.
Some professionals, he said that embraced design on the digital environment such as Building Information Modelling might, however, perform relatively well in this regard. The Nigerian Institute of Quantity Surveyors is at the forefront of popularizing the BIM technology.Major players like contractors and consultants, he said, should be supported to remain afloat, thus retaining their works force.
Whereas clauses in the contractual agreements can deal with the delayed delivery dates, the damage to the economy will take a while to mitigate. For the second vice president of the Nigerian Institute of Architects, Enyi Eboh, it is regrettable that the construction industry is one that is not classified as very essential so that everybody has to down tools.
That's understandable.