For Pennsylvania Construction Projects, Relief May Be Available

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Pennsylvania Gov. Tom Wolf has updated the list of businesses that are considered life-sustaining to permit the construction of health care facilities and emergency repairs for construction.

The governor's initial order to close the physical locations of all non-life-sustaining businesses in the state to help contain the COVID-19 outbreak required all construction sites to shut down. Construction and associated activities, other than the two types mentioned above, are still not categorized as non-life sustaining businesses under the governor's order.

Relief for those involved in construction projects may be available under certain “extenuating circumstances.” Waivers and exemptions to the closure order may be sought by emailing RA-DCexemption@pa.gov, and general questions can be directed to RA‑DCedcs@pa.gov.

Key to maximizing the probability of success in the request for relief is ensuring the language is carefully crafted in the application. For example, many contractors are currently undertaking work for hospitals and other businesses impacted by the shutdown. If these construction activities are permitted to continue, the impacted parties can potentially be better protected from a health and safety standpoint.

In addition to the application process, consider developing a plan to:

  1. Examine all contracts relating to projects that may specifically impact your rights and responsibilities;
  2. Develop a plan to document and memorialize costs associated with the interruption, delay and potential future acceleration;
  3. Substantiate the costs of demobilization and remobilization; and
  4. Examine insurance policies for coverage of current and future losses.

If your business involves a federal contract, including but not limited to construction, consider examining the validity of the governor’s order if informed that the project or contract has been shut down.

[View source.]

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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