Mandatory Shutdown of Construction Sites: What Does This Mean for You?

KEY TAKE-OUTS:

• On Saturday 17 July 2021, the NSW Government introduced a pause to all construction works across Greater Sydney until 31 July.
• This ‘pause’ on construction is estimated to cost the NSW economy $700 million a week.
• Many contractors claim extensions of time under their construction contracts.

From Monday, 19 July 2021  to Saturday, 31 July 2021 all construction work in the area of Greater Sydney is prohibited. This is to limit the spread of COVID-19 throughout the community.

This ‘pause’ on construction work involves a ban on attending a construction site for any reason other than the exceptions listed below:

• To ensure the safety of the construction site;
• To deal with environmental risks;
• To maintain the integrity of the critical plant, equipment or assets;
• To receive deliveries of supplies that would deteriorate;
• To maintain public utilities;
• Because of an emergency; and
• By or on behalf of NSW Health regarding the COVID-19 pandemic.

Not only have construction sites been ruled out for this two week period, but there is also a ban on any person visiting a place of residence in Greater Sydney to engage in maintenance work unless it is urgent.

If these orders are breached individuals risk a fine of up to $1,000 and corporations face a maximum penalty of $55,000 and a further $27,500 for each day the offence continues.

Construction Contracts

With this announcement, we anticipate that a flood on contractual claims is likely to trail. In most situations, contractors will be seeking extensions of time under their construction contracts. In addition, due to the delay, there may be extra costs depending on the terms of the contract. Therefore, it is important to review your contract to determine what you are able to claim and if you are unsure where you stand, contact Coutts for more advice.