A steady stream of corporate announcements regardings projects suspensions, restarts and delays underpin the stark fact that no segment of mining is immune from the impact of the COVID-19 pandemic, including construction. Contractor reliance on supply chain integrity and high levels of manual labour can lead to difficulties for mine project owners in the current business environment; they know the financial clock begins ticking with the signing of a mine construction contract and never ticks louder than when progress is delayed due to miscommunication, missing data or misplaced documents.
The geographic scope of the pandemic’s impact and the unpredictability of its cost in terms of worker health, availability and productivity in general – and the local, regional and national response measures imposed on the industry – have expanded the list of possible project complications significantly. As law firm Holland & Knight pointed out in a recent client advisory, pandemic-related impacts on construction projects might include contract or project notices for default, scheduling and adjustments; project suspension, termination and reinstatement; occupational safety and health and workplace safety compliance; work force management; material, subcontractor and supply chain delays and impacts; risk management and insurance; claims avoidance or, alternatively, claims management; and dispute processes.
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