Hurricane Irma paralyzed South Florida’s construction industry for the better part of two weeks. Construction projects were forced to stop production, causing costly delays and damages. The economic impact for South Florida’s construction industry in the aftermath of Hurricane Irma is still unclear. What is clear is that construction professionals are already feeling the challenges resulting from Irma’s wake. Shortages of workers, materials and equipment exacerbate the direct impact of the storm, while owners and contractors scramble to get their construction projects back on track. It is for this very reason that construction professionals must be diligent in their post-Irma risk management strategies to minimize losses.
Construction professionals on projects directly impacted by Hurricane Irma should, if they have not already done so, immediately review each project’s contract documents to determine what notices are required for delays and extra costs arising from the hurricane. Contract notice requirements and time limits vary, whether for force majeure or other similar time and compensation rights. There is no effective one-size-fits-all solution. While the initial notice letters will likely look very similar, it is crucial that each is sent as required by the contract. Particularly, each contract’s requirements should be reviewed for necessary content, form of delivery, and designated notice recipients. Follow-up notices and time periods differ from contract to contract and should be tracked to ensure compliance.
