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Nadine Cranenburgh

COVID-19 as a contractual force majeure event

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Engineers Australia has posted a checklist developed by the International Federation of Consulting Engineers (FIDIC) and international law firm Hogan Lovells to address concerns raised by industry. They give the following disclaimer: "Whilst FIDIC does not provide legal advice on any of our standard procurement contract forms, we believe that the check list provided below will be useful as a starting point for any business in addressing the potential impact of the COVID-19 pandemic on their current projects." https://www.engineersaustralia.org.au/node/51486

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Remember, when it comes to insurance it is the law that counts. It is not about justice or need or principle but about what is written down and agreed to. Insurance is only a mitigation and not an active control. Even after a business is hit by a disastrous event, it is a responsibility to take action SFAIRP to maintain the high ground for insurance purposes and minimise loss.

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Thanks for joining the conversation, Geoff. I thought it would be a good opportunity to point members to the REBOK page which looks at the differences and legal ramifications of reducing risk to  'as low as reasonably practicable' (ALARP) and 'so far as is reasonably practicable' (SFAIRP). Here's a link:

 

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