b'LEGAL COLUMNThe industry has learned some hard lessons from the pandemic. Contractors may now consider negotiating contract termsYou have construction risk. to include a clause that reallocates supply chain disruptionsboth time and costWork with the experts. back to the owner. While owners and head contractors are generally resistant to what might be an unusual reallocation of risk, one way to make this more appealing is to provide a corresponding benefit for material cost decreases or lower shipping costs. Other alternatives are to impose time limits on material cost certainty, specify early delivery with storage to be provided and paid for by the owner, or include not to exceed prices over which the other party will be obligated to pay the difference. The challenge is making sure these clauses are clear, not open to interpretation and can be used as intendedRosy Mounce,Construction Insurance, Salmon Arm Talk to the CapriCMW Insurance if incorporated into a tender orhead contract. Morly Bishop,Construction Insurance, Kamloops construction team today.Chris Nielsen,BCCA Group Benefits, Kelowna 1 800 670 1877 l capricmw.caLong story short: do not rely on traditional or standard form contracts to provide reliefAngela McKerlich,Contract Surety, Kelownain extraordinary circumstances. ConsiderMatt Arruda,Construction Insurance, Kelownanegotiating provisions that provideChantell Arsenault,Group Benefits, Kelowna specific or calculable relief in the event ofRyan Fairburn,Construction Insurance, Vernona declared state of emergency, including climate, weather or public health events.ANTICIPATING IMPACTS OF FUTURE PANDEMICS AND PUBLIC HEALTH ORDERS AND TRANSFERRING THE RISK Smart decisions. Lasting value.During the first year of the pandemic, most advice sought by contractors and trades related to possible recourse for time and cost impacts related to public health orders, or the pandemic overall, in existingBuilding strongcontracts. In 2021, the emphasis shifted to new projects. Contractors are looking for ways to negotiate risk transfer so that thefoundationscontract language contains a clear method for determining which party is responsible for pandemic-related time and cost impacts, and how they will be calculated.I have drafted provisions relating to liabilityContact a Crowe MacKay trusted advisor for and compensation arising from:your tax and business consulting needs.The cost of worker isolation upon apositive test in a remote location; John Diduch, CPA, CAThe time impacts of pandemic-relatedIncorporated Associate worker shortages; (250) 763 5021John.Diduch@crowemackay.caThe time and cost impacts of socialdistancing, PPE or other measures required by public health orders not inAudit / Tax / Advisory crowemackay.caplace at the time of contracting; andSICA CONSTRUCTION REVIEWSpring 202243'