Impact of COVID-19 on the Construction Industry and Investigation of Post-Pandemic Progress

The construction industry was adversely affected by the COVID-19 pandemic, which resulted in several problems, including a lack of materials and workers, decreased production rates, shipping delays, concerns with the labor market, cash flow issues, and the requirement for new health and safety regulations. Research has shown that all these factors lead to increased risks, legal problems, and disputes within the industry. This paper aims to determine the procedures for using force majeure clauses in construction contracts as well as the rights of parties affected by such events. Based on a review of the literature, the authors investigate how construction companies are reducing their litigation risk and avoiding contractual disputes during the pandemic. The paper evaluates the force majeure terms that are compatible with COVID-19 and explain how they work with construction contracts, emphasizing the importance of specific contractual regulations or clauses. The paper also demonstrates how the pandemic has affected supply chain and construction disputes, including the typical cost and duration of disputes. Overall, the paper presents that construction companies should carefully read and understand the contracts and ensure they have appropriate clauses to protect themselves against risks associated with pandemics. To prevent disputes in the future, all parties must also take proactive measures to mitigate these risks. Last, the paper discusses the current status and progress after the Pandemic period.