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As individuals, businesses, and governments continue to take actions to mitigate or contain the worldwide impact of COVID-19, component manufacturers (CMs) ought to consider including language in their proposals/bids and customer contract forms giving them a potential out to avoid breach of contract liability if and when they are unable to make deliveries through no fault of their own, such as in the case of COVID-19 rendering their plant inoperable.
SBCA Legal Counsel Kent Pagel has drafted template contractual language that serves as a model for CMs to include in their proposals/bids and customer contracts, as a means to set out under what circumstances CMs as suppliers of building materials, can be excused for performance when unforeseen circumstances, beyond their control, prevent, delay or hinder that performance.