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The true test of someone’s character, or something’s value, is not when times are going well but when there is a crisis.
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.
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 is hosting a weekly podcast conversation with members of its Executive Committee, discussing how their companies are impacted by the COVID-19 epidemic and what they are doing to overcome various challenges presented by the virus.
Each podcast will focus more on what actual component manufacturers are doing in their businesses and less on the various legal questions (for employment law focused content, please review Kent Pagel’s recent webinar series).