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COVID-19 impact on contract surety in the U.S.

COVID-19 impact on contract surety in the U.S.

The U.S. construction industry felt the first wave of the impact of COVID-19 when China’s Hubei province went into lockdown and manufacturing facilities that produce construction materials for U.S. consumption were forced to halt production. In more recent weeks, significant labor force and supply chain challenges in countries around the globe, combined with government-imposed shutdowns, are stopping some U.S. construction projects in their tracks.

All parties involved in construction projects (e.g., owner, contractors, suppliers, sureties, bankers, etc.) are likely to feel the adverse impact of this epidemic. To prepare for and assess the impact of COVID-19 and mitigate risk, it is critical to seek professional advice from your surety, insurance agent/broker, and licensed construction attorney(s) in the local jurisdictions you operate. These key partners will be able to help you ensure you review and understand all relevant contracts and supporting documents.

Review key steps you can take to assess the impact of COVID-19 and mitigate risk.

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