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Extension of Time (EOT) due to Travel Restriction
Anonymous
Dear All,

The government in my country announced that foreign travellers from countries with over 150k COVID-19 cases will be barred from entering the country from 07 Sep 2020.

This announcement unfortunately impacts one of my project whereby we’ll require OEMs to travel into the country for installation works. If they can’t come in, we can’t complete the installation works and other subsequent project phases (e.g testing and acceptance )

Based on the Contract, we are eligible for an EOT as it’s an instruction from the Government. However from the employer’s point of view, EOT can be granted if the Contractor is able to complete the job within the extended time period. In this case it’s not possible until the restriction is lifted. So the Employer may consider suspending the project.

If suspended, then who’ll be absorbing the cost (e.g electricity n others within the suspension period) and who’ll pay for the mobilisation fees later? If my opinion it should be the employer.

Is anyone experiencing a similar problem ? If yes what’re the steps taken ?

Appreciate if you can share
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What does the contract say about handling such situations?

If it isn't covered under an existing clause, I'd suggest that the Contractor and Employer need to review the situation and come to a mutually agreeable decision on how to proceed which would likely result in a formal contract change. If they can't, then this would likely turn into a dispute which needs to be resolved.

Kiron
There must be a contractual clause for Force Majeure as I believe the current pandemic falls under this section.

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