Ultimately, who has to bear the cost increase will come down to the contracts that were signed. Contracts will often include items like delay provisions or force majeure clauses that provide guidance on who should bear those costs. If there aren't any contractual provisions relating to those issues, then each party may bear the responsibility for their own delays.
Ultimately, though, carrying on during this coronavirus outbreak will require quite a bit of collaboration and flexibility. So, before opting to use the contract as a sword or a shield, it'd probably be wise to discuss the situation with your customer and/or vendors. Often, everyone will understand the ongoing struggles and some common ground can be found.
If there's some grumbling about who will be responsible for delays or increased costs, it'd be wise to reach out to a California construction attorney to have them review your contract. They'll be able to assess any provisions relating to force majeure, delays, or just the project schedule in general. Then, they'll be equipped to advise on how best to proceed.
The information presented here is not legal advice and should not be construed as such. Rather, this content is provided for informational purposes. Do not act on this information as if it is advice. Further, this post does not create any attorney-client relationship. If you do need legal advice, seek the helSee More...See More...