As the COVID-19 pandemic continues to spread across the globe leaving in its wake an unprecedented level of disruption across industries and sectors, businesses and other relevant stakeholders in the infrastructure space are examining their deals and existing projects to ensure their commercial arrangements are not unintentionally compromised. This includes, among other things, engaging delivery teams to examine their delivery programs and/or supply chains to put in place methods to ensure upcoming obligations and deadlines are protected.
However, for projects which may be also funded by external third parties (for example, banks or through government support), parties will also need to pay attention to any further requirements that financiers have imposed within the related financing documents. It is important to be conscious of whether planned or unplanned breaches of underlying contractual arrangements (including suspension of work) may constitute a default event or a termination trigger under financing facility agreements and/or financier side deeds.
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