The impact of Covid-19 on the implementation of construction contracts and dispute resolution procedures in China Chen Mingfei, China Chen Mingfei has a master's degree in civil engineering and a bachelor's degree in civil engineering and law. He is currently studying for his PhD in management science and engineering and has a wide range of experience in engineering law and arbitration, serving as arbitrator of eight arbitration institutions in China. Chen Mingfei serves as a Senior Consultant in China Mobile Group Design Institute Co.,Ltd, mainly engaged in engineering consulting and engineering law related research. The Covid-19 outbreak has had a significant impact on the production and life of Chinese society, especially in labor-intensive construction enterprises. In order to contain the Covid-19 epidemic, almost all provinces and cities across the country ordered the suspension of construction projects at the beginning of the outbreak, and construction projects basically fell into an ice age. Up to now, some cities in China still set relatively strict conditions for starting work, which impedes the resumption of work and production. This paper discusses the impact of Covid 19 on the performance of construction contracts and dispute resolution procedures in China, and proposes the corresponding countermeasures.
Legal characterization of Covid-19 in china Since the outbreak of Covid 19, the National Health Commission has classified the novel coronavirus pneumonia as a Class B infectious disease in compliance with the Law of the People’s Republic of China on Prevention and Treatment of Infectious Diseases, but to apply to it the preventive and control measures for a Class A infectious disease. Thirty-one provinces and municipalities in China have activated Level 1 public health emergency response. A spokesman for Commission for Legislative Affairs of the NPC Standing Committee said Covid 19 is force majeure. Subsequently, 《Guiding Opinions of the Supreme People’s Court on Several Issues Concerning Properly Handling Civil Cases Related to Covid-19 Epidemic in Accordance with the Law (I)》pointed out that in the trial of civil Covid 19 cases, the people's court shall accurately apply the specific provisions of force majeure and strictly grasp the applicable conditions, that is, the Covid 19 outbreak in China has been characterized as “force majeure”. But its application has been strictly controlled. The party who claims that the force majeure rule should be applied and the liability should be exempted partly or wholly shall bear the burden of proof to prove the fact that the inability to partly or fully perform its civil obligations is caused by the force majeure event.
The impact of covid 19 on the performance of construction contracts At the start of Covid 19 outbreak, most provinces in China issued “order to stop construction work”. Such administrative orders directly lead to the suspension and delay of resuming work. Even after the Covid 19 is effectively controlled, many construction enterprises still lack the required motivation to resume/return to work. The main reasons are as follows:
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