Local Emergency Orders due to COVID-19 are halting construction work for metal recycling operations on the both the East and West Coasts.
What I’m hearing:
> Scrap operations are essential businesses
> Repair of existing essential machinery is allowed
> The construction of NEW work is not essential
If you’re the owner or manager of recycling operation, anticipate disruptions. If there is a cease work order, you will have little choice but to stop.
Contractors may seek to exercise force majeure clauses to cover costs of rentals, canceling subs, or orders for materials.
The terms and conditions on sales orders and contracts might become more relevant than anticipated a few weeks ago.
NOW is the time to work pro-actively with contractors and suppliers to minimize disruption and delay costs. Be clear about not letting the meter keep running on rentals, and costs that could be minimized if there is a shutdown.