In order to reduce business risks, rapid action and greater awareness are needed:
– Due to the prolonged epidemic situation, Megaterra Kft. Is reviewing its annual business plan and reviewing the feasibility of the contract portfolio.
– We will review and, if necessary, strengthen our funding capacity, taking into account the opportunities offered by the Government, the MNB and the account-keeping commercial banks
– Sickness cash certificates and quarantine order certificates are carefully preserved
– In the event of one or more workers suffering from coronavirus, the resulting damage is borne by the employing undertaking. Government measures may be taken to absorb the damage
– The content, consequences and interpretation of the category of force majeure may differ from one contract to another, therefore the concrete situation and its concrete interpretation is always necessary to decide the question. It is usually a case of force majeure or unpredictable events, when there are disruptions in the transportation of material and these are unforeseeable and even more expensive other purchases. The coronavirus and its effects, the state of emergency and the Government`s restrictive measures are considered to be irreversible, absolute and unforeseeable at the time of the conclusion of the contract,
which, if rendered impossible, shall be considered force majeure.
– However, the execution of tenders or contracts awarded since the emergence of the special situation shall not be invoked as force majeure. The epidemic was already a known entrepreneurial factor, which could have been taken into account in the implementation. Neither the time limit nor the additional costs are enforceable on such grounds
– The obligation of cooperation between the Parties should also apply in the event of an emergency due to a coronary virus outbreak. In doing so, the Contracting Parties shall endeavor to eliminate or mitigate such damage to the extent permitted by the circumstances.
– Intensive communication with Customers is recommended. You should be regularly informed of anything that is different from your daily routine in the course of your work and may have an impact on performance. All measures taken to protect human health at the workplace shall be known to the Customer.
– If a curfew is imposed, it is the employer`s responsibility to provide the workers with a certificate that they can show up to and from the field.
– If the Client, or acting on behalf of the Client (engineering firm, architect), dispenses with important discussion, consultation and instead creates another forum to discuss the issue in question, the risk and financial consequences are usually borne by the Client.
– The situation regarding the spread of the coronavirus is basically borne by the client / contractor and the contractor contracted with it. Businesses need to be prepared for the necessary changes to business contracts, backed up by arguments
– Due to liquidity difficulties, it may be necessary to establish more frequent technical / financial schedules and, consequently, to create opportunities for more frequent issuance / acceptance of accounts
– In the case of new contracts, which are to be concluded at the time and in the knowledge of the epidemic, it is advisable to include in the contracts longer performance deadlines, suspension or termination clauses, as there may be delays due to coronavirus performance barriers.
Budapest, March 20, 2020
Dr. Péter Szabó
Managing Director