Z clauses in procurement – Covid-19

Members tendering for procurement projects at this time should be extra vigilant when agreeing to terms in contracts.

Members tendering for procurement projects at this time should be extra vigilant when agreeing to terms in contracts. In order to protect their interests during Covid-19, there has been an increase in what are known as 'Z clauses' being added by those organisations procuring services. Some of these clauses may render the terms of the contracts unattractive in removing any rights to claim for 'compensation events' for unforeseen additional costs due to Covid-19 and not recognising the pandemic as a force majeure. 

Members are advised to carefully consider the contents of any of these Z clauses and attempt to negotiate more favourable terms where they are felt to create unacceptable risks for Members.

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Contracts COVID-19