Minimizing Liability of the COVID-19 Pandemic on Construction Contracts—A Structural Equation Model for Risk Mitigation of Force Majeure Impacts

A pandemic is a force majeure event, and contracting parties can invoke conditions under to minimize liability for unforeseen, uncontrollable, unavoidable circumstances. This study develops conceptual model assist in the management of delays cost overruns due events arising from construction sector Small Island Developing States (SIDS). critical case analysis past epidemics pandemics was conducted develop survey questionnaire administration professionals Trinidad Tobago. Based on empirical data 65 professionals, structural equation shows that there are strong causal effects implications COVID-19 events, which turn have dire impact industry. The leading implication drastic increases materials. Also, granting an extension time contractors main risk variable conditions. From results, measurement verifies its perceived strongly influence industry, proposes contractual clauses require explicit treatment periodic reoccurrence avoid conflicts among parties. research explores builds new avenues latest scholarship better understand existing impacts consequently add novel body knowledge contracts. Overall, this provides risk-guidance framework academia mitigate risks projects.