Civil Engineering May 2022 | Vol 30 No 4

A recent example of an exceptional international event is the Covid-19 pandemic which resulted in multiple national lockdowns and ushered into effect multiple new laws to curb its spread. The pandemic has had a devastating impact on many industries, including the construction sector. Just as people and businesses seemed to be adjusting to living and working amid a pandemic, tensions started to rise between Russia and Ukraine. Global concerns about the possible outbreak of war were realised on 24 February 2022, when Russia launched a full-scale invasion of Ukraine. This is the second exceptional international event to occur in the space of less than two years. At the time of writing, the Russia-Ukraine war is ongoing with no sign of abating. In response to the Russia-Ukraine war, numerous ex- traordinary steps have been taken by the global community, including economic sanctions and boycotts. The humanitarian concerns of the war are immense and grave, while the eco- nomic effects have already begun to impact individuals and businesses worldwide. Social media newsfeeds highlight the rising fuel prices on the back of higher oil prices. But fuel is not the only commodity af- fected by the war. Russia imports and exports multiple commodi- ties and the sanctions imposed against the country will cause shortages across several commodities, driving above-inflation price increases. Economists are predicting that the already higher costs of living will only continue to climb in the face of the Russia- Ukraine war. Given that South Africa’s economy has not yet recovered from the effects of the pandemic, businesses are now rightly concerned about how the war may impact them. Contractors in the construction industry are anticipating eco- nomic pressure. Exceptional international events and construction contracts – the nightmare continues Euan Massey Director MDA Attorneys emassey@mdalaw.co.za Tamlynn Caelers-Avis Associate MDA Attorneys tavis@mdalaw.co.za There’s no doubt that several exceptional international events have occurred over the last few years, particularly from the start of 2020, which have had and will continue to have long-lasting effects on the entire construction industry. Civil Engineering May 2022 31