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City of Atlanta’s COVID-19 Shut-Down Order Impacts Certain Construction Projects

Posted on: March 24th, 2020

By: Jake Carroll

Executive Order Number 2020-21 (“Shut-Down Order”) was issued by Kiesha Lance Bottoms, the Mayor of Atlanta, on March 23, 2020 at 8:49PM. Atlanta’s Shut-Down Order is more restrictive than similar orders seen in Florida (with broader exceptions for construction) and  California (allowed some construction to proceed).

Key Terms:

  • Jurisdiction: Order only applies to projects within the jurisdictional limits of Atlanta.
  • Date and Time of Effect: March 24, 2020 at Midnight.

Impact on Construction Projects: shutters construction projects that are not deemed “Essential Infrastructure” or “Essential Business” as defined by or enumerated in the Order.

  • Essential Infrastructure” is limited to projects for public works construction, airport operations, public transportation, utilities, and telecommunications, etc.  It generally does not capture more commercial construction, like warehousing or housing.
  • Essential Businesses” provides additional categories related to construction, including:
    • Healthcare operations and infrastructure;
    • Businesses that provide shelter for economically disadvantaged individuals (affordable housing projects may qualify);
    • Educational facilities; and
    • Residential facilities and shelters for seniors, adults or children.
  • General commercial construction projects like hotels, apartments and warehouses likely do not qualify.

Further Considerations:

  • Construction Industry Stakeholders should review FMG’s COVID-19: Commons Issues in Construction Contracts
  • Contractors should evaluate all existing construction contracts within the City’s jurisdiction, to determine what their rights and obligations are, including notice requirements.
  • Developers should evaluate whether they have any recourse under existing insurance policies, including business interruption and builder’s risk. Typically these policies are not implicated absent direct physical damage to property, but the results depend on the specifics of each policy.

Additional information: 

The FMG Coronavirus Task Team will be conducting a series of webinars on Coronavirus issues every day for the next week. We will discuss the impact of Coronavirus for companies in general, but also for business in insurance, healthcare, California specific issues, cybersecurity, and tort. Click here to register.

FMG has formed a Coronavirus Task Force to provide up-to-the-minute information, strategic advice, and practical solutions for our clients. Our group is an interdisciplinary team of attorneys who can address the multitude of legal issues arising out of the Coronavirus pandemic, including issues related to Healthcare, Product Liability, Tort Liability, Data Privacy, and Cyber and Local Governments. For more information about the Task Force, click here.

You can also contact your FMG relationship partner or email the team with any questions at [email protected].

**DISCLAIMER: The attorneys at Freeman Mathis & Gary, LLP (“FMG”) have been working hard to produce educational content to address issues arising from the concern over COVID-19. The webinars and our written material have produced many questions. Some we have been able to answer, but many we cannot without a specific legal engagement. We can only give legal advice to clients. Please be aware that your attendance at one of our webinars or receipt of our written material does not establish an attorney-client relationship between you and FMG. An attorney-client relationship will not exist unless and until an FMG partner expressly and explicitly states IN WRITING that FMG will undertake an attorney-client relationship with you, after ascertaining that the firm does not have any legal conflicts of interest. As a result, you should not transmit any personal or confidential information to FMG unless we have entered into a formal written agreement with you.  We will continue to produce education content for the public, but we must point out that none of our webinars, articles, blog posts, or other similar material constitutes legal advice, does not create an attorney client relationship and you cannot rely on it as such. We hope you will continue to take advantage of the conferences and materials that may pertain to your work or interests.** 

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