Impact Of COVID 19 Pandemic on The Socioeconomic Requirements of Facilities’ Capital Cost

Impact Of COVID 19 Pandemic on The Socioeconomic Requirements of Facilities’ Capital Cost

Impact Of COVID 19 Pandemic on The Socioeconomic Requirements of Facilities’ Capital Cost
Summary
As a result of the Covid-19 pandemic, facilities have faced clauses in reducing liabilities arising from delayed or non-performance of existing contractual duties. It has caused difficulty in the competition and existence of contractual commitments (Wu, 2021). Despite being labeled a pandemic, parties do not typically agree on the occurrences that constitute COVID-19 during contract negotiations. Thus, existing contracts may not cover COVID-19 related losses (Wu, 2021). Additionally, the pandemic has made facilities face challenges in meeting their tax responsibilities throughout the impacted time and avoiding potential tax liabilities (Chugumbaev & Chugumbaeva, 2020). Finally, due to the pandemic’s effects in many facilities, they now face problems in cash flow, lower demand and supply, and disruption in value chains.