COVID and the Great Re-Negotiation Strategy

 

The Great Three Four?

There are moments in life that change us. They give us a new perspective and divide life into a clear before and after. I have lived through several of those moments, and I think of them as “The Great Three.”

The first was getting married. My spouse and I went on our first date in 1991, and my life has never been the same. She is my best friend, my biggest supporter, and a constant source of joy. Sharing life with her has been good for my soul.

The second was becoming a parent. I used to think of it as the birth of my first child, but each of my three children has changed my life in a different and important way. The line between life before children and life after children is unmistakable. I understood that parents love their children, but I did not fully understand the depth of that bond until my son was born.

The third was losing a parent. I lost my father 16 years ago this December. Not a day goes by that I do not think about him in some way. Losing a parent is painful, but it is also one of those moments that changes how you see life. I am grateful that I still have my mother and my in laws.

What about COVID-19?

So what does this have to do with COVID-19?

Until 2020, I had never seriously considered how much a global pandemic could change everyday life. I now think “The Great Three” has become “The Great Four.” COVID-19 changed all of us, and many things will never return to the way they were.

As an IT executive, I have planned for disasters of all kinds: fires, floods, storms, hurricanes, tornadoes, and earthquakes. A pandemic was always possible in theory, but it felt distant and hard to picture. We had historical examples, including the 1918 flu pandemic, and more recent events such as H1N1. But none of those prepared most of us for the scale of disruption COVID-19 brought.

Businesses had to adapt quickly. Employees began working from home. Schools moved online. Healthcare changed. Companies had to find new ways to serve customers and keep operating. At the same time, many families faced illness, loss, and uncertainty.

The human cost has been heartbreaking.

The need for more empathy in business

The pandemic also made me look differently at the contracts we have with vendors and suppliers.

For much of 2020, I was responsible for corporate facilities in addition to my regular IT leadership role. Before work from home and shelter in place orders, our company operated five main locations along with several smaller offices around the world.

Once offices closed, we were still paying for buildings we could not use. Like many companies, we asked landlords for some relief. They had their own bills and mortgage obligations, of course, but many were unwilling to discuss meaningful options. The response often came down to contract language, late fees, collections, or delayed payments that would eventually still be due.

That experience made one thing clear to me: business contracts often leave little room for empathy when circumstances change dramatically.

The pandemic clause

Over the years, I have reviewed many contracts. Most include language for disasters or acts of God, but few clearly address what happens during a pandemic that prevents a business from using the space, equipment, or services it is paying for.

That needs to change.

Future contracts, especially longer-term leases and equipment agreements, should include clear provisions for a pandemic or government mandated closure. These clauses could define what happens if a business is required to close or cannot use what it is paying for.

For example, a lease could provide temporary rent relief if a shelter in place order prevents employees from occupying the space. An equipment contract could reduce payments if copiers, printers, or other office equipment cannot be used because no one is allowed in the office.

This is not about avoiding obligations because a company chooses to work from home. It is about fairness when a business is required to close through no fault of its own.

A landlord should not be expected to carry the entire burden, and neither should a tenant. The point is to agree in advance on a reasonable way to share the impact of an extraordinary event.

Hindsight is always clear. Still, COVID-19 has taught us to plan for risks that once felt unlikely. Hopefully, we will not see another pandemic of this scale for many years. But if we do, better contracts and more thoughtful business relationships can help everyone weather it with a little more fairness and empathy.