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Julian Church & Associates Ltd

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My COVID-19 Construction Update

10th April 2020 by staceylime

Overview

The information noted below is not original, it is a compilation of information that has been issued in the last few weeks by others that we have considered and listed in consolidated format for your consideration and thoughts.

General

Work in the construction sector declined at the fastest rate since the 2008-2010 financial crisis.

There are no specific clauses covering the current pandemic- closures/ alteration and extensions to programmes by mutual agreement of implied definition of ‘force majure’.

Biggest movement to offline communication & working in terms of paperless working, meetings and interactions- trend likely to continue after the pandemic has gone.

Tendering

We are still able to tender schemes.

Comments regarding more competitive tendering environment with fewer new projects coming forward.

Foreseen changes in market rate with risk and uncertainty in tenders.

Requirements for tenders to include for working in line with new site operating conditions with likely extended programmes of work.

Opportunities

Tendering largely a desk based exercise with contractors able to pull together tenders remotely.

The distress caused to the economic market pushing numbers of hospitality sector into administration will provide opportunities for new sites to cash rich & funded operators.

 

Construction Sites

Majority if not all hospitality related sites are closed- other sectors remain open.

Current regulations still imply and allow work onsite, although it is difficult to justify commercial office & retail construction on site ‘as essential’.

Reports sub-contractors ceasing activities where principal contractors have not put in place suitable COVIOD-19 protocols.

Schemes keeping sites open reduce onsite workforce, curtail productivity and stagger shifts/ work patterns.

Contractors required to ensure 2m distance between workers where possible- provide specific RAMS.

 

Supply Chain

Delays to material supplies as production sites cease or suspend non-critical operations and imported materials stuck at ports.

Difficulty in securing products and materials as supply chain and delivery issues cause shortages.

Supply chains being reviewed.

Filed Under: Cost Consultancy, Project Management, Quantity Surveying

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