The spread of COVID-19 was all about uncertainty and distress. With people being strongly advised to follow social distancing protocols, the government had its focus on controlling the spread of illness by restricting travel and work. And just like any other industry, the construction world is also going through a tremendous struggle in sustaining the project pipeline and workflow.
The COVID-19 pandemic has rocked many industries to their very core. Lockdowns, quarantine, social distancing, and other health-protecting procedures keep the virus from spreading, but they also create numerous challenges for businesses trying to navigate this new normal. What contract issues are construction industries facing, and how can they make their way over this hurdle?
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Costs are an integral part of the construction business: the industry spends money to make money. But despite some of its best efforts, considerable operating costs are making it more challenging to compete and, in some cases, undermine the quality and value of the projects delivered to clients. Coupled with this are the mounting administration costs, salaries, rent, and others that send the red marker of some companies into overdrive. An obvious solution is to reduce these operating costs to remain profitable and competitive.
Construction is a risky business. Each construction project is unique and comes with its own set of challenges and opportunities. Identifying and managing construction project risks can be tricky, but not impossible with careful planning and execution. When a risk turns into reality it can disrupt and derail a project which is why construction risk management is so important. In order to avoid disaster, you need to be able to properly assess, control, and monitor risks once they’ve been identified.
With confirmed U.S. cases of COVID-19 standing at 1.87 million, with over 108,000 of those cases resulting in death, to have even a fleeting thought of returning to the pre-COVID-19 workloads is not just lofty, it’s wishful thinking. Construction firms are often an early forecast of the financial times because residential construction is normally considered a “luxury” item by the homeowner, and the ability to freeze capital funds in times of uncertain business futures almost guarantees that new construction is the first fat that is trimmed from most budgets.
Ever since it struck at the beginning of 2020, COVID-19 has altered our lives. It has wrecked the economy, shoved millions of people out of a job, and locked us inside our homes.