COVID-19 IMPACT UPDATE: Current Impact
The impacts of the coronavirus pandemic are being felt globally. As such, Alliance feels it is prudent to continue to offer insight as to how this might affect the construction market.
The situation is evolving and each state is providing guidance to address the pandemic. New laws, regulations, and directives are placing restrictions on the movement of people and goods globally. This puts a greater strain on the contractor and local sub-contractor market to provide services and continue to progress construction work during this pandemic.
Since the pandemic started, the construction market has seen significant schedule volatility, impacting deliverable dates. Delays and disruptions are being felt up the supply chain, with limiting effects on on-site construction workers. Depending on the type of work, the health and safety risks of COVID-19 vary from project to project. For example, outside work allows for greater physical distance from others and therefore lower health risks, as compared to inside work with a closer proximity to other workers.
Overall, General Contractor expenses are increasing to capture the following risks:
Impact to Projects
Current Alliance forecast anticipates 1-5% cost impact to a project, cost is depended on project size. Each project will necessitate detailed requirements to capture full impact. As we manage through this event, it is important to remember that the safety and security of personnel is our first priority. We will continue to monitor the unfolding COVID-19 situation and its impacts, as well as update and adapt our recommendations as needed.
We are happy to continue the discussion. Stay Safe.
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