COVID-19 IMPACTS: Construction Risk, Schedule, & Cost


As the effects of COVID-19 are slowly unfolding, it is too early to tell how severe or how long it will take to get back to “normal”.  The construction industry has shown signs of impact and construction activity is expected to continue to slow down due to disruptions in supply chains, a shortage of subcontractors and materials, and longer lead times on manufacturing and deliveries. Projects that are ready to advertise in the next 12-18 months, the following three key variance topics are important to incorporate. Although regulations will have a direct impact on these variance topics, it is important to begin the discussion with the team.


The most significantly impacted projects are those in design and those ready for acquisition. Project teams should analyze the potential impacts of these variables and define the downstream effects on potential projects.

Additional consideration needs to be given to:

  • Contractual implications, “force majeure,” and renegotiation
  • New regulations or laws that could impact construction project requirements
  • The closure/insolvency of small business subcontractors
  • Rethinking the global supply chain and material sourcing


Teams will be tested and as the saying goes, luck favors the prepared.  Focusing on these three key variance topics will advance the subject and ensure the project team is incorporating crisis management into the design and construction industry.  It is difficult to predict the price impact and we will continue to monitor the market.

We are happy to continue the discuss and stay safe.

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