hbspt.cta._relativeUrls=true;hbspt.cta.load(2347101, '127ebdd9-c2ba-4ff2-b8aa-9a21317cde43', {}); Kendall Jones is the Editor in Chief at ConstructConnect. He has been writing about the construction industry for years, covering a wide range of topics from safety and technology to industry news and operating insights. COVID-19 and the Construction Industry: Must Know Information for Executives. Increase your specification rate, grow your market share, and maximize your selling power with actionable project leads, data-driven insights, and construction industry trends. Holland and Knight attorneys can assist and advise on OSHA, workplace safety and health compliance, including advising on concerns and issues raised by the COVID-19 pandemic such as: It is indisputable that COVID-19 has touched many aspects of most people's daily personal and professional activities, and there's simply no avoidance of these impacts in the construction industry. Regardless of the types of impacts to a project, it is incumbent on all interested parties to mitigate those impacts as much as possible. Construction Industry Coronavirus (COVID-19) News Written by Dodge Research on June 1, 2020 As the coronavirus pandemic unfolds in North America many news articles pertaining to COVID-19 and its impact upon the construction industry and construction projects are being published. COVID-19’s impact on the engineering & construction sector Guidance for engineering and construction executives During this time when the COVID-19 pandemic is crippling various industries, public construction has been one of the few industries that has been maintained to some extent. While the construction industry has weathered the coronavirus (COVID-19) pandemic better than others like retail and hospitality, it hasn’t been all kittens and rainbows either. In a healthy economy, construction activity across all verticals tends to be strong. Of course, builders stepped it up from prehistoric animal bones and axes. This isn’t the year any of us expected. Manufacturing and production facilities are likely to be impacted based upon their own internal workforce and facility management challenges caused by the pandemic. The full breadth and scope of the changes needed to address issues arising from the pandemic are still unknown, and this analysis is likely to continue to evolve until a vaccine or other curative measures are in place on a global basis. The Coronavirus (COVID-19): framework for decision making – Scotland’s route map through and out of the crisis, was published on 21 May and stated in Phase 1 that we planned for the construction sector to implement the first three phases in its Restart Plan (planning, pre-start site preparations and soft start). This is causing longer construction times with only one or two trades being allowed to work on a project at a time to maintain social distancing among workers. Identify new opportunities, review market trends, and make the right connections to better understand demand and sell your products. The coronavirus pandemic has severly impacted the $800 billion U.S. commercial and institutional construction industry. A proactive approach that seeks sound and practical legal advice will be essential to making cost-effective decisions as new impacts from the pandemic materialize with industry members. developing and updating plans and procedures both for office and jobsite operations compliant with applicable standards, regulations and orders, including advice and counsel regarding OSHA standards governing: other personal protective equipment (PPE), cleaning, disinfecting and sanitizing workplaces, developing and implementing jobsite best practices and working through risk exposure analyses that are driving workplace logistics, including social distancing, assisting clients with developing and implementing processes such as temperature checks and pre-access jobsite questionnaires that are compliant with U.S. Building Information Modeling and virtual reality will allow owners, architects, engineers, and contractors to better visualize projects before and during construction. Construction Industry COVID-19 Exposure Response & Prevention Plan Created by: Vince Hundley, MS, CSPv2.4 SMART Safety Group revisions noted in yellow 8/6/2020 The nature of the impacts and extent of the ramifications are in large part dependent upon the location of both the respective businesses and underlying projects. Here are three things construction industry experts predict will be part of the new normal when the industry fully returns. Each year, construction leads the way in workplace fatalities as well as having a large number of injuries from jobsite accidents. The remedy under each of these standard provisions is an excusable, but not compensable, extension of time. Check out our latest product videos and economic webinars. Here’s a look at some of the ways COVID-19 might shape the future of construction. The letter thanks all those who are working tirelessly within the construction industry during the coronavirus (COVID-19) pandemic. Click "accept" below to confirm that you have read and understand this notice. Please contact your responsible Holland & Knight lawyer or the authors of this alert for timely advice. Similar to the decision-making process for suspension of a party or project, any potential decision concerning a potential termination due to the COVID-19 pandemic must take into account a number of factors. The construction industry hasn't been immune to COVID-19 impacts. Off-site and modular construction is also a great option once recovery begins, especially if there is a sudden escalation for demand of certain types of buildings like hospitals, schools, hotels, office buildings, dormitories, etc. The competition for these projects will also get tougher as more contractors are bidding on fewer projects. 800Cincinnati, OH 45209877-422-8665. Managing Director. Fewer workers on construction sites at a time will make it easier for safety managers, foremen, and site superintendents to monitor workers and ensure that not only are all COVID-19 safety guidelines are being followed but also all other safety rules are regulations. Construction Business Owner understands that even with the coronavirus, you still have a business to run. This document is part of a collection The list of applications and benefits of construction technology goes on and on. The knowledge of insurance policies, endorsements, insurance industry changes in response to the pandemic, and the application of various insurance coverages available, in place and required under project procurement and contract documents will allow industry members to understand what policies may or may not provide coverage for various claims arising as a result of COVID-19 on a project and corporate level. The industry entered 2020 facing many unknowns, and experts say the fallout from the COVID-19 (Corona Virus) virus is one more factor poised to affect construction firms. The reality is that significant decisions have been made, and will continue to be made, concerning the feasibility of moving forward on a project-by-project basis. Depending on the existing law in the applicable jurisdiction, the legal concept of contractual impracticability/frustration of performance may provide a party with a basis to avoid liability. Multiple users can collaborate in real time for hassle-free remote meetings. US construction industry wants liability protection (20 May) US lawmakers continue to debate the latest coronavirus relief package with a price tag of $3 trillion intended to assist Americans who’ve suffered economic losses as a result of the worldwide pandemic. ©2020 ConstructConnect All Rights Reserved. Within existing contractual documents, examples of these excusable delay clauses can be found at AIA A201 Section 8.3.1, ConsensusDocs 200 Section 6.3, and, for federal contracts, at Section 52.249-14 of the Federal Acquisition Regulation (FAR). reviewing and understanding contract documents, scheduling terms and conditions, working and negotiating potential changes for time, schedule, project completion and management, understanding supply agreement and purchase orders to determine impacts of delays, delivery obligations, payment and financing issues, and other liability risks, assessment and analysis of governing bodies' shelter-in-place or stay-at-home orders to determine compliance or appeals for excluded businesses, activities and programs to help facilitate continuation of business and project activities, claim risk assessment and insurance coverage, insurance coverage reviews and corporate audits for claim coverage, addressing insurance policies for application and coverage for potential industry and project claims, understanding triggering events for insurance coverage as it applies claims and coverage through general liability, property, business interruption, contingent business interruption, political risk insurance, professional liability, workers' compensation and builder's risk insurance, addressing applicable endorsements and changes to policies for inclusion or exclusion of pandemic-related events, monitoring state and federal proposed and implemented legislation that would require carriers to temporarily or permanently pay out on coronavirus-related loss claims, maximizing mitigation of potential losses through federal, state and local emergency relief funding, addressing feasibility and application of post-pandemic contractual and procurement insurance requirements, endorsements and their impact on corporate and project liability and work, implementing claim and loss-based tools to create accounting of loss-related items, accounting and understanding timely or delayed notice requirements and impacts to late notice to carriers for coverage, establishing claim handling teams, communications with carriers, and the creation of repositories for sharing of information and claim resolution, assessment and documentation of decisions and actions to correspond to insurance policy requirements and obligations, planning for amendments to project contract documents to prevent the implementation of pandemic-related exclusion endorsements to project and policies, managing project financial risk issues under self-insured, retention-based policy provisions, meeting carrier-imposed protective safeguard endorsements to ensure coverage under applicable project policies, costs due to damage to completed work in place during suspension period, costs for damage to stored/uninstalled equipment and materials during suspension period, costs due to uncertainty regarding availability of original/completion contractor for any future remobilization, costs due to uncertainty regarding availability of subcontractors/suppliers for any future remobilization, costs paid to contractor and possibly subcontractors during suspension period (contractor is likely due general conditions costs, at a minimum, over the course of the suspension period), costs arising in any future remobilization, increased construction costs are likely for duration of any remaining construction (labor/material escalation) following remobilization. Building sites across the country are putting structures in place should Covid-19 hit and force them to quarantine workers and shut down sites. The construction industry straddles both jurisdictions with contractors and employees crossing the border in both directions daily. To put that in perspective, during the Great Recession the industry lost about 2.3 million jobs. The construction industry is due for a true technology revolution and the pandemic may be the catalyst needed to get it going. Examples of potential cost impacts can include: Thus, while suspending a project or a party may seem like a reasonable method to cut costs for the foreseeable future, the long-term result will likely be more costs than what were contemplated for the suspension. The hallmark of Holland & Knight's success has always been and continues to be legal work of the highest quality, performed by well prepared lawyers who revere their profession and are devoted to their clients. Likewise, timely identification of alternatives for materials and/or suppliers will ensure that disruptions will be lessened. The economic downturn caused by the pandemic is causing owners and developers to hold off on moving forward with new construction projects. It is important that parties understand their respective rights and obligations before initiating the suspension of a project or a party. Economic webinars, blogs, monthly construction starts, quarterly forecasts, annual put-in-place forecasts, and more. Many states are still in the process of reopening and the increase in the daily number of new coronavirus cases are causing some to pause or reverse their reopening plans. These provisions contemplate that in the event of any of the identified conditions, neither party to the contract shall be responsible for any added costs since the conditions are deemed to be beyond the control of both parties.
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