Covid-19 Pandemic and The Construction Sector - Onyia Construction Company

Severe acute respiratory syndrome coronavirus 2 (SARS-CoV-2), commonly referred to as COVID-19, is undoubtedly having an unprecedented effect on systems and industries around the world. The Construction and Engineering industry is not isolated from this impact and this article considers the impact on the industry and how professionals can respond safely and effectively. With the virus spreading like wildfire from Asia to Europe, the Americas and now Africa, COVID-19 is wreaking havoc not only on healthcare systems but on industries around the globe, from the academia to transportation, sports, hospitality, construction and virtually everything else.

To begin with, Construction and engineering experts are predicting that COVID-19’s impact on main construction activities will be profound and devastating. Unfortunately, as the Construction and Engineering industry is labour-intensive, it will be hit hard due to shortage of labour and a resultant increase in cost of labour. The Economic Times reported that over 30% of construction workers are staying away from project sites and most sites are running at half their capacity. Shortage of labour is also forecast to continue rising as governments implement lockdowns and people adhere to social distancing directives and other safety guidelines. Additionally, the inevitable fact that some construction workers will get infected, sick and be quarantined. Overall, the cost of labour is projected to increase by over 50% as well.

Secondly, as governments lock down major cities and enforce stringent restrictive measures, there will be a resulting disruption that will significantly interrupt the supply chain and logistics industry. This will in turn deal a further blow to the Construction and Engineering industry as it is hugely dependant on logistics to thrive. This will cause significant delays for most ongoing construction and engineering projects. As time is a fundamental aspect of every construction and engineering contract, project owners and contractors will need to review their agreements to determine their rights, obligations and options. There will be unavoidable legal ramifications of this. Some contracts have clearly spelt-out clauses that cover “force majeure”, “unforeseen” and/or “natural” disasters like COVID-19. Some contracts do not have these express terms and in extreme cases, this may lead to mediations, arbitrations and even litigation over contract terms.

Construction is majorly an outdoor event with over 85% activities requiring teamwork and interdependencies. COVID-19 is without a doubt, the single  most serious health and security threat to the industry in recent history. Consequently, and in compliance with relevant health and safety guidelines, we are at this time advocating for a complete suspension of all onsite construction activities. This will definitely come with a lot of inconveniences and potential loss. Where suspension is impossible, the following precautions are recommended for professionals and operatives;

• Regular temperature checks
• Washing of hands with soap and water at the entrance to and around all project sites
• Provision of alcohol-based sanitizers at the entrance of and around the site
• Fumigation of project sites and labour camps
• Provision of medical aids
• Provision and use of personal protective equipment PPE e.g. Helmet, gloves, suits, boots
• Isolated work areas and social distancing (minimum of 2m distance).

Project engineers, managers and all management personnel must ensure strict compliance at all times. Where this cannot be guaranteed, it is advised that the site be shut down.

Against the backdrop of the COVID-19 pandemic, it is evident that there is significant likelihood of construction and engineering activities grinding to a halt, thereby causing an upward review of  project budgets and creating potential conflicts between stakeholders. Consequently, the virus must be declared and seen as “force majeure” in the relevant clause of all contracts.

For the time being; stay safe and work smart.