Bringing back builders is huge step forward for our economy

THE re-opening of construction sites next week is a huge boost for contractors, the professions allied to development, and for Ireland Inc, with perhaps 25,000 people coming off the unemployment register from Monday.

It is going to be a gradual ramping back up of activity and there are a lot of issues involved.

I came across some confusion in the market about the extent to which sites can re-open. The government guidelines refer to “a phased return of outdoor workers, eg construction workers.” Some people I spoke to believe this allows “indoor working, with social distancing”, for example in partly-completed apartment or office buildings. There was always going to be grey areas, and we are going to have to rely on people’s common sense in getting through this.

I spoke to the Construction Industry Federation (CIF) and it is going to enormous lengths to help contractors through this. The scale of the task is underlined when you consider there are 147,000 people working in the industry, including 80,000 on site plus managers, tradesmen, engineers, architects and so on.

CIF told me there are 1,137 sites in Ireland, involving 47,000 separate enterprises and only 14 of those have more than 250 employees, underlining the fragmentation in the industry.

CIF advised me ‘Covidproofing’ works are already happening on sites this week, such as hand-sanitising stations and extra toilets, and it estimates 20pc of the usual number of site workers will return next Monday.

CIF has issued detailed guidelines to contractors on how to operate, including a mandatory induction safety course, which every worker must complete, online. Social distancing must be observed entering and leaving sites, canteen facilities are restricted and with staggered times.

Covid compliance officers should be appointed, as well as worker representatives. Importantly, any concerned worker has the power to stop working and seek a review of practices. The CIF has advised members to encourage social distancing in travel arrangements to and from sites.

There will be significant extra costs in operating sites, and almost certainly delays in delivery, but Tom Parlon, the CIF director-general, told me: “The industry will pull up trees in striking the balance between productivity and safety requirements.”

I asked CIF about who would have to carry the costs associated with the lockdown and phased re-start, and it said many contractors have already entered “burdensharing” arrangements with clients. However, public sector contracts place all the risk and cost of these measures on contractors, and CIF is hoping “a collaboration between the industry and the contracting authorities in the public sector will take root”.

The Office of Government Procurement has already provided a capacity to make ex-gratia payments to cover fixed costs incurred because of the shutdown. In the meantime, contractors are notifying all employers of claims for extra costs.

Engineers, architects and surveyors will be glad to see their workloads increasing and cash-flow returning. Estate agents will also be delighted, given there must be millions of euro of fees for deals agreed. There will be a lot of attention on which projects might get finished, or not, this year.

The success of the phased re-opening will be determined by the behaviour of all involved.