Construction and COVID-19

It’s crazy how COVID-19 has impacted the ways we live our daily lives and operate our businesses. The construction industry is no different, and the pandemic presents general contractors and construction managers with new wrinkles to iron out, that is, once we get everyone working again.

The pandemic has had a significant impact on the construction industry — from supply chains to worker safety. During March and April this year, 975,000 construction jobs were lost nationwide. This resulted in unemployment in construction rising from 4.7% in April 2019 to a staggering 16.6% in April 2020. Nationwide, 67% of all construction firms had a project canceled or delayed due to the pandemic. The industry could have fared much worse, but 80% of all eligible construction firms applied for the Paycheck Protection Program (PPP), with nearly all being funded. It was also helpful to the industry that construction was deemed an essential service, allowing important projects beneficial to our community to continue.

We are now starting to see an increase in construction activity. This is good news! However, now that more crews are back on the job, we are faced with new realities of the workplace. General contractors must implement COVID-19 safety measures for their jobsite safety protocols and educate their workforce and subcontractors on new guidelines. Navigating through the guidelines from the county, state, CalOSHA, and CDC often leads

to conflicting information. Plus, this information is constantly changing as agencies react to, and reassess, the implications of the pandemic. Contractors must rely on their interpretation of the guidelines,

consult with their clients, and assess the best practices for their team and their work environment.

General contractors are used to risk. Now, due to COVID-19, we are giving additional consideration to project planning as we account for impacts from worker health and safety protocols, material delays, cautious clients

and lenders, quarantines, and travel bans, just to name a few. These factors create even more risk, jeopardizing schedules and project viability in a period of global uncertainty.

Everyone has their own opinions on how we as a society should best address the virus. Masks and social distancing are now

the norm in daily life. I bet very few had heard the term “social distancing” up until three months ago. The construction industry represents a microcosm of the larger society: individuals have varying opinions of what measures should (or shouldn’t) be implemented and followed. As the general contractor, I hold the responsibility for interpreting the guidelines and being accountable for everyone’s safety, while striking the balance to maintain a unified work environment.

I anticipate this pandemic will lead to more changes in the future of construction. As contractors, we may be using mobile apps for monitoring employees’ well-being; we may need to build inventory to secure critical materials and long-lead

items; and we may look to alternative construction methods such as pre-fabrication in order to adapt to jobsite changes. A contractor’s resourcefulness will be key moving forward.

From jobsite safety to workflow adaptability, I think it will be critical to our future success if we focus on sharing best practices and emerging knowledge across the industry. Keeping construction projects moving is essential for a healthy economy but keeping workers healthy is at the center of it all.

Protect yourselves, protect one another, and let’s stay safe together.