How Covid-19 Impacted the Construction Industry
Not a single industry in this world is escaped by the tsunami of Covid-19. Be it Information Technology, Manufacturing, Supply Chain Management or Construction Industry. You can say that the world is halted during its course to more development. There are several aspects that are affecting several industries. Let us discuss how Construction Industry is coping with the Pandemic…!
1. Stakeholders Management:-
The important aspect of any industry to develop & excel is their stakeholders. They play vital & most important role in deciding a particular company’s present & future. However recent trend shows that, during pandemic, there is not enough communication between stakeholders to eventually work on one decision.
2. Project Halting & The Rising Project Cost:-
Due to sudden stoppage of construction related works, the total cost rises exponentially. For example, the labors work on daily wages, hence more the days, more will be the cost to pay them. Hence, a minor cost leads to a substantial cost & jeopardizing the overall budget of the project.
3. Contractor’s Issue:-
This global pandemic has hit contractors very hard & forced them to change their work strategies overall. Now a days, it is becoming more challenging for contractors to execute the said plan because of strict lockdown. Overall the pace has become slow for contractors.
4. The Transportation:-
Due to stricter lockdown norms by the respective Governments, it directly impacted the movements on the road, eventually affecting the material transportation on the site. This resulted into slower construction activities & delayed project delivery.
5. The Budget:-
Even before COVID-19, many contractors were very focused on cost. The pandemic has exacerbated this trend, with balance sheet and cash management now an even larger consideration. Major construction firms across the world have suffered sharp drops in market valuations during the COVID-19 outbreak, reflecting a more challenging environment and the major ongoing disruption.
As a result, the COVID-19 crisis has led to the need for industry members to address both short-term and long-term business challenges, as well as formulating project-by-project solutions in the face of a new global and national environment. 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.
Supply Chain:-
During the lockdown many suppliers (materials and sub-contractors) were forced to shut down or reduce working output by furloughing members of staff to reduce overheads during a difficult time. This has meant that getting specialist sub-contractors onto a site to complete critical elements of works is difficult. Similarly, with materials, whilst many contractors carry on, the supply chain has struggled to keep up with demands increasing. The lead times for simple items such as drainage pipes, manhole rings and ducting cement can be six weeks or more.
The Go Ahead Plan:-
- Less On Site Construction:- There are several construction methods by which we can speed up the construction off-site. Once done, the said can be assembled/implemented on site. It will enhance the quality, cost & timely delivery.
- Focus On Planning:- This pandemic has taught us that prevention is better than cure. Hence the importance of pre-planning is must now. Focus should be on how things will pan out & how they will be tackled should be drafted.
- BIM Modelling:- Similarly to off-site construction, BIM modelling has been available for some time however has not yet taken off in the industry to a large extent. The benefits of modelling a site from inception to completion will help construction planners to see where there are opportunities to reduce social contact during the construction phase. The infrastructure we deliver needs to be smarter and adapted for social distancing in public and 3D BIM modelling will help make our public spaces more social distancing-friendly.
On The Bright Side:-
On a positive note, the industry could potentially use the recent changes to ways of working to diversify its workforce. The pandemic has plunged the industry into the quickest and deepest possible experiment in flexible working — which has proved a success. Construction companies’ ability to adapt to these changes, and so quickly, could make the industry more accessible and attractive to a larger talent pool.