Covid 19 in Construction Industry
Well, the curfew has ended;
Is it completely terminated?
Will it come back?
What can be the future measures for facing the covid?
Well, the answer is no one can predict or judge the future in this situation. However, the impact and the aftermath effects of Covid 19 has shattered the global economy. The sharemarket clashes and major industry diminishing stories are still reaching our ears.
In this scenario, the construction industry too got victimised in various parts of the world. As a matter of fact, the construction industry is the major victim of the covid run in 2021. Having nesting about 6% of the world population working in construction industries the impact struck like a lightning blow to many lives.
We are talking about the labour source alone. The supportive industries like Building Materials producers, electrical products, Flooring material makers, electricians, local market stores, Abrasive materials, and all the essential pillars(more than100 businesses) revolving around the construction business halted for months.
Imagine the falling graph of the economy, like jumping from the top of Burg Khalifa to the ground floor which actually happened. The blow struck heavily many countries economies structures began to sink in a blink of an eye. The vanishing startups and sinking business giants stumbling all over the place.
The Resilience Act :
The industry has a significant increase in collaboration, including labour unions, suppliers, and government agencies as the sinking turning to be severe. The industry build a strong sense of unity, with everyone understanding that everyone has a role to play in the combat.
To achieve the common goal of delivering projects and keeping sites open. The contractors and the government officials formulated strategies to make the site’s function. But the safety of labours and their health was in a highly alarming situation.
Especially, in the Middle East countries where construction is the major business.
Supply Chain Breakdown:
Slowly and steadily the impact was travelling to everyone in the supply chain loop. From client to designer, designer to contractor and contractor to the various local trades in the market. As a result, small and less resilient companies convey a disproportionate amount of a project’s risk.
Many contractors were unable to obtain basic Building Material Suppliers for the projects. Such as sand, cement, and bricks, during the early months of the pandemic. Mainly due to labour and traders shortage.
It struck a major block in the functioning of small contractors. As they were functioning on a small budget and demanded to pay their labourers.
As a result, like most businesses, contractors rousing to rework their supply chain management to avoid future disruptions. This step was helpful in commencing the projects with limited labour support.
With the government assisting in the safety and precaution measures, the month of may the industry was booming again. Workers and labourers began to step into the construction sites with precautionary measures.
OverFlow of Budget:
Not all projects and contractors prepare a budget for this emergency criteria. Therefore, it struck them terribly in loss of money and extending the time of the projects. It is not only concerned about the small and medium contractors it also resisted the giants in the construction world.
However, there are some encouraging indicators for the future, with a healthy project pipeline predicted in several regions. Notably in the Middle East infrastructure projects. Many public authorities are striving to push expenditure on infrastructure initiatives as part of government actions to restore trust in the sector. However, as is customary, such projects must be completely developed and planned before being brought on-site and delivered.
Missing Firewall to Labour Source:
The most distressing wound in this pandemic is off course to the labour source across the globe. Not only the health concerns but also the unemployment factors during the curfew severed a vital blow in labours lifestyle.
Most contractor companies struggled to pay the labourers full salary. So, in this case, people got swayed very intensely. Especially, in the middle east regions where labourers migrated to the place from different countries. Either the situation lost building materials or labour source at the timing. The government and private entities had a rough time convincing the labourers.
As a result, many projects struggled to continue the process and some projects even got dropped. Overall this also comes with failure in pre-planning budgets before commencing. Have a look at our risk management plans for reference.
The governments of many countries have come forward to secure the trust back on construction industries.
As a result, new construction contracts in the post-COVID-19 era will very certainly include clear provisions for such risks. In the events of government lockdown and quarantine measures, supply chain delays & shortages, precaution, health and safety measures.
Yes, it has happened and no one knows it will happen again. But it is important to learn from the mistakes and keep a careful measure for these pandemic days in the future.