There is no doubt that the Coronavirus will leave a lasting impact on the construction industry. It concerns changes in law (and directions given by public authorities). Please enable JavaScript to view the site. Construction and engineering projects around the world are being impacted by the COVID-19 pandemic in numerous ways, and many projects have stopped. The COVID-19 pandemic could thus be understood as constituting a force majeure event. In the United States, Deloitte refers to one or more of the US member firms of DTTL, their related entities that operate using the "Deloitte" name in the United States and their respective affiliates. A podcast by our professionals who share a sneak peek at life inside Deloitte. COVID-19 impacts: A proactive response to a shifting planning, design, and construction landscape, Telecommunications, Media & Entertainment, Implications for construction projects and capital expenditure programs, Considerations for construction programs and efforts, Opportunities in a shifting construction planning, design, and management landscape, Deloitte Infrastructure & Capital Projects COVID-19 Response Portal, Leading practices in infrastructure investment, Capital projects: Managing the risk of natural disasters, September 2018, Drop-in fuel prices may reduce costs on active projects, Local lockdown or other orders that reduce public traffic and occupation levels may allow projects to pull more expensive, off-hour work to regular shift work or allow otherwise disruptive work (major street or throughway closures, power and water shutdowns, or work that violates standard noise and vibration limitations) to take place with less encumbrance, Unexpected availability of workforce or equipment stock in the market may allow for acceleration of your project and reduction of costs for traveling resources, Leverage full technological capabilities of project management platforms to facilitate remote working and make digital capital products and cloud collaboration the standard on projects, Revisit procurement strategy and consider whether delaying certain procurement activities (commodities, fuel, service providers, subcontractors) may yield more competitive pricing, During project shutdowns, revisit or develop project governance playbooks and implement or enhance project management software platforms, Have plans ready for new projects to take advantage of a potentially slower construction market when conditions start to improve. Since then, the virus has continued to spread. How Will the Coronavirus Impact the Construction Industry? Construction and engineering projects are being impacted due to governments passing laws or regulations, or even giving directives, intended to address the pandemic. COVID-19 is having a massive impact on construction projects, but the legal implications vary from country to country, and contract to contract. Construction Industry Coronavirus (COVID-19) News Written by Dodge Research on June 1, 2020 As the coronavirus pandemic unfolds in North America many news articles pertaining to COVID-19 and its impact upon the construction industry and construction projects are being published. Social login not available on Microsoft Edge browser at this time. So even if a contractor may have no contractual or legal entitlement to compensation for prolongation costs due to work being significantly delayed or impaired, state aid may be available to defray some of the ongoing costs incurred, or otherwise provide a financial respite. As such, Gilbane feels it is prudent to offer insight as to how the disease might affect market conditions on the domestic construction industry. The past two weeks have seen an unprecedented shuttering of the U.S. economy. State of the Construction Industry: April 2020 Roundup. The requirement that the consequences of force majeure cannot be overcome is also potentially significant, because a contractor may be able to take measures to allow the works to continue, although at a reduced rate. As the COVID-19 virus affects capital project and construction programs and daily business operations, we offer insights as to actions you can take now. The impact has been rapid, consequential, unpredictable and long-lasting which has caused a real Impact of COVID-19 on the engineering and construction industry COVID-19 has turned into a global crisis, evolving at high speed and scale. Matt Schneiderman • Mar 11 2020. He specializes in the Consumer & Industrial Pro... More, Mike is a managing director in the Capital Projects Consulting practice with Deloitte Transactions and Business Analytics (DTBA) LLP in Houston. As always, the actual wording of the applicable clause(s) is important. Look beyond challenges for potential opportunities to advance response, recovery, and delivery confidence: As the COVID-19 virus affects capital project and construction programs, project stakeholders should be vigilant and proactive in navigating the uncertain situation. On the contractual side, much focus is now being given to the wording of standard forms, where used, such as FIDIC and NEC (for more on this topic, see our Client Alert). 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