HOW THE PANDEMIC CRUSHED CONSTRUCTION - September 22, 2021 at 10am
The COVID-19 pandemic has presented numerous challenges to industries worldwide, including the construction industry. Condo construction in particular has faced unique challenges during the pandemic, from delays to increased costs to ensuring worker safety. Let’s take a look at some of the biggest industry impacts.
Supply Chain Disruptions:
The pandemic has caused major disruptions to global supply chains. The availability of building materials has become a significant challenge for construction companies, leading to delays in the delivery of essential materials such as steel, lumber, and other supplies, which has caused cost overruns and project delays.
Health and Safety Regulations:
Construction sites are inherently dangerous places, and the COVID-19 pandemic has added a new layer of risk. Construction workers are at an increased risk of exposure to the virus due to their close proximity to one another, and the potential for transmission is high. As a result, many jurisdictions have imposed strict health and safety regulations that while keeping workers safer, have made it more difficult for construction projects to proceed as planned. These regulations have included social distancing requirements, mandatory mask-wearing, weekly testing, and increased sanitation measures.
Financing and Cash Flow Issues:
Construction sites are inherently dangerous places, and the COVID-19 pandemic has added a new layer of risk. Construction workers are at an increased risk of exposure to the virus due to their close proximity to one another, and the potential for transmission is high. As a result, many jurisdictions have imposed strict health and safety regulations that while keeping workers safer, have made it more difficult for construction projects to proceed as planned. These regulations have included social distancing requirements, mandatory mask-wearing, weekly testing, and increased sanitation measures.
Financing and Cash Flow Issues:
The economic impact of the pandemic has affected the financing and cash flow of many construction companies. Many lenders have become more risk-averse, making it difficult for developers to secure the necessary financing to complete projects. Moreover, some projects that were already underway when the pandemic hit have seen a decline in sales, making it more challenging to finance the remaining stages of construction.
Changing Demands and Expectations:
The pandemic has changed the way people live and work, and this has had an impact on the demand for housing. Many people are now working from home and may have different needs and expectations for their living spaces. This has resulted in some developers adapting their designs to include more space for home offices and other amenities. However, these changes can add costs and delay construction schedules, especially to existing projects.
Construction during COVID-19 has faced numerous challenges, from supply chain disruptions to health and safety regulations to changing demands and expectations. As the pandemic continues, it is likely that these challenges will persist. Developers must continue to adapt to the changing landscape and find innovative solutions to ensure that construction projects can proceed safely and efficiently.