Coronavirus: Construction delays or cost overrun?
COVID-19 outbreak has sent ripples throughout the nations and is impacting all of us. While we are standing together in our fight against the pandemic, we are forgetting the invisible part of the society: the low-wage laborers who don’t have the option of work from home and basic amenities like food and water are also limited.
After the Agricultural sector, construction, infrastructure, and real estate are the second-largest employment provider in the country. Companies are having their employees work on an hourly basis from home in case there is project work. But what about the actual construction projects and the low wage laborers, whose daily income depends upon the sector?
The fallout from COVID 19 is far from immediate assessment but with the adaptation of new-age technology and techniques, there is still hope to revive the construction industry.
For that, we first need to understand the impact that the virus is having on the industry. Read below to know more-
Health and Safety of laborers and employees
The best way to ensure safety is to make sure there is no sort of contact between anyone. But, how long? Industries have to function; laborers have to come, eat, and work in groups.
For the starters, ensure safety kits and medical camps on the construction sites. Remind teams to make sure basic hygiene practices like washing hands, using sanitizers, covering a cough, etc.
The lockdown has adversely affected the production chain. There is an acute shortage of raw materials which may lead to delay in the completion of projects.
Make sure you are one step ahead of what may happen, enforce contract requirements and baseline schedules and schedule updates. A look ahead will help you to reveal crucial information regarding the potential delay and if you want an extension on order or not.
Delay in completion of projects due to the lockdown will be further leading to cost overrun on current projects. As a solution to this, the industry body suggested ‘force majeure’ under Section 6 of the Real Estate (Regulations and Development) Act (RERA). The act provides an extension of project registration granted to promoters. Credai has sought that under RERA, project completion time, and exemption from penal charges to be extended by a year.
Adapt the latest technology
The lockdown has stopped all construction activities. While construction companies are still figuring out their new normal and how to react to an outbreak. Its time to embrace the new technology for project monitoring and management reducing the physical onsite presence. The companies now have to turn into teleworking and adapt to the latest technologies to keep the business running.
With a ban on International travel, companies will look out for construction in their regions. Geographical locations will play a major role in the case of new construction projects. There will be more restrictions on foreign companies.