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WHAT CONSTRUCTION INDUSTRY STAND TO LOSE DUE TO THE CORONA VIRUS
The world is currently on stand still due to the corona virus but what does the construction industry stand to lose due to this pandemic. Infrastructure is vital for every nation and that is why the construction industry is crucial but if items and some very important things are not available, then it becomes impossible for the industry to function.
The items are need as without it; the construction industry is heavily been affected. Such vitals items include;
LACK OF MATERIALS
Lack of construction materials or material delay can really affect the construction industry. Chinese government shutting down production due to the virus has made commercial builder, who rely on Chinese-made goods or material to have serious problems in their operation. The current shortage of materials will surly impact negatively to the construction industry.
TRAVEL BANS
So many construction companies rely on expertise to form part of the engineering team while carrying out a project. But with the travel ban and restriction in almost all the countries around the world, companies and project will be put on halt as construction site will be closed due to lack of experts handling such projects.
PROJECT FINANCING
Companies that has already promised to fund a particular project will now think twice before embarking on it. They will have to check their books as well as ensure they are investing in a project that will be fruitful after the pandemic is over. This will make so many construction projects to either be put on halt or be abandon as financial institution may decide to ignore it.
CONTRACT PROBLEM
As the corona virus was unforeseeable, contractor delay will also be a problem on their current project. Contractors and owner of the project will need to review terms and condition to see what contractual rights and duties exist due to the effect of the virus. Such terms to discuss will be contractors’ schedules, delays, substantial completion, liquidated damages and some contractual provisions.
FACING UNCERTAINTY
The impact has been so huge that some analysts feels 2020 will been seen as very unfruitful year due to the pandemic outbreak. We all know that in the construction industry, everything boils than to time and money, so it is scary to think we don’t know how long it will last.