The COVID-19 virus, also known as the Coronavirus, pandemic has taken a huge toll on people across the entire world and is soon expected to hit the construction industry as well. While so far it has resulted in travel bans, quarantines, job loss and ultimately, death, this virus is predicted to cause a drastic change in the metal building industry across the United States.
Impact on the U.S. Construction Sector
Being able to properly prepare yourself and your family for any and all changes during a time like this is crucial; however, right now is also a time for the commercial building industry to prepare for the Coronavirus impact. First and foremost, you need to be aware of the situation and be prepared. While the virus has already affected the everyday lifestyle of people across the world, it will soon take affect on both the material access and labor in the construction industry. Though it may be too early to tell for some, we’ve listed several ways your organization and the industry can be impacted by this deadly virus.
- Employee Health & Safety – For most companies that are located in affected areas, their primary concern is the well-being of their employees. And while the good news is that the risk of transmission for those outside the healthcare field is low, that doesn’t mean all other industries are safe. In addition to the physical health of employees, businesses are also concerned with their mental health. Not only has the Coronavirus brought on illness’ such as double Pneumonia and other respiratory issues, but it has brought severe anxiety to many people. Emergency protocols such as store closings and mandatory quarantine could trigger this anxiety, as well as other mental health issues.
- Supply Delays – As most people today already know, China is a huge supplier for countries all cross the globe. And with the Chinese government issuing mandatory quarantine, factories located in other countries have begun to slow production and even shut down. For the steel building industry, this could mean higher material costs and even slower project completions. Though the full impact of the Coronavirus hasn’t hit this industry yet, it’s fully expected.
- Jittery Clients &Partners – One of the most devastating consequences of COVID-19 in the metal building industry is how badly is has spooked clients, dealers and manufacturers. Since material delays are only leading to major decreases in project completion and overall productivity, potential clients are nervous about investing their hard-earned money into the industry. The best advice given by manufactures and dealers in the metal building industry for those who are still looking to invest is don’t wait, get ahead of the current lead times and get the building you need NOW.
- Quarantines & Travel Bans – As seen in several countries already, one of the best ways to help prevent any further spread of the virus is to self-isolate and go into quarantine. There are hundreds of schools, colleges and businesses across the world that has shut down to minimize the amount of affected people in their area. While this has been a solution to many, companies in the metal building industry are doing all they can to avoid halting production. This means banning any and all international business trips, as well as having some employees work remotely from their homes to stay productive and healthy.
- Global Uncertainty – This deadly virus and its overall impact on the world has scared people to the point that market analysts are no longer making predictions for the remainder of 2020. The only prediction that has been made, but is not certain, is that the U.S. will once again enter a recession. If this occurs, non-residential construction companies can expect difficult circumstances for the next few years.
Force Majeure Checklist
If you’re a business owner, then you’re most likely familiar with contracts and lupeols. For some organizations, their contract will include a “Force Majeure” clause. This clause allows certain parties to be excused from specific requirements, such as a project completion due date, due to factors that are out of their control. While this may seem easy at first, there are a number of things you’ll need to take into consideration before and during your projects, including the following:
- Put a monitoring system in place to keep track of all Coronavirus outbreaks in your project areas. This will also help you to watch the production of supply chain disruptions, labor impacts and any governmental actions that are put into play.
- Review your contracts for any Force Majeure revisions:
- Specific events that constitute Force Majeure
- The timing of any Force Majeure event notices
- Understand the limitations of the Force Majeure clause and how it will affect your organization
- Keep progress records for all your projects, as well as increased costs and delays.
- Figure your construction budget again and watch it closely during projects.
- Review your construction, development and financing documents to determine the payment obligations of your parties.
We’re in this Together!
Get Carports is proud to provide dedicated customers throughout the United States with their ideal steel building. And despite the Coronavirus pandemic, we are continuing to work day and night to ensure you get what you need, want and deserve. We are also taking every precaution to ensure the health and safety of all our employees and installation crews. If you would like to know more about how you can get your ideal metal building or how we can help you protect your belongings from the virus outbreak, give us a call today at (866) 681-7846. We can’t wait to help you!