A guide for the construction industry in post-COVID-19

Image by EJ Yao/Unsplash

COVID-19 has left an impact on all of us. With the outbreak of this pandemic, people now have new habits in the way they work, live and socialise, and the same can be said for the construction industry.

Managing financial stability
Financial stability is one of the top priorities in most industries. Yet, the lack of clarity regarding the marketplace and the wider economy, especially the supply chains, makes any cost containment or financial decisions extremely challenging. Applying an estimation on the financial needs and opportunities can help companies navigate this uncertainty, and allow for effective decision-making.

Maintaining the supply chain and workforce
With the current situation, it is challenging to obtain supply chain visibility at the site level to assure construction progress. In order to bridge the gap, it is recommended to reach out to suppliers, gather data and build a dashboard to update and refine periodically.  It is also necessary to keep the workforce safe by staggering shifts, mandating safe distances between workers, and prohibit visitors.

Image by Josue Isai Ramos Figueroa/Unsplash

Read more: Protecting Construction Workers in the New Normal and Occupational Health and Safety (OSH) in the New Normal

Ensuring the company’s financial position
Financial implications must be considered, such as profit margins, cash flow, loan repayments and terms in order to control project stability. Management teams can consider contractual terms, the recoverability of receivables in the event of a site shutdown, as well as the inevitable inefficiencies created by remote working and on-site distancing restrictions. Many organisations will need to renegotiate lending arrangements and raise new equity. To develop and execute a successful financial strategy, it is important to have accurate information and forecasts, supported by top-notch analytics.

Going digital
Digitalisation has taken over manufacturing, transportation, hospitality and many other sectors and it is currently transforming the construction industry as well.

Read more: Digital Transformation is the New Normal of Construction

Accelerating sustainability
Project portfolios in the marketplace have been changing, with both public- and private-sector project owners placing a new emphasis on Green construction. COVID-19 has intensified this urgency to implement resilience in upcoming projects.

Read more: Enhancing the synergy of Green construction financing

Companies that emerge from this crisis with a resilient supply chain; the capacity to gather and analyse data accurately; and possess sustainable financing will be well-placed to seize new opportunities. — Construction+ Online