Effect of COVID-19

1/6/2021
On Construction
Industry
Sub To# Engr. Usman Anwar

Group Person:

2018_CIV_311
2018_CIV_301
2018_CIV_313
2018_CIV_313

DEPARTMENT OF CIVIL ENGINEERING

University of Engineering and Technology,
Lahore (Narowal Campus)
 Table of Contents
1 INTRODUCTION.................................................................................................2
2 PROBLEM IDENTIFICATION AND STATEMENT.......................................3
3 LITERATURE REVIEW:....................................................................................4
4 RESEARCH METHODOLOGY..........................................................................6
5 EXPERIMENTATION AND COLLECTION OF RELEVANT DATA............9
6 RESULTS AND CONCLUSIONS:....................................................................12

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 1 INTRODUCTION

The year of 2019 was a time which turned the world upside down from an unstoppable
virus which created chaos. It is the biggest challenge that mankind is facing in the 21st
century (El-Erian, 2020). Sources said that the Corona virus was first identified in
Wuhan China in December 2019 and later it was named COVID - 19 by the world
health organization.

China was the first country to lockdown their cities to stop the spread of the disease
and later on it was detected in the European region as well. Italy, Spain and many
more countries suffered from the virus causing those thousands of deaths.

On the 11th of March 2020 world health organization (WHO) has announced that the
virus is prevalent all over the world. The economic impact resulted by the pandemic is
a crucial challenge to almost all the countries including small and emerging economies
(IMF, 2020). COVID - 19 is so dangerous than any other virus in the world
(www.WHO.int).

The WHO has identified this virus is more effective than other viruses because a
single person who carries the virus can easily influence more than five other personals.
Also, this virus will cause more fatal results on elderly people and still the world is
struggling to find a solid vaccination to fight COVID - 19.

However, COVID - 19 has infected the south East Asia as well and countries like
India, Pakistan, and Bangladesh are facing the challenge of COVID -19 cases
increasing significantly.

However, social and economic impact caused by the pandemic is a serious challenge
for Pakistan construction industry. It was noted that responsive strategies are
extensively encouraged by government to protect the construction industry.

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 2 PROBLEM IDENTIFICATION AND STATEMENT

The construction industry has had a particularly difficult few years, The spread of the
coronavirus is now another challenge the industry is facing. Industry responses from
the Construction Leadership Council and Build Pakistan have called on the
government to support them with keeping construction sites open during the
coronavirus pandemic.

The closure of sites could result in thousands of job losses, delays and cost increases to
crucial projects. As of last week, the aim was to keep business-critical construction
projects running, however this is changing by the day with more and more
construction companies halting work on sites.

With the recent strict new isolation measures, individual companies may now not have
the power to decide whether to stay open and may be forced to shut.

One of the main concerns facing the construction industry is the delay that will be
caused to projects. Delays on site are likely to occur for varying different reasons
stemming from the coronavirus.

This is an issue as many projects are time sensitive, with the majority of contractors
having various projects lined up over the course of the year. This could cause future
projects to be lost and in addition, contractors could face penalties set out in the
contract for delays in completing the works.

Major Problems Faced by Construction Industry in Pakistan

 Projects near to completion were delayed due to lockdown.

 Workers affected because of no work in lockdown.
 There was a great number of laborers that depended on their jobs to fulfill their
daily needs but due to lockdown they find great difficulty to even fulfill their
necessity of life.

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 Projects those tenders were issued should be renewed with some changes in their
project criteria and time of completion.
 The budget that was first set to complete the project was not more enough for the
project after such pandemic.
 Availability of materials was uncertain after lockdown.
 Machinery rates increased.
 After lockdown material prices hike suddenly as there was no sufficient products
and availability of materials.
 Number of workers reduced so speed of project also decreased greatly.
 Difficulty in transporting the materials from abroad as well as distance areas after
lockdown.
 Companies face increasing pressure due to delay in completion of projects.
 Because of lack of funding, the company had to bear financial pressure in shape
of its workers’ salaries and other overhead.
 There is an additional budget included in the project because of the fulfillment of
covid-19 precautions.

3 LITERATURE REVIEW

COVID-19, social distancing, self-isolation, quarantine, furlough, palliatives, and

many more emerged as the new vocabularies of the entire world, construction industry
not excluded. It is precisely a decade from the last pandemic experienced by the
human race. However, the current disease outbreak called Coronavirus Disease 2019
(COVID-19) was announced, which hit all the nations of the world within four months
and was declared a pandemic in March 2020.

This outbreak disrupted businesses around the globe, including built asset procurement
and facility management. The United Kingdom, through the Construction Leadership
Council, for instance, in responding to this unprecedented situation, published a new
Site Operating Procedure (SOP). The effect of this pandemic in these extraordinary
times posed both positive and negative impacts in the Architecture, Engineering and
Construction, Owner and Operator (AECOO) industry.

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The Effects of Pandemic on Construction Industry in the Pakistan:

Ogunnusi, M., Hamma-Adama, M., Salman, H. and Kouider, T. 2020. Study the
COVID-19 pandemic effects and prospects in the construction industry in Pakistan in
this study they found out that. Its effect has brought about innovative and diverse use
of technology in an exemplary manner which may change the course of construction
even after the extinction of coronavirus. This study explores the effects of COVID-19
on the built asset procurement and potential opportunities for the construction industry
through a quantitative means. A survey was carried out on the built asset procurement
professionals for the data collection. 71 questionnaires were received from Architects,
Building Engineers, Civil/Structural Engineers, Electrical Engineers, Mechanical
Engineers, Construction / Project Managers and Quantity Surveyors. SPSS 25
software (a social science statistical package) was used for the analysis of the data.
The result reveals some challenges in the area of workflow and supply chain
disruption, new policy issues, workers’ anxiety and review of COVID-19 vs Force
Majeure in standard forms of the construction contract. However, opportunities
evolved in the field of modern procurement planning, the necessity for virtual working
and unique design considerations. This study is essential to paving the way for the
development of additional contingency plans and a new working strategy in a
minimized human contact situation caused by the pandemic.

The Effects of Pandemic on Construction Industry in the UK (United Kingdom):

Dyaa Hassan Researcher School of Energy, Construction and Environment, Coventry

University, CV1 5FB, Coventry, United Kingdom. Pandemics of Covid-19 virus have
a major impact on the economy of the world and the construction industry has not
been exempted. This research investigates the effects of pandemic on construction
industry in the UK, and particularly, ways in which the UK construction industry
stakeholders such as project managers, contractors, engineers and subcontractors have
responded to these pandemics.

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The research involved 30 study participants who comprised site engineers, project
managers, construction teams, subcontractors and contractors. The findings reported
construction companies both dealing with residential and commercial development
were major affected by Covid-19 pandemic due to lockdown and social distancing in
construction sites. The strategy that was applied by construction companies was
maintaining a good relationship with their suppliers and the safety of construction
teams. The findings of the research will offer construction companies in the UK
insights on how to deal with such pandemics in future to become more resilient.

Effect of COVID -19 And Strategic Response: A Review on Sri Lankan

Construction Industry:

Covid-19 Virus was first identified from Wuhan, China in December 2019 and it has
been spreading out all over the world by giving huge impact to the world economy.
Meanwhile, world Health Organization (WHO) announced this as a pandemic
situation and no one could find permanent solution so far. Sri Lanka is also fallen to
the crisis situation and many industries were seriously affected by its direct impact
including export driven firms. Empirical studies are yet trying to confirm the effective
solutions for the social and economic impacts of Covid-19. This paper attest to review
the contemporary views shared by formal information sources on the crisis caused by
Covid-19 pandemic situation whilst specific attention was made to Sri Lankan
practices. Paper has discussed how the economic impact was attributed in Sri Lanka
whilst special review is made on construction industry. Paper was fully based on
literature review and author used observational evidences found in the industries to
extend the discussion. This study brings attention on how Sri Lanka should be alert on
economic measures and the role required by the management of construction industry
on after Covid-19 pandemic situation. Author attempts to contribute practice related
thoughts for the managerial implications on how business firms and society need to
respond for such crisis situation.

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 4 RESEARCH METHODOLOGY

For Construction Managers:

 Every construction project shall make proper arrangements for uninterrupted
building services including but not restricted to, electricity, fuel, water supply,
water disposal and sanitation, communication links, washrooms with hand
hygiene and shower facility and with proper and adequate supply of soaps and
disinfectants.
 Workers should not use machines or crowd during attendance, entry or exit to the
premises of the construction site
 Biometric attendance ensures the availability of the thermal gun at the entry and
exit of the construction site and no worker should be allowed without getting
his/her temperature checked.
 Site manager must maintain a register of all contact details with NID number and
addresses of all present at the site in case a follow up or tracing and tracking of
contacts is required at a later stage.
 Develop the employee roaster to decrease the number of people on the site very
day. Split the shifts of the workers in morning and evening with limit of each shift
to 8 working hours.
 Every worker must change into standard working attire at the time of
commencement of duty and change back to their regular dress after taking shower
when their duty hours end.
 In addition to all other internationally recognized safety precaution for
construction workers and other staff, every individual must be provided with a
face mask. It must be ensured that everyone during his or her presence at the site
continues to wear the mask. Face mask shall be replaced as and when soiled or
otherwise removed. Outer surface of face mask must not be touched with hands.

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COVID 19 SOPs for Workers:

 Instruct the workers to inform the construction manager (or authorities) if they
develop any symptoms of cough, flu or fever.
 They have been exposed to someone suspected or confirmed with COVID 19.
 They have met someone who has a travel history of COVID 19 endemic country
 They have travelled in last couple of days or plan to travel soon
 All incidences of appearance of the symptoms of COVID-19 shall be
immediately documented and maintained at the site and information regarding
which shall be immediately communicated through e-mail or else, to the
designated health facility, and the sick worker shall be transported to the health
facility for further advice and action. The site manager must establish a link with
a nearby healthcare facility with arrangements for quick transportation of workers
in case of an emergency.
 Persuade the workers to inform the authorities for their safety and of other if they
observe any signs and symptoms in a colleague
 Do not allow any worker at the construction site who has the symptoms
 Display the awareness banners about hand hygiene and physical distancing,
where you can, around the work site.
 Everyone on the construction site must observe sneezing and coughing etiquettes.
 Workers shall be requested and required to wash their hands as frequently as
practicable and shall also be advised not to touch their face with their hands
during work.
 Workers must maintain no less than two arm lengths between them before, during
after work at all the times. They shall not make physical contact and shall be
required to maintain separate personal gears and assets which must be clearly
labelled and stored without intermix.
 Only sanitize-able dinning surfaces shall be used, which must be cleaned before
each service. Food must be heated to a temperature to no less than 70o C before
consumption and shall preferably be served in disposable utensils. If reusable
utensils are used, these must be washed with soap and water immediately after
use and stored at a safe place.

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  The lunch breaks and stretch breaks of the workers must be staggered to avoid the
clustering of workers. Workers must not sit at less than 2 meters distance while
having meals and while any other activity requiring interpersonal
communications.
 In the wake of current restrictions on transportations site mangers will ensure safe
transport arrangements for worker which should not be crowded and should have
social distancing in place during the entire process from pickups till drops at
destination
 In case of workers sleeping in at the site of construction, a safe distance of 2
meters must be ensured in the sleeping rooms
 A supply of safe drinking water must be made available at the project site and
maintained.

Deliveries or Other Contractors Visiting the Site

• Non-essential visits to the construction sites should be cancelled or postponed.

• Delivery workers or other contractors who need to visit the construction site must
go through temperature check before entering and should be given clear
instructions for precautions to be taken while on site.

• Designate the workers, with protective gears or at least gloved and mask, to
attend to the deliveries and contractors.

• Make alcohol-based hand sanitizer (at least 70%) available for the workers
handling deliveries.

• Instruct the visiting truck drivers to remain in their vehicles and whenever
possible make use of contactless methods, such as mobile phones, to
communicate with your workers.

5 EXPERIMENTATION AND COLLECTION OF RELEVANT

DATA

i. Supply Chain

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 The virus is having a massive impact on supply chains. Ports in China now appear to be
re-opening and shipping supplies. However, due to the recent lockdown, there have
been delays with delivering supplies and many containers have ended up in the wrong
places. In some instances, it has taken two weeks or more to get supplies to the
Pakistan. In addition, many supply chains consist of SME’s with a significant amount
of self-employed workers. Many self-employed workers are cautiously welcoming the
new government package for self-employed, but are wanting to assess the details before
making firm commitments to being able to keep supply chains fully operational.

ii. Temporary Suspension of Work:

This is likely to occur because of a reduction in the numbers of workers due to them
becoming unwell or having to self-isolate. This could force work to have to be
suspended until further notice.

iii. Contractor and Labor Impacts

Following the rise in Pakistan cases of COVID-19, attempts to contain its spread have
resulted in the implementation of emergency protocols, and in many cases, the city-
wide and state-wide shutdown of all non-essential work. Such measures can affect the
broader community and trigger significant challenges to the construction industry
workforce. Constructiondive.com has produced a useful map summarizing the
construction activities currently allowed in each state.

iv. Risks to the Workforce

If construction sites remain open, workers may be working in close proximity which
increases the chances of the virus spreading.

v. Restricted Wage Support

The government has extended the wage support scheme to the registered self-employed
so that construction worked do not miss out, but at the present time support is only
expected for 3 months initially, and it does not currently cover those self-employed
directors of small limited companies.

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 Who Will Bear the Risks and Costs of Delay?

i. The contract
In light of the current circumstances, contractors should be reviewing their construction
contracts to understand their contractual rights and obligations that may arise in the
event of a disease outbreak. The contract may also highlight who should bear the risks
and costs of any delay to projects.

ii. Force Majeure

A good place to start is to check the construction contract for a force majeure clause. A
force majeure clause has no specific meaning under English Law and they must be
dealt with on a case by case basis to determine their meaning and consequences. A
common question arising at the moment is whether the coronavirus pandemic
constitutes a force majeure. Parties should check what obligations this clause would
relieve them from and comply with any notice requirements under the contract.
In the current climate, and with coronavirus being declared a pandemic, it is useful to
turn to the case of LeBeau pin v Crispin and Company in which the court stated “war,
inundations, and epidemics are cases of force majeure”. Whilst a pandemic is
different from an epidemic, given that an epidemic is more local and a pandemic is
global, it is likely that people will try to place the same reliance on this case.
Any party seeking to rely on a force majeure clause will need to serve notice on the
other to be able to benefit. The force majeure must be the sole cause of the delay; the
coronavirus must be the only reason for the delay in performing under the contract.

iii. Frustration
If there is no force majeure clause within your contract, it may be possible to rely on
the common law doctrine of frustration. This is a doctrine applied by the courts and is
not a freely negotiated contract clause. The purpose of the doctrine is to relieve parties
of their obligations under the contract where a supervening event, which is not the fault
of either party, has made performance of the contract radically different from that

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which was originally agreed. The doctrine does not suspend performance of the
contract but brings the contract to an end permanently. If it is deemed that the contract
has been frustrated, the party will not be liable for damages or non-performance of the
contract.

The issue with the doctrine of frustration is that it has been construed narrowly by the
courts. Additionally, the doctrine will only apply to an event that occurs after the
contract has concluded. That means contracts that were entered into after the outbreak
of coronavirus will not be able to rely on frustration. Finally, frustration will not apply
on the basis that it is more expensive or difficult to perform the contract or because
another supplier has failed to perform its own obligations. You are therefore unlikely to
be able to rely on frustration for supply chain issues.

Contracts should also be reviewed to consider any clauses relating to:

 The use of alternative suppliers or materials;

 Relevant events enabling claims for extensions of time and additional money;
 Delay and liquidated damages;
 Rights to terminate the contract.

6 RESULTS AND CONCLUSIONS

Solutions of the Problems:

1. Funds should be given to the construction companies so that their workers can go
through this difficult time with a little bit off ease.
2. Materials productivity should be increased with proper procedure of following
SOPs.
3. Construction companies should follow the instructions as recommended by the
government to do their projects.
4. Construction sites should be at distant with other sites in order to avoid gathering
of more people.

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5.  technology solutions such as video monitoring, automated access control, and
remote collaboration tools should used.
6. These practical tips should help you consider what you can be doing to minimize
the impact to your business:
7. Check the construction contract for a force majeure clause and take advice where
necessary.
8. Check your contract for other clauses dealing with the use of alternative
suppliers or materials; relevant events enabling claims for extensions of time and
additional money; delay and liquidated damages and any rights to terminate the
contract.
9. Seek legal advice on the doctrine of frustration, in the absence of a force majeure
clause.
10. Issue any warning notices to other parties if you feel that delays to the works are
inevitable.
11. Check the terms of any insurance policy to see if it provides any protection for
business interruption. If so, you may be able to recoup your losses and should
discuss this with your insurers. If you are able to claim under your insurance
policy you will have to prove the losses incurred and will receive the money from
the insurer after the event. You should therefore record any delays, shortage, or
change meticulously in order for any loss to be ascertained.
12. You should notify other parties to the contract on the likelihood of any delay to
progress works and be proactive in liaising for an extension of time. Having an
open discussion at this time seems to be the best approach in order to agree and
negotiate a way forward that will work for everyone.
13. Take measures going forward to review contracts, terms and conditions and
health and safety requirements to be better equipped in the future to deal with
similar situations.
14. Whilst some construction sites still remain open, be vigilant with health and
safety requirements to prevent the spread of the virus as much as possible.

Innovative ways for workers to do their work while social distancing:

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 Staggering arrival and departure times at work to reduce crowding into and out of
the workplace, taking account of the impact on those with protected
characteristics.
 Providing additional parking or facilities such as bike racks to help people walk,
run, or cycle to work where possible.
 Limiting passengers in corporate vehicles, for example, work minibuses. This
could include leaving seats empty.
 Reducing congestion, for example, by having more entry points to the workplace.
 Using markings and introducing one-way flow at entry and exit points.
 Providing hand-washing facilities (or hand sanitizer where not possible) at entry
and exit points and not using touch-based security devices such as keypads where
possible.
 Maintaining use of security access devices, such as keypads or passes, and
adjusting processes at entry/exit points to reduce risk of transmission. For
example, cleaning pass readers regularly and asking staff to hold their passes next
to pass readers rather than touching them.
 Reducing job rotation and equipment rotation, for example, single tasks for the
day.
 Implementing one-way systems where possible on walkways around the
workplace.
 Using signage such as ground markings or being creative with other objects to
help people comply with social distancing guidelines (2m, or 1m with risk
mitigation where 2m is not viable, is acceptable), to allow controlled flows of
people moving throughout the site.

Use of Standard Operating Procedure (SOPs)

 Reducing occupancy of vehicles used for onsite travel, for example, shuttle buses,
and when needed, social distancing measures should be followed within the
vehicles.
 Separating sites into working zones to keep different groups of workers
physically separated as much as practical.
 Planning site access and ‘area of safety’ points to enable social distancing.

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 Reducing the number of people in attendance at site inductions and consider
holding them outdoors wherever possible with social distancing.
 Managing use of high traffic areas including corridors, lifts, turnstiles and
walkways to maintain social distancing.
 Reviewing layouts and processes to allow staff to work further apart from each
other.
 Only where it is not possible to move workstations further apart, arranging people
to work side-by-side or facing away from each other rather than face-to-face.
 Only where it is not possible to move workstations further apart, using screens to
separate people from each other.
 Using a consistent pairing system if workers have to be in close proximity, for
example, during two-person working, lifting or maintenance activities that cannot
be redesigned.
 Using remote working tools to avoid in-person meetings.
 Only absolutely necessary participants should physically attend meetings and
should maintain social distancing guidelines (2m, or 1m with risk mitigation
where 2m is not viable, is acceptable).
 Avoiding transmission during meetings, for example, avoid sharing pens,
documents and or other objects.
 Providing hand sanitizer in meeting rooms. Holding meetings outdoors or in
well-ventilated rooms whenever possible
 Using remote working tools to avoid in-person meetings.
 For areas where regular meetings take place, use floor signage to help people
maintain social distancing.
 Staggering break times to reduce pressure on the staff break rooms or places to
eat and ensuring social distancing is maintained in staff break rooms.
 Using safe outdoor areas for breaks.
 Creating additional space by using other parts of the workplace freed up by
remote working. Reconfiguring seating and tables to maintain spacing and reduce
face-to-face interactions.
 Reviewing your incident and emergency procedures to ensure they reflect the
social distancing principles as far as possible. Considering the security

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 implications of any changes you intend to make to your operations and practices
in response to COVID-19, as any revisions may present new or altered security
risks which may need mitigations.
 Where site visits are required, site guidance on social distancing and hygiene
should be explained to visitors on or before arrival. Encouraging visits via remote
connection/working where this is an option. Limiting the number of visitors at
any one time. Determining if schedules for essential services and contractor visits
can be revised to reduce interaction and overlap between people. Maintaining a
record of all visitors, if this is practical. Where site visits are required, site
guidance on social distancing and hygiene should be explained to visitors on or
before arrival. Visitor signing in Encouraging visitors to use hand sanitizer or
handwashing facilities as they enter the site.
 Frequent cleaning of work areas and equipment between uses, using your usual
cleaning products. Frequent cleaning of objects and surfaces that are touched
regularly, including buckets, site equipment and control panels, and making sure
there are adequate disposal arrangements for cleaning products. Clearing
workspaces and removing waste and belongings from the work area at the end of
a shift. Sanitization of all hand tools, controls, machinery and equipment after
use.

Increased Health and Safety Measures

In order to try to protect people from contracting the coronavirus.

 Workers should wash their hands as frequently as practicable and shall not to
touch their face with their hands during work.
 All possible and prescribed measures shall be taken to ensure your and others
health
 Enter your contact details in the register maintained at the site, in case a follow up
or tracing and tracking of contacts is required at a later stage.
 Follow hygiene practices at washrooms and shower facility with proper and
adequate use of soaps and disinfectants.

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 Every worker must change into standard working attire at the time of
commencement of duty and change back to their regular dress after taking shower
when their duty hours end.
 In addition to all other internationally recognized safety precaution for
construction workers and other staff, every individual must use face mask. Face
mask shall be replaced as and when soiled or otherwise removed. Outer surface of
face mask must not be touched with hands.
 Everyone on the construction site must observe sneezing and coughing etiquettes.
 Workers must maintain no less than two arm lengths between them before, during
after work at all the times. They shall not make physical contact and shall be
required to maintain separate personal gears and assets which must be clearly
labelled and stored without intermix.
 Sick worker should immediately inform the site manager and must get medical
advice from nearby health center.
 Only sanitize able dinning surfaces shall be used. Food must be heated to a
temperature to no less than 70o C before consumption and shall preferably be in
disposable utensils. If reusable utensils are used, these must be washed with soap
and water immediately after use and stored at a safe place. • Do not sit at less than
2 meters distance while having meals and while any other activity requiring
interpersonal communications.
 Do not use biometric attendance machines or crowd during attendance, entry or
exit to the premises of the construction site.
 Use safe transport arrangements which should not be crowded and should have
social distancing in place during the entire process from pickups till drops at
destination.
 In case sleeping in at the site of construction, a safe distance of 2 meters must be
ensured in the sleeping rooms.
 Non-essential work trainings must be postponed avoiding gathering of people.
 Ensure the physical distance by creating more than one route of entry and exit to
the site.

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