Businesses all over the world were disrupted early this year due to the Covid-19 outbreak. Lockdown was imposed on the affected areas in more than 200 countries. The multiple consequences of the lockdown, further stretch the troubles for the sector like reverse migration, disruption of supply chains, amongst others. Now, as the reopening of economies continues, the impact of the epidemiological situation begins and most likely to stay.

Construction and engineering projects around the world are being impacted by the pandemic in numerous ways, but the legal implications vary from country to country and contract to contract. Some construction projects have been delayed and some canceled, further, possible supply chain bottlenecks of equipment and materials could cause more delays in the currently funded projects and reduced on the ones lined up.



1. Crisis management and response

Work closely with subcontractors and prepare for emergency measures for assistance in case of widespread construction shutdown. Review capital, cost budget and assess how cash flow reserves can support ongoing operations in love revenue figures.

2. Workforce

Establish risk-mitigation programs for employees and subcontractors who still need to work on-site. Consider workforce scenarios to reduce labor costs and help trim some. Closely monitoring the productivity of labor is also important. If production is likely to fall, labor resources should be managed to meet the outputs likely to be achieved for the materials available. This could also be relevant to non-affected works by introducing pacing of productivity to better manage costs.

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3. Supply Chain and Operations

Broaden alternative suppliers and identify potential weak links in the supply chains. Establish a system resiliency in response to a remote access system for smooth business operations. The efficiency and controlled environment of factory production can help in leveraging labor costs and in optimizing project schedules.

4. Financial Reporting

Consider disclosing management’s analysis of the current and potential future impact of liquidity and credit crunch on the business. It is important than ever to take a good review and action towards financial planning and forecasting of the business

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For any support or further advice in relation to the contents of this article please contact us at info@close-system.com

Close System is one of the fastest growing Architecture Consultancy in Abu Dhabi, the tremendous development of the company leads to achieving milestones from the beginning of the first quarter of the year. One way of keeping our stakeholders updated about our business successes is our newsletter issues. We can’t wait to share more.

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