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COVID-19's Impact on Construction Projects

The COVID-19 pandemic is massively impacting construction projects around the world, with effects varying by country and contract. While projects have not been entirely stopped by the pandemic, it is slowing work down and causing delays and disruptions as supply chains are severely affected. Many projects have even temporarily stopped with plans to resume later. Construction has generally not been under official shutdown orders due to its importance and because health risks vary between projects. The pandemic is expected to have both short and long-term negative economic consequences through disruptions, reduced demand for some projects, and a slow overall economic recovery, but some sectors may see new projects and reduced costs in response to the crisis.

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Manogna Sai Padi
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94 views1 page

COVID-19's Impact on Construction Projects

The COVID-19 pandemic is massively impacting construction projects around the world, with effects varying by country and contract. While projects have not been entirely stopped by the pandemic, it is slowing work down and causing delays and disruptions as supply chains are severely affected. Many projects have even temporarily stopped with plans to resume later. Construction has generally not been under official shutdown orders due to its importance and because health risks vary between projects. The pandemic is expected to have both short and long-term negative economic consequences through disruptions, reduced demand for some projects, and a slow overall economic recovery, but some sectors may see new projects and reduced costs in response to the crisis.

Uploaded by

Manogna Sai Padi
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

The Current Impact 

 COVID-19 is having a massive impact on construction projects, but the legal


implications vary from country to country, and contract to contract. 

At this stage, COVID-19 is not, broadly speaking, rendering projects altogether


impossible to complete. But it is slowing them down, causing delay and disruption, even
if only because supply chains have been severally disrupted. Many projects have even
stopped, usually with the intention to resume work at a later date.
the construction industry has generally not been the subject of ordered shutdowns. This
is for a number of reasons, including:

 The importance of the continuation, if possible, of construction and


infrastructure projects; and

 The fact that the health and safety risks of COVID-19 vary from project to
project.

The entire economy has been hit hard by the unexpected outbreak of the novel coronavirus,
or COVID-19. Reports seem to suggest that the stock markets are falling faster than during
the Wall Street Crash, and supply chains worldwide have been majorly disrupted.

Positive and negative economic impacts. The COVID-19


outbreak is expected to bring several long-lasting and short-term
negative consequences. Simonson said these may include disruptions
to work or cancelled projects; potentially less demand for “non-
essential” projects like offices, entertainment, and sports facilities;
reduced/missed payments by owners; and a slow economic rebound
across many industries. On the positive side, Simonson cited selected
new projects to respond to the crisis, like healthcare and lodging;
substantial price reductions for commodities like fuel; and a slow
rebound for commodity prices.

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