COVID-19 Potential Impacts on Construction Projects


Most construction projects, apart emergency work, were halted by the governor’s “Stay Home, Stay Healthy” order. As of this writing we don’t know when the order will be lifted but are assuming that it will last until at least the end of April. This will likely have knock-on effects for construction projects for the next year or more. If you have a project in the works, here is what you should expect at the various stages:


 Design – Architecture, Design, and Engineering work will generally continue during the shutdown remotely. Delays will occur at project start up, documentation/investigation, and bid phases, where site walks are required. Design projects underway should be able to reach permitting or bid documents. Your ability as managers and community members to review and approve designs may also be limited, and possibly more challenging in a virtual environment.


 Permitting & Inspections – Municipalities, or Authorities Having Jurisdiction (AHJ’s) may have limited availability for both plan review, if equipped to do it remotely, and on-site inspections. For vital projects some AHJ’s are asking that inspectors be able to conduct solo inspections with reports to follow.


 Construction – Apart from emergency projects, all construction has halted. When construction resumes there will be a labor shortage due to the accumulated demand. Firms may need additional time to reestablish their work forces furloughed during the restriction. Additionally, ongoing social distancing may limit the number of workers or trades on site which could extend construction timelines for all projects.


 Supply & Manufacturing – The interruption in the supply chain will cause a limited supply coupled with increased costs of manufactured goods including local and imported materials. The manufacture of windows, for example, already a long lead time item, could experience further delays.


 Construction Budgets – Increased escalation may invalidate earlier bids, which are time limited for occasions like this, contractors may need to renegotiate pricing. For projects under contract, owners should expect claims for additional costs related to temporary project shut down and weather protection, and mobilization costs for when projects start up again.


If you have a project in the works, at whatever stage, reach out now to your contractor or design professional, to discuss the  projects until adjustments are made to the new conditions.


What might change with reserve studies in the COVID-19 world?


This pandemic is clearly going to have a profound impact on our society, and the way in which we conduct business. There will be severe economic disruption, and like other crises we have been through since we opened in 1986, many community associations will be hampered by mounting delinquencies, and lower, or no contributions to reserves for a period of time. Reserve projects will not go away, and reserve studies will therefore become increasingly important tools.


Fortunately, for many properties, reserve study providers can conduct their exterior inspections from a more than adequate distance from residents. Those properties with  choose (or downshift to) a No Site Visit update until it is deemed safe again. Or, a hybrid/ custom engagement may be conducted with association personnel providing interior photos, to augment the research the study provider will conduct as part of their diligence – this option may result in a lower fee. We have already experimented with the use of drones, face-time, etc… Now is the time to fully embrace, and implement online communication tools when working with vendors, and for your internal meetings.


If the “Stay Home, Stay Healthy” order   your reserve study provider to give access to a software tool that will allow you to test different reserve plan scenarios, and quickly changing economic conditions. As you look to prioritize projects, I suggest 1) life-safety issues 2) projects that provide protection of the building envelope, structural components of the building(s) (i.e. roof, paint, siding and windows, coatings & sealants).


By Jim Talaga, RS


By Nathan Seney OAC Services, Inc.


Associaton Reserves of Washington Inc.


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