The Growing Impact On The Construction Industry

Authors:

Matthew R. Johnson, Esq.
Nicholas K. Holmes, Esq.

April 2, 2020

Many in the construction industry breathed a collective sigh of relief when the first round of stay-at-home orders were issued.  With only a few exceptions, most jurisdictions designated construction as an essential business. 

That is quickly changing.  Any hope that the construction industry would avoid the full impact of our nation’s efforts to “flatten the curve” is quickly fading.

Pressure is mounting to slow or stop work on all but the most essential projects:

• After complaints about designating work on luxury high-rise condos and similar projects as “essential”, New York Governor Cuomo ordered that all nonessential construction be immediately shut down. Violation of the order can result in fines of up to $10,000.
• On Tuesday Massachusetts Governor Baker revised the Essential Business List, and the Massachusetts Building Trades Council called on him to narrow the types of construction projects that are deemed essential even further.
• There are numerous reports of inspectors refusing to visit projects, slowing work because necessary inspections aren’t taking place.
• Most construction has been halted in San Francisco and the Mayor of Los Angeles announced new safety guidelines.
• Clients are reporting that the shortages in the skilled trades is growing as individual workers are quarantined or choose to shelter-in-place.

The impact of COVID-19 is expected to peak in New Hampshire and Massachusetts around April 16-17, 2020.  It is clear that we are entering into a new phase.  The time to plan for how you will mitigate the impact on your company or project is now.
 

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