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COVID-19 CONSTRUCTION IMPACTS

SUMMARY OF ONGOING IMPACTS ON CONSTRUCTION RELATING TO COVID-19.

Since COVID-19 has the potential to significantly impact construction projects, sharing information can help owners, investors, and lenders stay ahead of risks. This post will be updated periodically as additional information about COVID-19 construction impacts becomes available.

Partner is committed to continue providing services and conducting site visits, as allowed by governmental regulations, while keeping the health and safety of our employees as a top priority. For answers to Frequently Asked Questions concerning the impacts of COVID-19 on Partner's ability to perform construction progress monitoring and draw reviews, click hereFor information on how we are able to provide services in a responsible manner, click hereFor additional information about what to do if your property has been affected, click here.

Partner offers virtual site assessments for regions where access may be restricted. Partner can work with a client to conduct a video-call inspection (ex: Facetime, WhatsApp, or Zoom), or take specific interior photos. Check out a video of how this works!

Talk to us! We've started a continuing survey to track reported impacts from COVID-19/Coronavirus (or you can e-mail Bill Tryon at btryon@partneresi.com). Reports will be updated here at least once a week.
 

Summary of April 3, 2020
COVID-19 Construction Impacts:

  • Confusion continues to dominate much of the commercial construction industry. Where closure has not been mandated by states and municipalities, workers are increasingly expressing concern about unsafe conditions – and crews continue to shrink as a result of no shows, perhaps more than sick workers.

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Industry Reports:

  • A survey of architects reports 76% have experienced problems on current projects and 67% are seeing reduced interest in new projects.
  • Unions are starting to get into the act. A Carpenter’s Union in the Northeast has reportedly directed members to stop working beginning April 6 until safe working conditions can be restored, and GE workers have initiated protests over unsafe conditions coupled with layoffs in the face of GE’s decision to outsource ventilator production to Ford.
  • The CDC is reevaluating existing guidance to advise the general public to wear non-surgical face masks when in public, and the Mayor of Los Angeles is encouraging people to wear such masks even if they are asymptomatic.
  • Construction has been voluntarily halted at significant construction sites across the country.
    • The Red Sox have halted construction at Polar Park
    • Miami’s Century Home Builders is imploring others in the area to simultaneously stop work despite the absence of a regulatory directive
    • AP Williams, a major contractor in Pennsylvania, has voluntarily suspended work on projects allowed to continue under Pennsylvania’s order
  • According to a poll by the Associated General Contractors of America. (Link here)
    • 20% of those responding reported had required shutdown of some projects, 
    • 40% reported that owners had ordered voluntary cancellation or shut down, 
    • Almost 50% reported to raise or disruptions including shortages in materials, workers, government inspections, and known or probable infected workers; 
    • 65% reported receiving notices that future deliveries of materials for the delayed or canceled. 
  • In Massachusetts, Unions are calling for a construction shutdown.
  • New York has introduced fines for working on non-essential projects.
  • New York construction has slowed. Though construction is still allowed, the workforce at many sites has been cut in half as a result of decisions by subcontractors and individual workers.
  • Shelter in place orders in California have also slowed construction. The State order doesn’t appear to restrict construction, bur local orders sometimes limit construction that doesn’t support housing or “essential services”. According to one report, no-shows by subcontractors and vendor shutdowns as shelter-in-place orders from local governments and the state came down initially reduced its productivity by 50%. (Constructiondive.com; March 25, 2020) The same article identifies cash flow as a major concern, especially for smaller contractors.
  • The National Association of Home Builders is now forecasting Q2 GDP “growth” at -11%, with construction unemployment rising to ~7% impacting construction through September, but followed by a V-shaped recovery. A short-term decline in home building is also forecast, though a specific guess was not provided.
  • Forbes reports that homebuilders are starting to feel impacts from coronavirus. Confidence has declined, and supply chain disruptions have been reported by ~1/3 of those surveyed, though the impact of tariffs were more disruptive.
  • Supply Chain (Ken Simonson, Chief Economist for the AGC) - Read More 
    • “Delayed delivery of drywall, glass, steel, HVAC and electrical equipment from China and curtainwall from Italy. Contractors are generally claiming force majeure, owner responsibility for losses or impact on schedule.” 
    • Elevators - 70% of the global elevator subcomponent market is sourced from factories located in a 100-km radius around the city of Shanghai. In addition, we learned at the meeting with Schindler of the high dependence of the European elevator supply chain to the northern part of Italy. Kone’s largest facility in Europe is located in Pero, in the suburbs of Milan. Add to this, the company’s largest supplier, Wittur, has also a factory in the suburbs of Milan. 
  • Port activity in the Los Angeles area is reported to be significantly reduced, indicating reduced delivery of equipment and materials.
  • One contact reported that construction has halted in occupied units of two renovation projects, and work in unoccupied units will be limited.  The directive was issued from the design/management group.  They are modifying the draw procedure and architect will not be traveling to the site. 
  • Orange County, CA - Amended order, which should no longer have impacts on construction - Read More
  • South Florida - Associated Builders and Contractors' CEO said construction firms are prepared to shut down sites, but only if local permitting agencies stop inspections or public health officials issue an order. - Read More
  • Las Vegas, NV - Construction continues, however, the governor’s office posted a guidance to the construction, mining, and manufacturing industries on strong protocols for social distancing on job sites and at facilities. Currently, planned airport construction projects have been suspended and a hotel/casino owner has paused construction. - Read More
  • Los Angeles issued an order last night similar to SF’s order. Even if the state order exempts construction, commercial sites in LA county will be affected.

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COVID-19 Resources:

  • CDC - COVID-19 - Click Here
  • WHO - COVID-19 - Click Here
  • National Association of Home Builders – Map of states with regulatory orders impacting construction - Click Here
  • Foley & Lardner’s Construction Shutdown Tracker, including additional detail regarding state and local restrictions. 
  • Foley & Lardners Construction Impacts on Energy Projects
  • AGC - COVID-19 Recommended Practices for Construction Jobsites (PDF) - Click Here
  • AGC - Survey of State DOT Response to COVID-19 (PDF) - Click Here
  • How to Smoothly Resume Delayed Construction Projects - Click Here
  • Insurance Protection? Insurance can sometimes help to offset increased costs experienced as a result of COVID-19. This article by Venable provides some useful guidance.
  • For those with impacted construction sites, the Associated General Contractors has made this notice available to reserve rights. - Click Here

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Regulatory Actions:

Identified City, County and State actions expected to have potential impacts on construction activities are below. This list is not all-inclusive. Individual actions should be reviewed carefully to evaluate the actual impact on construction.

Additional regulatory orders have been added in Green (4/3) below. (Blue = 4/2Purple = 4/1)

Construction Affected:

  • California (Shelter in place) - Orders in California appear to exempt construction of housing, telecommunications systems, utilities, public works, municipal, oil refining and others. Generally, construction at commercial facilities appears to be restricted; however, in all cases readers should confirm requirements specific to their properties. - Read More | Essential Needs
  • Colorado (Stay at Home - 3/26-4/11) - Housing, critical infrastructure, and public works exempt. - Read More
    • San Miguel County, CO (Shelter in place) - Residential and commercial construction is allowed. However, under item I.N., it specifies no more than 10 people on site and social distancing is required. - Read More
    • Pitkin County, CO (Stay at Home) - Public works construction and essential infrastructure is excluded. Residential and commercial construction may continue "minimum basic operations" until 3/31 in order to safely secure closure of job sites.  Read More
  • Georgia (Shelter in Place - 4/3-4/13) - Order to come soon... Read More
    • Atlanta, GA (Shelter in Place - Effective 3/24 - 4/7) - Public works construction for essential infrastructure exempt (Pg 5 - Section 6-C). Read More
    • Blakely, GA (Stay at Home - 3/24) - Public works construction for essential infrastructure exempt. - Read More
  • Hawaii (Stay at Home - Effective 3/25 - 4/30) - Essential Infrastructure exempt. - Read More
    • Honolulu County, HI (Shelter in Place) - Read More
    • Maui County, HI (Stay at Home) - Read More
  • Kansas (Stay at Home - 3/30-4/19) - Critical infrastructure exempt - Read More
    • Doniphan County, KS (Stay at Home - 3/26-4/6) - Public works construction for essential infrastructure exempt. - Read More
    • Sedgwick County, KS (Stay at Home - 3/25-4/23) - Public works, housing, and mining construction exempt. - Read More
    • Sumner County, KS (Stay at Home - 3/27-4/25) - Construction for essential infrastructure, including housing. - Read More
  • Massachusetts - Order for non-essential businesses to close from 3/24 and extended to 5/5 (from 4/7). Critical infrastructure, housing, public works exempt. - Read More | Extended OrderList | New List
    • Boston, MA (Construction Shutdown) - Boston has ordered a minimum 15-day shutdown of construction projects starting Tuesday, March 17th. - Read More | Essential Construction List
    • Cambridge, MA (Construction Moratorium) - All construction activity, both public and private, prohibited until further notice - Read More
    • Chilmark, MA (Construction Shutdown by 3/25) - Permits emergy construction and critical temporary structures. - Read More
    • Nantucket, MA (Stay at Home) - Construction suspended. Essential Infrastructure exempt. - Read More
    • West Tisbury, MA (Construction Moratorium) - Read More
  • Michigan (Shelter in Place - Effective 3/24) - Essential infrastructure and services to provide saftey, sanitation, and essential operations of a residence exempt - Read More  |  FAQs
  • Missouri:
    • Clay County, MO (Stay at Home - 3/24) - Public works and housing construction exempt. - Read More
    • Cass County, MO (Stay at Home - 3/24) - Public works and housing exempt. - Read More
    • Kansas City, MO (Shelter in Place - 3/21-4/24) - Public works and housing construction exempt. - Read More
    • Ray County, MO (Stay at Home - 3/25-4/24) - Public works and housing construction exempt. - Read More
  • Minnesota (Stay at Home - 3/27-4/10) - Public works and essential infrastructure exempt. - Read More
  • North Carolina (Stay at Home - Effective 3/30 for 30 days) - Construction exempt. - Read More
    • Mecklenburg County, NC (Stay at Home - 3/26-4/16) - Construction for essential infrastructure and critical trades that provide saftey, sanitation, and essential operations exempt. - Read More
  • Oxford, MS (Stay at Home - 15 days effective 3/22) - Construction is not listed as essential. - Read More
  • New Jersey - Order for non-essential retail businesses to close. Construction is excluded. - Read More
    • Borough of Palmyra, NJ - Construction and Housing inspections are suspended until further notice. - Read More
  • New York (State on "PAUSE" - Policies Assure Uniform Safety for Everyone) - Essential businesses revised; now all non-essential construction must shut down except emergency construction. - Read More
  • Pennsylvania (Stay at Home - 4/1-4/30) - New order applies to entire state. Shut down all construction and other businesses not considered to be life-sustaining. - Read More - List Here
    • Allegheny County (3/23), Beaver County (3/28), Berks County (3/27), Bucks County (3/23)​, Butler County (3/27), Cameron County (3/31)Carbon County (3/30), Centre County (3/28), Chester County (3/23)​, Crawford County (3/31)Cumberland County (3/30), Dauphin County (3/30), Delaware County (3/23)​, Erie County (3/24)​, Forest County (3/31)Franklin County (3/31), Lackawanna County (3/27), Lancaster County (3/27), Lawrence County (3/31)Lebanon County (3/31), Lehigh County (3/25), Luzerne County (3/27), Monroe County (3/23)​, Montgomery County (3/23)​, Northampton County (3/25), Philadelphia County (3/23)​, Pike County (3/27), Schuykill County (3/30), Somerset County (3/31), Washington County (3/28), Wayne County (3/27), Westmoreland County (3/27), and York County (3/27) - Stay at Home Orders Extended to 4/30 - Read More
    • Philadelphia, PA (Shelter in Place) - Read More
  • Texas (Stay at Home - 4/2-4/30) - Working construction exempt, however the following locations offer stricter guidelines. - Read More | Essential Services
    • Austin, TX (Stay at Home - 3/24) - Unclear guidelines to commercial construction. Public works construction exempt. - Read More
    • Cameron County, TX(Shelter in Place - 3/25-4/8) - Essential infrastructure only including public works and housing. - Read More
    • Chambers County, TX (Stay at Home - 3/24-4/3) - Critical infrastructure only, including public works and housing. - Read more
    • Travis County, TX (Stay at Home - 3/24) - Unclear guidelines to commercial construction. Public works construction exempt. - Read More 
  • Vermont (Stay at Home - 3/25-4/15) - Construction suspended sans utility system construction or for critical infastructure. - Read More | Critical Businesses
  • Washington (Stay at Home) - Construction Guidance given mentioning general, commercial, and residential construction is not authorized, as it is not essential. - Read More
  • New Berlin, WI - City's non-essential building inspections suspended - Read More 

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Construction Allowed / Seeking Guidance:

  • Birmingham, AL (Stay at Home - Effective 3/24) - Read More
  • Alaska (Stay at Home - 3/28-4/11) - Construction exempt. - Read More
    • Anchorage, Alaska ​("Hunker Down" Order) - Read More
  • Arizona (Stay at Home - 3/31-4/30) - Construction listed under essential infrastructure, which includes (but is not limited to) public works, housing, etc. - Read More
  • California (Shelter in place) - Orders in California appear to exempt construction of housing, telecommunications systems, utilities, public works, municipal, oil refining and others. Generally, construction at commercial facilities appears to be restricted; however, in all cases readers should confirm requirements specific to their properties. - Read More | Essential Needs
    • El Dorado County, CA (Shelter in Place) - Read More
    • Fresno, CA (Shelter in Place) - Construction in progress may continue. - Read More
    • Los Angeles County, CA (Safer at Home) - Read More
    • Palm Springs, CA (Shelter in place) - Read More
    • Placer County (Shelter in Place) - Read More
    • Sacramento County, CA (Shelter in place) - Read More
    • Sonoma County, CA (Shelter in place) - Read More
    • Ventura County, CA (75+ Age Shelter in place) - Read More
  • Connecticut (Stay at Home - Effective 3/23 - 4/22) - Read More
  • District of Columbia (Stay at Home - 4/1-4/24) - Construction exempt under IV-2-F-i provided they are in compliance with social distancing requirements. - Read More
  • Delaware (Shelter in Place effective Tuesday, 3/24) - Read More  | List
  • Florida (Stay at Home - 4/3-4/30) - Construction exempt (ex: open construction sites, infrastructure, public works, etc). - Read More
    • Miami-Dade, Broward, Palm Beach, Monroe Counties - Revised Order Extended through 4/15. Open construction sites exempt. - Read More
    • Alachua County, FL (Stay at Home - Effective 3/24) - Read More
    • Hillsborough County, FL (Stay at Home - 3/27) - Read More
    • Leon County, FL (Stay at Home - Effective 3/25) - Read More
    • Miami Beach, FL (Stay at Home - Effective 3/24) - Read More
    • Orange County, FL (Stay at Home - Effective 3/26-4/9) - Read More
    • Osceola County, FL (Stay at Home - 3/26-4/16) - Construction exempt. - Read More
    • Pinellas County, FL (Stay at Home - Effective 3/26-4/9) - Read More
  • Georgia (Shelter in Place - 4/3-4/13) - Order to come soon... Read More
    • Athens-Clarke County, GA (Shelter in Place) - List exempts construction - Read More  | Essential Businesses List
    • Carrollton, GA (Stay at Home - 3/25) - Existing construction, affordable housing, and public works exempt. - Read More
    • Dougherty County, GA (Revised Shelter in Place - 3/22-4/7) - Construction exempt. Premises not to be occupied by more that 50% of approved occupancy level. - Read More
    • Avondale Estates - (Stay at Home - 3/26) - Read More 
    • Brookhaven (Stay at Home - 3/24) - Read More
    • Chamblee (Stay at Home - 3/28) - Read More
    • Clarkston (Stay at Home - 3/29) - Read More
    • Decatur (Stay at Home - 3/25) - Read More
    • Doraville (Stay at Home - 3/26) - Read More
    • Dunwoody (Stay at Home - 3/29) - Read More
    • Forest Park (Stay at Home - 3/30) - Read More
    • Cobb County (Stay at Home - 3/25) - Read More
    • Gwinnett County (Stay at Home - 3/28) - Read More
    • Savannah, GA (Stay at Home - 3/24) - Private construction with issued valid permits, affordable housing, and public works exempt. - Read More
  • Idaho (Stay at Home - 3/25) - Public works, commercial, and housing construction exempt. - Read More  | Essential Services
    • Blaine County, ID (Shelter in Place) - Read More
  • Illinois (Stay at Home - 3/21-4/30) - Read More | Extended Order
    • Oak Park, IL (Shelter in Place) - Read More
  • Indiana (Shelter in Place - 3/24-4/6) - Construction exempt under essential infrastructure. - Read More
  • Kentucky (Healthy at Home - 3/26) - Close all non life-sustaining retail businesses. Building and Construction exempt. - Read more
  • Louisiana (Shelter in Place - 3/23-4/30) - Construction exempt. - Read More | List
  • Maine (Stay at Home - 4/2-4/30) - Mentions construction and maintenance of essential infrastructure exempt. - Read More | List
    • Portland, ME (Stay at Home - 3/25) - Existing and ongoing construction allowed as long as social distancing is in place. Esential infrastructure also exempt. - Read More
  • Maryland (Stay at Home - 3/30) - Order now in place. Construction clarified under interpretive guidance to approve of commercial and residential construction (2-B-vi). - Read More | Read More
  • Mississippi (Shelter in Place - 4/3-4/20) - Order to close non-essential business. Construction Exempt. - Read More Essential Businesses
    • Tupelo, MS (Shelter in Place - 3/22) - Read More
    • Lauderdale County, MS (3/31-4/14) - Read More
  • Missouri:
    • Boone County, MO (Stay at Home - 3/25) - Construction is exempt. - Read More
    • Cole County, MO (Stay at Home - 3/23 for 14 days) -  Open sites and construction services exempt. - Read More
    • Greene County, MO (Stay at Home - 3/26) - Construction exempt. - Read More
    • Jackson County, MO (Stay at Home - 3/24) - Construction exempt pursuant to following social distancing and 10 or less rule. - Read More | Essential Businesses
    • Jefferson County, MO (Stay at Home - 3/24-4/23) - Construction exempt (page 5 item 6). - Read More
    • Platte County, MO (Shelter in Place - 3/24-4/24) - Public works and housing exempt. - Read More
    • Randolph County, MO (Stay at Home - 3/25-4/24) - Read More
    • St. Joseph, MO (Stay at Home - 3/24-4/24) - Construction exempt. - Read More | Extended Order
    • St. Louis County, MO (Stay at Home - Effective 3/24) - Construction exempt (includes open sites, essential infrastructure, construction services, etc). - Read More
    • St. Louis, MO (Shelter in Place - 3/23-4/22)  - Construction exempt. - Read More | FAQs
    • Kansas City, MO (Shelter in Place) - Public works and housing construction exempt. - Read More
  • Montana (Shelter in Place - 3/28-4/10) - Construction exempt. - Read More
  • Nevada (Shelter in Place - 4/1-4/30) - Order extended; construction exempt. - Read More | Essential Services
  • New Hampshire (Stay at Home -3/27-5/4) - Construction sites/projects, public works, critical infrastructure exempt. - Read More  | Essential Services
  • New Jersey - Order for non-essential retail businesses to close. - Read More
  • New Mexico (Shelter in Place starting 3/25 - 4/24) - Read More
  • North Carolina (Stay at Home - Effective 3/30 for 30 days) - Construction exempt. - Read More
    • Buncombe County, NC (Shelter in Place - 3/26-4/9) - Construction exempt. - Read More
    • Cabarrus County, NC (Shelter in Place - 3/27-4/16) - Construction is exempt under Essential Infrastructure, which includes, but is not limited to, public works, housing, and hospitals. - Read More
    • Clemmons, NC (Shelter in Place - 3/27-4/16) - Construction exempt. - Read More
    • Durham, NC (Stay at Home - 3/26-4/30) - Construction is exempt under Section 3-E-3. - Read More
    • Gaston County, NC (Shelter in Place - 3/27-4/16) - Construction is exempt under Essential Infrastructure, which includes, but is not limited to, public works, housing, and hospitals. - Read More
    • Guilford County, NC (Shelter in Place - 3/27-4/16) - Construction exempt. - Read More
    • Haywood County, NC (Shelter in Place - 3/27-4/) - Construction is exempt under Essential Infrastructure, which includes, but is not limited to, public works, housing, and hospitals.- Read More
    • Madison County, NC (Stay at Home - 3/25) - Essential infrastructure and other construction is exempt pursuant to compliance with social dist1ancing guidelines. - Read More
    • Orange County, NC (Shelter in Place - 3/27-4/) - Construction exempt under item 3. - Read More
    • Pitt County, NC (Stay at Home - 3/25-4/8) - Construction is exempt (Item 2-B - Outdoor Services). - Read More
    • Wake County, NC (Shelter in Place - 3/27-4/) - Construction exempt under item 10-C - Read More
    • Winston-Salem, NC (Shelter in Place - 3/27-4/16) - Construction is exempt under Essential Infrastructure, which includes, but is not limited to, public works, housing, and hospitals. - Read More
  • Ohio (Shelter in Place - 3/23-4/6) - Identifies construction (P. 4) and "working construction" (P. 13) as essential and critical infrastructure. - Read More
  • Oklahoma (3/24 for 30 days) - Non-essential business shall cease operations. Construction is exempt. - Read More  | Essential Industries List
    • Edmond, OK (Shelter in Place - 3/30) - Unclear if construction is exempt. - Read More
    • Norman, OK (Stay at Home - 3/25-4/14) - Construction exempt under essential infrastructure pursuant to compliance with social distancing guidelines (Item 15-C-iii). - Read More
    • Oklahoma City, OK (Stay at Home - 3/28-4/16) - Construction exempt under OK essential industries list. - Read More
    • Stillwater, OK (Shelter in Place - 3/30) - Order link broken... - Read More
    • Tulsa, OK (Stay at Home - 3/28-4/16) - Construction exempt under OK essential industries list. - Read More
  • Oregon (Shelter in Place) - Read More
  • Rhode Island (Shelter in Place - 3/28-4/13) - Appears to close only retail shops. - Read More
  • South Carolina:
    • Charleston, SC (Stay at Home - 3/26) - Read More
    • Columbia, SC (Stay at Home - 3/29 for 14 days) - Construction Excluded - Read More
  • Tennessee (Stay at Home - 3/31-4/30) - Excludes construction-related services. - Read More
    • Nashville/Davidson County, TN (Stay at Home - 3/23 for 14 days) - Construction exempt. - Read More
    • Franklin, TN (Stay at Home - 3/25) - Construction exempt under Essential Businesses (section 5 - vii - Construction [commercial or residential]) and Essential Infrastruction (section 8 - public works and housing). - Read More
    • Knox County, TN (Stay at Home - 3/24 for 14 days) - Construction exempt. - Read More
    • Shelby County, TN (Shelter in Place - 3/24 for 14 days) - Construction exempt. - Read More | Essential Services
  • Texas (Stay at Home - 4/2-4/30) - Working construction exempt. - Read More | Essential Services
  • Utah:
    • Davis County, UT (Stay at Home - 4/1) - Read More
    • Salt Lake County, UT (Stay at Home - 3/30-4/13) - Public works construction, residential and commercial construction exempt. - Read More
    • Summit County, UT (Stay at Home - 3/27-3/31) - Public works construction, residential and commercial construction exempt. - Read More
  • Virginia (Stay at Home - 3/30-6/10) - Professional (non-retail) services may remain open under the directive's item 8. - Read More
  • West Virginia (Stay at Home as of 8 pm on 3/24) - Read More
  • Jackson, WY (Stay at Home - 3/28-4/17) - Construction exempt. - Read More
  • Wisconsin (Stay at Home - 3/25-4/24) - Read More
  • European Union - Travel restrictions prohibit travel except for essential visits to supermarkets, pharmacies and hospitals.

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