Vision 2020?? Nobody saw this coming!
How the COVID 19 Pandemic May Impact Your Projects
Although 2020 is a year none of us will soon forget, there are several things we can be thankful for. There is less traffic on the road, cleaner air, and most of us have successfully adapted to work life from home. Hearing home schooling going on in the background of a virtual conference call when someone forgets to mute themselves often adds a moment of comic relief.
Over the past several months we have observed project impacts common to many of our projects attributable to the COVID 19 Pandemic. The following is a list of potential project impacts that should be considered during the preconstruction phase to minimize construction delays or cost impacts.
Pandemic Cost Impacts – some of the contractors we are working with are adding up to $1.00 per man-hour to cover the costs of facemasks, sanitizer, portable restrooms with hand wash stations, and so on. We have been successful at negotiating reasonable costs for these items, but Owners should recognize there may be some added costs for adapting to construction during a pandemic.
Production Rates - extra time for cleaning/sanitizing and social distancing are all minor daily impacts but could add up over the duration of a construction schedule.
Local Labor Impacts – This one is not common across the USA, but one state in the northeast did not recognize construction as an essential business. The contractors in that state began looking for work in neighboring states, which resulted in labor pricing in the neighboring states going down slightly.
Supply Chain Delays – expect longer lead times for some materials and for heavy equipment parts. When possible, use early work packages to accommodate longer lead times, and expect that equipment costs may increase this coming year.
Budget Shortfalls – many Owners are having to adjust their capital improvements budgets this year by canceling or delaying construction projects.
Positive Impacts – As mentioned above, traffic counts are down since the pandemic, making work zones safer and MOT more manageable. Fuel and oil prices are a little lower this year than last. And construction projects continue on in most states without missing a beat.
US-89 Oakhills Freeway
The Oak Hills Freeway project is Utah’s first Progressive Design Build project. Innovative Contracting and Engineering provided ICE services for this extremely complex, fast tracked project. Although difficult to navigate, track, and execute a project of this magnitude, with a new delivery method Oak hills Constructors have done a tremendous job with construction. This heavily traveled corridor is getting a huge utility upgrade, new frontage roads, grade separated interchanges, and a new 6 lane freeway with a 70 mph speed limit. This project employs over 300 personnel with numerous companies contributing to the progress. With winter storms looming, it will be a push to finish paving so that traffic will be on the new asphalt pavement for the duration of the winter. To follow the regular project updates, follow the US-89; Farmington to I-84 Project Team at http://www.udot.utah.gov/us89/
Innovative Contracting & Engineering (ICE) is a team comprised of former contractors and professional engineers who have a thorough understanding of market fluctuations, pricing trends, construction strategies, and innovations. Our experience working on alternative delivery projects across the United States has provided our team with a tool bag full of industry best practices. Construction cost estimating and scheduling is our primary focus. This focus is how we stay current on construction trends and price changes, and that helps us produce more accurate estimates than our competition. We have a passion for finding creative approaches to construction. We are constantly looking for innovative construction techniques to add value to the projects we are working on. Our team has found a way to reduce schedule and/or construction costs on every project we have worked on to date! ICE works closely with our clients to improve the quality of their most challenging projects.
How can we help you? Send us your questions, comments, and request.
Email, Call, or Text: Dan Bender, 702-523-2354, danbender@iceteams.com