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Impact on Construction

RR031820 coronavirusApril 7, 2020 – According to Associated General Contractors of America (AGC) chief economist Ken Simonson, once again last week, contractors reported more widespread impacts of the coronavirus pandemic on construction. AGC’s third weekly online survey, conducted March 30-April 2, drew 1,296 respondents, of whom 55% (up from 39% in the March 23-26 survey) reported that an owner (including a public owner regarding its own projects) had directed them to delay or cancel construction on a current project or one expected to start in the next 30 days. Also, 26% (up from 18%) reported that a government official or agency had ordered them to halt or cancel construction. In addition, 59% (up from 45%) reported various causes for project delays or disruptions: shortage of materials, equipment (including personal protective equipment for their workers) or parts, 35% (up from 23%); shortage of essential craftworkers (including subcontractors’ workers), 28% (up from 18%); shortage of government workers (whether to issue permits or certificates of occupancy, or to conduct inspections or lettings, or to make project awards), 16% (unchanged); potentially infected person had visited a jobsite, 18% (up from 13%). About 38% (up from 35%) of respondents said suppliers had notified them or their subcontractors that deliveries will be late or canceled. About 27% said they had furloughed or terminated jobsite workers and 16% reported doing so with office or other workers.