COVID-19 Construction Sector Status Report mid-August 2021:
John G. McConville CCP
Construction Cost Expert & Author of (11) Cost Estimating Books / Databases on US & Global Construction Costs & Labor Productivity:
The Headlines:
A year and a half of dealing with COVID-19 has been a major challenge to all construction related organizations around the world.
Compass International has recently completed a survey on construction productivity related to COVID-19. We contacted 35 + Construction Managers, Superintendents, General Foremen, Planners, Estimators and Cost Engineers located in the USA & in 6 other countries, our findings are that Industrial Construction related projects on average have experienced a 20% productivity loss due to the pandemic.
A construction task that took 1,000 work hours to accomplish pre-COVID now takes 1,200 work hours to accomplish the same task.
The issues that are driving this productivity loss of are as follows.
Order of magnitude increase on a $50 million Industrial project could be in the $4 million range.?An 8% COST INCREASE – The original pre-COVID construction schedule of 15 months has increased to 18 months (an additional 3 months of field in-directs / preliminaries / site establishment / support staff or 20% more).
Over 70% of Contractors / Architects / Engineering Firms have experienced project delays, disruptions or project cancellations in last 12 months.
Key construction materials (steel, copper, timber) are experiencing spiraling price increases, shortages & delivery delays brought on for the most part by COVID & pent up demand. Copper has increased more than 33%, Lumber / Plywood / OBS by 55% (Housing Market boom) and Pipe & Fittings (CS / SS) by 16% to 24% in last 4 months.
COVID has impacted Construction Materials / Major Equipment delivery times. An example – A major window manufacturer is quoting 20 to 26 weeks to manufacture & deliver windows for a large Hotel project, average material & major equipment delivery time have gone from 3 - 4 weeks to 8 - 10 weeks or longer in some cases.
The drawn-out & disorganized rollout of vaccinations is and will be a serious problem in many countries in the next 3 to 6 months.
World population is 8 billion only 2.4 billion have had a jab (30%). Could take months / years to accomplish full vaccination.
Close to 210 million confirmed COVID cases & more than 4.4 million COVID deaths, these official numbers could be understated by 10% to 50%. (Mid-August, 2021).
Top 10 countries experiencing the COVID pandemic.
1.????The USA currently holds the # 1 position, (if the Indian numbers are to be believed) it has seen close to 38 million confirmed cases and more than 633 K deaths so far, look for these numbers to increase in the next 3 - 6 months, the Delta / India strain is causing major spikes in some southern and mid-west US states. ?
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2.????India has suffered more than 32 million confirmed cases more than 435 K deaths, could be much higher than the Government Official numbers, possibly by a factor of 5 to 10, due to deficient record keeping.
3.????Coming in at # 3 is Brazil, the country has seen close to 20 million confirmed cases and more than 575 K deaths, the numbers could increase substantially in the coming 3 to 6 months before the situation stabilizes.
4.????Russia has experienced more than 7 million confirmed cases more than 175 K deaths, the numbers could be much higher before this situation improves.
5.????France has suffered more than 6.5 million confirmed cases more than 115 K deaths attributed to the virus, the Delta / Indian COVID strain is currently a big challenge to the French Government.
6.????The UK is reporting more than 6.3 million confirmed cases and over 130 K deaths related to COVID, the Delta / India strain is seeing numbers increasing dramatically.
7.????Turkey has experienced over 6 million confirmed cases and more than 55 K deaths, the numbers could increase substantially in the coming months before the situation stabilizes.
8.????Argentina is reporting over 5.1 million confirmed cases and more than 110 K deaths due to the virus.
9.????Colombia has suffered more than 4.9 million confirmed and more than 125 K deaths, these numbers will grow rapidly in the coming 3 to 6 months.
10. Spain is reporting more than 4.8 million confirmed cases more than 84 K deaths associated with the pandemic, the Delta / Indian COVID strain is currently a big problem in Spain.
New strains of COVID-19 (1) Brazil, (2) South African, & now (3) the Indian / Delta strain has been found in more than 70 countries, this could be a serious problem in the next 3 to 6 months. Unfortunately COVID-19 will be around for the next 12 to 24 months if the vaccination / roll-out and distribution continues at its current rate.
The global pandemic will continue to have substantial consequences for the global construction sector. Construction organizations will be dealing with increased costs, material shortages and reduced worker productivity for the remainder of this year and well into 2022.?
Published by John G. McConville CCP - Operations Director Compass International. For Future questions on construction costs, inflation or productivity. Feel free to contact me, I’m located in the USA Telephone +1 (609) 577 4505
Private e mail [email protected] or [email protected]
To review & purchase our (8) Cost Estimating Books click on [email protected]/books/ ?
Thanks for your time & interest. I invite you to connect with me. https://www.dhirubhai.net/in/john-g-mcconville-ccp-96303222/
Great work!