Which steps are recommended for construction companies to take during COVID 19?
On March 17, 2020, the Government of Ontario declared a state of emergency in response to the novel Coronavirus (COVID-19) pandemic, under section 7.0.1(1) of the Emergency Management and Civil Protection Act (EMCPA). On March 24, 2020 at 11:59p.m the Ontario government decided to temporarily shut down all non-essential businesses. However, the construction sector was considered an “essential business”. On April 3, 2020, an announcement came from the government officials that only certain types of construction projects would be deemed essential.
At this stage, the non-essential construction projects were not possible to complete. Many projects had to immediately stop, with the intention to resume work at a later date. Now the risk has continued to increase regarding the project delays and disruptions to work, which may in time lead to delay claims, among other things.
For the time being general contractors and subcontractors should be considering to take the following recommended steps to prepare for the effect of these potential interruptions on construction projects,
Health and Safety
These new requirements for Health and Safety should put a major impact on construction methodologies. To achieve the higher standards for our safety culture in the construction industry, there must be an operational priority in every organisation, which are likely to increase the operational costs. Workers are being asked to use N95 masks if they will be working in close proximity of others and all workers are required to wear gloves on the job. They are also being asked to not share any hand tools or electronics. All handles and switches should be wiped down at the end of each shift. More hand sanitizer is being made available for workers especially if water isn’t available in certain areas. Workers are also being asked to put all washable personal protective equipment in bags and wash them when they get home. Items that can’t be washed are to be put in a separate bag away from the washable items. They are also being told to immediately throw out all single use items, such as masks, to ensure others don’t use them.
Review Insurance Policies and Contracts
The General Contractors should examine all mandatory and applicable contracts and project insurance policies to assess whether there is an applicable coverage for potential harms that may incur.
Standard project insurance coverage may contain one or more of the Comprehensive General Liability policies. Business Interruption insurance is an additional kind of coverage that could become significant due to the existing circumstances.
It is a must to evaluate all existing and planned project policies with your insurance advisors in order to completely understand what is and is not covered, and whether obtained policies extend coverage for the types of damages that could happen as an outcome of the pandemic.
Stay informed and communicate
As the response to COVID-19 is growing rapidly, from a business stability perspective, we encourage everyone to continue to stay informed as new developments arise and communicate to your employees, contractors, suppliers, subcontractors and other stakeholders.
(Be diligent, be proactive and above all, be safe)
