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Coronavirus impact on construction likely to be ‘catastrophic’, trade bodies warn
Coronavirus is likely to have a “catastrophic and unavoidable” impact on construction, contractor trade bodies have warned.
In a joint statement, Build UK and the Civil Engineering Contractors Association called for ministers to provide additional support to the industry during the COVID-19 pandemic.
They said: “If the government decides to put the country into ‘lockdown’ and restrict the movement of British citizens, decisions will be taken out of the hands of individual companies and sites may have to close.
“The impact on the industry’s supply chain, consisting of multiple layers of businesses, many of them [small and medium-sized businesses] with a significant amount of self-employed workers, will be catastrophic and unavoidable.”
The organisations are asking the government to identify safety-critical work on the infrastructure network that is essential and must be continued, and to confirm arrangements and prompt payment for this work.
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They are also calling on the public sector to provide clarity on each of its construction contracts, in particular on the contractual position regarding delays as a result of the virus outbreak.
The National Federation of Builders (NFB) has also called on the government to support the construction sector with “a pragmatic stance and financial support where needed”.
The NFB’s statement followed the government’s daily briefing on Monday, which instructed the population to avoid all “non-essential” contact, meaning avoiding restaurants and pubs and working from home where possible.
Richard Beresford, chief executive of the NFB, said: “The situation is extremely serious, especially for the elderly, people with underlying health conditions, pregnant parents or very young children.
“Government and the construction sector need to also recognise the risk of mass absence from construction sites and the potential impact of delayed payment resulting in the need to lay staff off or make redundancies. A pragmatic and dynamic risk-based approach, supported by government, is needed.
“NFB is working hard to ensure its members are supported with the relevant guidance on the coronavirus, for example on statutory sick pay, commercial legal advice on construction contracts and general business advice of mitigating the risk for essential construction work.”
Yesterday the government announced a package of support worth £350bn to support businesses. It includes £330bn in loans, £20bn in other aid, a business rates holiday, and grants for retailers and pubs.
Meanwhile, social landlords have told Inside Housing that repairs and safety checks could be put on hold as more people are forced to go into self-isolation because of the virus.
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