NO ONE can be in any doubt about the potential impact of Covid-19 on Northern Ireland’s construction sector.
Closed sites are leading to contractors and supply chains engaging in a comprehensive furlough of staff to the point that a state of paralysis is setting into the industry.
Many projects could be jeopardised, even at pre-construction phase, because the supply chain cannot submit quotes and prices. Any delay in project planning and procurement will cause higher risks of projects being cancelled, and it could prolong the recovery.
The potential long-term damage to the local construction sector - which isn’t long recovered from the last downturn - would be severe. A continued reduction in work will negatively affect cash flows, leading to extended furloughing, redundancy and company closures, as well as a potential exodus of skills from the sector.
Ultimately, this could further strain the existing skills and supply shortage and increase costs of construction supplies and labour, as they are not immune to the realities of supply and demand. In addition to this, supply chains will take longer to obtain, manufacture or produce the materials needed for construction – further slowing industry reactivation.
To help avoid this outcome, RICS along with the Chartered Institute of Building (CIOB) is urging the Northern Ireland Executive to provide greater clarity on the operation of construction sites, and we have jointly written to both the Economy and Finance Ministers to implore urgent action.
We appreciate the measures the Executive has introduced to ensure public safety. However, by providing greater clarity to the construction sector now on the operation of construction sites, it could increase confidence in the gradual and safe opening of sites that have been closed and ease the continued reduction in construction activity.
This would be a significant step towards offsetting the impact of Covid-19 on the construction sector for the short and long-term benefit of the local economy.
We acknowledge the recent publication of the Workplace Safety Guide and Priority Sectors list, but it is advisory only and we remain concerned about the lack of full clarity.
We would also encourage the Executive to bring forward departmental capital programmes urgently and consider implementing the new cabinet office procurement guidance to accelerate projects into the Northern Ireland market. This will support professional services in progressing early stage design works quickly, both within lockdown conditions and post-pandemic recovery, ensuring that projects are ready without further delay for contractor delivery.
We also urge ministers to consider opportunities within the immediate lockdown period and vacant public estate to lead an initiative to encourage a large-scale public sector programme of maintenance.
The current situation means many publicly-owned buildings such as schools, colleges, museums and libraries that are usually populated are vacant, and this provides an opportunity for condition inspections and maintenance works to be undertaken (within clarified health and safety parameters) that will assist cashflow for SMEs, supporting the supply chain and retaining skills.
Likewise, there are a number of construction operations that can be carried out with a reduced workforce, away from the public eye, and in isolation; thereby adhering to social distancing advice.
If work cannot start immediately, contractors could start preparing materials and supplies for post-lockdown. This would keep materials being manufactured and produced; supply chains open; and allow the sector to hit the ground running when sites can reopen – whether that is tapered or instantaneous.
Due to Covid-19, we all find ourselves in exceptional circumstances. But if the Executive acts on our recommendations, there is the potential to mitigate what would otherwise be a very significant, long-term impact on the construction sector and the local economy.
:: Brian Henning is regional chair of the Royal Institution of Chartered Surveyors (RICS) in Northern Ireland
