The Coronavirus issues for the construction industry may be severe and are definitely unexpected. The arrival of the new COVID-19 virus, better known as Coronavirus, has had a negative impact on businesses. This impact has cut across different industries including technology, automotive, financial, hospitality, shipping and of course, construction.
How does coronavirus impact the construction industry?
China is one of the main and major manufacturers and merchants of construction materials, parts and products that are used around the world. The lack of exporting activity from China directly affects the supply chain. The flow on effect; delays in New Zealand construction projects dependent on these input products.
The effects of this epidemic originating in China, make it difficult to import products to other parts of the world. New Zealand is not immune from this flow on effect.
Several customers have begun to experience problems with the supply of parts, equipment, and many building related input materials.
The reality… not having input materials can cause real delay in predetermined milestone project dates.
How can I protect my activity from the construction delays Coronavirus generates?
An important factor to consider is does construction insurance cover the Coronavirus and how to best protect yourself? Unfortunately, there is no current construction insurance that covers the impact of such an infectious disease. Hygiene and health crises are not usually a premise that insurance construction policies will consider as having a significant impact on this type of industry, although in this case, it has.
This is a clear example of why construction companies need to make sure their legal contracts cover them for situations such as epidemics or health crisis. At Bonded Insurance, we recommend that you have all your contract documentation revised by your chosen professional. With the current world events, perhaps now would be a great time to do this if you have possibly not looked at your contracts for a little while.
Should you want to discuss risk mitigation insurance for future projects we are here for a no obligation discussion. Our insurance specialists are on hand to talk about options and expectations so that you can best withstand most unforeseen circumstances that could come your way in the future.