Is the Construction Industry Ready? Hurricane Prep in the Midst of the Pandemic

Meteorologists and scientists predict Florida’s 2020 hurricane season, which commenced on June 1, will be a very active season. Some predict as many as 16 named storms, with eight expected to become hurricanes, and four reaching major hurricane strength. Florida’s developers, general contractors and the broader construction industry must be proactive to ensure their hurricane procedures are in place and ready to implement should a storm threaten the region. On any active construction site, readying for a storm includes protecting supplies and materials, covering building openings, removing debris, removing or securing equipment, lowering cranes, documenting the conditions at the site and coordinating jobsite security.

The 2020 hurricane season may prove to be like no other. Never has the development and construction industry had to prepare for a hurricane season while also dealing with the effects of an active pandemic. In March, while residents were sheltering in place and many businesses temporarily closed due to the pandemic, construction was deemed an essential business and was allowed to continue, but it was anything but business as usual. In order to continue operating, the construction industry had to learn, in real time, to operate under new health and safety regulations and restrictions and deal with incidence of jobsite infections. New safety procedures were implemented—including proper social distancing, use of personal protective equipment, increasing the number of washing stations, decreasing the number of employees allowed to congregate at lunch trucks, limiting presence on common conveyances (lifts and elevators) and sanitizing workstations. Moreover, suppliers began placing buyers on allocation, increasing delivery durations and pricing with risk premiums.

The parallels between hurricane season and the pandemic are centered on these challenges, which are likely to continue or worsen should a hurricane further interrupt the normal flow of the construction and development process. The impact of both interruptions will require project participants to address myriad additional factors like contract terms, notice issues, possible suspensions, demobilization, remobilization, safety, employment, delays, extra costs, insurance, and governmental inspections, among many other concerns. Moreover, for owners and developers, the impact of the dual interruption may compound the virus’s already disruptive power on project finance and the projected completion, both of which are critical to project success. Communication among the project participants becomes even more vital. Owner and contractors must work together to identify, assess and mitigate project impact, whether emanating from a hurricane or the pandemic.

Therefore, an integrated approach in preparing for both threats is vital. Contractors cannot expect to have one plan for weather events and another for COVID-19, rather, this year, hurricane preparedness must be aligned with the demands brought about by COVID-19. For example, hurricane preparedness will take longer to implement considering social distancing requirements and heightened safety protocols. In addition, a major weather event could exacerbate existing virus-related stresses on material and staffing resources, as well as permitting and inspection services. Strategic planning is imperative for a response that can be implemented immediately if a storm threatens Florida, particularly this year.

Ironically, battling the virus-related issues over the months since the pandemic hit has given the construction industry an advantage in preparing for this year’s hurricane season. In fact, many feel that the industry is better prepared than ever. While construction businesses have been inundated with a flood of information from local, state and federal governments, the CDC, DHS-CISA, and OSHA regarding new labor, health and other issues, the industry has had an opportunity to implement new safety and health protocols and develop a better approach logistically. Companies, by necessity, increased their use of technology and the ability to communicate remotely. Overall, businesses in the construction industry have increased their ability and heightened their awareness to plan and prepare, even for the unexpected. The lessons learned from this pandemic to date, combined with the practices developed over many years due to the necessity to be prepared for a vigorous storm season, have been aligned to prepare for the 2020 hurricane season.

Separately, a hurricane or COVID-19 can be a disruption to a project’s cost and schedule. The impacts are even more exacerbated when the conditions occur simultaneously.  Detailed cost and delay tracking programs are a necessity. Real-time documentation is more economical and effective than retroactive documentation. Segregate all costs and track the impact.

In Florida, and across the United States, we are experiencing an incredible push and pull among priorities advanced by health, science, medicine, economy and politics, leaving some with a sense of uncertainty. Historically, it is in times like these that the construction industry has rallied and demonstrated its exceptional resiliency. Just as the construction industry in Florida learns to better respond to the challenges of each successive hurricane season, it will advance further as a result of this pandemic. Particularly in these times, owners and contractors must communicate, collaborate and cooperate. Project participants must work together to address each situation providing for the best interests of the workforce, the public and the project. This is a “new normal,” but with proper planning, the development and construction industry will confront the issues posed by the COVID-19 pandemic and the hurricane season with success.

Construction attorney Melinda S. Gentile is a Miami partner at Peckar & Abramson. Contact her at mgentile@pecklaw.com. Construction attorney Jerry P. Brodsky is a Miami partner with the firm, co-leader of its Florida infrastructure and P3 practice group and director of the Latin American practice group. Contact him at jbrodsky@pecklaw.com.