Busy construction site and construction equipment aerial top view. concept: Construction during coronavirus
Timothy R
By: timothy-ronaldson
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Construction during Coronavirus

While no industry has been unaffected by the current pandemic, construction during coronavirus has been particularly hit hard, from supply chain disruption to cash flow problems to a complete halt of projects. Construction business owners have had to make huge adjustments almost overnight. 

The good news is that some construction projects have been deemed essential. Therefore, they have been allowed to continue during the pandemic. However, as is the case with other industries that have been allowed to stay open, cases of COVID-19 infections have spread at some of these sites.

As states are preparing to re-open their economies, construction companies that have been forced to shut down are hoping for some guidance regarding when they can start operating again, and how they can do so safely. Some are also hoping they can survive the shutdown and emerge as a viable company.

COVID-19 and the Construction Industry

The construction industry has been devastated by the COVID-19 pandemic on several fronts. Before the pandemic fully reached the United States, and states began closing down, it was already impacting the industry substantially. 

That’s because almost one-third of global manufacturing comes from China. This caused early disruptions in the industry in terms of materials and the supply chain.

Once the virus began to appear here in America, states then began issuing stay-at-home orders and closing down businesses that were deemed non-essential. While some construction projects were allowed to continue, most of those were larger projects such as roads, stadiums, and the like. 

Construction sites have been a “hotspot” for COVID-19 outbreaks, in fact, as it’s tough for workers to maintain social distancing while doing their jobs. For example, at a construction site for the SoFi Stadium in Inglewood, California, three workers tested positive for COVID-19 in quick order. 

This near-complete shutdown of the construction industry forced many businesses to close, with no way to earn money at all. As a result, this began affecting business owners’ ability to pay their workers as well as their liabilities, resulting in a trickle-down effect to other industries. 

The shutdowns will undoubtedly cause significant delays in construction projections, which could also lead to potential legal challenges based on contracts that were signed before the pandemic began. 

What’s more, even when states do re-open and allow construction projects to resume, the industry is likely to be affected for months to come as companies and governments potentially cut back on spending.

Do you want to read a more in-depth analysis of how COVID-19 affected the construction industry?

Construction Industry Trends Outlook: COVID and the New NormalSilhouette of engineer and construction team working at site over blurred background for industry background with Light fair.Create from multiple reference images together. concept: Construction industry trends


Your construction business and COVID-19

Some construction companies have been allowed to remain operational during state shutdowns, but again, many of those are larger companies. Some smaller companies that work primarily outside or that are single-operator businesses have been able to weather the storm somewhat as well.

Luckily, some states have begun to at least put plans in place for how they’ll allow construction to resume if they haven’t already greenlighted construction to start again. 

All construction businesses will need to take some necessary steps to prepare for re-opening and the resumption of their projects. It’s vital that keep your employees safe. You can follow the ACG recommendations.

Some things that should be on your checklist include:

Construction Reopening Plan Checklist. Camino Financial. Construction during coronavirus

Learn how to download this printable checklist at the end of the article.

Construction During Coronavirus: What if You Had to Shut Down?

If your business was forced to shut down due to your state’s coronavirus restrictions, you might be struggling to figure out how you’re going to survive. Luckily, there may be some alternatives available to you that could help keep your finances healthy.

The federal government created two financial relief programs through the four economic stimulus bills they have passed since mid-March. These two programs are designed to help small businesses that have been dramatically affected by the coronavirus pandemic.

  • The first is the Paycheck Protection Program (PPP). It’s a loan program administered through the Small Business Administration that can convert into a forgivable grant as long as you use a majority of the proceeds on payroll, and the rest toward rent and other utilities.This program was so popular when it was first rolled out that it actually ran out of money within two weeks. However, the government allocated more funds to it.
  • The second federal plan is the Economic Injury Disaster Loan (EIDL). It’s another loan program administered by the SBA that provides economic relief. This loan advance will not have to be re-paid, either, making it all the more attractive. Currently, the SBA is prioritizing agricultural businesses for the EIDL, but you can still apply and hope they accept it.

If you are unable to qualify for either of those programs, you still have plenty of options.

Construction During Coronavirus: You Can Weather the Storm

The COVID-19 pandemic has negatively affected businesses in every industry, across the world, and not just the United States. Construction businesses have been hit especially hard, as most of their projects were deemed non-essential by states, forcing business owners to close up shop altogether.

Those construction projects that have been deemed essential and allowed to proceed have mostly been larger projects as well, such as stadiums and major highway construction. 

As states begin to plan for re-opening, you must take inventory of where your business is now, what it has coming up and what additional measures, if any, you’ll need to take once you’re allowed to resume operations. 

If you need financial help, now is the best time to seek it.

As you prepare to re-open, a great resource to have is Camino Financial’s construction business checklist. Download it here now, and help prepare yourself for the uncertain times ahead.

COVID-19: Small Business Resources, coronavirus, Camino financial

COVID-19: Small Business Resources

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