COMBATING COVID-19...India has emerged as one of the strongest nations to combat Covid-19. While the battle is ongoing, India with its relatively lower death rate could emerge as an

COMBATING COVID-19

Project Management Perspective

Project Management Combating CoviD-19

Future Of The Indian Economy

How Can We Help?

What Have We Learned?

Focus Areas

Future Of Construction: Impact And Changing Trends

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What Best Practices Can Be Followed?

What Should Be The “Come Back Plan”?

Content

B | Combating Covid-19: Project Management Perspective | C© 2020 CBRE

India has emerged as one of the strongest nations to combat Covid-19. While the battle is ongoing, India with its relatively lower death rate could emerge as an outlier to the whole global trend. The initiatives taken by our government have helped immensely in controlling the strong spread of the epidemic.

Historically, over the last few years Real Estate Industry has shown a lot of resilience. Once Covid-19 is contained, our industry will be the fi rst one to witness increased traction across the markets in India. From a long term perspective, we expect the demand to remain stable, with foreign investors and developers looking at expanding their footprint in the Indian market. The biggest positive that has come out of this whole situation is that Environmental Health and Safety (EHS) has now taken centre stage in India and globally.

To continue supporting our clients in what may ultimately be the most important undertaking to date for our industry, CBRE has prepared a Project Management Playbook to address the full spectrum of COVID 19 considerations and recommendations throughout the entire project lifecycle i.e. Design Development, Execution and Site Operation. We are sharing our expertise and advice based on a rapidly growing body of experience, detailed guidance documents, technical specifi cations, protocols and tools that we have developed for and with our clients.

The time has come for us to - Restart our lives, Reimagine our normal and Re-engineer the way we live, work and play. This is where Project Management will play a vital role.

RESTART OUR LIVES

REIMAGINE OUR

NORMAL

REINVENT THE WAY WE

LIVE, WORK AND PLAY

The global economic scenario could potentially lead to delayed decision making in the short term for India. However, we expect the Indian economy to showcase resilience as we witnessed in 2008 where India grew by 5% and the rest of the world degrew.

India promises to be the go-to country for Manufacturing with one of the largest available workforces. The devaluation of the rupee and its global standing complementing the inviting stance of the government on business investments, makes India a very affordable destination for foreign companies. The strategic value of India is being recognized globally and is evident in the fact that companies and consumers have started shifting their sourcing and manufacturing to India. Around 1000 companies have shown interest in relocating production to India and at least 300 are already in talks with the Indian government in this regard*. So the future in this aspect looks promising.

While the government continues to provide policy and fi scal support; a bailout package for the most affected sectors such as Construction, Aviation, Retail and Hospitality is a welcome move. The government is already taking fi rm initiatives to re-assess, train and redirect the skills of the workforce in the informal sector thereby making them available for various industries who will need them the most to resume normal operations.

*Source: Your story website article, 27th April 2020 https://yourstory.com/2020/04/indian-economy-post-covid-19-positive-outlook

FUTURE OF THEINDIAN ECONOMY

| 4© 2020 CBRE


The Government of India has already announced the phased resuming of construction activity in certain regions as well as the essential supply chain for the industry. Also, globally India continues to be the investment preference for companies owing to the low and consistent rental rates as well as low cost of labour.

Once the Covid-19 situation is contained, we expect demand to pick-up with investors across commercial and residential segments expanding their footprint in the market. The introduction of 3 months moratorium to all term loans is an important step to help investors and developers manage their working capital in these diffi cult times, for better operations, thereby mitigating the impact on the overall industry. There is an ongoing shift in the way companies are looking at their workspaces, with aspects such as social distancing, touchless navigation and service dispensing, sanitization equipment, air and water management systems, etc. taking precedence. Major developers will most likely be expected to rethink building design and features as well as technology integration.

With the changes implemented by the Government, the construction industry is set to make a comeback albeit with a lot of strict guidelines focusing on the health and safety of the construction workers. Technology will play an even bigger role going forward in our industry and facilitate the timely delivery of projects.

With all the major shifts that are expected in the construction and real-estate market there is a lot of opportunity to grow, and India is poised to be the hot-bed for this growth chapter in world history. The challenge is the opportunity.

FUTURE OF CONSTRUCTION: IMPACT AND CHANGING TRENDS

5 | Combating Covid-19: Project Management Perspective | 6© 2020 CBRE

• Operational kick start process & protocols• EHS considerations at site/offi ce• Risk review and mitigation plan

• Use Virtual Collaboration Tools• Look at Reporting Platforms• Adopt Design & Construction review/

surveillance products

• Review & revise conditions of contract• Review scope and changes

• Review Immediate & Long Term implementation strategy

• Focus on high exposure spaces• Augment ventilation systems/ other

environmental features

• Explore options with respect to Social Distance- Flexible/ Staggered Working polices

• Evaluate corresponding Server Requirements

• Evaluate new regulations & guidelines by Govt.

• Formulate Emergency Response Team/Process

• EHS focused Method Statements

• Short term and long term cost impact analysis

• Reforecasting & realignment of cash fl ows

• Explore Entry/Exit Design Requirements • Review improvement opportunities related

to hygiene and sanitation

• Review sourcing strategy for skilled labor.• Evaluate stock at site and long/short term

material requirement.

Readiness post lockdown is a top priority

Travel may never go back to where it was

Focus on Contract Management

Health & Wellbeing will be paramount in workplace

Disaster Recovery Plan will be mandatory

EHS will play a key role during Construction

Capital Plan Realignment will be immediate focus

Security & Maintenance aspects will drive Design & Material selection

Resource management will be a challenge

Robust “Come Back” Planning is the need of the hour

Technology will be an important alternative requirement

Contractual obligations to be reviewed and reevaluated

This will lead to change in Workplace Strategy & Design

Business Continuity Plan to be augmented

It will drive Construction Methodology & process

Opex & Capex budget to be re-looked for cost containment

Pandemic prevention will be a focus for facility operations

Focus on workforce productivity & Material availability

WHAT HAVE WE LEARNED?

Resilience is accepting your new reality, even if it's not as good as the one you had before. In order to move forward with implementing changes towards the new normal, it is important to pause and refl ect on the key learnings from this unprecedented event that will shape the way we work going forward. Here is some food for thought.

| 8© 2020 CBRE


WHAT BEST PRACTICES CAN BE FOLLOWED?

Design Development

Re-evaluate density norms to address social distancing

As we respond to this unprecedented challenge, we must also be cognizant of the short-term and long-term impacts of the virus. Authorities across the nation are putting together guidelines to follow, when the lockdown is lifted. While the situation is still evolving, businesses need to evaluate essential aspects to ensure that operations on site where construction is in progress or scheduled to start, as well at the workplace, take measures to complement the initiatives taken by the authorities.

Here are some best practices that we can follow during the entire project lifecycle, i.e. Design Development, Execution and Site Operation to ensure that the safety and well-being at site and at the work place are not compromised.

Programming to factor in head counts related to BCP options

Project timelines – realignment of critical path activities

Review Touch less lifts, no touch doors/Security access and Rest rooms

DESIGN GUIDELINE

PROJECT STRATEGY

MATERIAL/SPEC SELECTION

Sustainability and Well being design and material guidelines

IT and Audio Visual requirements to be more integrated with design

Cost Benefi t analysis of corresponding materials and systems

Provision for specialized spaces like dedicated medical + isolation area

Common amenities (gym/club house/food court) and public spaces

Redesign of cafeteria to discourage crowding

Redefi ne quality parameters and construction method statements

Isolated MEP systems to curb circulation of infected air

Workstation and Offi ce/Meeting room Furniture and fi nishes with hygiene, technology and social distance options

Redesign of meeting rooms, collaboration areas and workspace to cater to social distancing and technology

Exploration of Materials for high level of hygiene maintenance and sustainability like Vinyl vs Carpet

Infrastructure design to incorporate high quality air ventilation systems and other indoor environmental features

Signage strategy & design

Contract Management - Review scope and changes

Alternate construction technologies – pre fabricated etc

Procurement & Sourcing - Indigenous material to save time, cost and for hygiene control



Execution

Disinfection process before dispatching

Labour/Man movement at site to abide by social distance guidelines for Site Work/ Eating/ Resting/ Washroom use.

Implement stringent processes/method statements for work sequencing and quality control

Factor procurement, handling and stocking of PPE, Hygiene and Sanitation materials on site.

IMPORTED/ INDIGENOUS MATERIAL

LABOR MANAGEMENT

SITE MANAGEMENT

EHS PROVISIONS AND WASTE MANAGEMENT

Stipulated Quarantine Period

Defi ned Gate Management process

Implement frequency and procedure for Site Sanitization

Establish Process and Frequency for Waste Collectionand Segregation

Sanitization Procedure

Medical Screening/Records

Set up Labour + Material Quarantine zones

Defi ne PPE Disposal & Removal process and frequency

Material Handling Protocol

Stringent PPE/Hygiene protocols

Provide Medical staff and create Emergency Response Team/Procedure at site



Site Operation

Thermal Checks

Inclusion of Facilities team in design process will be more important for selection of material, specifi cations and systems to incorporate Hygiene, Operation and Maintenance attributes.

Travel & Health Declarations

Protocols for isolating areas in case of infected cases

SECURITY

MAINTAINENCE

Access IDs- Touchless

De-snagging and Hand over - Take over process will become more stringent.

Material movement guidelines inside the premise

Visitor log & Screening

Defect Liability Period may be re-evaluated for larger duration and additional requirements.

Monitor Social Distance/Hygiene directives



Contract Management

All stakeholders are equally responsible for implementing the MHA guidelines at site.

All site personnel should have a medical insurance to cover for any hospitalization expenses arising out of COVID 19.

The process of calculating and concluding on extension of time (EOT) to be completed once the work resumes at site.

All necessary compliances like CAR policy, Workmen compensation policy, Labour license (if applicable), Bank Guarantees etc. shall be checked for validity. Extensions may be requested if necessary.

Client as a principal employer shall enable and enforce the implementation of MHA guidelines

All site personnel should be encouraged to install Arogya Sethu application.

In case there is a COVID positive detection at site due to noncompliance of MHA guidelines, further action may be initiated by the authorities.

Nothing has gained more prominence than understanding the contractual relationships between the various entities involved in the project. Everyone is affected and in an endeavor to minimize personal liability, we should not ignore our responsibilities when construction resumes on the site.

THINGS TO ADDRESS



WHAT SHOULD BE THE “COME BACK PLAN”?

Project Readiness

Site due-diligence before construction resumes

Vendor/Suppliers/Consultants readiness for resuming work after lockdown

Cash Flow-Planned/Actual

Risk Management – Lockdown affect

Stock and status of perishable material

Contractual Obligations

OHSE Preparedness

Vendor Invoicing and payments

Change Management

Real-time Tracking

Considering the present scenario, we all accept the fact that all current and planned projects will be affected irrespective of their development stage. To minimize the severity of the impact, it is critical to analyze all aspects which are likely to have a major infl uence on the desired outcomes. All projects are unique, but factors listed below are common for undertaking pre and post lockdown risk assessment.



Cost Impact Assesment

Capital Reforecasting - Considering change in Real Estate strategy

Cost implication due to COVID related OHSE/ Wellbeing implementation requirements

Revised Budget Forecasting for ongoing porjects

Evaluate Cost Saving opportunities

Change Management- Due to COVID related design and scope changes

Commercial closure of any deferred or cancelled projects.

COVID – 19 has impacted the operations in the construction sector globally in many ways. While the situation is still evolving, no one is fully aware of what will be the fi nancial implications once it is “business as usual”.

Everything from cost of ongoing construction to long term capital planning is likely to be affected to varying degrees due to challenges associated with labor, material availability, logistics and project fi nancing.



Resume Work on SiteDay-01 of the site is very critical as it will virtually be a fresh start in terms of construction. Activities at the sites have to resume as per the guidelines published by the Government and it is mandatory to comply with all regulations. Awareness and alignment of all stakeholders are key as everyone has to comply with new method statements, working restrictions, sanitization protocols etc. In addition, Understanding the impact of supply chain for man/material and physical preparedness of the site is important to ensure smooth operations.

CONTENTS

Resume Work on SiteDay-01 of the site is very critical as it will virtually be a fresh start in terms of construction. Activities at the sites have to resume as per the guidelines published by the Government and it is mandatory to comply with all regulations. Awareness and alignment of all stakeholders are key as everyone has to comply with new method statements, working restrictions, sanitization protocols etc. In addition, Understanding the impact of supply chain for man/material and physical preparedness of the site is important to ensure smooth operations.

CONTENTS

• Individual/Employee Status

• Vendor Due Diligence (To be checked for each of the Vendors involved in any site activity)

• Landlord Due Diligence

• Site Due Diligence



Site Sanitization & HygieneAll construction projects will require careful consideration and tailored plans to address the safety of people on site. Implementation of guidelines and best practices proposed by statutory authorities on site sanitization and hygiene is not a one-time exercise, but a permanent change which will ensure a safe working environment. Robust planning is crucial to ensure everyone is aware of the practice to follow and understands their individual obligation towards the larger cause.

• Operational Strategy

• Client obligations to restart the works

• Contractor obligations to restart the works

• Guidance for employees / workers wellness

• Guidance for cases of sickness

• Operational Control- Checklist for monitoring (Site, workmen Camp, site offi ces, Self declaration format, Pep talk on COVID-19)

• Social Distancing Plan

• Do’s and Don’ts

• Government Guidelines for Disinfection procedures



Focus AreasThe COVID-19 situation is concerning and disruptive. We need to take adequate measures to ensure the safety of all individuals and at the same time ensure that businesses are not affected. Below are some focus areas to consider in summary.

The way we act now will make a clear impact towards the ongoing situation management and the eventual recovery. Let’s give our best for a better future.

"Come Back" readiness post

lockdown

Employee health and well being - change

from a want to a need

Impact of new

regulations and guidelines on design and construction

Viability of hot desking/co- working /agile working in workplace

design

Innovation in Supply Chain Management

Business continuity

plan’s impact on workplace

strategy

Sustainability Primary

consideration in design

Relook of contract

obligations and management

Reconsideration of modular/

prefabricated construction

Amendment of capital planning

Technology’s role in business continuity and

innovation

Construction process and methodology

driven by health and safety



How can we help?CBRE has been your trusted partner in providing Project Management Services. In our endeavor to support our clients during these extraordinary times, we have developed the following new service offerings to assist in your business continuity and future project planning.

POST LOCKDOWN SERVICES

PROJECT DELIVERY

Strategy, assessment & implementation

DESIGN STRATEGY & GUIDELINES

Operations in the workplace

COST IMPACT

ASSESSMENT Ongoing &

planned construction projects

WELLNESSADVISORY

Ratify before you Reoccupy

OHSE ADVISORY

Site start-up post lock-down

TESTING & COMMISSIONINGRetro commissioning

& validation of services &

systems


CBRE © 2020 All Rights Reserved. All information included in this proposal pertaining to CBRE—including but not limited to its operations, employees, technology and clients—are proprietary and confi dential, and are supplied with the understanding that they will be held in confi dence and not disclosed to third parties without the prior written consent of CBRE. This letter/proposal is intended solely as a preliminary expression of general intentions and is to be used for discussion purposes only. The parties intend that neither shall have any contractual obligations to the other with respect to the matters referred herein unless and until a defi nitive agreement has been fully executed and delivered by the parties. The parties agree that this letter/proposal is not intended to create any agreement or obligation by either party to negotiate a defi nitive lease/purchase and sale agreement and imposes no duty whatsoever on either party to continue negotiations, including without limitation any obligation to negotiate in good faith or in any way other than at arm’s length. Prior to delivery of a defi nitive executed agreement, and without any liability to the other party, either party may (1) propose different terms from those summarized herein, (2) enter into negotiations with other parties and/or (3) unilaterally terminate all negotiations with the other party hereto. CBRE and the CBRE logo are service marks of CBRE, Inc. and/or its affi liated or related companies in the United States and other countries. All other marks displayed on this document are the property of their respective owners.

GURJOT BHATIAManaging DirectorProject Management [email protected]

PUJA DATTATRAYAAssociate Executive DirectorProject Management India, National Head - Occupier [email protected]+91 9920900137

VISHAL AHUJADirectorProject Management India, Head - Client Solutions & [email protected]+91 9953277111

© 2020 CBRE

DISCLAIMER

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COMBATING COVID-19...India has emerged as one of the strongest nations to combat Covid-19. While the battle is ongoing, India with its relatively lower death rate could emerge as an