Project Controls in a Pandemic Era - The Big 5 Construct Egypt

Project Controls in

a Pandemic Era

The Speaker

• Certified Project Management Professional. (PMP)• Certified Occupational Safety and Health Administration (OSHA)• Risk Management Professional (RMP)• Scheduling Professional (PMI-SP)• Earned Value Professional (EVP)• Forensic Planning• Claims Analysis • Authorized Primavera Trainer, User & admin.• Member of CMAA “Construction Management Association of America”• Member of the Egyptian syndicate of engineers • Member in EPPMA “Engineering Planning & Project Management Association “• M.Sc., Project Management (candidate) – Liverpool University, UK.• D.PM. Diploma of Project Management - Ain Shams , Egypt • B.Sc., Architecture - Ain Shams University, Egypt

Ahmed Khashaba, PMPSenior Manager, Project Controls System (PCS)

Project Controls in a Pandemic Era

• What is a pandemic ?• Pandemic Impacts

How a pandemic affects the construction projects

01

• Identifying Risks• Manage the Risks

Identifying, managing the construction risks during a pandemic

02Recommended actions before, during and after a pandemic

03

How a pandemic affects the construction

projectswww.thebig5constructegypt.com

01


A pandemic is the global outbreak of a disease

The most recent is the COVID-19 which began as an epidemic in China, before making its way around the world in a matter of months and becoming a pandemic as declared by the World Health Organization on March 12, 2020.

01What is a pandemic ?


Broadly speaking

COVID-19 is having a massive impact on construction projects, but the legal implications vary from country to country, and contract to contract.

At this stage, COVID-19 is not rendering projects altogether impossible to complete. But it is slowing them down, causing delayand disruption, even if only because supply chains have been severally disrupted. Many projects have even stopped, usually with the intention to resume work at a later date.

A number of governments have also ordered that certain businesses stop working. However, the construction industry has generally not been the subject of ordered shutdowns.

01Pandemic Impacts


More specific …

In addition to physical wellness, contractors are considering mental health, too, because employers report anxiety among workers as one of the top issues brought on by the coronavirus.

In an informal Construction Dive survey, 70% of respondents noted “employee anxiety” as their top concern, above material shortages and the prospect of government shutdowns.

01Pandemic Impacts


Construction is a people business built on healthy relationships and partnerships. Human capital risk management holds that employees are the primary asset of companies. Companies that truly care for workers yield a sustainable competitive advantage from building a caring culture.

A crisis is the best time to reinforce these beliefs.

01Pandemic Impacts Employee Anxiety

The Rising Anxiety, Fear & Uncertainty


It’s becoming increasingly difficult to obtain essential materials from the overseas suppliers they rely on—especially those in China, where quarantines, curfewsand other public health measures by the Chinese government has reduced its manufacturing sector to roughly 30% of its usual capacity.

Just as COVID-19’s impact to industries was unequal, supply chain recovery times will be unequal as well.

01Pandemic Impacts Material Shortages

Supply Chain has been disproportionately impacted by the crisis.


01Pandemic Impacts Shutdowns

The pandemic has caused business closures, city curfews, travel bans, financial market upheavals and manufacturing shutdowns in major global economic hubs.

Employers reduce the number of working hours as well as the salary of a worker during this pandemic period

Managing the construction risks during

a pandemicwww.thebig5constructegypt.com

02

Managing the construction risks during a pandemic

Most factors influencing construction time and cost overruns

Even the most carefully planned project can run into trouble. No matter how well you plan, your project can always encounter unexpected problems

Cost saving and time performance are usually essential to all parties who are involved in a construction project, that is owner, contractor, subcontractor

02

Managing the construction risks during a pandemic

02Reduce working

hours employee absence

Shortage of material

Social distancing Force MajeureStop of work

Time & Cost

Supply Chain

Curfew & Shutdown

Anxiety

Delay in Payment Health

Precautions

Contractual Issues

Lowproductivity

LowperformanceClose

borders

Stay at HomeLDs

Recommended actions before, during and after a

pandemicwww.thebig5constructegypt.com

03

Recommended Actions

03

Action 01: Identify and Assess Relevant Local and Government Restrictions on Construction Activities

Initially, we should consult appropriate legal counsel and carefully examine the local government orders to identify restrictions on construction activities and only proceed accordingly.

Recommended Actions

03Action 02: Identify and Assess Relevant Contractual Provisions

We should carefully examine the construction contract to identify key provisions implicated by the pandemic. While standard contract forms are widely used, the forms often are modified and standard terms and conditions frequently are changed based upon negotiations. Crucial provisions such as those addressing force majeure, notice time limits, compensable costs resulting from delays, risk allocation and damages limitations may be significantly different and therefore each contract should be carefully reviewed and analyzed.

Recommended Actions

03Action 03: Communicate and Work with the Contractor to Identify, and Mitigate Project Impacts

The project management should communicate with critical contractors, designers, and suppliers to assess the actual and potential impacts on contract performance and discuss how to potentially mitigate project disruptions, in an effort to achieve the overriding objective – complete the project as soon as possible within or as close as possible to the budgeted costs. The pandemic may impact design and construction contracts in a variety of ways, including impacts to supply chains, contractor workforces, designer personnel, and the availability of government inspectors.

The contractor should taking appropriate site health and safety measures, including WHO and local guidelines as to distancing, cleansing, disinfecting, etc., and that sites are being properly manned and managed considering current circumstances.

The project management should request updated schedules from the contractor and consider setting flexible contract completion dates. Prioritizing and/or accelerating certain work areas and delaying others, as well as planning to recover delays once the pandemic restrictions are lifted.

Conclusion

“STAY SAFE, Be Productive ”

Thank You …

Ahmed Khashaba

Q & A Time

Documents

Project Controls in a Pandemic Era - The Big 5 Construct Egypt