Developers are starting to include new health and safety regulations and flexibility into development plans for upcoming projects. This includes making financial adjustments to comply with new regulations and adapt to market uncertainty. This is particularly true for institutional developers, who are forging ahead on projects.
“Developers are starting to make adjustments to their financial performance as they start to actualize their development plans,” Tom Harrison, VP and managing partner of Johnson Carlier, tells GlobeSt.com. “We are seeing the more savvy developer starting to carry certain contingencies for the unknown and also accounting for some schedule contingencies for the what if. The typical developer realizes that development can’t stop and although the financial markets are somewhat unstable there is still a significant amount of cash and debt that needs to be placed from the capital sources whether they be family offices or REITs.”
Developers aren’t alone. Contractors and laborers are also making adjustments to comply with the new market. “I think the labor force is implementing self-discipline safety behavior that is mandatory at most construction sites around the country if not the world. Safety protocol for COVID-19 is now very specific, detail and required for most large construction company’s project sites,” says Harrison. “We are seeing the individual labor of the trade partner starting to really take that safety requirement seriously and even taking the behavior home with him which is how we will minimize the spread and eventual impacts.”
Contractors have implemented very strict guidelines to ensure workers safety and help to mitigate delays on the job site. The plan is based on the guidelines from the CDC and the WHO. “Doing this, our response plan has catered to each individual situation considering there is no ‘one-size-fits-all’ response for any crisis. In this case, companies should cater its plan to reflect the circumstances of COVID-19,” says Harrison. “For starters, this plan should summarize the most recent updates and information from the CDC and WHO.”
In addition to onsite measures, Harrison says that educating both developers and workers and communicating guidelines is also important to maintaining a safe work environment. “It’s important to outline any symptoms of the illness and present a recommended response plan that addresses all of the potential situations that may arise,” he says. “To help communicate the severity of each situation, companies can rank situations on a scale from high, medium to low in terms of their exposure risk levels. Additionally, plans should contain instructions detailing how employees should notify their supervisor or manager if they are at risk of exposure or have recently been exposed to illness. Lastly, this plan should be sent and distributed to anyone within a company so messaging stays clear and consistent for both employees in the office and out in the field.”