Spring 2023
Scientific Studies about COVID-19’s Impact on Construction Productivity Provide Support for Delay Claims
By Caleb M. Sturm, PSP, CCP, CCA, Director - J.S. Held LLC Construction Advisory & Disputes
Three years into the pandemic, there are lessons still to be learned from COVID-19’s impact on construction projects. This article will briefly address COVID-19’s impacts and will outline factors for contractors and project stakeholders to consider in addressing project completion delay and productivity claims. Early in the pandemic, the “Sheet Metal and Air Conditioning Contractor’s National Association” (“SMACNA“) and the “National Electrical Contractors Association” (“NECA”) conducted studies which concluded that the pandemic lead to construction delays and productivity impacts to projects in the United States. In addition, studies by Engineering News-Record (“ENR”), a respected industry organization, conducted a study on projects in Europe that reached similar results. This article will explore some of the conclusions of these studies and make recommendations for the use of the information.
In June and July of 2020, SMACNA and NECA published a report which introduced empirically developed metrics of the pandemic’s impact to construction productivity in the United States (the “US Report”). SMACNA’s and NECA’s report concluded that the pandemic impacted US productivity by approximately 18% (“US Report”).[1] On the other hand, ENR performed a study that concluded the pandemic impacted construction productivity in the UK by “about 35%” (“UK Report”).[2]
The studies’ results may remain relevant because there are few other empirically based sources of information about the pandemic’s impact on construction productivity. Construction stakeholders have observed possible impacts and discussed scenarios in which a party might be entitled to additional time and/or money because of the pandemic. However, beyond such general commentary, industry-wide efforts to establish a firmer “causal connection” to productivity impacts have not been available.
This article generally addresses the composition of the metrics (% of impacts), the methods by which the US Report was performed, and instances in which the metrics may be considered by construction stakeholders.[3] The results of the studies may prove helpful in facilitating contractual discussions between parties and/or quantifying productivity impacts and related damages because of the pandemic.
UK Report: “COVID-19 Causes 35% Productivity Loss at UK Projects”
According to ENR’s report regarding projects in the UK (“UK Report”), the pandemic caused an approximate 35% loss in productivity.[4] ENR performed an analysis of jobsite activity on forty-five (45) projects. The report then discussed that labor shortages and social distancing measures accounted for approximately 7% of the pandemic-driven productivity losses, that 1% of productivity was lost through “poor transfer of design information while remote working,” and 7% of productivity was lost because of late or unavailable materials.
The report also analyzed social distancing protocols and concluded that these protocols may have caused contractors to lose the ability to increase the rate of production by acceleration or the dedication of additional resources of production to a project. That is, during the pandemic contractors may have lost a means to make up for previous delays (or finish the work early) that may have been a contractual or legal right at the time of contracting.
US Report: “Pandemics and Productivity: Quantifying the Impact”
The joint report by SMACNA and NECA was based on the analysis of 113,000 labor hours worked during the pandemic.[5] The labor hours were collected from construction activity in twenty-one (21) states and various project types including commercial, chemical, manufacturing, governmental, energy, infrastructure, healthcare, transportation systems, and others.
According to the report, construction projects working under pandemic-driven protocols and conditions experienced a composite 8.8% loss in productivity due to “Jobsite Mitigation Measures,” and additional protocols put in place to slow or stop the spread of the pandemic. The Jobsite Mitigation Measures consisted of: “Management of Personal Protective Equipment (PPE),” “Safety Meetings & Orientations,” “Time Waiting to Access Work Areas,” “Respirator Training & Fitting,” “Time Waiting for Medical Screenings,” “Cleaning & Disinfection of Common Areas,” “Worksite and Workfront Access Protocols,” “Extra Distance for Lunch and Break Areas,” “Cleaning & Disinfection of Tools/Equipment/Gear,” and additional time of “Administration Procedures.”
The report further stated that, during 2020, construction projects working under pandemic-driven protocols and conditions experienced an additional 9.2% loss of labor productivity due to: “Extra Demobilization and Re-mobilizations,” “Worker Fatigue from Anxiety and Absenteeism,” “Social Distancing Protocols During Work Activities,” “Off-Shift Work,” “Altered Material Delivery and Receiving Procedures,” “Additional Inspections During Work Performance,” “Cleaning Requirements,” and others.
The above figures amount to a total potential impact of 17.9%, or 86 minutes lost during an 8-hour workday for each affected worker because of the pandemic. Eighty-six (86) minutes lost each day equates to approximately seven (7) hours each week and twenty-nine (29) hours each month for each affected worker.[6]
The data on which the analysis was based was collected on jobsites between April 30, 2020 and July 3, 2020. Field supervisors input observations contemporaneously into 1 of 4 categories of mitigation measures.[7] The crew types included in the data collection included HVAC/Sheet Metal Crews, Mechanical Crews, Plumbing Crews and Composite (Combined Trade) Crews.
Considerations for Contractors and Project Stakeholders
Based on the information from the UK and US Reports, parties may consider the following when addressing impacts to their projects and potential requests for relief from delays and productivity impacts because of the pandemic.
Work Performed to Date
The UK and US Reports provide metrics to facilitate discussions regarding lost productivity and/or production delays due to the pandemic. These metrics may also assist a contractor in developing a request for equitable adjustment for lost productivity or delay because of the pandemic. Contractors may rely directly upon the metrics in quantifying pandemic-related impacts or support their calculations for lost productivity to demonstrate a reasonable basis for their conclusions.
Secondary Effects of Impacts to Productivity
Other impacts to construction projects may include prolonged equipment and machinery costs due to decreases in productivity; time-related jobsite and home office overhead due to extended completion dates; and additional health and safety professionals and additional supervision/management that became necessary to enforce the new pandemic-related protocols.
Remember the US and UK Reports when entering discussions about equitable adjustments due to damages that may have been incurred as a result of the pandemic. They remain a strong source of scientifically based research to support such claims.
[1] McLin, M., Doyon, D., & Lightner, B. (2020). Mitigation and Productivity Impacts for Sheet Metal, HVAC, and Mechanical Contractors. In Pandemics and Productivity: Quantifying the Impact. Chantilly, VA: New Horizons Foundation.
[2] Rubin, D. K. (2020, June 29). Analysis: COVID-19 Causes 35% Productivity Loss at UK Projects. In Engineering News-Record. Retrieved from https://www.enr.com; McLin, M., Doyon, D., & Lightner, B. (2020).
[3] The UK report did not describe in detail the means and methods in which the respective metrics were calculated.
[4] Rubin, D. K. (2020, June 29). Analysis: COVID-19 Causes 35% Productivity Loss at UK Projects. In Engineering News-Record. Retrieved from https://www.enr.com; McLin, M., Doyon, D., & Lightner, B. (2020). The report notes that 20% (of the 35%) accounts for an “average productivity loss.”
[5] McLin, M., Doyon, D., & Lightner, B. (2020). Mitigation and Productivity Impacts for Sheet Metal, HVAC, and Mechanical Contractors. In Pandemics and Productivity: Quantifying the Impact. Chantilly, VA: New Horizons Foundation.
[6] Figures assume a working schedule of 8-hours per workday, 5 days per week.
[7] The 4 Categories included “Safety & Training,” “Distancing & Access Rules,” “Cleaning & Disinfecting,” and “Administration.”
Caleb M. Sturm, PSP, CCP, CCA is based in Atlanta, Georgia and is a Director in the J.S. Held LLC Construction Advisory group. He previously offered a more comprehensive paper on this topic and is currently working with parties in mitigating and quantifying impacts to projects because of the pandemic. Caleb’s email is csturm@jsheld.com.