Coronavirus: ‘State of paralysis’ setting into construction industry

The Royal Institution of Chartered Surveyors (RICS) and CIOB (Chartered Institute of Building), who jointly represent thousands of property and construction professionals in Northern Ireland, are urging the Executive to provide greater clarity on the operation of construction sites, and have jointly written to both the economy minister and the finance minister to implore urgent action.

They say that closed sites are leading to contractors and supply chains engaging in a comprehensive furlough of staff to the point that a state of paralysis is setting into the industry.

They point out that many projects could be jeopardised, even at pre-construction phase, because the supply chain cannot submit quotes and prices, and any delay in project planning and procurement will cause higher risks of projects being cancelled, prolonging the recovery.

The letter also encourages the NI Executive to bring forward departmental capital programmes urgently and consider implementing the new Cabinet Office procurement guidance to accelerate projects into the Northern Ireland market.

It says this will support professional services in progressing early stage design works quickly, both within lockdown conditions and post-pandemic recovery, ensuring that projects are ready without further delay for contractor delivery.

“It is imperative that as much activity as possible across the built environment can safely take place to ensure continuity of activity now and post-pandemic,” the letter states.

The bodies also urge the NI Executive to consider opportunities within the immediate lockdown period when much of the public estate is vacant to lead an initiative to encourage a large-scale public sector programme of property maintenance.

RICS regional chairman in Northern Ireland, Brian Henning, said: “The potential long-term damage to the local construction sector – which isn’t long recovered from the last downturn – could be severe.

“A continued reduction in work will negatively affect cash flows, leading to extended furloughing, redundancy and company closures, as well as a potential exodus of skills from the sector. Ultimately, this could further strain the existing skills and supply shortage and increase costs of construction supplies and labour, as they are not immune to the realities of supply and demand.”