Construction's harder than it's ever been

After the beginning of the original lockdown 1.0, the construction sector was actively encouraged to continue by Government. Many sites closed, some remained open. The reopening varied greatly. Once open, they were subject to the new phenomena of “social distancing”… a technique expertly practised for years by hapherphobics. Fortunately Government realised that construction was a vital part of the UK economy, and whilst operating under the same restrictions as the rest of us, sites could remain open and operate safely.

Or so they thought…

During 2020, it’s fair to say that we were all dealing with a common enemy. Outside of Donald Trump’s inner sanctum, it was considered nobody’s fault that we were exposed to fast-spreading pandemic. There was a lot of sympathy for your fellow man’s situation.

This common enemy might have affected your health, created concerns for your family and friends, impacted your professional or financial world, or affected your mental health.

In most cases we saw the coming together of strangers, supporting and encouraging one another in the face of that common enemy.

And it extended to businesses and firms too. We saw unheard of levels of sympathy and cooperation between competitors.

In the construction industry, a sector famous for its paranoia through the contract chain, unprecedented sympathy and understanding for customers and suppliers affected by CV19 was seen.

But all good things come to an end... including the 2020 bonhomie in construction.

Contract disputes seem to be on the rise as financial arguments begin to harden. And tolerances to CV19-related problems have all but gone. Throw the end of the Government support schemes, Brexit, IR35, and the cash impact of the new VAT rules into the mix, and it’s a really difficult place to be right now.

Branta has now seen numerous cases where disputes are hardening as a result of not being able to provide the requisite amount of labour and materials. These absences are attributable to a mix of contracting CV19, self-isolating as a result of exposure to CV19, the fear of catching CV19, or management teams taking the decision to not risk infection by keeping gangs off-site.

Whilst a lot of these concerns are of course real and valid, this is the construction industry. The protagonists are prepared to get the contracts out (always a bad sign that often doesn't end well) and, in our experience, the party with the best record-keeping often wins and understands the mechanics of the contract wins.

CV19, whilst causing pain and suffering on so many levels to so many people, is having an unprecedented effect on UK construction. So whilst the headlines show an industry that’s open for business, behind the scenes it’s a very tough sector to be in right now.