The effects of COVID-19 will be felt across the globe. Regions where the construction market was strong, such as Spain and Italy, have been hit particularly hard by the virus. According to the European Union, the construction industry in Europe is essential for the major infrastructure works and projects that promote community wellbeing. It accounts for 9% of EU27 GDP and employs 16 million workers. Therefore, the negative effects of COVID-19 on the construction industry in Europe are considerable.
Continental Europe will face the same challenges as the rest of the regions of the world that have been hard hit by this pandemic. Construction disputes are certain to arise on projects, whether they were suspended or continued on as essential work during the crisis. Regardless, it will be vitally important for all participants to understand both where their project stood and stands at any point in time from a cost and schedule standpoint. In particular, it will be essential to quantify impacts as a result of shutdowns so accurate completion estimates can be made in an effort to successfully restart the work.
Project participants should not lose sight of the techniques that are proven to avoid, mitigate and resolve construction disputes. This year's survey results highlight the importance of fair and appropriate risk balances in the contracts. This goes hand-in-hand with properly administering the contract, which was also a top survey result in this year's report. The critical necessity of project participants to collaborate when faced with challenges on their projects is emphasized throughout this report. Although we do not yet fully know the impact COVID-19 will have on the construction industry going forward, the need for collaboration will become heightened during this unprecedented time.