​Whole regions are being quarantined to prevent the spread of coronavirus (now called covid-19). Thankfully for most of the World so far these areas are mainly in China, with pockets in Italy, South Korea and a few other countries.
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Obviously for many there’s no reason to panic and the virus seems a long way from most of us. But, no matter where you are in the world your construction project could still feel the ripple impacts of coronavirus. 

​Keep an accurate list of people working on the project and entering the project. This should have contact details in the event that someone is taken ill with the virus on your project, so that people who have been in contact with the ill person can be contacted.
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If your region is directly impacted by the virus there will be transport disruptions. Workers may be prevented from coming to work. Have a plan in place to secure and shut down the project so that it’s safe. Work could be disrupted for several weeks.

​Keep your client informed and discuss closure of the project with them should this be necessary. 

Coronavirus may have only a small impact on your construction project. However, it’s important to be prepared and understand your supply chains and how your project could be impacted.

For the present avoid undertaking projects in areas at risk of the virus. Avoid travelling to risk areas.
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Hopefully the outbreak of coronavirus or covid-19 will quickly pass into the medical history books, as did SARS and swine flu.

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​Paul Netscher has written several easy to read books for owners, contractors, construction managers, construction supervisors and foremen. They cover all aspects of construction management and are filled with tips and insights.
The books are available in paper and ebook from most online stores including Amazon.

​Contact Paul Netscher for help and advice.
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• '​Successful Construction Project Management: The Practical Guide'
• 'Building a Successful Construction Company: The Practical Guide'
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• 'Construction Project Management: Tips and Insights'
• ​'Construction Management: From Project Concept to Completion'
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Ever wondered why government construction projects always exceed budget? Well read this interesting article in the CEO Magazine: Why politicians lie about the cost of rail projects

Paul Netscher has written an easy practical guide for owners/clients and project managers. 'Construction Management From Project Concept to Completion' is available in ebook and paper from Amazon and other online bookstores. This book is a valuable guide to all those planning a new project

Almost every construction project has changes, delays and extra work and invariably contractors incur additional costs. Many of these costs can be claimed back from clients when the contractor submits a variation claim. It should be straight forward, there was a change and the contractor should be paid their additional costs. But, as we’ve previously discussed the contractor must substantiate the reason for the variation claim as well as the costs.

​Regrettably, many construction variation claims are poorly put together and clients reject the contractor’s claims.

But, even when the client approves the claim there’s no guarantee that all of the contractor’s costs will be reimbursed. In fact, compounding the problem is that contractors often don’t claim all of the costs they incurred because of a variation event – costs which they’re entitled to claim. This may seem hard to believe, after all who would work for free, or not claim legitimate costs?

But, it regularly happens because contractors forget some costs, they don’t keep accurate records, or they don’t fully appreciate the full impacts of the variation on their work, including the wider impacts of the variation on work not seen as being directly impacted by the event.

Of course, there are also some contractors who become gung-ho when they see a variation claim. They think they can add everything and anything to increase the value of their variation claim. In their excitement of adding inflated and fictitious costs they often overlook legitimate costs.
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Naturally, most clients are generally wise to contractor’s ways, and any costs and delays which can’t be substantiated will be rejected and the contractor will face disappointment when they only receive a fraction of what they tried to claim from the client. In the process, they’ve also damaged their reputation as clients generally don’t like to be taken advantage of. Unfortunately, in this process, the contractor may have lost the opportunity to claim the legitimate costs that they overlooked in their rush to fabricate costs.

It’s vital to understand the full impacts of the variation, which could include disruption to the construction work and reduced productivity of both people and construction equipment. Then there’re impacts on other project work, which could include blocking access, taking construction resources from these activities, discontinuity of work, underutilisation of resources, and interference with the work.

​Costs to consider include:
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1. Labour costs
Including base wages, overtime costs, allowances, personal protective gear, and transport and accommodation of workers where this is supplied by the contractor.
2. Equipment costs
Including the hire costs, the wages of the operator, fuel, lubricants, insurance, spares, and services where necessary.
4. Mobilisation costs for equipment and people
Of course, don’t forget that items brought to the project for the additional work must be demobilised after they are no longer required.
5. Material costs
Including transport, offloading, wastage, testing, a design where necessary, and all adhesives and fixings.
6. Supervision costs
Including salary, transport, accommodation, computers, etc.
7. Access equipment and cranes
Either additional equipment or the equipment is required longer on the construction project than planned
8. Off-site costs
Such as project personnel working from the head office.
9. Project overheads
Such as office hire, insurances, bonds, security, site facilities, etc.
10. Subcontractor’s costs
Check that they've provided all their actual costs. You don't want them to submit a further claim after you've lodged your claim with your client. Of course don't forget your costs where you've had to provide things to the subcontractor - say transport, cranes, access scaffold, transport, etc.
11. Demolished materials cost
Where demolitions are involved, then the cost to load and cart the demolished materials from the site, costs to deal with hazardous products, dump fees, temporary supports, and bracing, etc.
12. Design cost
Where required, design fees.
13. Profits and overheads on the above
14. Protection of existing and completed work to enable the additional work to be carried out.

​Of course, the client can request a breakdown of these costs, so they should be provable. Often projects involve multiple variation claims and it’s important that contractors are consistent and use the same base cost for items on the variation claims. For instance, it will appear suspicious if the contractor uses $15 an hour for a labourer on one claim and $16.50 in another claim.