Pandemic Impact Webinar
On September 25, Bay Area SMACNA hosted the Pandemics and Productivity: Quantifying the Impact webinar for chapter members. Information was shared from the New Horizons study that quantifies MEP contractors’ loss in risk mitigation and productivity due to new requirements and practices during COVID-19. The trio of expert panelists included Managing Director Michael McLin and Director Stephane McShane, both of Maxim Consulting, and Guy Gast, President of the Iowa Division of the Walinger Corporation and past president of SMACNA National.
The panelists shared examples and stories of how the scope of the study was determined, who the partners were in the study, and discussed strategies on how to mitigate losses for current and future projects. As McLin stated, “For many contractors, a 10% hit in productivity is equivalent to 100% loss in productivity.” A calculator was sent to program participants to assist in quantifying costs and to inform negotiations or potential change order discussions.
McShane reinforced that contractors should request general contractor COVID requirements and norms up front and in writing, if possible, to best determine the cost of extra materials and time. Gast shared that his organization had successfully negotiated the additional costs on a large project but stated that it isn’t easy to do — especially on private projects. At a minimum, he affirmed that contractors should quantify and share the impact even if they don’t request additional funds from the owners or GCs.
SMACNA members can download a free copy of the Pandemics and Productivity: Quantifying the Impact report at newhorizonsfoundation.org.
Key findings from sheet metal and HVAC contractors across the U.S. showing that:
- 8.7% of hours available on projects were lost due to mitigation requirements
- 9.2% average productivity impact (time lost in installation labor)
- 17.9% is the total result of contractor productivity loss