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The year is well into its fourth quarter and already, the past few months have many businesses reeling with the financial impacts of COVID, and no company has been immune to disruptions. If revenues are the measuring point for the impact of COVID, the construction industry has been spared the drastic Industrj impacts that other industries, such as the hospitality industry, have faced. Yet construction businesses have still had to face disruptions on jobs, safety risks, scheduling and the inability to hire essential employees.

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These changes have caused construction companies to take a second look at their internal processes. Dealing with the realities of the last 7 months has provided the data and the necessary time to offer construction companies the opportunity to adapt quickly. They are now able to prepare for not only the remainder ofbut for the changes that will be necessary in Construction business relies on the financial viability of other industries in order to perform its own services, so the impact of COVID as it continues to move through the economy will further impact the construction industry itself.

As we look tofinancial leaders will be even more essential in ensuring that contractors are prepared to sustain or even capitalize on these changes to the industry. CFOs and Controllers can help prepare their businesses by taking a proactive approach and assessing the impacts of COVID to date by asking some important questions:. With this important information, the construction industry can then quickly transition to understanding how these main areas could be impacted in There will need to click careful predictions and planning for many alternative scenarios. Given Construction Industry And Its Impact On The unpredictability of COVID, firmly planning out and projecting the unknown is next to impossible. Having multiple financial scenarios and a larger game plan will help ensure that thoughtful and proactive decisions are being made.

The overall goal is to avoid the more dangerous reactive measures. As you look to develop a smart financial plan for your company inone thing is certain in the air of uncertainty, and that is cash.

The push in the Winter offor most contractors, should be to prepare your company by monitoring and, if necessary, stock piling cash. This will allow your company to be put in a position of strength as it enters ; to not only weather unforeseen storms or swings in business, but to allow for the execution of plans that can capitalize on the market of other companies who may not be acting as proactively. Construction companies should ask themselves if they are actively monitoring suppliers, vendors and clients, paying close attention to contracts and addressing the risk of increased pricing is necessary.

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The trend has been to focus more on cost plus types of arrangements, to protect against possible price increases in It is important to also review the financial capacity of your subcontractors and to ensure that they will have the financial wherewithal to complete the Hardy Questions. Evaluating clients not only ensures collectability of receivables, but also monitors for potential delays or disruptions to the job. Even with the increase in unemployment, government intervention and other opposing trends have continued to present challenges if your company is looking to add or replace employees. Consider a second look at current employees to be sure they are being effectively utilized to avoid unnecessary outside hiring.

Before replacing A with B, take a look at the schedule to determine if delays or disruptions could Construction Industry And Its Impact On The handled with the placement of employees where the work needs to be done. Having people on the sidelines is the primary objective that companies should look to avoid.

Even with the best scheduling, those contractors that find themselves in growth will still need to get creative in attracting top talent and this again, will require cash and a position of strength going into Without addressing the PPP loan program, it is still important to focus on all other debt. Refinancing debt, loan covenant waivers or restructuring and other debt modifications should be started now if they are anticipated to be an issue in The financial environment and access to capital can change quickly.

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Waiting to plan and address this issue until the first quarter of could cause disruptions to your company and will also give you less bargaining power. Part of managing cash is closely monitoring debt. Especially important is planning out debt, cash and taxes at the end of ]