COVID-19 Cost Management Factors

The COVID-19 Pandemic will have short term and long-term effects on the construction industry.  The majority of states and countries are attempting to contain the spread of COVID-19 by social distancing and making significant changes to normal business activities.  These measures and the ongoing impact to the economy are affecting existing construction projects that are currently under construction and future projects in different ways.  These effects are potentially:

Projects Now Under Construction

All of the above may lead to extended durations leading to delayed completions with the following implications:

Future Projects (Including those in design)

TCT Findings and Recommendations

Cost Planning and Cost Management will be key to successful projects. There will likely be continued buoyant activity in some market sectors – Healthcare, Technology, Infrastructure and Federally funded projects.

TCT’s initial findings are that some construction projects are progressing with inconsequential, or no delays and others are experiencing delays, which are being documented by contractors for contractual purposes. This variation could be attributable to the type of project, specific material selection, local conditions and regional factors.

To mitigate potential delays, Construction Owners are advised to conduct detailed schedule reviews and perform Quantitative Risk Assessments for Schedule and Cost to comprehend the level of uncertainty with regard to contractual completion dates and final costs.

In addition, Requirements for occupiable buildings will change to accommodate social distancing and enhanced safety regimes:

To learn more on cost measures or to discuss your project that has been impacted by COVID-19, Contact: Roger Clements, CCP, FRICS, Partner/Principal, rclements@tctcost.com

Superstorm Sandy – FEMA Disaster Recovery

With assessed damages estimated at over $68 billion, Super Storm Sandy was the second-costliest storm in United States history. Toscano Clements Taylor worked with the NYC Office of Management and Budget (NYC OMB) to estimate the cost of repairs, replacement and improvement of facilities owned/operated by various New York City agencies that suffered damage by Super Storm Sandy.

Our Certified Cost Professionals were essential team members in supporting our partnership with professional Disaster Recovery Management Consultants nationwide. TCT’s affiliation with FEMA-approved cost estimates aid disaster recovery consultants as they assisted state agencies and local governments with disaster grant applications, appeals and audits through FEMA’s Office of the Inspector General.

We prepared “Cost Reasonableness” or “Fair and Reasonable Analysis” and comprehensively review FEMA documents:

TCT has estimated over $2 billion of Super Storm Sandy-related work for the NYC Office of Management and Budget (NYCOMB) Disaster Relief Program and collaborates with FEMA to create standards for NYC crew configuration, wage rates, and productivity. To date, we have completed over 250 FEMA Cost Estimating Format-approved estimates on Super Storm Sandy-related projects for numerous agencies including NYC Parks, NYC Sanitation, and the NYC DEP.

New York
Toscano Clements Taylor, LLC 150 W. 30th Street, Suite 701
New York, NY 10001
917.388.3535 631.392.1399
Huntington
Toscano Clements Taylor, LLC 16 Oakwood Road
Huntington, NY 11743
631.392.1400 631.392.1399
New Jersey
Toscano Clements Taylor Cost Estimators, LLC 305 East High Street
Bound Brook, NJ 08805
732.627.0007 732.627.0017
Washington, D.C
TCT Cost Consultants, LLC 1090 Vermont Avenue NW, Suite 230
Washington, DC 20005
202.315.8944 202.315.1915
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