Hong Kong: Effects of Covid-19 on Construction Industry – a summary

COVID 19 – Following  on from our recent Governors “ZOOM” meeting Raymond Y M Chan, Vice President, WOBO, Hong Kong SAR has provided a summary of his experiences.

Effects of Covid-19 on Construction Industry in Hong Kong

COVID-19 has affected communities globally. In this difficult time, the construction industry in Hong Kong is also quite seriously affected.

Material Supply

The COVID-19 pandemic has made an impact on the supply of construction materials and components to be used in construction projects. After the COVID-19 outbreak in mainland China, the Central Government locked down the economy as a measure to deter the spread of the virus. The suspension of business and industrial activities has resulted in disruption on the supply of materials and components to construction sites in Hong Kong.

Some contractors have to find alternative sources of materials for their works. However, the pandemic has also slowed global production and delivery of building materials from other parts of the world to Hong Kong. The progress of construction works are affected.

Government Department

In view of the local epidemic situation, the HKSAR government adopted special work arrangement for its employees as a measure to reduce social contacts and the risk of the further spreading of the COVID-19 in the community. Except those involved in the provision of emergency services and essential public services, all other government employees including those in Buildings Department, Housing Department and Lands Department have “work from home” arrangements. The ability of government departments to proceed applications; provide timely approvals and consents of works; and site inspections have also been significantly deferred. As a result, investments on a substantial number of projects are on-hold due to the time implication and difficulty in cash flow.

Construction Site

The progress of more than 90 per cent of projects in the city was delayed in this year by varying degrees. The industry has been experiencing lack of material and manpower. Some site workers, who have their main residence located in the mainland China have trouble returning to work due to the mandatory quarantine requirements. Some projects are delayed due to lack of labour.

Since the outbreak was first recorded in Hong Kong, the construction industry has put various measures in place. PPE including surgical masks and hand sanitizers have been sourced throughout the whole world and provided to site workers. Disease control procedures have been implemented as advised by the government to minimise the spread, both on-site and at workplaces; including preventive measures such as environmental disinfection and regular body temperature checks. An outbreak cluster in a construction site with 13 workers of a local construction contractor was reported in July. Fortunately, with the effectiveness of the measures introduced, further spread and large-scale outbreak of COVID-19 are prevented in construction sites.

Other General Situations

We are experiencing the third wave of this pandemic in Hong Kong, stringent social distancing measures are maintained including prohibition of group gatherings, limitation on dine-in services at restaurants, closure of some premises that are expected to gather people and to require the wearing of face masks at all times in public places and in public transports. In addition, a universal testing programme is now launched by the Government starting on September 1 to provide free COVID-19 testing service for the general public. Workers of contractors and consultants are encouraged to participate in the programme to protect the health and safety of workers and workplaces.

The construction industry is not the most affected one, compared to airlines, tourism, food and beverage. We hope that the impacts by the COVID-19 can be contained and things will get better soon.

Raymond Y M Chan, Vice President, WOBO

 

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