Couting the cost

CIC’s Graham Watts discusses a summary of the July Constructionline survey on contractual issues arising from the Covid-19 pandemic.

A total of 1,072 firms responded to the Constructionline questions about the impact of Covid-19 on business. Of this total, 75% of firms estimated that Covid-19 will have a negligible to medium impact on costs (18% report no impact). Estimates of additional cost also vary significantly by size of firm. The average estimate of costs among large businesses (>250 employees) is £1m, reducing dramatically to £125k for medium firms (50-250 employees) and £30k and £20k for small (10-49 employees) and micro (1-10 employees) respectively. However, 80% reported unresolved issues related to delays due to Covid-19. 25% reported that these related to additional costs incurred, 5% reported these related to relief from liability for delays, and 9% reported other unspecified issues. 52% of firms (519) reported that contracts they are a party to had been amended to take account of the impact of Covid-19.

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