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Many have dismissed warnings that avian flu could result in a pandemic, but construction industry firms should take notice. If an outbreak occurs, firms will have to take special precautions to protect employees and react to critical delays caused by diminished staffing. Worker absenteeism would soar, and public health measures could effectively quarantine the afflicted or prohibit routine business activities. Project completion could be delayed by a lack of skilled workers, specialty contractors, and even general laborers.
Review Contingency Plans, Insurance Coverages, and Procedures
Many firms are currently working at capacity. In the event of a pandemic, employees may be unable to work and replacements impossible to find. Prudent firms will focus on reducing the potential exposure of employees and lining up alternative workforces. Procedures should be developed to meet OSHA and other government regulations, including those requiring temporary restrictions, disability benefits, and medical treatment for workers who become sick because of their employment activities.
Include Mass Illness as a “Force Majeure” in Contracts
The spread of any highly contagious disease on construction sites could hinder or halt construction. Project owners should be made aware that a disruption in the construction workforce could severely affect the timing and quality of projects and could have a significant impact on the ability of the construction industry to meet project deadlines and cost constraints. A pandemic should be recognized as creating an impossibility of performance. Firms should not be held responsible for delays caused by circumstances outside of their control, and contracts should reflect this understanding.
All firms providing design and construction services should consider the possible effect of a pandemic on their internal operations and their abilities to meet contractual requirements.
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