As a national commercial contractor that manages projects in markets across the country, I have a unique perspective on how the COVID-19 pandemic is impacting commercial construction in different regions – and specifically, how cannabis facility projects are advancing in this new landscape.

The Outlook

I’m pleased to report that, with the exception of projects in a small number of cities and states where construction is specifically halted under the parameters of stay-at-home orders, the majority of cannabis operators we work with are eager to push facility projects forward – whether they are in the planning stages for new dispensary or cultivation facilities, or already in the midst of construction. Commercial contractors, for their part, are equally committed to advancing projects and serving our clients through these challenging times.

But despite construction being deemed essential in most states, we all know it’s not business as usual. To help owners navigate this unchartered territory of construction during COVID-19, we have identified a number of special considerations and outside factors clients should be aware of that could potentially impact the progress of their projects.

Special Considerations

• Social distancing on job sites: If a state is under a ‘stay-at-home’ order but construction is allowed to continue as an essential business, general contractors and subcontractors are expected to practice social distancing on job sites. This could mean changes to project timelines, such as adjusting subcontractor scheduling in order to avoid individuals from different trades working in close proximity in the same area, or placing workers in staggered shifts to minimize the number of people on site at one time. While good planning can minimize delays from these measures, these steps can potentially push back the project completion date.
• Manpower challenges: Even in areas where construction is moving forward, some subcontractors opted to close temporarily. Additionally, subcontractors that remain open for business might have employees opting not to work depending on their individual comfort level. Depending on the region, this is exacerbating what was already a tight commercial construction labor market, and could create a ripple effect of subcontractors continuing to command high pricing, which in turn affects project budgets and scheduling. Additionally, this constrained labor landscape makes it more important than ever to choose a general contractor with a wide network of trusted subcontractor partners they can tap into for any given job.
• Additional time for permitting and inspections: In locations where municipalities are closed or operating with a limited staff in compliance with shelter-in-place orders, permits may take longer to obtain – which in turn pushes back start dates for projects. Likewise, building inspectors may not be immediately available, which could hold up progress on a project until a required inspection takes place.
• Potential delay of material deliveries: Construction projects could also be delayed because of difficulty obtaining materials due to COVID-19. Products ordered from overseas may arrive late if ports of entry are closed or maintaining minimum staffing as part of social distancing. Similarly, manufacturing shut-downs in areas with shelter-in-place orders could lead to some materials having limited availability. A knowledgeable general contractor or architect can often suggest alternate materials, particularly in early planning stages, and advise on items most susceptible to delays.
• A good time for planning: Now is a great time to start the planning process for future facility projects. Our estimating department has actually experienced a significant uptick in bidding activity so far in Q2, which speaks to the optimism clients have for proceeding with projects in coming months. In some regions, depending on demand and the local labor market, there could be a pricing benefit to putting projects out to bid now, with subcontractors in areas where construction has slowed or halted eager to build up their pipeline of future projects and therefore offering competitive pricing.

The impact of COVID-19 on our industry is unlike anything else I’ve experienced during my 30+ years working in commercial construction and real estate. But despite the uncertainty surrounding these unprecedented times, I look around and see most companies going above and beyond to make sure work continues, while also taking every step they can to ensure the well-being of employees, customers and partners. As we all navigate this new normal together, be sure to value the relationship between client and contractor and rely on trusted partners to see us all through.