Covid-19 has turned the world as we know it on its head. We are facing travel restrictions, quarantines, lockdowns and great uncertainties in our personal and professional lives. The construction industry has not been spared. However, as a contractor, you can use this time to strengthen your company. We will guide you in taking steps to prepare your business for the post Covid-19 world.
5 Business Tips for Contractors
In this article, let’s look at 5 business tips for contractors that can help you mitigate risks and come out stronger!
- What are the immediate and mid-term risks to my business and what can I do about them?
Being aware of and prepared for possible risks places you in a stronger position to respond. During the shutdown, take time to analyze your immediate and mid-term risks and the various ways in which you can address them.
Plan to mitigate material supply and availability risks.
Since construction companies in the United States depend on China for 30% of material supplies, it is to be expected that there will be disruptions in supply. Prepare for future demand with limited availability. Keep updated information from your suppliers. Research possible local alternatives bearing in mind the price differentials.
2. Plan to mitigate labor shortage risks:
Even under normal circumstances, the U.S construction market faces skilled labor shortages. Your laborers are likely to be impacted by Covid-19 either directly or through family connections. Start planning for such an eventuality by getting updates from laborers you repeatedly employ. Not only will you build rapport, but you will have a firm idea of how many employees will be available as soon as you are ready to get back to work.
3. Plan to mitigate reduced demand for construction risks.
Immediately post Covid-19 crisis, buyers may sideline non-urgent construction projects. To prepare for this outcome, review your business’s financial liquidity. Realign your business strategy to the changed circumstances. Re-organize priorities such as expansion or diversification plans or major purchases in favor of keeping low overheads and staying afloat until business picks up again.
4. Plan to mitigate termination of contracts and delay of contracts risks.
Where possible, renegotiate active contracts to accommodate delays that may happen as a consequence of supply chain interruptions. You may have to renegotiate contract terminations too if extended delays negate project feasibility. This is also the time to research on Builder’s Risk insurance cover extensions, in case such eventualities occur.
Your Post Covid-19 Action Plan
With unexpected events such as Covid-19, having the right construction insurance is an added measure to protect your business. With our vast industry knowledge, extensive experience and excellent customer care, Farmer Brown Insurance is here to provide the support you need to navigate the right construction insurance for your business. Call Farmer Brown today on (888) 973-0016.