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Download the Coronavirus Survival Kit for Contractors & Suppliers
Learn the specific steps that construction businesses can take now to reduce coronavirus' impact on their payments, cash flow, and overall financial health.
Can I do Construction Work in my State - Live Tracker
Find out if you can do construction work in your state during coronavirus and stay at home mandates. Don't risk fines or loss of licenses.
FAQs About Coronavirus & Cash Flow
Answers to commonly asked questions about the coronavirus and its effect on cash flow in construction.
County Office Closures
County recorders' and clerks' offices are closing across the country. View the list of known closures, and learn how to file documents remotely. (Updated daily.)
Ask a Construction Lawyer
Post your coronavirus questions in our Expert Center, where construction lawyers around the country are waiting to help.
Videos & Webinars
Watch videos & webinars about coronavirus in construction, and how contractors & suppliers can prepare.
COVID-19 Information & Support
Contractor resources for health information & financial support from the CDC, SBA, and other organizations.
How construction businesses can survive coronavirus impact
Construction industry experts are predicting huge impacts on the construction economy, from delayed material supplies to legal disputes over non-payment. Contractors and suppliers can take simple, concrete steps now to give themselves the best chance to survive the COVID-19 outbreak.
- How Contractors Can Survive Coronavirus And Get Paid – Not Burned
- 9 Construction Lawyers Give Scary Advice for Contractors to Survive Coronavirus
Is construction an essential business?
As states and cities declare stay-at-home and shelter-in-place orders, many “non-essential” businesses are being forced to close. While the Department of Homeland Security (DHS) has issued guidelines for critical industries during a national emergency, states are generally free to define “essential” as they see fit. In some states, construction is specifically mentioned as an essential business, while others are more vague with their directives.
Look at your contract: Force majeure & delay clauses
Some cities are already shutting down construction projects in response to coronavirus concerns. For projects already in progress, contractors and suppliers should look at their contract’s delay provisions and force majeure clauses – to determine their next steps. In addition to that, be sure to look out for any “no damages for delay clauses” as well.
- Are Coronavirus Delays Covered Under Your Force Majeure Clause?
- Coronavirus & Construction: 8 Contract Clauses That Could Sink You
Prepare for supply chain disruptions
With border shutdowns and restrictions on travel and transport, construction companies need to prepare for some disruptions to supply chains. To anticipate these delays and increased costs, companies need to start planning ahead to identify alternative building material sources, and adjust their project schedules and contracts accordingly.
Coronavirus & business interruption insurance
Construction companies need to begin preparing for the inevitable financial losses associated with loss of income. To protect their company from these coronavirus-related losses, one consideration should be to seek out coverage under a business interruption insurance policy.
Cash flow options
While construction projects are delayed or cancelled, contractors and suppliers still have bills to pay and expenses to meet. They would do well to assess their financial situation and cash flow needs now, and determine what additional infusions they may need to ride out the downturn. Construction businesses that anticipate needing extra cash have a number of viable options, including US Small Business Administration (SBA) Disaster Relief Loans, a line of credit, bank loans, invoice factoring, and more.
File a mechanics lien to get paid
As cash and credit lines dry up, the coronavirus outbreak may make it more difficult for contractors and suppliers to get paid. But in this unprecedented situation, you may not have time to follow the normal mechanics lien process. The most important thing you can do is act now to protect your lien rights.
Lien rights & field hospital construction
To increase patient capacity, some cities are hiring contractors to build mobile field hospitals. While highly important work, building temporary structures can be a financial risk. Most states don’t give construction companies lien rights for work on these types of projects.
County office closures: How to record mechanics liens & other documents remotely
Every day, more county offices across the US are closing. However, construction businesses still need to record important construction documents to secure their right to payment. Such as notices, mechanics liens, and more. In most cases, contractors and suppliers have options to record a lien or notice remotely.