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COVID-19 strikes a blow to UK construction sector

06 May 2020
Commentary on the CIPS/IHS Markit construction PMI figures for April 2020. 

Ragene Raithatha, Construction & Infrastructure Senior Associate at global legal business, DWF, comments on the CIPS/IHS Markit construction PMI figures for April 2020. She said:

"COVID-19 has severely impacted the sector which has resulted in the fastest decline in UK construction output since the survey began 23 years. The sector has taken a blow as the COVID-19 pandemic has taken it by surprise. Uncertainty around site operations, given the need to meet social distancing requirements and safeguard employees coupled with shortage of supplies has led to much disruption on sites. 

"For the near future, the market is likely to become more contentious. Contractors will be alive to putting a line in the sand in relation to potential extension of time claims. Employers and contractors may seek to review contracts with a view to pricing and completion dates.

"They may also question whether the UK will need to look to a more localised supply chain for construction materials and workforce in the future. 

"Currently it is very difficult to predict what the future will bring but there will hopefully be brighter times ahead."

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