11 minute read
Don’t Lose Sight of the Big Picture: HOA Construction Projects During the Pandemic
Don’t lose sight of the
HOA Construction Projects During the Pandemic
BY REGAN BROWN & BILL MANN
Continued on page 18
Don’t lose sight of the
HOA Construction Projects
During the Pandemic
As the counties lift restrictions on BY REGAN BROWN & BILL MANN construction, new job site guidelines have been mandated and there are generally two different scenarios which will be covered. The importance of careful and current review of the county requirements cannot be stressed enough, especially as the guidelines change quickly. Many health departments adopted the same guidelines and construction was allowed to restart. The San Francisco Bay Area counties and Sonoma adopted a policy, referred to as “Appendix B” which issues different requirements depending on the size of the project. Projects where work is being conducted on 10 or fewer units are considered “small jobs” and have a required protocol like the rest of California county constraints for all of jobs. The Bay Area and Sonoma counties
also have a separate policy for large projects of 11 units or more. To clarify the classification of a project, here are a few examples: 1. The project consists of a 100-unit HOA, but the work is only in one unit. This would be classified as a small job. 2. The project is an exterior painting project on a 50-unit community made of 5-unit buildings. This would be a large project since the total number of units under the painting contract exceeds 10 units.
So, What are the Requirements?
For “small projects” in SF Bay Area, Sonoma and “all projects” in the remaining counties the requirements are as follows. (Remember to check with the county for up-to-date guidelines).
As the counties lift restrictions on construction, new job site guidelines have been mandated and there are generally two different scenarios which will be covered. The importance of careful and current review of the county requirements cannot be stressed enough, especially as the guidelines change quickly.
Many health departments adopted the same guidelines and construction was allowed to restart. The San Francisco Bay Area counties and Sonoma adopted a policy, referred to as “Appendix B” which issues different requirements depending on the size of the project. Projects where work is being conducted on 10 or fewer units are considered “small jobs” and have a required protocol like the rest of California county constraints for all of jobs. The Bay area and Sonoma counties also have a separate policy for large projects of 11 units or more. To clarify the classification of a project, here are a couple examples: 1. The project consists of a 100-unit HOA, but the work is only in one unit. This would be classified as a small project. 2. The project is an exterior painting project on a 50-unit community made of 5-unit buildings.
This would be a large project since the total number of units under the painting contract exceeds 10 units.
So, What are the Requirements?
For “small projects” in the San Francisco Bay Area, Sonoma and “all projects” in the remaining counties the requirements are as follows: (Remember to check with the county for up-to-date guidelines). • Designated COVID-19 supervisor on-site fulltime • Protocol plan in place on site • Training of all employees • Signage in English and Spanish • Daily reporting including visitor logs • Daily screening of employees • Social distancing • Alternate entries from public • No gatherings for breaks or eating • No microwaves or shared coolers, drinks, etc. • PPE, non-medical grade – masks, gloves, eye protection • Stagger trades
Should not share tools or must disinfect between use Handwashing facilities at multiple locations Sanitize handwashing stations, restrooms or other enclosed workspace or high touch areas Water now must be in single serve containers (bottled) Interior work requires full sealed containment of work area with daily sanitizing Daily visitor log Posted notices in multiple locations Carpooling only if it is your only transportation to work, or from same household
For “Large Jobs” in the San Francisco Bay Area and Sonoma Counties under Appendix B. These have the same protocols as small jobs including: • Daily COVID-19 safety meeting • Daily site inspection • Temperature checks of crew • Sanitize Job Site in the AM/PM • Check point signage • Decontamination area set up in yard • Job site specific protocols • Allow time for proper decontamination • Alternate entrance to Job site when possible • Daily briefings • COVID-19 Compliance safety officer with posted name and number • Remediation plan in case of contamination • MUST CONTRACT WITH A THIRD PARTY JOBSITE SAFETY ACCOUNTABILITY SUPERVISOR (JSAS): –Minimum 30-hour OSHA card –Written assessment every 7 days –Submit compliance to the county –Authority to stop work
Job sites in the South Bay Area have been closed due to COVID-19 outbreaks among the crew members. It is important to understand that the authority to close a site is to protect both the construction worker and the residents of the community.
While these protocols will certainly extend schedules and increase costs, items like full containment for interior work and no carpooling may require some work to be postponed until the pandemic is over. As construction workers have returned to work, parking for the crews at occupied residential sites has been difficult to impossible. Before COVID-19, construction crews would arrive together at the jobsite in a 12-person worker van, carpooling to the jobsite. Due to distancing rules, workers now must drive single vehicles to the jobsite unless it is their only means of transportation, and a maximum use of 12 parking spots. With HOA residents at home sheltering in place, empty parking spaces are few and far between. The addition of the crew’s trucks creates a new parking issue for the HOA to overcome.
Interior work has some of the same hurdles. Many residents are now working from home resulting in additional challenges. Contractors must work around home offices and often the work requires fully sealed containment. With home offices, interior work may be too much of a disruption or inconvenience to proceed. Noise levels of the work should also be considered. It is very difficult to be on a Zoom meeting while a crew is jack hammering outside a window. These types of repairs may need to be postponed until restrictions are lifted and residents go back to work, or at least an increase in communication to the residents to communicate more clearly the type and necessity of the work and to set expectations.
Construction Costs Increase Due to COVID-19
Since 2016, there has been a sharp increase in the cost of construction. It has impacted our state and nation with increases as high at 17% in a single year. San Francisco was the single most expensive place to perform construction in both 2018 and 2019 with many Bay Area communities not far behind. The ongoing housing shortage stimulated construction growth creating a fast track environment in California. Now in 2020, the pandemic has arrived with an entirely new set of concerns. Construction is still facing the same problems with the original trade issues, labor shortages and high material costs, but now also unique circumstances creating new costs directly affecting projects.
Prior to the COVID-19 pandemic there were problems procuring materials due to complex trade agreements, high demand of materials for booming commercial construction, disaster relief & preparation, and new residential projects. Additional difficulties included severe labor shortages and escalating wages. At the time the shelter in place went into effect, unemployment was at an all-time low of 2.9%, the lowest since 1969. Continued on page 20
Don’t Lose Sight of the Big Picture Continued from page 19
The pandemic has created havoc in all areas of business, but especially vulnerable to financial burden has been small resource companies, that regardless of government financial infusion many are simply not surviving requiring contractors to go elsewhere to fulfill their
contractual obligations. This along with the many strict requirements of the new COVID-19 safety policies, have now put budgetary constraints on existing projects, with many of those additional costs being passed through to the associations including those preparing to bid new work. This has led many boards to consider the prospect of “waiting until this is over” vs. pursuing existing project plans. First, the evidence to wait from a cost analysis perspective, demonstrates it is not a great idea because the trend for the past 5 years has been a steady increase in costs both material and labor for many of the reasons listed above. Boards should expect the COVID-19 safety practices costs to continue. This will also create impacts on the overall construction schedule. For example, if the project included 10 workers for 12 months, adding 20 minutes a day for COVID-19 safety compliance the added labor hours alone would increase approximately 3 weeks to the schedule. This does not include the delay of materials and sub-contractors that may also impact the schedule. Depending on the size of and complexity of the project, cost increases can range anywhere from 3-10%.
Additionally, due to the delays of COVID-19 in early spring, many contracts that were signed and allocated still need to be completed. This will push the construction for new projects well past the typical summer months leaving the projects delayed into next year. It also appears that the labor force may not be as strong as it was at the time of shut down. This will continue to fuel the shortages that are already in place. Employers are also taking this opportunity to change out poorly skilled employees.
So, should a project be postponed until the pandemic is over? It really depends on whether the project is for “interior or exterior” repairs, whether homeowners are prepared and ready for the project, or if the project can be “safely” postponed. If the decision impinges on timing
of the work and whether costs will be better now or later, boards can expect general construction costs to continue to climb and that COVID-19 will continue to have a significant impact on project budgets into the foreseeable future.
Regan Brown is the owner and CEO of The G.B. Group General Contractors and has been in the HOA industry for over 26 years.
Bill Mann is President at The GB Group, a full-service construction company offering construction and consulting services throughout Northern California and Nevada.
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