MBA Member Connect Event Q&A April 17, 2020 PRESENTED BY: Dan - - PowerPoint PPT Presentation

MBA Member Connect Event Q&A April 17, 2020

Dan McLennon | Smith, Currie & Hancock LLP

PRESENTED BY:

2 Practical Considerations for Dealing with COVID-19

Questions for Today

• 1. I have seen some contractors still working--why is this still

happening, with restrictions in place and known safety hazards?

• 2. What are my options for my suspended, unfinished projects?
• 3. What financial assistance is available to help keep contractors

afloat?

• 4. Do I lose forgiveness under PPP if I have to lay off people or

reduce wages?

• 5. What rules must essential contractors follow on continuing

construction sites?

3 Practical Considerations for Dealing with COVID-19

Questions for Today

• 5. What best practices are you seeing on projects that continue

to operate?

• 6. What’s next regarding the relationship between the client and

the builder? 7.

• 7. When ar

When are we going back to work?!! e we going back to work?!!

First a Little Good News!

5 Practical Considerations for Dealing with COVID-19

CALIFORNIA Ominous Projection!

March 18, 2020

“We project that roughly 56 percent of our population—25.5 million people—will be infected with the virus over an eight week period.”

6 Practical Considerations for Dealing with COVID-19

Restrictions are Working!

Why are some contractors still working?

8 Practical Considerations for Dealing with COVID-19

Reasons for Projects to Continue

• Essential construction
• “Some work will be allowed to continue if deemed essential, such as finishing work on a home’s
• nly bathroom or hooking up electrical or gas connections on a stove to make a kitchen usable.

In addition, CDA is allowing the continuation of work and issuing building permits for essential construction projects such as for health care facilities, income-restricted affordable housing, shelters, and temporary housing. Permits may be issued for construction or repair necessary that ensures residences and essential businesses are safe, sanitary, or habitable if the work cannot reasonably be delayed.” Marin Community Development Agency-- https://www.marincounty.org/main/county-press-releases/press-releases/2020/cda-covid- permittingprocess-040320

• Scofflaws
• Citations starting!

What are my options for my suspended, unfinished projects?

10 Practical Considerations for Dealing with COVID-19

Options for Unfinished Projects

• Even if project is not “essential”, make sure it is safe, sanitary,
• r habitable if the work cannot reasonably be delayed.
• Ensure site security
• Meet with stakeholders—owner, contractor, key subs and

suppliers—to plan minimizing impacts and restart

What financial assistance is available to help keep contractors afloat?

12 Practical Considerations for Dealing with COVID-19

Financial Assistance

• Consider also possible tax relief
• Enhanced unemployment for workers

13 Practical Considerations for Dealing with COVID-19

Financial Assistance

https://www.sba.gov/ page/coronavirus‐ covid‐19‐small‐ business‐guidance‐ loan‐resources https://www.smithcur rie.com/publications/c

• vid‐19/

Do I lose forgiveness under PPP if I have to lay off people or reduce wages?

15 Practical Considerations for Dealing with COVID-19

PPP Loan Forgiveness

https://www.smithcurrie.com/publications/covid‐19/loan‐forgiveness‐ applies‐to‐february‐15‐2020‐april‐26‐2020‐lay‐off‐rehires/

What rules must essential contractors follow on continuing construction sites?

17 Practical Considerations for Dealing with COVID-19

Site Safety Rules

• Depends on location—No construction-specific in Marin
• San Francisco as of April 4:

https://www.sfdph.org /dph/alerts/files/Const ruction‐Industry‐ DirectiveOrder‐ 040220.pdf

18 Practical Considerations for Dealing with COVID-19

Site Safety Rules

• OSHA General Duty Clause, Section 5(a)(1): Provide employees with

a place of employment “free from recognized hazards that are causing or are likely to cause death or serious physical harm”

• https://www.osha.gov/SLTC/covid-19/standards.html
• https://www.cdc.gov/coronavirus/2019-ncov/prevent-getting-

sick/prevention.html

• https://ladbs.org/docs/default-source/publications/misc-

publications/construction-site-guidance.pdf

What best practices are you seeing on projects that continue to operate?

20 Practical Considerations for Dealing with COVID-19

Best Practices for Ongoing Projects

• Communication and lots of it!
• Get stakeholders working together to mitigate impacts
• Worker Health Self-certification Forms
• Essential Worker Cards

https://www.smithcurrie.com/publications/covid-19/essential- work-certification-card/

What’s next regarding the relationship between the client and the builder?

22 Practical Considerations for Dealing with COVID-19

Future Relationship Issues

• Some Owners and Contractors will work cooperatively to

mitigate and allocate impacts

• Others will suffer claims and litigation over contracts rights

and obligations

• Obligation to complete the work
• Force majeure relief

When are we going back to work?!!

24 Practical Considerations for Dealing with COVID-19

When can we get back to work?!!

• Likely May 31 or later, per Gov. Newsom April 14, 2020

25 Practical Considerations for Dealing with COVID-19

When can we get back to work?!!

Thank you for participating!