Construction is a high risk industry. When things go wrong, they tend to go very wrong. To keep up to date with the current dangers, here is a look at the risk trends in construction in New York that we are seeing now.
The New Omicron Variant
A new variant of the COVID-19 virus has emerged. According to the CDC, the Omicron variant has been discovered in several states, including New York. The variant is thought to spread more easily than the original strain, but more data is needed before we can understand the severity of the disease.
With this new variant, covid safety continues to be a priority for the construction industry.
] Vaccine Mandate Pushback
A federal The covid vaccine mandate for private sector workers would take effect in January, but the Senate has adopted a resolution to repeal the requirement. According to NBC, the resolution must go to the Democratic-controlled House, where it faces long odds.
Meanwhile, the delay adds confusion to the already divisive topic. The Engineering News-Record conducted a survey and found that only 40% of respondents supported the vaccine mandate, even though 73% were already vaccinated. In New York City, all city and contract staff must be vaccinated or tested weekly.
Shortage of labor, supply chain problems and backlog
Labor shortages and supply chain problems continue to cause problems for contractors.  According to the US Chamber of Commerce Q3 2021 Commercial Construction Index, 92% of contractors say they have moderate to high difficulty finding skilled labor. At the same time, 98% of contractors say that material cost fluctuations have a moderate or high impact on their business. Timber and steel are the biggest problems in terms of cost fluctuations right now.
These problems can exacerbate project delays. Among contractors who have difficulty finding qualified labor, 73% say that they also have problems meeting the requirements of the project schedule. Backlogs are also common, with 41% of contractors saying they have a backlog of six to 12 months.
Good for winter weather
Construction usually slows down in winter for a reason. Snowstorms can make projects more difficult and dangerous.
When contractors try to speed up delayed construction projects, they may encounter more and more winter weather. According to NY Metro Weather, the winter of 2021 to 2022 in New York City is expected to be colder than normal. The New York City Department of Buildings has tips and code requirements for winterizing construction sites.
Take Control of Your Construction Risks in New York
Trust the experts at BNC Insurance for your New York construction insurance needs. We offer coverage that is specially built for your construction exposures. Read more.