Managing the Shutdown of Your Construction Project

While the current pandemic is a rapidly evolving situation, many businesses, including those in the construction industry, are looking at their unique situations and trying to determine what is in the best interest of their key stakeholders and employees.

Construction managers and other contractors may be required to suspend a construction project for a prolonged period of time, potentially posing a hazard to the public and creating property damage exposures for the construction firm. Thus, when shutting down any construction project, it’s critical for the company to focus its efforts on preserving the property and protecting the investments made in the project. The project site and any adjacent hazards and exposures should be evaluated for risks to address in the project shutdown plan.

Effective property preservation actions may include:

  • Conducting a formal review of the project schedule and project sequence;
  • Reviewing site logistics, substructure, superstructure, building envelope, building systems and material storage;
  • Involving all parties (design and construction) in the shutdown process;
  • Confirming subcontractor management controls and installation reviews of critical equipment/materials for property preservation;
  • Maintaining security and access controls to the project site; and
  • Reviewing fire protection measures and coordinating with local emergency response organizations to establish communication protocol with local authorities.

To read about other property preservation considerations and to access a construction project shutdown preparedness checklist, view Chubb’s Inland Marine: Construction Project Shutdown Plan.

Ray Szczucki, P.E., ARM is Account Engineer, Inland Marine. Based in Pennsylvania, Mr. Szczucki is responsible for engineering evaluations and construction risk management services for builder’s risk and engineered risk accounts.

The opinions and positions expressed are the authors’ own and not those of Chubb. The information and/ or data provided herein is for informational purposes only and is not a substitute for professional advice. Insurance coverage is subject to the language of the policies as issued.