Covid-19 – NYC and Long Island Construction Impact Update as of May 6, 2020

Industry update courtesy of JLL Project & Development Services:

Governor update

  • Since Gov. Cuomo implemented the construction ban, ~ 85% of the construction projects in NYC stopped
    • that represents more than15M s.f. of new development
    • approximately 6M s.f. of commercial interiors
    • and an unconfirmed estimate of 5,000 residential units

  • The 15% of projects that remain on-going have been deemed as “essential” 
    • Primarily hospital construction 
    • With others having political or safety motivations deeming them essential 
    • Specific projects such as 50 Yds and 425 Park were re-started for a short period for safety and repair issues but were again stopped last week

Construction impacts

  • Contractors are gearing up for on or about May 18th start date
    • Projected delays 
      • Will vary depending on types – but all projects will be impacted
      • Exterior projects will be impacted by site logistics primarily; however, additional impacts could be felt due to Collective Bargaining Agreements and PLA’s etc.
      • Interior projects will be impacted by vertical transportation, social distancing, temperature sensing stations, etc. The exact impact will change project to project with each landlord organizing a process that fits their property. So small freight elevators vs. large and limited loading docks access will all have an impact.
    • Financial Stability of CM/GC’s and Sub-Contractors
      • Is of significant concern as cash flow has essentially stopped – documentation supporting financial stability should be requested
      • Materials deposits or pre-payments, sub-guard insurance, bonding, should all be discussed when organizing projects
    • Staffing
      • Unemployment, including the stimulus supplement plus added comp for union workers, have slowed re-engagement
      • We are hearing the gamut from “let’s wait it out” to “I’m ready to get back to work”
      • On one of our essential projects where manpower had reached close to 150 personnel – we are seeing less than 20 workers the first week with very gradual but slow improvement
    • Cost implications 
      • Trade costs should become more competitive but, the cost of doing business, the impact on schedules and productivity, make it difficult to identify what that means – again each project will have its own logistical issues
      • Re-mobilization claims and extended General Conditions and Requirements should be expected from CM/GC’s
      • Schedules extensions resulting in added General Conditions costs – so site Superintendents, PM’s and other GC or CM employees’ time on the project will be extended
      • Added General Requirement expenses including testing procedures, site cleaning, PPE and Site Safety, will also have a cost impact
      • We will share more details as this information is just getting to us
    • Materials
      • Impacted due to the demand out of the gate, initially, but then due to social distancing and the effect on productivity going forward 
      • Overseas shipments have commenced but, until we know what type of quarantine process is required, we cannot confirm the impact
    • Furniture
      • Similar to materials with regards to fabrication
      • Ultimate finishes will most likely be adapted to cleanable surfaces

State governance where fabrication is housed will play a major impact on manufacturers capabilities

Resources – Long Island Major Towns – No new updates as of 5/6/20

  • Town of Huntington Updated 4/30/20
    • Construction projects will continue to be delayed until the quarantine and social distancing rules are lifted by the Governor. Questions, contact the Building Permits Department at (631) 351-2821 between 8:30am and 3:30pm. 
    • The Huntington Planning Board, Zoning Board of Appeals [ZBA] Meetings to Continue to be Held Remotely and Live-Stream
    • Previously scheduled Town of Huntington Planning Board and Zoning Board of Appeals (ZBA) meetings will continue to be held remotely until further notice due to the Coronavirus pandemic.
    • Since April 7, the public has been able to listen to Planning Board and Zoning Board of Appeals (ZBA) meeting audio live on government access TV channels Optimum 18, FIOS 38 and at HuntingtonNY.gov/meetings where links to download agendas for all meetings are published ahead of time, containing links where the public may view documents related to items on the agendas; meeting video feeds are available for replay after the meetings take place.
    • The Planning Board has not yet determined a process for holding hearings online and therefore has postponed all public hearings until further notice. Comments on any matter before the Planning Board may continue to be submitted to planning@huntingtonny.gov.
    • The Zoning Board of Appeals (ZBA) has created a procedure for an online hearing process during the COVID-19 pandemic.
  • Town of RiverheadUpdated 4/30/20
    • Accepting applications via mail/email
  • Town of North Hempstead – Updated 4/30/20
    • In the interest of preventing the spread of coronavirus and during this public health emergency, North Hempstead Town Supervisor Judi Bosworth has announced that all Town facilities including the Building Department be closed until at least Tuesday, May 12, 2020.

      The Building Department is open for transactions related to “Essential Business” and issuance of permits related to emergency repairs only.

      Pursuant to New York State Executive Order 202.6 only construction related to property or a business deemed an “Essential Business” may continue to move forward (medical facilities, pharmacies, etc) at this time. Any other business or construction activities being completed at a location that are not essential is subject to the Executive Order on mandatory workforce reduction.

      In light of the above, the Building Department will not be conducting business related to construction which does not meet the above criteria. Please be guided accordingly. We will continue to monitor conditions and provide updates on the Town of North Hempstead website once the executive orders have been lifted.

  • Town of Oyster Bay – No Update
    •  
  • Town of Islip – No Update
    •  
  • Town of Smithtown – Updated 4/30/20
    • Board of Zoning Appeals: Meetings in April will be postponed until a later date
    • Planning Board: Meetings in April will be postponed until a later date
    • Planning Department: A drop box has been placed inside the vestibule where to safely submit plans and applications. If you require the services of the Planning Department, please call ahead or email your questions. Email: planning@SmithtownNY.gov Phone: 631-360-7540 Fax: 631-360-7546.
    • Building Department: A drop box for applications has been placed inside the building lobby. Please include a contact phone number and email before drop off so a department
      representative can properly process the application.
    • For Pick Ups: Please call the Building Department upon arrival (in the parking lot) for pickup or the collection of documents (Plans, Certificate of Occupancy/Compliance, letter of history etc.)
    • For any questions or services, please call the Building Department first (631) 360-7520 Fax:(631) 360-7639 buildingmail@smithtownny.gov
  • Town of Babylon – Update 4/30/20
    • Planning and Development – Please remember that ALL Building and Planning Department applications can be filed by mail. An in-person visit to the Planning and Building Departments is not necessary. Town Staff will call you to confirm receipt of your application and will mail you a receipt for the filing fee.
    • Please remember that if you are in need of other services, you can submit a request through our Online Services tool. Be sure to select Planning or Building under the “Departments” window and your request will be routed to the correct place.
    • Planning, Zoning Board of Appeals and Accessory Apartment meetings are cancelled until further notice.
    • The status of future meetings will be posted on the Town website as more information becomes available.
  • Town of Hempstead – No update
    •  
  • Town of Brookhaven – Updated 4/30/20
    • Town of Brookhaven’s Building Division will be implementing an online submission service.
    • Renew a Building Permit – Visit BrookhavenNY.gov/PermitRenewal
    • Submit a New Commercial Permit Application and/or Plans Review – Visit BrookhavenNY.gov/NewApplication
    • Requests for Property Documents/Research – Visit BrookhavenNY.gov/Research
    • Need More Information?
      Contact us online at BrookhavenNY.gov/BuildingQuestions or call 631-451-6659
    • Accepting commercial applications online, as well as drop off.  

Other Long Island Agencies- Updated 4/30/20

  • Nassau County Dept. of Public Works
    • NCDPW Permit Office/Counter remains closed. Inspections for previously issued permits and ongoing projects will continue.

  • Suffolk County Dept. of Health – No Update

  • Suffolk County Water Authority – No update

  • Nassau County Dept. of Health – No update

  • Nassau County Fire Marshal – No update

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