The Role Of Covid-19 On The Construction Industry

CHAPTER ONE

INTRODUCTION

1.1 BACKGROUND OF THE STUDY

COVID-19 has impacted communities all over the world, with over 10.5 million documented cases with a figure that is continuously climbing (WHO 2020). In today’s globalized world, there is no location that has not been impacted by the Corona virus (COVID-19) epidemic. The COVID-19 pandemic has affected almost all commercial, economic, and social activities. According to Osuizugbo  &  Ojelabi, (2020), similarly, the construction and engineering industries are not immune to this crisis; they are also suffering from it. Construction is more important than ever during these challenging times. From erecting hospitals in a matter of days to contributing life-saving equipment, the sector has played a key role in both responding to and recovering from the disaster. Arguably, the construction industry accounts for 16% of global GDP, and increasing workforce availability could assist drive recovery while addressing our most pressing construction-related demands. Many countries’ construction sites have been shut down. And the majority of the plants that are open have been plagued by disrupted supply chains and operating constraints. Such upheaval has been mirrored in financial indices. The Nigerian construction sector is made up of a diverse and disconnected set of enterprises, and within those companies, a wide range of activities are available (Oladinrin, Ogunsemi, & Aje, 2012). Contractors are organizations, firms, or companies that conduct construction projects (Mafimidiwo & Iyagba, 2015). Since the genesis of the pandemic, public engineering, construction and building materials (ECB) firms have fallen much more than the average. Osuizugbo  &  Ojelabi, (2020) observed that in Nigeria, the effects of the COVID-19 pandemic on projects may be caused by:

  1. Regulatory pronouncements by federal and state governments restricting movement, closing business operations (including construction activities, as in the case of Lagos State), and imposing health and safety measures to contain the virus’s spread, such as requirements for social distancing and restrictions on public gatherings; and
  2. Secular by industry regulators stipulating restrictions on public gatherings.

As a result, the building industry is losing money, which has an influence on the global economy. It has also impacted the transportation infrastructure, causing the supply of materials to be disrupted. Because the construction industry is experiencing a financial downturn, many of their employees are being laid off. Overall, the construction business has taken a disastrous turn.

1.2 STATEMENT OF THE PROBLEM

The entire globe ground to a halt when the covid-19 epidemic broke out. This pandemic has had an impact not only on human health but also on the operational health of enterprises and organizations, including the construction industry. While governments and businesses around the world are acting quickly, there is still much work to be done. According to Osuizugbo  &  Ojelabi, (2020), the construction industry suffered and has been greatly impacted, particularly in the cities and has affected the financial investment and contributions of the industry in the Nigerian economy. It is from this context that this study tries to investigate the impact of the covid-19 lock down on the construction industry.

1.3 OBJECTIVES OF THE STUDY

The primary objective of this study is to the role of covid-19 on the construction industry. Other specific aims of this study are:

  1. To determine if the Covid-19 pandemic has affected the working schedule of construction workers in the industry.
  2. To examine the extent in which the pandemic has affected the income and revenue of the construction industry

iii.      To determine the extent in which the pandemic has affected the health of workers in the construction industry.

1.4 RESEARCH HYPOTHESES

Ho1: Covid-19 does not have significant effect on the income and revenue of the construction industry.

Ha1: Covid-19 has significant effect on the income and revenue of the construction industry.

Ho2: Covid-19 does not have effect on the working schedule of construction workers in the industry.

Ha2: Covid-19 has effect on the working schedule of construction workers in the industry.

1.5 SIGNIFICANCE OF THE STUDY

This study will be of great importance to the construction industry as the findings of this study will reveal the effects of covid-19 on the income, revenue generation, health and working schedules of the industry. This study will also be significant to scholars and researchers as this study will serve as an existing material for further studies and future reference.

1.6 SCOPE OF THE STUDY

This study will be focused on the role of covid-19 on the construction industry. It will also be specifically focused on determining if the Covid-19 pandemic has affected the working schedule of construction workers, the extent in which the pandemic has affected the income and revenue of the construction industry and the extent in which the pandemic has affected the health of workers in the construction industry.

This study will be using staff of Hensek Construction Company Ltd., Uyo as enrolled participants for the survey.

1.7 LIMITATATIONS OF THE STUDY

This study will be limited to the role of covid-19 on the construction industry. It will also be specifically to determining if the Covid-19 pandemic has affected the working schedule of construction workers, the extent in which the pandemic has affected the income and revenue of the construction industry and the extent in which the pandemic has affected the health of workers in the construction industry which are the objectives that guide this study.

This study will be limited to staff of Hensek Construction Company Ltd., Uyo hence further research is needed if the findings of this study is to be used anywhere else.

1.8 DEFINITION OF TERMS

Role: the function assumed or part played by a person or thing in a particular situation.

Covid-19: Coronavirus disease (COVID-19) is an infectious disease caused by the SARS-CoV-2 virus.

Construction: the action of building something, typically a large structure

Industry: economic activity concerned with the processing of raw materials and manufacture of goods in factories.

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