Quote:
Originally Posted by s211
There may be many physical reasons for getting going, but virtually all real estate groups in North America and Europe have postponed their 2020 CAPX programs. I would be surprised if Manulife Place kept going full bore, for the time being. If they do go ahead, that'd be nice to hear.
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it's not just capx…
there's still a host of components in the supply chain that have just gone "🞵🞵🞵🞵".
8 - 12 week deliveries might be 8 - 12 months if you can secure them.
material pricing and exchange rates are "your guess is as good as mine".
and no one knows the impact yet on job sites. there is no magic to construction - it's pure logistics. all of these components are "here" and we want them "there" in as little time as possible. which means the more people you maintain on a site while still being productive the better. noone really knows the impact on "social distancing" on construction sites, particularly inside work with constricted access. one of the first "casualties" as things reopen is likely going to be having more than one trade in a relatively large area at a time. this will play havoc with mobilization and demobilization and remobilization as trades dependent on the work of other trades cycle through a site. productivity is likely to decline considerably while the length of time it takes to complete a project will stretch out that much longer as a result.
what kind of impact is this going to have on costs and the viability of projects? as i said above, "your guess is as good as mine".