Commercial contractors may be temped to dive straight into a commercial renovation or new construction projects when they win the bid. There can be the mindset that the sooner a project starts, the faster it will finish. Unfortunately, this kind of thinking doesn't work when there is no essential planning at the onset of any project.

The commercial building process has many tasks that can appear overwhelming, especially to new project managers and contractors. Apart from the pile of tasks that contractors have to face, they also have to deal with deadlines, public safety, budget concerns, decision making, quality management and even human resources. Moreover, the current global pandemic is a total game-changer, especially in the construction industry. With no sign of stopping construction projects, commercial contractors must adapt and be ready for what's to come in future projects.

Here are some tips on how commercial contractors can face upcoming projects in today's new normal.

Assess Financial and Operation Risks

It is a given that throughout the pandemic, any construction company will experience significant delays and disruptions. It may be from supply chains slowing down or from a general shortage of labor. Before accepting any commercial project, it is essential to assess financial and operational risks, including their impact on the company's overall liquidity. Proactivity should be in place when renegotiating contract terms. Another consideration is to find alternative supply chain options, especially if suppliers come from different areas that are severely affected by the pandemic. Local options will be better than overseas suppliers.

Of course, almost all counteractive measures for any commercial contractor involve cash. It is the time when the assessment of overall short-term liquidity should follow. It will help in strictly monitoring the cash flow of the business. Inventory management must be a focus, since prolonged storage of materials and equipment can incur pending receivables and proportional carry costs.

Time to Review the Contract Creation Process

Contracts are the most powerful tool in any contractor's book, especially when correctly done. With the pandemic and the new normal, every provision must implement the same. Force majeure provisions are essential, primarily since many commercial construction businesses cannot fulfill their obligations due to the pandemic.

When moving forward in upcoming projects, there is no better opportunity than now to review a construction firm's entire contract creation process. Negotiating contracts must already be poised to address situations like this pandemic. Although it will not ensure recovery from the crisis, it will significantly help avoid any payment issues that can disrupt the restoration of the business.

Prioritization of Employee's Safety

All construction projects include safety hazards on jobsites. However, with the pandemic, an entirely different type of challenge is faced by all construction firms. Transitioning to the new standard must cover all the employees. Easing into this kind of transition includes a commercial contractor's job to explore opportunities such as work arrangements for non-field employees and flexible options like remote work. It is an entirely different story for field workers since additional measures must be put in place to fight against infections. Hygiene facilities and social distancing protocols must also be a part of all commercial renovation and new construction projects.

Revisiting employee leave policies and providing additional guidelines should also be part of commercial construction companies' rules and regulations. More importantly, commercial contractors must be open to addressing all employee concerns in a reassuring, transparent way.

Clear Communication with Owners and Subcontractors

The most basic but essential tip of clear communication applies even more today. Commercial contractors should talk to business owner clients about force majeure and making claims for delays in projects. It is the contractor's task to provide the owner with all available information on the extent of the project affected by the COVID-19 and the steps in proceeding with the work safely. The project cost and schedule should also be precise with the owner. Clear communication with the owner will clear plans with the contractor, especially whether the project will continue.

Furthermore, it must communicate subcontractor agreements and identify material terms, especially on provisions regarding health and safety, compliance with the laws and project completion deadlines. Subcontractors should have an avenue to report to authorities if a contractor does not comply with a commercial project's necessary safety precautions.