The Foundation of the American Subcontractors Association made a preparation guide for natural disasters available to American Subcontractors Association. The guide cites statistics from the Federal Emergency Management Agency (FEMA) that 40% of businesses do not reopen following a natural disaster. Ninety percent of companies fail within two years of experiencing a natural disaster, according to the United States Small Business Administration.
How natural disasters can affect the construction industry
- Demand for skilled workers increases
- Logistical issues for local travel to construction site and environmental issues impact access to site
- Materials used for restoration and recovery become scarce and difficult to obtain
- Large scale damage for equipment and supplies
- Overall cost of project increases
- Disruptions and delays occur as a natural result of the above issues
- Unforeseen delays can also create contractual issues and lead to litigation
What the guide includes
FASA's guide offers guidance, including the following:
- Federal resources to consult or contact before, during and after the event
- Insights on commercial property insurance, specifically for the types of disasters it may not cover: flood, hurricanes and earthquakes.
- Legal and contract considerations on projects following a disaster
