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Coping with COVID- 19 in The
Management of Projects
-A View From Nigeria
By
Bldr. Samson Ameh Opaluwah
fniob, fnim,fnse,ficiarb,fnice,fnithe,fosha
Vice Chairman
CORBON
Brief introduction
• Name: Samson Ameh Opaluwah
• A professional Builder, a Construction Manager a
Facility Manager and a Procurement Expert
• 42 years in practice as a Construction Manager
• Experience covers Consultancy, Cement Industry
and the Nigerian Civil Service.
• Currently Vice Chairman of Council of Registered
Builders of Nigeria (CORBON)- the professional
regulatory body for Builders / Construction
Managers in Nigeria
Introduction
• The Covid-19 pandemic crept upon the entire world
unexpectedly and has created an environment not
witnessed in the last 100 years where almost the entire
world has to shutdown for a microscopic virus allegedly
created in the laboratory.
• The morbidity and mortality rate of the Covid-19
pandemic has caused many nations to shutdown their
economies.
• With the shutdown of the economies and lockdowns
imposed on the cities of many countries, ongoing
projects and plans for new ones came to a halt. Thus
project managers are confronted with an unforeseen
circumstance with international and national dimensions.
The COVID-19 Situation In Nigeria
• The index case was announced on 27th
February, 2020 in Lagos, Lagos State.
• There has been an increase in the number of
cases.
• On the 13th May, 2020 there were 184 new
confirmed cases
• Till date, 4,971 cases have been confirmed with
1,070 cases discharged and 164 deaths
recorded in 34 states and in the Federal Capital
Territory.
The Effect of COVID-19 on the nations
1. Transnational shutdown
2. National lockdown
3. Individual isolation, social/physical distancing
4. Human capital prioritization and change of
working system.
The effect in national economies
1. Shut down of intercontinental trade
2. Shutdown of national economies
3. Downturn of national economies
4. Industrial losses due to loss of production and
downtime
5. Loss of market/market share
6. Losses due the interruption of direct process plants
7. Loss of income due to unanticipated shutdown
Continued
The effect on national economies
cont’d
8. Claims due to force majeure/delay/frustration
etc.
9. Insurance Claims resulting in increase cost of
project and increased project duration
Dealing with the COVID- 19 situation in
Project Management
1. New operating norms
2. New operating systems
3. Necessary expansion projects in plants/ sites to
address new health regulations and operating
norms.
4. Review of infrastructure projects
5. New mitigating measures for increased health
& safety awareness.
6. Local sourcing due to slowdown in global
integration of manufacturing and technology
Dealing with COVID-19 in the
management of projects
• In the short term
▫ There would be a review of site management techniques to
reduce personal contact to the minimum.
▫ There would be increased use of technology in operations
and management of sites.
▫ The supply chain management of materials, labour and
plant will be largely automated with the use of technology.
▫ Projects/ site/ negotiation etc meetings will be conducted
remotely.
Continued
Dealing with COVID-19 in the
management of projects cont’d
• In the long term
▫ Construction management will now be conducted with
the new norm which means with a high emphasis on
health and safety regulations
▫ New methods of construction by the use of remote
controlled equipment is expected
▫ Automated site management, site communication and
instructions will be on the increase
▫ Supply chain management is expected to be fully
automated and dependent on technology
Continued
Dealing with COVID-19 in the
management of projects cont’d
▫ Construction supervision will now be carried out with
minimal presence of the human capital
▫ Most countries will wake up to the need to produce
and manufacture construction inputs locally.
▫ Construction managers will appreciate the inevitability
of depending on local sources of supply for
sustainability of projects
▫ Nations will strive to be self sufficient in the production,
manufacturing and utilization of construction materials
Contract Agreements/ Legal
Obligations
Agreement Types
 FIDIC – International Federation of Civil Engineers
 NEC- National Engineering Contracts
 JCT- Joint Contracts Tribunal (UK)
 SFBC- Standard Form of Building Contracts –(Nig)
 SFC-CE- Standard Form of Contracts- Civil Engineering
 GCC- General Conditions of Contract (BPP-Nig)
 AIA – American Institute of Architects Agreement
Continued
Contract Agreements/ Legal
Obligations cont’d
Terms that may be involved
1. Force Majeure- unforeseeable circumstances
2. Frustration due to COVID-19 pandemic
3. Project delays due to the lockdown
4. Project slowdown due to new regulations
5. Variation clauses for materials, plants and
Labour.
6. Cost of compliance with government
regulations
7. Insurance claims due to the pandemic
Contract Administration
1. Notification of force majeure and consequences.
2. Records of progress as at time of cessation of work
3. Documentation of Government/ Health authorities
directives
4. Record of site personnel, materials/ equipment etc
as at date of cessation of work
5. Accurate records of events backed by adequate
documentation
6. Notification of insurance companies
7. Negotiation meeting of all parties to fashion out the
way forward.
8. Project restarting protocols/ scheduling etc.
Gaps Revealed in the COVID-19
experience
• Public health has a major influence on the construction industry
• The construction industry is largely dependent on the human capital
and their activities
• Interdependence of nations, one upon another for supply of goods
and materials must not be total as a government objective
• The increase of the use of technology in construction has become a
necessity and not an option
• Self sufficiency in the production/ manufacturing of construction
inputs for African countries has become a continental and a national
priority.
• Adequate power supply and management is now critical to the
development of African nations in view of the ascendency of
technology and automation in the conduct of human affairs
especially in construction, manufacturing and healthcare.
Opportunities provided by the COVID
19 experience
• IT skills is a necessity for every professional in the
construction industry
• The days of unskilled Labour on construction sites are
numbered
• Health and safety is not just an aspect of construction but a
fundamental consideration in the planning of projects
• The use of local and locally manufactured goods, materials
and personnel in the construction industry is inevitable now
as most foreigners have returned to their home countries.
• African Construction Managers should cooperate with
indigenous building construction materials manufacturers in
order to build the industry & ensure national self sufficiency.
Parting shot: What should a Project
Manager do NOW?
1. Review contract agreements and activate relevant clauses.
2. Check and keep safe custody the project records of ongoing
projects.
3. Notify all parties immediately of all salient dates and occurrences
on site.
4. Identify and keep in safe custody all government directives in
respect of the pandemic that has impact on the project.
5. Review site operational management taking cognisance of the new
norm.
6. Review the project implementation plan in view of the current
realities and new working systems.
Continued
Parting shot: What should a Project
Manager do NOW? cont’d
7. Embark on project management by deploying
remote control tools such as Zoom,
Webchat,TeamLink, FCC etc.
8. Convene a project review meeting to
continually marshal out the way forward and
expectations of all parties in bringing the project
to a smooth conclusion.
9. In the event of irreconcilable positions, activate
the arbitration clause and
10.Conclude the project successfully.
The End!
Thank You

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Coping with covid 19 in the management of projects - A view from Nigeria

  • 1. Coping with COVID- 19 in The Management of Projects -A View From Nigeria By Bldr. Samson Ameh Opaluwah fniob, fnim,fnse,ficiarb,fnice,fnithe,fosha Vice Chairman CORBON
  • 2. Brief introduction • Name: Samson Ameh Opaluwah • A professional Builder, a Construction Manager a Facility Manager and a Procurement Expert • 42 years in practice as a Construction Manager • Experience covers Consultancy, Cement Industry and the Nigerian Civil Service. • Currently Vice Chairman of Council of Registered Builders of Nigeria (CORBON)- the professional regulatory body for Builders / Construction Managers in Nigeria
  • 3. Introduction • The Covid-19 pandemic crept upon the entire world unexpectedly and has created an environment not witnessed in the last 100 years where almost the entire world has to shutdown for a microscopic virus allegedly created in the laboratory. • The morbidity and mortality rate of the Covid-19 pandemic has caused many nations to shutdown their economies. • With the shutdown of the economies and lockdowns imposed on the cities of many countries, ongoing projects and plans for new ones came to a halt. Thus project managers are confronted with an unforeseen circumstance with international and national dimensions.
  • 4. The COVID-19 Situation In Nigeria • The index case was announced on 27th February, 2020 in Lagos, Lagos State. • There has been an increase in the number of cases. • On the 13th May, 2020 there were 184 new confirmed cases • Till date, 4,971 cases have been confirmed with 1,070 cases discharged and 164 deaths recorded in 34 states and in the Federal Capital Territory.
  • 5. The Effect of COVID-19 on the nations 1. Transnational shutdown 2. National lockdown 3. Individual isolation, social/physical distancing 4. Human capital prioritization and change of working system.
  • 6. The effect in national economies 1. Shut down of intercontinental trade 2. Shutdown of national economies 3. Downturn of national economies 4. Industrial losses due to loss of production and downtime 5. Loss of market/market share 6. Losses due the interruption of direct process plants 7. Loss of income due to unanticipated shutdown Continued
  • 7. The effect on national economies cont’d 8. Claims due to force majeure/delay/frustration etc. 9. Insurance Claims resulting in increase cost of project and increased project duration
  • 8. Dealing with the COVID- 19 situation in Project Management 1. New operating norms 2. New operating systems 3. Necessary expansion projects in plants/ sites to address new health regulations and operating norms. 4. Review of infrastructure projects 5. New mitigating measures for increased health & safety awareness. 6. Local sourcing due to slowdown in global integration of manufacturing and technology
  • 9. Dealing with COVID-19 in the management of projects • In the short term ▫ There would be a review of site management techniques to reduce personal contact to the minimum. ▫ There would be increased use of technology in operations and management of sites. ▫ The supply chain management of materials, labour and plant will be largely automated with the use of technology. ▫ Projects/ site/ negotiation etc meetings will be conducted remotely. Continued
  • 10. Dealing with COVID-19 in the management of projects cont’d • In the long term ▫ Construction management will now be conducted with the new norm which means with a high emphasis on health and safety regulations ▫ New methods of construction by the use of remote controlled equipment is expected ▫ Automated site management, site communication and instructions will be on the increase ▫ Supply chain management is expected to be fully automated and dependent on technology Continued
  • 11. Dealing with COVID-19 in the management of projects cont’d ▫ Construction supervision will now be carried out with minimal presence of the human capital ▫ Most countries will wake up to the need to produce and manufacture construction inputs locally. ▫ Construction managers will appreciate the inevitability of depending on local sources of supply for sustainability of projects ▫ Nations will strive to be self sufficient in the production, manufacturing and utilization of construction materials
  • 12. Contract Agreements/ Legal Obligations Agreement Types  FIDIC – International Federation of Civil Engineers  NEC- National Engineering Contracts  JCT- Joint Contracts Tribunal (UK)  SFBC- Standard Form of Building Contracts –(Nig)  SFC-CE- Standard Form of Contracts- Civil Engineering  GCC- General Conditions of Contract (BPP-Nig)  AIA – American Institute of Architects Agreement Continued
  • 13. Contract Agreements/ Legal Obligations cont’d Terms that may be involved 1. Force Majeure- unforeseeable circumstances 2. Frustration due to COVID-19 pandemic 3. Project delays due to the lockdown 4. Project slowdown due to new regulations 5. Variation clauses for materials, plants and Labour. 6. Cost of compliance with government regulations 7. Insurance claims due to the pandemic
  • 14. Contract Administration 1. Notification of force majeure and consequences. 2. Records of progress as at time of cessation of work 3. Documentation of Government/ Health authorities directives 4. Record of site personnel, materials/ equipment etc as at date of cessation of work 5. Accurate records of events backed by adequate documentation 6. Notification of insurance companies 7. Negotiation meeting of all parties to fashion out the way forward. 8. Project restarting protocols/ scheduling etc.
  • 15. Gaps Revealed in the COVID-19 experience • Public health has a major influence on the construction industry • The construction industry is largely dependent on the human capital and their activities • Interdependence of nations, one upon another for supply of goods and materials must not be total as a government objective • The increase of the use of technology in construction has become a necessity and not an option • Self sufficiency in the production/ manufacturing of construction inputs for African countries has become a continental and a national priority. • Adequate power supply and management is now critical to the development of African nations in view of the ascendency of technology and automation in the conduct of human affairs especially in construction, manufacturing and healthcare.
  • 16. Opportunities provided by the COVID 19 experience • IT skills is a necessity for every professional in the construction industry • The days of unskilled Labour on construction sites are numbered • Health and safety is not just an aspect of construction but a fundamental consideration in the planning of projects • The use of local and locally manufactured goods, materials and personnel in the construction industry is inevitable now as most foreigners have returned to their home countries. • African Construction Managers should cooperate with indigenous building construction materials manufacturers in order to build the industry & ensure national self sufficiency.
  • 17. Parting shot: What should a Project Manager do NOW? 1. Review contract agreements and activate relevant clauses. 2. Check and keep safe custody the project records of ongoing projects. 3. Notify all parties immediately of all salient dates and occurrences on site. 4. Identify and keep in safe custody all government directives in respect of the pandemic that has impact on the project. 5. Review site operational management taking cognisance of the new norm. 6. Review the project implementation plan in view of the current realities and new working systems. Continued
  • 18. Parting shot: What should a Project Manager do NOW? cont’d 7. Embark on project management by deploying remote control tools such as Zoom, Webchat,TeamLink, FCC etc. 8. Convene a project review meeting to continually marshal out the way forward and expectations of all parties in bringing the project to a smooth conclusion. 9. In the event of irreconcilable positions, activate the arbitration clause and 10.Conclude the project successfully.