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Construction sector concerned about contracts

Opr./edited AZ 30 March 2020
Construction sector concerned about contracts
Labour shortages, closed construction sites and lack of access of materials are among the concerns

POLAND The onset of Covid-19 and the worsening labour shortages due to the closure of the border with Ukraine could have a devastating effect on the Polish construction sector and the ability to carry out contracts on time, according to the Polish Association of Construction Employers [PZPB] and the Polish Chamber of Commerce for Roads [OIGD].

In a letter to the minister of infrastructure and the minister of development, both associations point out: “The situation in Poland and on its construction sites is becoming more and more hazardous by the day. Despite the introduction of measures and recommendations aimed at halting the spread of the disease and the effective crisis management, ongoing construction work is now becoming much more difficult.”

They also argue that there is currently a significant shortage of employees in the construction sector, which may lead to a reduction in the production capacity of the entire construction sector. In their opinion, this is the result of illness (the amount of sick leave has increased enormously – by around 300 pct), the need to take care of children in during the closure of schools and nursery schools, as well as the number of employees under home quarantine (mainly those returning from abroad).

According to the authors of the letter, after to the closure of borders, the availability of employees from beyond the eastern border has fallen by at least 20 pct. They also state that many Polish suppliers of raw materials could limit or have already limited or suspended production, which will have a serious impact on whether contracts can be fulfilled on time, even when the emergency is over. The reduced availability of transport is also a problem for the sector. Combined with such factors, the reduction in production capacity due to the lack of staff and materials will lead to a secondary reduction in the scale of construction projects, predict the authors of the letter.

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