With new rules in place, construction is nearly grinding to a halt in Whatcom County
UPDATE MARCH 31, 2020: All of Western Washington University’s on-site construction activities, including construction of the new residence hall and work on the new interdisciplinary sciences building, has been suspended. University officials received additional guidance from the Washington state Office of Financial Management on Monday, March 30, and, as a result, all on-site construction-related activities associated with Western’s public works projects have been temporarily suspended.
Given the new restrictions in place to stop the spread of the coronavirus, Whatcom’s construction industry is in a situation similar to what restaurants and bars have been dealing with the past two weeks.
Washington state Gov. Jay Inslee recently clarified what was considered essential construction work in his “Stay Home, Stay Healthy” plan, indicating most projects need to stop until at least Wednesday, April 8.
Lance Calloway, northern district manager for the Associated General Contractors of Washington, estimated that 75%-80% of the local projects have shut down. The ones deemed essential are continuing under strict COVID-19 job site protocols, he said.
This is the time of year when construction employment typically ramps up; in February, there were an estimated 7,600 people in Whatcom County employed in the industry. During the summer months that total can climb to about 10,000, according to data from Washington’s Employment Security Department.
Calloway said in an email that many of the contractors have had to lay off workers, with a few making the commitment to continue providing medical benefits. A couple of contractors Calloway talked to have also, for the short-term, decided to keep workers on the payroll.
Getting the projects restarted will take some time, Calloway said, as contractors will start rehiring after they get the green light.
“I sense the greater issues will be with the supply chain to job sites. With a huge percentage of jobs coming back online everyone will be ordering all their needed materials and supplies to be delivered to the sites so they can get back to work,” Calloway said. “Another aspect I can also see taking some added time for projects is getting inspections as there may be a backlog on required inspections.”
Construction is considered a key economic driver because the industry tends to pay higher wages than many other job sectors. It is also one of the industries that took the longest to recover from the 2008 global financial meltdown; in Whatcom County, it suffered significant job losses and didn’t get back to pre-recession levels until a few years ago.
The sudden slowdown in construction is happening beyond Washington state. The Associated General Contractors of America reported, that in a survey done earlier this week, 39% of contractors said they have had projects either canceled or postponed.
“The abrupt plunge in economic activity is taking a swift and severe toll on construction,” said Ken Simonson, the association’s chief economist, noting that only 18 percent of respondents have been ordered to halt work by elected officials. “The sudden drop in demand stands in sharp contrast to the strong employment levels this industry was experiencing just a few weeks ago.”
Bellingham officials backed up the governor’s action, announcing in a news release that most city construction projects are being secured, then put on hold.
Construction activities considered essential include health care, transportation, energy, defense and critical manufacturing. Also included is construction “to further a public purpose related to a public entity,” including publicly financed low-income housing and emergency repairs.
Residential construction projects that are currently under construction can continue to a point to prevent spoliation, damage or unsafe conditions, according to the city news release. Inspections by the city will also continue for the projects deemed essential.
Bellingham will continue to develop and request bids for new capital construction projects on schedule, said Bellingham interim Public Works Director Eric Johnston.
“Construction is a major economic driver for our community and it is important to preserve our ability to move projects forward safely and quickly in the near future,” Johnston said in the news release.
One major project that will continue is Western Washington University’s new residence hall. Western spokesman Paul Cocke said in an email that is considered essential because it falls under a section about furthering a public purpose, such as housing.
Earlier this month a construction worker tested positive for COVID-19. The contractor, Lydig Construction, presented a plan to Western officials showing how it would minimize the spread of the coronavirus before restarting the project.
This story was originally published March 30, 2020 at 5:00 AM.
