The construction projects that were underway have been stopped throughout the country with the exception of those civil and construction works that, due to their state of progress or present characteristics and risks of technical stability, require structural strengthening actions.
With the COVID-19 pandemic, the construction sector had to stop its activities
The mandatory preventive isolation decreed by the National Government since last March 24 has impacted not only the works but the work activities of 15,162 direct employees generated by the construction sector in the department.
The business effort of the entire chain is to create more own policy instruments to face it. We have talked about lines of credit with a grace period, reprogramming of fiscal and financial activities, which have been done for some sectors, but not for all, and this is a sector that requires this.
The purpose is to preserve the safety of workers, both health and sustainability. However, this last intention will only be achieved if companies have the conditions and cash flow to maintain payrolls during this period.
Globally, this sector moves 54% of the productive apparatus, and in recent years, it has been hit hard both in the low sale of new housing and construction licenses. However, in the first month of this year, the commercialization of units had its best result in the last decade when it sold 841 new housing units, 70.2% more than in January 2019, when there were 494.
The current situation will obviously lead to corrections in the projections of sales of housing units, project execution, and growth in the sector.
Although the importance of insulation in order to prevent the spread of the pandemic, they are seeking financial measures to mitigate the impact on the construction sector. To do this, they design a protocol in the construction works of buildings and the value chain that allows them to gradually open up and quickly resume activity.
What we intend with this is to resume activity and reach the conditions we had in January. As we achieve this, we mitigate the impact that we have both commercially and in added value.
The protocol, for now, is being designed. However, this document is based on measures implemented in other countries that have also been affected by the pandemic. It will have chapters on hygiene, transport, protection, and working hours.
The Government will endorse the file if it complies with the measures implemented by the country.
Although the Government has taken measures with the Guarantee Fund to ensure that companies have sufficient liquidity to maintain payroll, many are looking for other alternatives that favor builders, buyers, and the maintenance of employment in the sector, for which reason it expects the announcement of a line of credit.
Experts at The Newport Group concluded that as if yet, the value of projects under construction in the country is $ 53.4 billion, and the demand for inputs associated with the activity is valued at close to $ 27 billion.