PwC gave guidance for engineering and construction companies, such as ensuring financial stability, securing workers and anticipating changes

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Engineering & Construction in a post-COVID world: weathering the storm

Managing Engineering & Construction Firms Through COVID-19 – PwC gave guidance for engineering and construction companies, such as ensuring financial stability, securing workers and anticipating changes

Summary:

PwC provided guidance to engineering and construction sector for post-COVID-19. Summary recommendations include:
  • Ensure Financial Stability – Review capital and corporate cost budgets, options for raising funds, including government stabilization and stimulus packages
  • Conduct Scenario Analysis – Collect accurate data at project level including contractual arrangements to do scenario analysis, anticipating different financial needs and opportunities for various scenarios
  • Securing Workforce Safety – Including providing protective gear, scheduling work in shifts, securing safe distances between workers, banning visitors, and using apps to help track employee locations along with privacy regulations to monitor possible exposure
  • Maintain Supplier Visibility – Gather data from suppliers to integrate in a dashboard for assessing legal and financial implications, impact on margins, cash flow, loan repayments and terms, and firms should ensure project controls, risk management and governance processes cover them
  • Consider Supporting Suppliers – Offer contractual flexibility and technical support to most critical suppliers, such as helping them leverage government funding, but also be ready to shift to new suppliers
  • Prepare for Post-Crisis Changes – Companies need to prepare for changes in marketplaces, potential jumpstarts in infrastructure investments such as smart city initiatives, some clients facing resource limitations, changes in portfolios, and new emphasis on sustainability and resilience
For more information, visit https://www.pwc.com/gx/en/issues/crisis-solutions/covid-19/engineering-construction-post-covid-world.html
Company: PwC
Categories: Cash flow and financial management, People and culture, Supply chains

Original publication date: May 18, 2020

Date last updated: May 29, 2020