Analysis of the impact of COVID-19 on risk management in procurement in the construction industry

Abstract

Purpose: Malta, a small island state in the Mediterranean, like other nations throughout the world has been subjected to lockdown since the coronavirus pandemic broke out in March 2020. Deficits in the construction sector have resulted from such restrictions. The lack of labour and resources on-site has impacted the execution of everyday construction operations in distinct ways, causing slow productivity, delays and interruptions in building projects, contract disputes, loss of revenues, and more. The purpose of this study is to look into the risks that the COVID-19 has forced the local construction projects in an area of procurement. Design/methodology/approach - This study offers a comprehensive look into Malta's construction businesses through the views of developers and contractors. A literature review was compiled to identify the impact of the pandemic on procurement routes in construction and development companies. The study makes use of a mixed-method approach through seven local construction firms, using a questionnaire approach and survey to 135 locals. A thematic analysis is used in the study to extract the relevant themes. Findings: Results demonstrate that the construction industry in Malta was unaffected by the COVID -19 epidemic, with enterprises going about business as usual. Positive feedback was received, suggesting that the occurrence had a minor influence on local economy. Delays in project completion owing to supply chain issues, on-site labor and material shortages, and price hikes in construction materials, particularly steel, were among the risks. Opportunities, especially with the use of more technology compensated for the bottlenecks and hazards. Originality/value: The research of the COVID-19 epidemic and its relationship to the local building sector is in its early stages yet data has shown that the sector has proven itself as resilient in the face of radical change.