Between the skilled labor crisis and reduced demand for new projects, the construction industry has recently faced plenty of challenges. However, there is now some good news for the industry thanks to the billions of relief for construction projects in the latest COVID-19 relief bill.
Exploring the Funds in the Relief Package
There are several ways the recent relief package can benefit the construction industry.
PPP Extensions
One of the biggest factors for smaller construction companies will be the extension of the PPP from the CARES Act.
Stimulus Checks
The stimulus checks should promote construction on a smaller scale, as people will have more money in their pockets and therefore be better able to afford construction work.
Coronavirus Capital Projects Fund
One of the biggest ways the relief package will help the construction industry is via the Coronavirus Capital Projects Fund. This $10 billion fund gives each state $100 million allocated to construction projects and other projects.
The rest of the funds, also for construction, will be divided based on population and the population’s proportion under the poverty line. These funds are likely to directly pay for those in construction careers to complete new projects. In addition to construction salaries, it will also likely directly pay for construction materials.
Other Recovery Funds
There are also various funds throughout the relief package that businesses may use for construction projects, among other things. One particular fund has $120.2 billion for cities and $219.8 billion for states. Other parts of the bill that can indirectly go towards construction include:
- Some $25 billion for restaurant revitalization will likely go to constructing outdoor seating or making indoor areas COVID-safe.
- Part of the $125.8 billion for emergency school relief will likely go towards improving and repairing the facilities.
- The $35 billion of funding for clean energy will require constructing new facilities and adapting existing ones.
- The Federal Transit Administration’s $30.5 billion for grants will likely include construction projects to create stations and other transit-related structures.
- The $11.8 billion National Defense Authorization Act will include construction on military housing and general military construction.
- The $10 billion in the Water Resources Development Act will include construction projects like building and improving ports and harbors.
- The $8.5 billion dedicated to healthcare providers will likely partly go towards retrofitting buildings and creating temporary structures.
- There is $1.8 billion for genomic sequencing of the coronavirus. Some of this will likely go to building new facilities and renovating existing ones.
- Some of the $600 million for tribal governments will likely include renovating or building healthcare facilities.
Each of these provides yet another opportunity for the construction industry. Those in the industry will likely see an increase in demand for commercial construction estimates and projects for completion.
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