Over the last three months, much has been written about COVID-19’s impact on businesses in general and construction specifically, and rightfully so. It’s a once-in-a-century, global event that is disrupting every facet of construction, from employees, to safety protocols, to sales, to the work itself. It’s easy to try to focus only on what it takes to make it through the next day, week or month, but there has never been a better time to prepare the company for what comes next and what will sustain it for the future.

1. Licensing

Check to make sure that the company is compliant with state and local licensing laws, especially when operating in more than one state, county, city or other municipality. Laws and rules can change and it could be that the way the company was licensed at the outset is no longer acceptable. For example, perhaps at one point in time it was enough for a company to have a license holder on staff, whereas now that license holder must be an owner or file paperwork connecting his or her license to the company. Or perhaps work that once could be performed without a license now requires one. Low voltage and solar contractors are two common areas where there are new licensing requirements that did not exist even just a few years ago. Finally, maybe the business has changed. Now is a great time to reexamine whether the company has the right license or licenses to do that type of work it is selling.

2. Insurance

Now is also a great time to double check insurance policies and coverage. Has the business grown significantly? If the risk associated with mistakes has increased, confirm that insurance has grown to match that. If the business has changed the type of work it does, or added a new division, make sure the insurance covers that new work or division. Many times insurance carriers refuse to cover claims relating to work is different from the type of work described on the initial application even if years have gone by. This can be an awful thing to learn when a claim suddenly pops up.

3. Contracts

When was the last time a thorough review of contracts were done to make sure they address all the issues that regularly come up on projects? Many contracts are drafted to account for the law and experience. Now is a good time to add or update clauses that eliminate or curb problems that have arisen in the past. Check to see if there are new or updated laws that the contract needs to address to ensure compliance or to prevent the application of an unfavorable law.

In addition to these types of updates to contracts, now would also be a good time to confirm that the contract covers the basics. Does it set forth not only a price, but a draw schedule and what happens when payment is not made? Does it give the option to stop work for non-payment? What does the punch list and end of project look like? Can a punch list be amended, or does that work become warranty work to be completed after final payment? Finally, what is the timeline for the work to be completed and who is responsible for certain types of delays? If the contract is primarily just an invoice or a proposal, incorporate these basic elements to ensure its enforceability.

4. Credentials

In addition to license and regular continuing education requirements, there are many additional certifications and credentials that the company (or its employees) can earn to set the company apart from others in the industry. The American Concrete Institute, Green Business Certification and Construction Management Association of America all offer certifications valuable in commercial construction, ranging from LEED certification, to construction management certification, to multiple concrete certifications. All of these are ways to demonstrate dedication and experience and now may be a great time to explore the ones applicable to the business.

While these certifications can make the company more marketable and increase knowledge, they also give credibility that can be important when in a dispute with a client or contractor. A judge or jury may be more likely to side with a well-credentialed contractor than one with no credentials or a layperson-homeowner.

5. Training

Similar to the education that comes with earning additional certifications, providing training can also help set the company and its staff apart from competitors in the marketplace. And like more formal credentials, it is meaningful to be able to say that the company does things a certain way or is trained to perform work in a certain way. This not only ensures that the company does work the right way, but it can also help knock down any claims that it was tackling work it did not have the experience to perform or was negligent in performing its work.

6. Processes

Finally, consider taking a look at business processes, including project management, project startup and any design phase of which the company may be a part. Where can the company be more efficient? Do process match what the company is agreeing to do as part of the contract? One of the most common excuses in failing to perform under a contract is that the work or documentation was managed the same way it had always been done, regardless of the contract terms. Make sure process matches contract terms, and if it doesn’t, then modify one of them so they align. This ensures there are no inadvertent breaches that otherwise invalidate the contract with just the normal way the company conducts business.