The 2022 hurricane season, while considered normal in the number of storms, was still bad from the destruction caused from several storms, with Hurricane Ian considered to be one of the top 10 costliest in U.S. History. The National Oceanic and Atmospheric Administration’s (NOAA) Climate Prediction Center is forecasting the 2023 hurricane season to be closer to the historical average of 11 to 15 storms (winds of 39 mph or higher). Severe weather can present challenges for construction projects and reduce overall profitability. Fortunately, there are some steps you can take to prepare for this hurricane season and weather the storms.
Contractor exposures from these named and unnamed storms, as well as tropical depressions, are not often included in the official damage estimates. The storm’s havoc can bring unplanned costs to jobsites, disrupt critical paths, and even result in insurance claims in some cases.
Fortunately, contractors can take six planning steps to buffer the storm’s fury.
1. Are you covered if a storm hits your jobsite?
Contractors should double check the list of perils included in their construction risk insurance policies. Often called “Builders Liability Insurance,” these policies provide damage coverage at building sites from common exposures to fire, tornados, lightning, and hail. However, as weather intensities have increased, many construction risk insurance policies do not cover earthquake, flood or hurricane damage. This is especially true when working in coastal regions identified as hurricane zones.
Subcontractors should also coordinate their jobsite exposures with their general contractors and project owners. A common concern is the exposure of floors and slabs. Damage to these elements is usually not covered under a basic builder’s liability insurance policy.
2. What does your contract say about weather-related delays?
When negotiating contracts, builders should check the documents for conditions with respect to establishing entitlement time extensions for weather delays. Contractors should try to protect themselves by setting guidelines in the event that weather significantly delays the project, or their mobilization to the project.
These discussions should focus on “contract time,” i.e. the contract completion date to be defined by the contract. Contracts should specifically address how weather-related time extensions will be determined and administered.
These activities should include closing structural openings, such as roofs, doors, and windows. Contractors should control rainfall or ground water flow that might enter the building and excavations (e.g., grading, berms, sandbags, pipe caps, etc.).
Prepare to protect materials or equipment that cannot be moved. Obtain netting, banding materials and self-tapping concrete anchoring screws to secure and anchor materials that cannot be removed or securely stored.
Finally, just before leaving the jobsite, make a video/photographic record of the jobsite and surrounding properties to document the project condition and work status prior to the storm.
Subcontractors need to document how storm-related delays limited their work. Daily reports must include notes on any disruption to their own schedules. These reports should identify days when the crews were sent home or were unable to work due to weather, field conditions, and even delays caused by other crafts.
Another reporting tool is comparing the number of days that the actual precipitation from the storm exceeded the monthly average. This type of reporting is also useful when work is disrupted from either very cold or hot conditions that restrict safe work.
Being prepared is important
The Congressional Budget Office predicts that expected annual economic losses from most types of damage caused by hurricane winds and storm-related flooding total $54 billion. $9 billion of this estimate will affect commercial businesses. But by taking time to plan now, contractors can mitigate their exposure to this season’s storms.
