Every Constructor Needs a Current Business Continuity Plan

As construction businesses cope with the far-reaching effects of COVID-19, it can be easy to put off long-term planning to focus on getting through the day-to-day challenges. However, this global pandemic has highlighted the importance of having a business continuity plan in place. The current environment is unpredictable; projects can be delayed or shut down at any time, and other effects of the pandemic could impact operations such as the illness of an employee or lack of childcare. Aside from the current crisis, there are a number of other circumstances that businesses must anticipate and prepare for, including natural disasters, data breaches, and economic recessions.

Here are some steps for contractors to consider as they create (or update) their business continuity plans. 

Assign a Team Leader

Having someone who owns the business continuity plan helps to streamline the process. This person should know the business well and be prepared to devote the time and effort required to create a comprehensive plan. They must include a contingency plan for a variety of scenarios that address all of the potential impacts on the business. 

Encourage Feedback

While one person should own the plan, it needs to work for the entire business. It is important to have candid conversations and turn to teams for feedback. They know their particular area of the business better than anyone and can provide their top concerns, frustrations, and suggestions. This is crucial even for companies that already have a plan in place. The COVID-19 pandemic has most likely highlighted holes in current plans or areas that could use improvement, so it’s a great time to make adjustments.

Turn to Technology

Technology plays an integral role in keeping people connected and businesses up and running during difficult times. The industry has increasingly been adopting cloud-based solutions and mobile apps to help streamline projects, increase efficiency, improve collaboration, and keep teams in sync, which is more crucial during a crisis than ever. 

Aside from using cloud-based technologies that allow users to work from anywhere, there are several other ways technology can help teams access data remotely. Some options may include:

  • Setting up a terminal server(s) that holds software and all of its data, which allows users to gain remote access into the server and work within the software
  • Setting up a virtual private network (VPN) so that users can securely access their work computer through Remote Desktop Protocol (RDP) from a home computer
  • Backing up data daily and storing it somewhere that allows for remote access
  • Having your traditional on-premise software hosted for you by one of many hosting providers, which then provides remote access

Be Flexible

While it is important to have a solid plan in place, it is equally important to be flexible. It is impossible to anticipate every possible crisis that may occur or how exactly it will impact a business, but a business continuity plan should build in this uncertainty and include options to help minimize business disruptions as much as possible. It’s crucial for companies to look beyond their own business and consider the entire construction ecosystem. Contractors need to consider things such as backup suppliers and alternate ways of doing business across all operations and areas of a project.

Communicate

Once a continuity plan is in place, it is crucial to share it with each team and ensure that all aspects are clearly communicated and easily accessible. It is important to include contact information for employees, clients, suppliers, and all other project stakeholders so that a plan of action can be communicated as soon as a situation develops. Businesses must also remember that a business continuity plan is a living document that must be updated regularly. 

While business owners will not be able to plan ahead for every situation, laying out some options now could help them to think clearly and act quickly when a problem arises. Having a solid plan in place can help companies survive unexpected circumstances and tough economic times.

Copyright © 2020 by the Construction Financial Management Association (CFMA). All rights reserved. This article first appeared in July 2020 Bottom Lines newsletter.

About the Author

Dustin Anderson

Dustin Anderson is Vice President and General Manager of Sage’s Construction and Real Estate practice in Beaverton, OR. Dustin is an active member of Sage North America’s executive leadership team.

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