The Impact of the Covid 19 Pandemic on the Construction Sector Case Study: Albania

Otjela Lubonja and Klea Biqiku
Barleti University

Abstract

The COVID-19 pandemic was an unforeseen event. As in the rest of the world, our country has been severely affected by the "economic depression" that followed the pandemic. After such an extraordinary surge in the percentage of infected people with this virus, numerous countries around the globe declared a complete national lockdown. The constricted movement of people was necessary. Most sectors have indeed been damaged and therefore have suffered a significant decline, which might take time for recovery. Among the most important is the construction sector, which has been followed by the suspension of works, the postponement of contracts or new projects until a second phase, the significant decrease of employees. The construction sector plays a major role in the country’s economic growth. This sector is also considered to have been the “economic engine” as there is a very close relationship between both construction and economic growth. As an investment sector, the construction sector has the potential to have a significant impact on short-term growth. Construction is a crucial component of the development and reorganization process, which focuses primarily also on the provision of capital infrastructure which has a deep impact on the economy of a country. This paper aims to study the effect of COVID-19 on the construction industry. The study was based on the literature and the questionnaire survey method. The most significant impacts of COVID 19 were found to be project suspension, work impact and job losses, cost overrun, time overrun, and financial implications. The results of this study help us to raise awareness about the most critical impacts that cannot be suddenly overlooked by not giving them due importance. These results also help project stakeholders to prepare for any possible scenarios that may occur soon during the planning phase of the construction project. Keywords: pandemic, construction, economy, of recovery, development

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