Hurricane reconstruction in the United States Gulf Coast

Abstract

PurposeThe purpose of this paper is to study construction companies performing reconstruction to better understand the positive and negative effects of hurricanes on the construction industry.Design/methodology/approachConstruction companies with hurricane reconstruction experience in gulf coast states were surveyed to obtain information about their activities from 1999 to 2008. A wide range of company sizes were represented in the collected data, from less than 15 to more than 100 employees, and from less than five to more than 100 million dollars in annual work volume. Specific points investigated include how hurricane reconstruction affects profitability, scheduling, estimating accuracy, and volume of business (both short term and subsequent). Other factors examined were labour availability, labour costs, material prices, material availability and how insurance company involvement impacted work progress.FindingsWhile the rewards of additional work are obvious, this study found that labour shortages, availability of materials, and issues with insurance companies are the main risks construction companies face. Construction companies should have a hurricane construction plan to capitalize fully on so much opportunity. The plan should include contingency pricing to combat the rise in job costs, a geographic region to work into keep from getting over extended, a strong labour force, and a plan for displaced employees. A plan will help mitigate risk and increase the probability of success.Originality/valueThis paper should provide useful information for contractors, government entities and others who are involved with reconstruction efforts after unpredictable disasters, particularly hurricanes.