Impacts of COVID-19 on the construction sector in the least developed countries

Abstract

PurposeGlobal construction has been affected by COVID-19 unprecedently. The construction sectors in the least developed countries are considered as vulnerable, but the covid made the countries experience the worst situation ever. To minimize the losses by effective measures, there needs to assess the COVID-19 impacts on the construction sector. So, the aim of this study is to investigate the most critical impacts of COVID-19 on construction in the least developed countries by considering the case study of Bangladesh.Design/methodology/approachThe authors adopted multistep research methods, including (1) literature analysis and discussion with experts to establish a comprehensive list of COVID-19 impacts; (2) through a questionnaire survey, data were collected from 217 construction professionals by email, Google Form and Skype for quantifying the significance of covid impacts; (3) reliability of the survey checked by the Cronbach Alpha test; (4) Relative Importance Index (RII) to determine the ranks of the impacts based on their significance; (5) Interpretive Structural Model (ISM) to explore the corelations and the hierarchical structure; and (6) cross-impact matrix multiplication applied to classification (MICMAC) analysis to classify the COVID-19 impacts.FindingsThe study identified a total of 18 COVID-19 impacts on the construction sector. Among them, the job cuts, schedule delays, project suspension, cost overrun and effects on mental health are more influential and significant than others. Further, this study found that unpaid leave and job cuts are the two most fundamental impacts which influence other succeeding significant impacts. And ultimately all the impacts lead to hampering the national economy and development. Finally, MICMAC analysis suggested that unpaid leave and job cuts should be addressed first to resolve and effects on the national economy and development should be later.Research limitations/implicationsThis study does not consider all the COVID-19 impacts due to the relevant context and simplicity of the ISM method. Also, the respondent's attitude might be slightly different during the post-mass vaccination period.Practical implicationsThis study will help the company's management, employees and government to develop effective strategies to understand the insight of their interrelations and ultimately overcome the identified covid effects. This will must contribute to the industry, its employees, the government and society by ensuring the national economy and development, construction operations, investment, employment and social security.Originality/valueThis study will contribute to the knowledge body (practitioners and researchers) by providing the list of significant covid impacts and insight into their interrelations for further deep analysis of the pandemic effects. This will also help the authorities and stakeholders in developing policies and strategies to minimize or avoid these effects and avoid future consequences due to any pandemic like covid.