The global outbreak of the Ebola virus not only has long term social ramifications but economic ones as well. Recently, this issue has become more and more prevalent on construction projects in developing nations. When a local government considers a substantial construction project it is expecting certain economic outcomes to follow. In light of the Ebola crisis, risk managers of construction companies and material supply companies must now factor into their budgets the real likelihood of a project being delayed or shut down even after a substantial amount of funds have been expended. A recent WSJ article, "Mining Projects Take Hit From Ebola Crisis", spoke about how major mining efforts have come to a virtual halt in the regions where Ebola is most prevalent. Work is now being disrupted by contractors pulling out of the area. This could lead to a variety of claims being filed – which may or may not be covered.
Topics: Construction, Construction Project Risk, Ebola, Risk Management Blog