Hello, everyone.
This is Enta.
An article like this appeared in NEWS the other day.
"Plans to Introduce a 'Summer Work Suspension' of About 1 to 2 Months for Civil Engineering Projects in Midsummer... Ministry of Land, Infrastructure, Transport and Tourism to Conduct Trial as a Measure Against Extreme Heat; Early Morning and Nighttime Construction Also to Be Promoted"
They say we're taking a summer break!!!!!
This is really great, but it does raise the question of what to do in the meantime, doesn't it?
Let's consider the potential drawbacks of suspending work during that period.
Possible Disadvantages
Income Plummets for Day Laborers and Short-Term Contract Workers
During the summer shutdown, workers at those sites—especially day laborers and those on short-term contracts—will see their income drop to zero or decrease significantly.
This is a major blow that directly affects our daily lives, isn't it?
If public compensation is insufficient, economic insecurity among non-regular workers will likely increase.
That said, I suppose this applies only to private construction projects.
I don't think there's much support for people like that in public... (though there are some who sneak in).
Increased fixed-cost burden due to a decline in on-site utilization rates
General contractors, subcontractors, and specialty contractors incur costs such as maintenance expenses for machinery and heavy equipment, material and warehouse storage costs, and labor costs (for full-time employees, managers, etc.),
There are fixed costs that occur even when operations are suspended.
If the work stoppage lasts a long time, these costs will mount up without any income.
Extension of the Contracted Construction Period and Related Costs
For now, the construction schedule will be extended by the length of the summer break.
The extension will result in additional costs for labor, equipment rental, and material storage and transportation.
It would be fine if the order was set from the start to begin construction in the summer or later, but things rarely work out that conveniently...
Furthermore, when a work site becomes unavailable, adjustments must be made to surrounding areas and related processes, resulting in additional adjustment costs.
The Issue of Downtime Costs and Depreciation for Materials and Heavy Equipment
When heavy equipment and machinery are idle, their utilization rates decline.
Although depreciation and maintenance costs are incurred, it becomes difficult to recoup those costs because revenue from operations decreases.
Even if materials have been procured, storing them in a condition where they cannot be used (or are difficult to use) results in storage costs and the risk of deterioration.
Deterioration in Cash Flow
If sales revenue declines due to a prolonged suspension of operations, cash flow will deteriorate.
Since many subcontractors and specialized firms, in particular, face tight cash flow, the risk of a cash shortfall increases.
This could also lead to higher interest rates on bank loans and less favorable repayment terms.
When you think about it that way, there’s a pretty good chance I’ll end up going to cheer them on at the venue where they’re performing.
Possibility of an Increase in Bid Prices and Quotes
Anticipating the risk of work stoppages, contractors may raise their quoted prices or increase their safety margins.
This leads to higher costs for public works projects, driving bid prices sky-high.
After all, the downsides are basicallyThe Financial AspectI think it's quite large.
How will the government make up for those shortfalls?
Is that what you mean??
Let's take a look at the advantages instead.
Benefits of the Summer Shutdown
Reducing the Risk of Heat Stroke
Suspending work during the height of summer when the WBGT reaches dangerous levels can significantly reduce the risk of heatstroke incidents.
→ This helps prevent workplace accidents.
Improving the Work Environment
Since workers will no longer have to overexert themselves during the summer, their fatigue and the risk of turnover will decrease.
→ This will create an environment where technical interns and young workers can more easily continue their work.
Improving the Industry's Image
Offering "a construction industry with summer vacations" has a positive impact on recruitment and employee retention.
→ This could be a major asset for the construction industry, which is facing a shortage of young workers.
Improving Safety and Quality
This will reduce quality issues (such as cracks in mortar, poor placement, and the need to redo paving) caused by construction during extreme heat.
→ In the long run, this might reduce repair costs and the costs associated with handling customer complaints.
The Construction Industry and Summer VacationThat image really makes an impact, doesn't it!!??
Of course, this is only true if you’re guaranteed a steady paycheck even when you take time off, or if you have a certain level of income secured—that’s the basic premise, after all.
What do you all think?
See you later.
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