Is Construction an Essential Service?

The question of construction in the time of coronavirus is one answered city-to-city. There is no Federal mandate, and it has left developers-particularly those with multiple projects in different markets-to investigate if construction can continue under shelter-in-place restrictions. At present, the regulations around construction during the pandemic vary significantly market-to-market. “With no universal federal ruling in place, cities and states are scrambling to determine whether construction is an essential service,” David Alvarado, an attorney with the Los Angeles offices of commercial real estate law firm Crosbie Gliner Schiffman Southard & Swanson, tells GlobeSt.com. “A mixture of city and state executive orders and rulings create a complicated patchwork as to what it means to be a critically important business. Boston was one of the first cities to suspend construction activity, issuing an order providing that only emergency work would be allowed. The neighboring city of Cambridge joined the moratorium and will allow construction only with permission from either the Commissioner of Inspectional Services or the Commissioner of Public Works. Pennsylvania’s Governor has taken the stance that construction is nonessential and has stopped all projects. New York initially allowed construction, but as of March 27, New York State banned all non-emergency construction.”