Construction industry feeling repercussions from Sept. 11.

Although the lasting effects stemming from the World Trade Center terrorist attack have not been fully realized, the construction industry is feeling the first wave of the changes bound to touch every business. Prior to the tragic events of Sept. 11, managing a major construction project in New York City required a uniquely experienced manager overseeing a plethora of assignments. From getting workers in and out of a construction site to coordinating the delivery of supplies and equipment, the construction manager's job has become even more challenging. Costs associated with the new challenges faced by the industry are also on the rise.

It was never an easy task to move personnel and large equipment in and around the city. After Sept. 11, however, the task has become a logistical and financial challenge. Only the most experienced companies can provide the level of service needed today in order to complete a high-profile project.

Security issues have taken center stage and have for the most part changed the way we do business. One major example is the use of photo identification for all construction employees and vendors entering a development site. Clients are also requiring time clocks in order to chart the arrival and departure of employees from the job sites and full-time security guards on duty around the clock. As a result of these new job necessities, construction costs have been driven higher throughout New York City.

Furthermore, delivery delays due to enhanced security measures and the mandatory checks of closed trucks at many bridges and tunnels have added an additional cost to each and every construction project. It is estimated that these two issues alone have driven industry costs up from 5% to 10% in the last few months of 2001. Security and delays are not the only two factors affecting costs, however. Higher insurance premiums are also beginning to play a major role in the bidding of new projects. Many believe that the insurance portion of a project will be looked at much closer in the coming months. For the most part, the changes being felt by the construction industry will undoubtedly be enacted by many other service providers and business in the months to come.