Hurricane Irma paralyzed South Florida'sconstruction industry for the better part of two weeks.

Construction projects were forced to stop production, causingcostly delays and damages.

The economic impact for South Florida's construction industry inthe aftermath of Hurricane Irma is still unclear. What is clear isthat construction professionals are already feeling the challengesresulting from Irma's wake.

Shortages of workers, materials and equipment exacerbate thedirect impact of the storm, while owners and contractors scrambleto get their construction projects back on track. It is for thisvery reason that construction professionals must be diligent intheir post-Irma risk management strategies to minimizelosses.

What notices are required?

Construction professionals on projects directly impacted byHurricane Irma should, if they have not already done so,immediately review each project's contract documents to determinewhat notices are required for delays and extra costs arising fromthe hurricane. Contract notice requirements and time limits vary,whether for force majeure or other similar time and compensationrights.

There is no effective one-size-fits-all solution. While theinitial notice letters will likely look very similar, it is crucialthat each is sent as required by the contract. Particularly, eachcontract's requirements should be reviewed for necessary content,form of delivery, and designated notice recipients. Follow-upnotices and time periods differ from contract to contract andshould be tracked to ensure compliance.

Estimate of overall impact

The initial notice should explain the cause for the delay andshould reserve rights for time and money. Take care to advise thatdue to the dynamic nature of the ongoing situation, no reasonableassessment of the total impact to the project can be currentlymade, but that an estimate of the overall impact will be providedas soon as conditions permit. Consider the possibility that impactsmay not result exclusively from the hurricane or the site itself,but that follow-on impacts (shortages of labor, material, equipmentor fuel) may affect the project as well.

Related: Know these covered losses and exclusions after acollapse

Some contracts may require critical path method (CPM) support oranalysis to substantiate a claim for additional time. If this isthe case, the CPM schedule should be reviewed prior to performing atime impact analysis to verify that the baseline reflects currentlogic and restraints and that it will support the delay claim.

Some notice provisions will require the contractor to identifyaffected activities and estimate the time for delay; as notedabove, the submitted time impact analysis might comply byestimating the time of delay but any such estimate should be sentwith a disclaimer that explains that it is provided only forconvenience and that it is subject to revision as the delaycontinues and as it is easier to measure the extent of thedelay.

In this Monday afternoon, Sept. 11, 2017, provided byDroneBase, an aerial view of Jacksonville, Fla., isseen. (DroneBase via AP)

Evaluate all insurance potentially impacted & understandcoverages

For each project, the insurance programs in effect should beevaluated. Appropriate notices of claim must be issued to allapplicable insurers. Consider builders risk, general liability,professional liability, and pollution liability policies. Work withrisk managers and insurance professionals to make sure all insurersare on notice for each impacted or potentially impacted project andto understand applicable coverages.

Related: The first 60 days post-Irma are critical to yourinsurance coverage

Owners, contractors and subcontractors should all work togetherto mitigate losses and protect undamaged property from furtherdamage. Damaged property should be segregated, and allwater-damaged materials should be removed. Insurance adjustersshould be consulted before any materials are discarded.

Documentation of losses is critical

The proper and complete documentation of losses is critical.Thoroughly record and document all categories of damages, physicallosses and business interruption, including staff time dedicated toclean up and hurricane related efforts that would not haveotherwise been expended but for the hurricane. Documentationincludes taking ample time-stamped photographs and videos tomemorialize all damage before mitigation efforts have begun andestablishing a separate cost accounting system under which all Irmaloss-related costs will be captured.

Additional expenses, costs and damages may include expensesincurred to speed up debris removal or repair to property (overtimewages and express transportation charges); expenses associated withthe enforcement of laws or ordinances regulating repair; costs todemolish and rebuild damaged buildings; debris removal expenses;costs for pollutant cleanup and removal; and preservation costs.This list is obviously not exclusive, and contractors should openlydiscuss with all projects participants and personnel the potentialcauses and categories of increased costs and expenses.

Related: What if an Irma-like hurricane hit the New YorkCity metro area?

Hurricane Irma will certainly not be the last severe weatherevent to impact South Florida. It should be seen as an opportunityto hone and further develop a pre-storm preparation and response.Contractors should conduct "lessons learned" meetings to determinewhat worked, and what did not, and identify what to do differentlymoving forward. This is likely the best way to mitigate andminimize the risk of loss for future events.

Adam P. Handfinger is Miami co-partner in charge of thenational construction law firm of Peckar & Abramson. Freddy X.Munoz is an associate in the firm's Miami office. ContactHandfinger at [email protected] andMunoz at [email protected].