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Graduate Studies

Butuan City

COVID-19's Impact on Project Delivery Crisis Management in


Agusan del Sur's Construction Projects

A Thesis Presented to
The Faculty of the Undergraduate Studies
Father Saturnino Urios University
Butuan City

In Partial Fulfillment of the Requirements for the


the Degree of Bachelor of Science in Civil Engineering

by

Cacanindin, Loraine Joy C.,


Nemeno, Nikhalypsys B.
Sultan, Talal R.
Timtim, Marjon A.
Trillo, Hannah Bianca D.
December, 2021
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Butuan City

TABLE OF CONTENTS

Page

TITLE PAGE i

LIST OF TABLES ii

LIST OF FIGURES iii

TABLE OF CONTENTS iv

Chapter 1

THE PROBLEM AND REVIEW OF LITERATURE

Background of the study 1

Review of Related Literature 3

Theoretical Framework 21

Conceptual Framework 25

Statement of the Problem 31

Significance of the Study 32

Scope and Delimitation 34

Definition of Terms 35

Chapter 2

METHODOLOGY

Research Design 38

Research Setting 39
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Butuan City

Sampling Technique 42

Ethical Consideration 43

Research Instrument 43

Data Gathering Procedure 46

Statistical Treatment 48

Data Analysis Procedure 49

References 52
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LIST OF TABLES

Table Title Page

1 Top regions by Active Cases 6

2 Top provinces with new active cases


as of Oct. 17, 2021 7

3 Cronbach's Alpha Ranges and


Interpretation Service 46

4 Responses and Quantification of Data 49

5 Relative Importance Index Ranges 51


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LIST OF FIGURES

FIGURE Title Page

1 Global COVID-19 cases as of October 18, 2021 4

2 Global COVD-19 deaths as of October 18, 2021 5

3 Proposed frameworks for crisis management in

the construction sector (Abrar, et al., 2021)21

4 Fink's Crisis Model (Marker, 2020 24

5 Jacques's Crisis Management Model, 2007 25

6 Research Paradigm 30

7 Vicinity Map of Agusan del Sur 41


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Butuan City

Chapter 1

THE PROBLEM AND REVIEW OF LITERATURE

Background of the Study

On January 30, 2020, the World Health Organization

(WHO) declared the COVID-19 outbreak a global health

emergency. This sudden change has posed diverse challenges

to the development of the global economy and has an

unprecedented influence on the different sectors (Alsharef

et al., 2021).

Even worse, the impacts of COVID-19 have disturbed the

industrial sectors, especially the construction industry, by

the negative effects brought about by this pandemic.

(Ogunnusi et al., 2020). Needless to say, because of the

pandemic, the crisis limits the construction industry's

operation, such as access to raw materials and labor and

construction materials supply chain.

At the same time, the industry's financial side, such

as falling revenue and increasing project delivery

challenges, has raised investment loss (Bsisu, 2020). The


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revelation of the implications would inform the policy and

decision-makers in the country to devise effective ways of

addressing the challenges for the stability of the sector

(Ghandour, 2020).

Consequently, in the Philippines, COVID-19 has delayed

the implementation of 3,283 infrastructure projects of DPWH,

with a cumulative worth of P108.3 billion (Cabuenas, 2021).

Meanwhile, in the Caraga region, specifically in Surigao del

Sur and Agusan del Sur, 502 stalled projects have been

temporarily delayed, including road concreting, bridge, and

slope protection (NEDA-Caraga Region,2020).

With the impact of COVID 19 on the construction

industry and the emergence of a new project delivery crisis

as an aftermath of the pandemic, the researchers found out

that only a few studies have focused on this topic. Also, no

study has been published that relates the impact of COVID-19

to project delivery crisis management, especially in the

province of Agusan del Sur.

Henceforth, this encouraged the researchers to conduct

a study to establish the impact of COVID-19 on the project

delivery crisis management of the construction companies


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within the province of Agusan del Sur in order to propose a

framework that would improve their crisis management

specifically on the operations and finances of each

construction projects under their companies.

Review of Related Literature

Coronavirus disease (COVID-19) is an infectious disease

caused by the SARS-CoV-2 virus. They range from the common

cold to more severe diseases like Middle East Respiratory

Syndrome and Severe Acute Respiratory Syndrome (World Health

Organization, 2021). It is transmitted when one individual

talks, sneezes, or coughs, producing ‘droplets’ of saliva

containing the COVID-19 virus. These droplets are inhaled by

another person, resulting in fever, dry cough, fatigue, and

shortness of breath (Department of Health, 2021).

It has spread to over 200 countries since the World

Health Organization (WHO) confirmed the first cases on

December 31, 2019. The WHO declared the crisis the first

public health emergency of international concern on January


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30, 2020. Later, on March 11, 2021, COVID-19 was declared a

global health pandemic (Alsharef et al., 2021).

As of October 22, 2021, there have been 242,348,657

confirmed cases of COVID-19 worldwide, including 4,927,723

deaths reported by the World Health Organization. America

has the largest confirmed cases and deaths, totaling

approximately 92,640,794 and 2,272,988, respectively, as of

October 18, 2021. Europe is next, with 74,465,348 confirmed

cases and 1,394,726 deaths; South-East Asia 43,722,592

confirmed cases and 686,348 deaths; Eastern Mediterranean

16,200,413 confirmed cases and 298,038 deaths; Africa

9,192,345 confirmed cases and 125,914 deaths; and Western

Pacific 9,192,345 confirmed cases and 125,914 deaths (see in

Figure 3 and Figure 4).

Figure 1: Global COVID-19 cases as of October 18, 2021


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Figure 2: Global COVID-19 deaths as of October 18, 2021

In the Philippines, Department of Health (DOH) stated

in COVID-19 Situation Report #87 that as of 10 October 2021,

a total of 2,666,562 confirmed COVID-19 cases and 39,624

deaths had been reported. A total of 25% of deaths reported

are from NCR, followed by Central Luzon (13%), CALABARZON

(12%), Central Visayas (10%), and Western Visayas (7%).

Moreover, the Philippines remains in Stage 2, localized

community transmission, with some geographic areas showing

higher transmission intensity and indications of widespread

community transmission. There is ongoing evidence of higher

transmission as shown in Table 1 in (NCR) National Capital


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Region (18,905 active cases); CALABARZON (12,444 active

cases); and Central Luzon (9,516 active cases) in which are

at Stage 3, large scale community transmission. Next on the

line are Cagayan Valley (6,484); Western Visayas (5,619);

Administrative Region (5,559); Ilocos Region (5,199);

Eastern Visayas (5,037); Davao Region (4,226); and Central

Visayas (3,709).

Table 1: Top regions by Active Cases

1 National Capital Region (NCR) 18,905


2 Region IV-A: CALABARZON 12,444
3 Region III: Central Luzon 9,516
4 Region II: Cagayan Valley 6,484
5 Region VI: Western Visayas 5,619
6 Cordillera Administrative Region (CAR) 5,559
7 Region I: Ilocos Region 5,199
8 Region VIII: Eastern Visayas 5,037
9 Region XI: Davao Region 4,226
10 Region VII: Central Visayas 3,709

Consequently, the Philippines had been placed under a

strict community quarantine, restricting mobility and

commercial activity (Futurelearn, August 2021). In the

CARAGA region, on April 6, 2020, the DOH - CARAGA Regional

Office, Chairperson of the Regional Inter-Agency Task Force

(RIATF), has confirmed one positive COVID-19 case in the

region particularly in the City of Butuan.


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For this reason, Regional Task Force (RTF) for COVID-19

“One CARAGA Shield” conveyed to declare an Enhanced

Community Quarantine (ECQ) over the entire region, pursuant

to Section IV. Declaration of Enhanced Community Quarantine

of RTF for COVID-19 One Caraga Shield Resolution No. 07,

Series of 2020.

As of 17 October 2021, DOH Center Health Development -

CARAGA reported that there are 2,389 active cases and 1,644

deaths due to COVID-19. There are 18 new cases reported in

Agusan del Sur as shown in Table 1.1. Surigao del Sur (12),

Cabadbaran City (11), Butuan City (10), Surigao Del Norte

(7), Dinagat Island (6), Agusan del Norte (6), Surigao City

(5), Bislig City (4), and Tandag City (1).

1 Agusan del Sur 18


2 Surigao del Sur 12
3 Cabadbaran City 11
4 Butuan City 10
5 Surigao del Norte 7
6 Dinagat Island 6
7 Agusan del Norte 6
8 Surigao City 5
9 Bislig City 4
10 Tandag City 1

Table 2: Top provinces with new active cases as of Oct. 17,


2021
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In the study of Mofijur (2020), he stated that the

pandemic has also significantly affected the environmental,

social domains, and different sectors of the economy.

According to Rume and Islam (2020), the ecological effect of

COVID-19 has brought positive impacts. There has been a

sudden drop in greenhouse gas (GHGs) emissions (Henriques,

2020), and during the lockdown period, the primary

industrial sources of pollution have shrunk or completely

stopped, which helped reduce the pollution load (Yunus et

al., 2020).

However, on the negative side effects of COVID-19,

medical waste generation such as biomedical waste generated

from hospitals has increased globally, which is a

significant threat to public health and the environment

(Somani et al., 2020). Municipal waste increases, both

organic and inorganic, that generates direct and indirect

have affected the environment such as air, water, and soil

pollution (Islam et al., 2016).

When it comes to the social domain, the Department of

Economic and Social Affairs (2020) stated that the COVID-19

outbreak affects all segments of the population, especially


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that it is more harmful to individuals such as those living

in poverty, the elderly, people with disabilities, youth,

and indigenous peoples.

Early research suggests that the virus's health and

economic consequences are borne disproportionately by the

poor. Homeless persons, for instance, are particularly

vulnerable to the virus because they may not be able to find

a safe place to shelter (United Nations, 2021).

Apart from the widespread health crisis, the COVID-19

pandemic has resulted in a nationwide economic downturn

(Alsharef, 2021). The National Monetary Fund (2020) revealed

that in 2019, due to the economic crisis, the global GDP was

only reduced by 0.1%; however, in 2020, the global economy

was reduced by 3% due to the impact of COVID-19.

Furthermore, a significant economic impact has already

occurred across the globe due to reduced productivity, loss

of life, business closures, trade disruption, and decimation

of the tourism industry (Pak et al., 2020). As reported by

the World Health Organization (WHO), millions of enterprises

face an existential threat. Nearly half of the world's 3.3


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billion global workforces are at risk of losing their

livelihoods.

Like other industries, the pandemic has also impacted

the construction industry (Alsharef, 2021). The nature of

the effects of COVID-19 in this industry varied according to

the diversity of its projects. The pandemic raised many

challenges at the level of the workforce, low or halting

productivity, production time and costs, and disputes in

contractual formulas for construction projects (Husien,

Borisovich, & Naji, 2021).

Gulf Cooperation Council (GCC) member countries such as

Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the United

Arab Emirates, are some countries where the construction

industry has had shutdowns and lockdowns in place to slow

the spread of the COVID-19 (Umar, 2021). Thus, construction

enterprises and workers are particularly vulnerable to the

drastic decline in economic activity resulting from the

pandemic as it is sensitive to economic cycles

(International Labor Organization Sectoral Brief, 2021)

For instance, construction sectors and real estate

activities in the Philippines experienced a high risk of job


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disruption because of temporary labor shock due to a sudden

switch to work-from-home arrangements. With the abrupt

announcement of a lockdown in Metro Manila, workers and

firms had very little time to anticipate how the pandemic

would radically change the workplace, surfacing coordination

problems as to how work could still be carried out at home

(ILO Philippines, 2021).

Particularly, in Agusan del Sur, the second province in

CARAGA with most construction projects temporarily suspended

due to the COVID-19 pandemic crisis, 91% of its operational

firms were temporarily closed (CARAGA Regional Recovery

Program, 2021).

Before the pandemic, the construction industry has

played an essential role in any country's national economy

and economic development (Dakhil, 2013). In fact, TechnoFunc

(2020) stated that this industry accounts for more than 10%

of global GDP (6-9% in developed countries) and employs

around 7% of the worldwide workforce.

In developing countries, the construction industry is a

vital sector providing mainly new infrastructure in the form

of roads, railways, airports, and new hospitals, schools,


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housing, and other buildings (Khan, 2008). For instance, in

the Philippines, it serves as the vital sector within its

economy, contributing a gross value added of about 336.19

billion pesos during the fourth quarter of 2020. It is also

the main contributor to the growth of manufacturing,

wholesale, retail trade, repair of motor vehicles and

motorcycles.

In fact, in the second quarter of 2021, the

construction industry placed second with 1.7% points as one

of the top contributors to GDP growth (Philippine Statistics

Authority, 2021). This result is also due to the “Build,

Build, Build” program of President Rodrigo R. Duterte in

which the government gross domestic product (GDP) is

expected to grow to 7-7.5 percent by 2022 from a historic

high of 5.1 percent of GDP in 2018.

Build, Build, Build is composed of more than 20,000

infrastructure projects nationwide, involving roads,

highways, farm-to-market roads, airports, seaports,

terminals, evacuation centers, lighthouses, hospitals,

schools, government centers, among others (Department of

Finance, 2019). The Philippine News Agency stated in their


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report last June 19, 2021, a total of 6.5 million workers

made Build, Build, Build a reality.

To deliver excellent construction project outcomes,

stakeholder engagement increasingly becomes a part of

construction project practices (Bal et al., 2013). However,

crises seem inevitable in projects (Mallak, Kursted &

Patzak, 1997). Thus, Srinivasan & Nandhini (2015) define

this as a sudden and unexpected event that threatens to

disrupt an organization's operations and poses both a

financial and a reputational threat.

According to Mohammed (2021), the major factor of

crisis impact in different sectors has been financial

difficulties. Global financial crisis negatively affects

both developed and developing economies, and therefore,

impacts the operations of several manufacturing and supply

industries, specifically in the construction industry.

Globally, it is believed that the construction industry

contributes to the gross domestic product of almost all

economies. For that reason, a downturn in construction

activities affects the growth of a state or country’s


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economy, resulting in general hardships and unemployment in

the sector (Edmund, Yang, & Eric, 2018).

Mohammed stated that construction activities have quite

several financial risks that can have an impact on the

project objectives such as cost, time and quality. He added

that financial risk factors can be classified into five

groups concerning the impact of the financial crisis during

construction processes. These groups are management

financial related, consultant financial related, contractor

financial related, material financial related, and labor

financial related.

Delivering successful construction projects is a very

important factor to support the growth of a nation. It can

be asserted that the context of a project and the

circumstances surrounding it have significant impact upon

the outcome of that project (PIPC, 2005).

However, it can be affected by project delivery crises which

occur periodically or suddenly (Mhaske and Khandekar, 2016).

Thus, most companies in the pursuit of an innovative project

delivery crisis management approach have been ready against

any types of crises.


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According to Yamamoto1 and Şekeroğlu (2011), crisis

management can be defined as the process of the

identification of prudential problems and danger factors. It

is an organization's strategy for responding to crises as

this is vital to completing projects on time (Rajprasad et

al., 2018).

It also illustrates how a crisis management team should

conduct in the event of a problem in a construction project.

These practices investigate the nature of crises and their

resolutions that have harmed a multinational construction

firm's business.

Furthermore, the nature of these crises has been

defined and how they have been addressed. Supplier

relationships, design and technology concerns, price

increases, a shortage of human resources, and environmental

considerations are just a few of the critical factors to

consider while undertaking a construction project

(Srinivasan, 2015). In times of crisis, the crisis

management team must view situations objectively, anticipate

risk, and make swift judgments (Hinterhuber and Propp,

1992).
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Additionally, crisis management team members should

determine the approach, define the objectives, and initiate

the change; otherwise, the organization's continuity will be

jeopardized, and the firm may be forced to cease operations

(Türk, 1995). However, it has been demonstrated that

efficient crisis management enables the business to recover

more quickly and achieve more effective outcomes from crises

(Yamamoto & Ekerolu, 2011).

As the COVID-19 pandemic had arisen into global area

that had affected the construction industry, including

construction projects, there have been fewer job openings,

partly due to work disruptions caused by restrictions

imposed to slow the spread of the virus, and a scarcity of

personal protective equipment (PPE) caused by the greater

demand for it among healthcare workers (Karimi, 2021).

The construction industry has always had a labor

shortage, but the pandemic has exacerbated it due to the

substantial percentage of its workers who have apparently

tested positive for the coronavirus (Penaloza, 2020).

Since the beginning of March 2020, this industry has

been experiencing higher levels of project delays and


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cancellations due to the COVID-19 pandemic, with widespread

restrictions on the movement of people and enforcement of

complete or partial lockdowns from mid-March 2020. For China

and some Asian countries, minor disruption had begun in

February, but globally, the impact of these restrictions

peaked during the month of April.

At its peak in April 2020, over 20% of projects updated

each week were found to have been delayed (Global Data,

2020). Thus, Penaloza concluded that the construction

industry was one of the first to be affected by COVID-19,

and workers have been exposed to a higher risk of exposure.

In the Philippines, the quantity and value of

construction projects fell by more than one-fifth in the

first quarter of 2020, as construction in Luzon was halted

at the end of March, and much of the country was placed

under COVID-19 lockdown (Ben de Vera, 2021).

Based on building licenses approved from January to

March 2020, the Philippine Statistics Authority (PSA) said

that development projects declined 22.4 percent to 30,838

from 39,762 in 2020. As of end-March, 37,256 residential,

non-residential, addition, alteration, and repair


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construction work were registered, down from 37,256 a

quarter ago.

As COVID-19 cases continue to climb, industry insiders

anticipate the slowdown in construction projects will be

prolonged until year end by the ongoing quarantine

restrictions, which are less harsh than those enforced

during the peak of the lockdown from mid-March to May. As a

result, sales and forecasts have plummeted, and unemployment

has risen. Despite the fact that the government has boosted

the construction industry, it is still a long way from

recovering the economy in the face of rising unemployment

(Ben de Vera, 2021).

According to Hertel et al. (2020), the COVID-19

pandemic necessitates additional resources because it

represents a new type of disaster for everyone. The pandemic

needs crisis management teams, particularly the government,

to adjust rapidly and precisely to constant changes.

The government, emergency response teams, logistics,

and supply chain management all lack operational and

training capabilities for long-term emergencies such as

COVID-19 since it has developed into a problem in the


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majority of countries, including the Philippines

(Christensen & Lareid, 2020).

Lenari (2021) stated that the COVID-19 pandemic

emphasized the importance of collaboration with other

countries, particularly in sharing ideas. Before the

pandemic, Europe had already established a Disaster Risk

Management Knowledge Center where all data, research, and

networking took place to prepare their citizens before

anything became out of control. He also stated that

technology had a crucial role in preventing the spread of

COVID-19.

In 2021, the IOM UN Migration, developed a Crisis

Response Plan for the Philippines. Their objectives are to

save lives, assist, educate, and prepare the populace, as

well as to limit Filipinos' hazards. They require a total of

$23,900,000 in funding and are targeting 215,000 persons by

February 2021. Psychosocial assistance, sanitation, shelter,

health, and mental health are all included in the planned

response (International Organization for Migration

Philippines, 2021).
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Abrar et al., (2021), assessed the impact of COVID-19

on the construction industry and presented a methodology for

crisis management in the sector. Physical separation, a one-

worker, one-task policy, monitoring through technology,

scheduling, administrative procedures, on-site worker

education and tutorials, engineering controls, sanitation

and hygiene, and tools and equipment were recognized as

changes in construction techniques.

To achieve tight social isolation, construction workers

should be carried to the site in only half full buses. The

one-worker, one-task policy should be implemented to

minimize worker contact. If management cannot restrict the

one worker, one task policy, further personal protection

equipment and procedures should be implemented.

With technological advancements, on-site construction

may be continuously watched to verify that safety standards

are followed. CCTV cameras, drones, and security software

such as Vinnie AI Interface are just a few of the advantages

that technology has brought to this pandemic.

While scheduling activities in shifts may extend the

duration of the project, it may also assist limit the number


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of workers on-site and contact between workers. The number

of people entering and exiting the facility should be

watched, as they may come into touch with potentially

infected individuals. The paradigm provided by Abrar et al.

is represented by a matrix in which the rows represent

operational and strategic activities, and the columns

represent the crisis management status. The matrix's

objectives and status are displayed and whether they have

been accomplished or not (see in Figure 3).

Figure 3. Proposed framework for crises management in the


construction sector (Abrar, et al., 2021)
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Theoretical Framework

The study will identify the level of impact of COVID-19

on project delivery crisis management, which focuses on the

financial crises. It will be anchored on Fink's Crisis Model

and Jacque's relational crisis management model.

According to Marker (2020), Steven Fink, in his

influential 1986 book entitled "Crisis Management: Planning

for the Inevitable”, a crisis can liken to a lifecycle with

multiple sequential stages. A crisis is categorized as the

prodromal, acute, chronic, and resolution stages (see Figure

4).

The prodromal stage spans the time between the onset of

symptoms and the onset of the crisis. During this time,

according to Fink, crisis managers should be proactive in

their monitoring, looking for signs of a developing crisis

and attempting to avoid or minimize its spread. When a

trigger sets off a crisis, the acute stage begins. The

activation of crisis managers and their plans is part of

this phase.
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The chronic stage includes the crisis's long-term

repercussions, such as when crews repair buildings and roads

damaged after a flood or hurricane. Finally, the resolution

stage marks the conclusion of the crisis and the start of

internalizing what went wrong through a root-cause

investigation and making adjustments to avoid a repeat.

Consequently, like other top crisis management models

such as Alfonso Gonzalez-Herrero and Cornelius Pratt's four-

stage model published in 1996, Fink's approach compares the

development of a crisis to a lifecycle with numerous

sequential stages. In Gonzalez-Herrero and Pratt's models,

the stages are defined as birth, growth, maturity, and

decline. They represent a crisis management model that

includes problems management, planning-prevention, crisis,

and post-crisis, and it is based on these stages.

Jacques (2007), on the other hand, challenged the

notion that crisis management is a sequential process,

arguing that crucial functions and activities, such as

crisis prevention and preparation, frequently overlap or co-

occur and don't always progress in one direction.


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Jacques proposed that crisis management and the field

of issue management are related, integrated disciplines

instead of lifecycle models. Issues management involves

creating systems to deal with problems — while issues are

more routine than crises, they overlap because issues can

become the root of crises if they are not addressed

effectively.

Crisis preparedness, crisis prevention, crisis incident

management, and post-crisis management are the four critical

parts of Jacques' relational model, each comprising clusters

of activities and processes. He concluded that understanding

the relationship between these aspects and placing them in

the context of more effective organizational management

reduces crisis-related losses.

Moreover, all of the above-stated models show the idea

of how crisis management managed the crisis. These models

will aid the researcher in determining the impact of a

crisis, the COVID-19, on project delivery crisis management

of Agusan del Sur's construction projects. Aside from that,

the researcher will also be basing these models in

interpreting the result of the study to propose a framework


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for project delivery crisis management and safety practices

in addressing the project delivery crisis that they have

experienced during this pandemic.

Figure 4: Fink's Crisis Model (Marker, 2020)


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Figure 5: Jacques's Crisis Management Model, 2007

Conceptual Framework

This study will be guided by Mhaske and Khandekar

(2016), who define project delivery crises as atypical

events that jeopardize fundamental structures and generate

significant uncertainty in the construction industry.

To fully assess the project delivery crisis before and

during COVID-19, the researchers classified it into a

financial crisis since the significant crisis impact on the

construction companies has been financial difficulties.

Financial crises are classified as contractors, management,

material, and labor financial crises (Mohammed 2021).

Most critical infrastructure projects in the Caraga

region, specifically in Agusan del Sur, have been

temporarily suspended, including road concreting, bridge

construction, slope protection, and school construction

(NEDA-Caraga Region,2020). Thus, the researcher will

determine the project delivery crisis Agusan del Sur's


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construction projects faced before and during COVID-19 and

their crisis management before and during the pandemic.

Since this pandemic is still ongoing, it is vital to

conduct specific initiatives to mitigate the unfavorable

influence of COVID-19 on company operations and social

activities. Different researchers offered safety methods in

construction sectors, such as Vitharana et al. (2015), who

drew the attention of contractors and developers towards the

adoption of safety procedures.

Similarly, Sahin et al. (2015) provided a new crisis

management model for the construction sector, but these

actions were done in everyday activities; consequently, in

their study, safety practices and crisis management

framework are presented in the era of existing pandemic

conditions.

Hence, the researchers will identify the level of

impact of COVID-19 on project delivery crisis management to

suggest an adapted and established framework for project

delivery crisis management and safety practices appropriate

to the condition of the Agusan del Sur's construction

sectors.
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Level of COVID-19's Impact


on Agusan del Sur’s
Construction Project
Delivery Crisis Management

Project Delivery Crisis  contractors'


financial related; Proposed framework for Project
 before COVID-19  consultants’ Delivery Crisis Management and
pandemic financial related Safety Practices
 during COVID-19  management financial
pandemic related;
 material financial
related; and
 labor financial
related

Figure 6: Research Paradigm

30
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Statement of the Problem

The study aims to determine the level of COVID-19’s

impact on the project delivery crisis management of the

contractors' construction projects in Agusan del Sur in

terms of the financial crisis. Specifically, it seeks to

answer the following questions:

1. What are the project delivery crises faced by the

Agusan del Sur construction projects as to:

1.1. before COVID-19 pandemic; and

1.2. during COVID-19 pandemic?

2. What are the project delivery crisis management of

the Agusan del Sur construction companies in terms

of:

2.1. contractors' financial related;

2.2. consultants’ financial related;

2.3. management financial related;

2.4. material financial related; and

2.5. labor financial related?

3. How affected is the project delivery crisis

management of the Agusan del Sur construction

projects by the COVID-19?


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4. What framework for crisis management and safety

practices can be designed to address the project

delivery crises experienced by the Agusan del Sur

construction projects during the COVID-19 pandemic?

Significance of the Study

The study examines the level of impact of COVID-19 on

project delivery crisis management in Agusan del Sur's

Construction Sector. Additionally, the study's findings will

benefit the following:

Construction industry. This study may improve the

crisis management of every construction sector in

Agusan del Sur in response to COVID-19. The findings

may aid them in conceptualizing a new crisis management

plan to respond to COVID-19 and future emergencies.

This research may also be helpful for the industry

stakeholders to pinpoint crisis management efforts that

could be suitable for their firms.


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Local Government of Agusan del Sur. The findings of

this study may assist the government, particularly the

Department of Public Works and Highways (DPWH) and the

Department of Transportation (DOTr), in developing

solutions that may help the construction industry

recover from the negative impacts of COVID-19 by

expanding opportunities.

Construction workers. This study may help the workers

to have safety measures primarily on-site in the

construction. Through safety practices, all workers in

the construction company can mitigate the spread of the

COVID-19 virus. Also, when crises are apprehended

swiftly, the number of workers laid off from their work

will decrease, and the chances of work returning to

normal may increase.

Future researchers. This study may serve as a

foundation for future research on the interaction

between COVID-19 and the construction industry.

Additionally, future scholars may continue this study

by delving deeper into its details.


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Scope and Delimitation

This study will be limited to the construction projects

in Agusan del Sur under the Department of Public Works and

Highways, specifically in districts 1 and 2. However, the

construction projects must be under the general engineering

on PCAB classification. General engineering includes GE-1

(roads, highways, railways, airport horizontal structure,

and bridges), GE-2 (Irrigation or Flood Control), GE-3 (Dam,

Reservoir or Tunneling), GE-4 (Water Supply), and GE-5

(Port, Harbor or Offshore Engineering).

Also, the category of the construction companies will

be limited to a single A to quadruple A level. This study

will explicitly be specified to project managers,

developers, engineers, and contractors who directly manage

all the construction activities from the onset to COVID-19

in Agusan del Sur.

To identify the project delivery crisis that the Agusan

del Sur's construction projects faced before and during

COVID-19, the researchers focused on the financial crisis,

which encompasses all the project delivery activity

including goods, consulting services and infrastructures


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project activity in a contract under the Republic Act 9184

or the “Government Procurement Reform Act”.

According to Mohammed (2021), the impact of the

financial crisis during the construction process is related

to management, contractor, material, and labor.

Additionally, the researchers will assess the level of

impact of COVID-19 on their project delivery crises

management to propose a framework for crisis management and

safety practices adapted to conditions in Agusan del Sur’s

projects during COVID-19.

Definition of terms

For clearer presentation and understanding of some

terms that will be used in this study, underneath are the

operational definitions:

Agusan del Sur’s construction projects. This refers to

the construction projects inside Agusan del Sur under

the Department of Public Works and Highways,

specifically in districts 1 and 2. It is the field of


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study used by researchers to conduct their

investigation.

COVID-19 pandemic. This refers to the health crisis

that affects various country sectors, including the

construction industry. Researchers used this as the

main reason for the changes encountered by the

construction projects in terms of project delivery

crisis management.

Financial Crises. This refers to the contractors,

consultants, management, material, and labor financial

related crisis encountered by the Agusan del Sur

construction projects during the procurement process

such as infrastructure projects, consulting services

and goods in accordance with Republic Act 9184.

Project Delivery Crisis Management. This refers to the

crisis management of construction projects in Agusan

del Sur used to manage project delivery crises.

Project Delivery Crisis. This refers to all crises that

are encountered by contractors in Agusan del Sur during


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the procurement of the construction projects such as

infrastructure projects activities, consulting services

and goods in accordance with Republic Act 9184 in which

construction projects encountered throughout their

operations before and during the COVID-19 pandemic.


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Chapter 2

METHODOLOGY

Research Design

This study will employ a descriptive-quantitative

design. It is descriptive because this study will describe

the characteristics of the population, which are the project

delivery crisis faced by Agusan del Sur's construction

projects before and during COVID-19 as well as the project

delivery crisis management by using frequency and

percentages.

It is quantitative, as this study attempts to gather

information and statistically analyze the level of impact of

COVID-19 on the construction projects’ project delivery

crisis management. The data necessary for the study include

project delivery crisis before and during COVID-19 and their

current project delivery crisis management.


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Furthermore, by determining the level of impact of

COVID-19 on project delivery crisis management, the

researcher will provide an adopted and established framework

for project delivery crisis management and safety practices

in response to the COVID-19 pandemic in Agusan del Sur.

Research Setting

This study will be conducted in Agusan del Sur in

Caraga Region, Philippines. The province of Agusan del Sur

is composed of 14 municipalities which includes Sibagat,

Bayugan, Esperanza, Prosperidad, San Luis, San Francisco,

Talacogon, La Paz, Rosario, Bunawan, Loreto, Veruela, Santa

Josefa and Trento.

The researchers have chosen this province for the

following reasons; the number of first-class municipalities

and total revenues, which correlate to the number of

construction projects in Agusan del Sur. According to the

Department of Trade and Industry (2020), Agusan del Sur has

nine first-class municipalities greater among five provinces

in the Caraga region.


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Furthermore, Agusan del Sur has the highest overall

revenue among the provinces, at around 2,058,114,452.75.

However, the COVID-19 outbreak forced the cancellation of

502 construction projects including road concreting, bridge

construction, slope protection, and school construction,

most of which were in Agusan del Sur.

With these points established and given that Agusan del

Sur is one of the provinces with a high number of delayed

projects, the researchers decided to look at how COVID-19

has influenced project delivery crisis management in Agusan

del Sur's construction projects.


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Figure 7: Vicinity Map of Agusan del Sur


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Sampling Technique

This study will utilize non-probability sampling,

specifically purposive sampling, to determine the level of

impact of COVID-19 on project delivery crisis management of

Agusan del Sur's construction projects in terms of the

financial crisis. It means that the selected sample on the

total population will be based on the researchers' judgment

due to the limited number of primary data sources which can

contribute to this study.

Since the study is descriptive, the sample population

in Agusan del Sur’s contractors will be at least 20 percent.

Kaur (2017) suggested that descriptive research with a

smaller population as small as 500 would utilize 20 percent

of the total population.

Each contractor with project managers, developers,

engineers, contractors, and the like will participate in

this study. As a result, it would preclude other potential

participants from joining who may lack competence in the


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subject field. The researchers will only include samples

with at least two years of direct construction experience

before and during the COVID-19 pandemic.

Ethical Consideration

The researchers will gather confidential data on

project delivery crises and management by the construction

companies in Agusan del Sur. The researcher will ask consent

from the firm participant, and necessary permission will be

accepted to utilize their provided data.

Furthermore, the researchers will rigorously enforce

confidentiality to protect participants' personal

information and responses. The researchers will not expose

their identities because some participants will be unwilling

to display their identities. As a result, the ethical

element of the research will be closely adhered to in this

study.

Research Instrument

Following the study's statement of the problem, the

researchers will use a descriptive survey questionnaire to


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collect the primary data that aids in answering the

questions. This data will be used to quantify the project

delivery crisis before and during COVID-19, project delivery

crisis management before and after, and the level of impact

of COVID-19 on project delivery crisis management.

Due to the pandemic, the researcher will use online

survey questionnaires. This questionnaire will be based on

the study of Mohammed (2021), "The Impact of Financial

Crisis on Construction Projects - A Case Study: the Erbil

Governorate in Kurdistan Region of Iraq", pages 34-35.

However, the researcher will modify the survey in response

to the condition of Agusan del Sur's Construction companies.

The questionnaire design would deal with financial

crises that influence project delivery crises in

construction projects (Mohammed, 2021): (i)contractor

financial crisis, (ii)consultant financial crisis (iii)

management financial crisis, (iv) material financial crisis,

and (v) labor financial crisis.

The first part of the survey will be the personal

information such as the participant's position in the

management team and the participant's years of experience in


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their company. The second part will be the project delivery

crisis of Agusan del Sur's construction projects faced

before COVID-19, and the third part will be during the

COVID-19 pandemic.

Moreover, the fourth part of the questionnaire will be

the project delivery crisis management before and after in

response to the project delivery crisis that the Agusan del

Sur's construction projects experienced before and during

COVID-19. Lastly, the fifth part of the questionnaire will

be the level of COVID-19's impact on project delivery crisis

management.

The researchers will use a 5-point Likert Scale (Mahdy,

2020) with specific ratings: (5) Greatly affected; (4)

Considerably affected; (3) Moderately affected; (2) Slightly

affected; and (1) Not affected. Additionally, for the

instrument's reliability, pilot testing will be administered

and conducted to the construction projects in Agusan del Sur

that are not part of the scope of the study to evaluate the

feasibility of this study.

Results from the survey questionnaires will then be

analyzed through Cronbach's Alpha reliability test for


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internal consistency among the survey questionnaires that

can measure the same construct, thus, can form into some

scale (see in Table 5). However, the research team advisor

will first evaluate the survey and questionnaire.

Table 3: Cronbach's Alpha Ranges and Interpretation

Cronbach’s Alpha Internal Consistency


α ≥ 0.9 Excellent
0.8 ≤ α < 0.9 Good
0.7 ≤ α < 0.8 Acceptable
0.6 ≤ α < 0.7 Questionable
0.5 ≤ α < 0.6 Poor
α < 0.5 Unacceptable

Data Gathering Procedure

The researcher will ask for approval to conduct the

survey from the Engineering and Technology Program Dean and

the researcher's thesis adviser.

The primary data such as project delivery crisis before

and during COVID-19, current project delivery crisis

management as well as the level of impact of COVID-19 on

project delivery crisis management will be gathered using


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survey questionnaire from the 20 percent sample of

contractors in Agusan del Sur.

Since it will be categorized into financial crises, the

data will be collected from the concerned individuals such

as project managers, project developers, project engineers,

and contractors.

Furthermore, it will be gathered via google survey

form, as the researchers are unable to conduct the poll in

person due to a looming health emergency. The link of the

google survey form will be sent through e-mail or any other

available online platform.

As a result, a request letter will also be sent to the

company’s authorized individual to ensure courtesy and

civility. The data collected will be verified and observed

to ensure complete responses. The data obtained will be

counted, categorized, and prepared for study and

interpretation by the analyst.


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Statistical Treatment

The following statistical tools will be used in the

analysis of the data:

Frequency and Percentages. This will be used to

describe the construction company’s project delivery

crisis before and during COVID-19 and the project

delivery crisis management before and after the

pandemic of the Agusan del Sur’s construction projects.

Mean. This will be utilized to get the level of COVID-

19’s impact on project delivery crisis management in

Agusan del Sur’s construction projects.

Cronbach’s Alpha Test. This will be used to see if a

multiple-question Likert scale survey questionnaire on

the level of COVID-19’s impact on project delivery

crisis management is reliable.


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Relative Importance Index. This will be used to rank

all the project delivery crisis management that have

been affected by the impact of COVID-19 pandemic

Data Analysis Procedure

The following steps will be employed to analyzed the

data of the study:

1. Responses and Quantification of Data

The answers of the participants on the level of

impact of COVID-19 on project delivery crisis

management of Agusan del Sur’s construction projects

will be classified respectively with the utilization

of the subsequent scale of statistical mean, range,

value, and its descriptive equivalent. The

responses, scale, range, and interpretation are

shown below:

Table 4: Responses and Quantification of Data

Responses Scale Range Interpretation


Greatly 5 4.21 - 5.00 Experienced (more than 75%
affected of the time)
Considerably 4 3.41 - 4.20 Experienced (51 – 75% of
affected the time)
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Moderately 3 2.61 - 3.40 Experienced (26 – 50% of


affected the time)
Slightly 2 1.81 - 2.60 Experienced (10 – 25% of
affected the time)
Not affected 1 1.00 - 1.80 Experienced (less than 10%
of the time)

2. Ranking of Project Delivery Crisis Management that

have been affected by the impact of COVID-19 pan-

demic.

The practicality and variety of components on

the survey data define the relative importance in-

dex (RII), which will be calculated using the for-

mula below to determine which criteria are criti-

cal:

𝑅𝐼𝐼 = (5𝑛5 + 4𝑛4 + 3𝑛3 + 2𝑛2 + 𝑛)


5(𝑛5 + 𝑛4 + 𝑛3 + 𝑛2 + 𝑛)
Where:

 RII = relative importance index

 nn = number of indicators

The Relative Importance Index (RII) will be

used to calculate the value, which ranges from 0.2

to 1.0. The 0.2 number denotes the weakest point,

while the 1.0 value represents the strongest


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point. The information gathered from questionnaire

surveys will be examined quantitatively. The table

below will serve as a guide in classifying the

factors based on the computed RII.

Table 5: Relative Importance Index Ranges

Scale Level of Impact RII

5 Greatly affected 0.8 < RII ≤ 1.0


3.
4 Considerably affected 0.6 < RII ≤ 0.8
3 Moderately affected 0.4 < RII ≤ 0.6
2 Slightly affected 0.2 < RII ≤ 0.4
1 Not affected RII ≤ 0.2
Determination of Cronbach’s Alpha

The Cronbach’s Alpha defines the internal

consistency, which will be calculated using the

formula below to determine whether multiple-

question Likert scale surveys are reliable.

The formula for Cronbach’s alpha is:

α = [ K / K -1] [ 1 – (Σs2y / s2x) ]

Where:

 K = is the number of test items.


 Σs2y = is the sum of the item variance.
 s2x = is the variance of total score.
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