The covenant of quiet enjoyment pertains to the landlord's actions. Since the construction company is a third party and the landlord could not have reasonably known about it breaking your lease per the terms of the covenant of quiet enjoyment are doubtful. If you obtain new tenants you may be able to work with the landlord on moving since they will not be losing out on any rental income. Also, if the construction is taking place during nighttime hours you may be able to have the police issue a noise violation.
-Michael R. Juarez Law Office of Juarez and Schaeffer PO Box 16216 San Diego, CA 92105 (619) 804-4327 www.jslaw.org Mike@jslaw.org This posting is provided for “information purposes” only and should not be relied upon as "legal advice." Nothing transmitted from this posting constitutes the establishment of an attorney-client relationship. Applicability of the legal principles discussed here may differ substantially in individual situations or in different jurisdictions.
Sorry to say that no, you are not right. The landlord has no control over what a neighbor does. Construction can be noisy and disruptive, but as long as it is being done in accordance with the city requirements, then there is little that can be done.
Your landlord might be able to work something out with you, but they are not obligated to do anything.