Fifty-two weeks. An entire year. That’s how long project teams are having to wait for certain building materials, systems, and equipment in the post-Covid environment. These include critical core-and-shell materials like steel, steel deck, steel joists, and roofing components such as ISO foam board insulation and fasteners. Even readily available “off-the-shelf” products like drywall, metal framing, and paint have lead times. Not to mention near-historic price inflation levels and shipping costs across almost every product category.
Faced with these immense supply chain issues—on top of the ongoing skilled labor shortage—building teams are forced to employ aggressive product procurement tactics to pull off new construction and major reconstruction programs on schedule—and anywhere close to budget. Common strategies include real-time price tracking, product availability analysis during the design and bidding phases, more-optimal project planning (duh!), and sourcing locally, when possible.
Some project teams are looking to eliminate much of the guesswork around product availability and price inflation by employing early bulk-purchasing measures for entire building projects, even multi-build developments. This “buy-and-store” approach to product procurement has worked for several recent healthcare projects led by design and construction giant Haskell, says Denise Muth, Project Director with the firm’s Infrastructure and Transportation group.
ALSO SEE: How building owners and developers can get ahead of the next supply chain disaster
“For one hospital project, it was determined to buy the whole project out from the start and utilize local storage leased by the hospital,” says Muth. “On another project, we accelerated roofing, MEP equipment, elevators, and steel to help jumpstart the lead time process while the balance of design is completed. Depending on the stage of design, our owners are encouraged to purchase the entire project as quickly as possible.”
AEC industry consultant Ryan Bosworth, Principal with Rider Levett Bucknall, urges project teams to take advantage of the glut in vacant or derelict retail stores, especially big boxes, to purchase building products in bulk and warehouse them locally. “Landlords are begging for revenue while they reposition properties,” he says, adding that these spaces are relatively inexpensive to rent and require little build-out.
This bulk-purchasing approach, while effective, does have its obstacles, says Muth, including added front-loaded costs for owners/developers, insurance considerations related to storage facilities, and the risk of changes to specifications or design after materials have been ordered and stored.
Related Stories
Contractors | Feb 4, 2020
Suffolk diversifies, issues new brand identity
General contractor expands services beyond construction into vertical service lines.
Sponsored | HVAC | Feb 3, 2020
Reliable Building Systems Increase Net Operating Income by Retaining Tenants
Tenants increasingly expect a well-crafted property that feels unique, authentic, and comfortable—with technologically advanced systems and spaces that optimize performance and encourage collaboration and engagement. The following guidance will help owners and property managers keep tenants happy.
Libraries | Jan 23, 2020
Information or community center: The next generation of libraries must be both
Are libraries still relevant in a digital world?
Market Data | Jan 23, 2020
Construction contractor confidence surges into 2020, says ABC
Confidence among U.S. construction industry leaders increased in November 2019 with respect to sales, profit margins, and staffing, according to the Associated Builders and Contractors Construction Confidence Index.
Contractors | Jan 20, 2020
Wellness is for builders, not just for buildings
New research on wellness in the construction sector highlights interventions that could be effective in addressing dehydration, weight management, poor air quality, and stress.
Green | Jan 10, 2020
How the new EC3 tool raises the bar on collective action
Nearly 50 AEC industry organizations partnered to develop the groundbreaking Embodied Carbon in Construction Calculator.
Sponsored | HVAC | Jan 6, 2020
Maximize Energy Efficiency in Class A Office Buildings With Modern Building Systems
Energy-efficient building design starts with the building envelope, but the building systems have a tremendous impact on energy use as well.
Contractors | Dec 30, 2019
Pepper Construction Group CEO J. David Pepper, 59, passes away
Pepper was a long-time leader of one of the largest Midwest general contractors who lived his life in service to others.
| Dec 18, 2019
Reconsidering construction robotics
After decades when experts predicted that robots would become more prevalent on construction sites, it would appear that the industry has finally reached that point where necessity, aspiration, and investment are colliding.