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
Structural Materials | Apr 3, 2017
Best of structural steel construction: 4WTC, Fulton Center, Pterodactyl win AISC IDEAS2 Awards
The annual awards program, sponsored by the American Institute of Steel Construction, honors the best in structural steel design and construction.
Reconstruction & Renovation | Mar 16, 2017
Pols are ready to spend $1T on rebuilding America’s infrastructure. But who will pick which projects benefit?
The accounting and consulting firm PwC offers the industrial sector a five-step approach to getting more involved in this process.
Contractors | Mar 15, 2017
Dan Ulbricht joins Skender Construction as Vice President
Ulbricht will be working with Skender’s executive leadership team to augment partnerships and expand new markets.
Contractors | Mar 9, 2017
5 reasons why Millennials are great for the construction industry
Millennials often are unfairly saddled with the dubious reputation for being entitled, disloyal, and self-centered, but it turns out that they are actually not that different from their older work colleagues, according to an FMI study.
Industry Research | Mar 7, 2017
These are the 10 most expensive cities in the world to build in
Paris, Frankfurt, and Macau are all on the list, but none of them are more expensive than the city in the number one spot.
Architects | Jan 4, 2017
The making of visible experts: A path for seller-doers in the AEC industry
Exceptional seller-doers have the ability to ask the right questions, and more importantly, listen.
Building Team | Jan 3, 2017
How does your firm’s hit rate stack up to the AEC competition?
If your firm is not converting at least a third of project proposals when competing for new work, it may be time to reassess your marketing tactics and processes.
Contractors | Dec 22, 2016
New commercial building energy code released
The update includes a new compliance path and significant technical changes affecting building envelope, and mechanical and lighting systems.
Contractors | Oct 13, 2016
Contractors’ financial performance improved in 2015
The Construction Financial Management Association’s latest survey found gains across the board, but notable variances by the size of the companies.
| Sep 26, 2016
RELIGIOUS FACILITY GIANTS: A ranking of the nation’s top religious sector design and construction firms
Gensler, Leo A Daly, Brasfield & Gorrie, Layton Construction, and AECOM top Building Design+Construction’s annual ranking of the nation’s largest religious facility AEC firms, as reported in the 2016 Giants 300 Report.