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
Seismic Design | Feb 27, 2023
Turkey earthquakes provide lessons for California
Two recent deadly earthquakes in Turkey and Syria offer lessons regarding construction practices and codes for California. Lax building standards were blamed for much of the devastation, including well over 35,000 dead and countless building collapses.
Sports and Recreational Facilities | Feb 27, 2023
New 20,000-seat soccer stadium will anchor neighborhood development in Indianapolis
A new 20,000-seat soccer stadium for United Soccer League’s Indy Eleven will be the centerpiece of a major neighborhood development in Indianapolis. The development will transform the southwest quadrant of downtown Indianapolis by adding more than 600 apartments, 205,000 sf of office space, 197,000 sf for retail space and restaurants, parking garages, a hotel, and public plazas with green space.
Healthcare Facilities | Feb 21, 2023
Cleveland's Glick Center hospital anchors neighborhood revitalization
The newly opened MetroHealth Glick Center in Cleveland, a replacement acute care hospital for MetroHealth, is the centerpiece of a neighborhood revitalization. The eleven-story structure is located within a ‘hospital-in-a-park’ setting that will provide a bucolic space to the community where public green space is lacking. It will connect patients, visitors, and staff to the emotional and physical benefits of nature.
Multifamily Housing | Feb 21, 2023
Multifamily housing investors favoring properties in the Sun Belt
Multifamily housing investors are gravitating toward Sun Belt markets with strong job and population growth, according to new research from Yardi Matrix. Despite a sharp second-half slowdown, last year’s nationwide $187 billion transaction volume was the second-highest annual total ever.
Multifamily Housing | Feb 21, 2023
New multifamily housing and mixed-use buildings in Portland, Ore., must be ready for electric vehicle charging
The Portland, Ore., City Council recently voted unanimously to require all new residential and mixed-use buildings to be ready for electric vehicle charging. The move amends Portland’s zoning laws to require all new multi-dwelling and mixed-use development of five or more units with onsite parking to provide electric vehicle charging infrastructure.
K-12 Schools | Feb 18, 2023
Atlanta suburb opens $85 million serpentine-shaped high school designed by Perkins&Will
In Ellenwood, Ga., a southeast suburb of Atlanta, Perkins and Will has partnered with Clayton County Public Schools and MEJA Construction to create a $85 million secondary school. Morrow High School, which opened in fall 2022, serves more than 2,200 students in Clayton County, a community with students from over 30 countries.
Museums | Feb 17, 2023
First Americans Museum uses design metaphors of natural elements to honor native worldview
First Americans Museum (FAM) in Oklahoma City honors the 39 tribes in Oklahoma today, reflecting their history through design metaphors of nature’s elements of earth, wind, water, and fire. The design concept includes multiple circles suggested by arcs, reflecting the native tradition of a circular worldview that encompasses the cycle of life, the seasons, and the rotation of the earth.
Multifamily Housing | Feb 16, 2023
Coastal Construction Group establishes an attainable multifamily housing division
Coastal Construction Group, one of the largest privately held construction companies in the Southeast, has announced a new division within their multifamily sector that will focus on the need for attainable housing in South Florida.
Senior Living Design | Feb 15, 2023
Passive House affordable senior housing project opens in Boston
Work on Phase Three C of The Anne M. Lynch Homes at Old Colony, a 55-apartment midrise building in Boston that stands out for its use of Passive House design principles, was recently completed. Designed by The Architectural Team (TAT), the four-story structure was informed throughout by Passive House principles and standards.
Contractors | Feb 14, 2023
The average U.S. contractor has nine months worth of construction work in the pipeline
Associated Builders and Contractors reports today that its Construction Backlog Indicator declined 0.2 months to 9.0 in January, according to an ABC member survey conducted Jan. 20 to Feb. 3. The reading is 1.0 month higher than in January 2022.