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
| Sep 12, 2011
LACCD’s $6 billion BIM connection
The Los Angeles Community College District requires every design-build team in its massive modernization program to use BIM, but what they do with their 3D data after construction is completed may be the most important change to business as usual.
| Sep 9, 2011
$22 million investment made in energy efficient building maker
The buildings use at least 25% less energy than the strictest building codes in the U.S., and as much as 80% less energy in certain parts of the country.
| Sep 7, 2011
KSS Architects wins AIA NJ design award
The project was one of three to win the award in the category of Architectural/Non-Residential.
| Jul 22, 2011
The Right Platform for IPD
Workstations for successful integrated project delivery, a white paper by Dell and BD+C.
| Jul 22, 2011
High-performance windows and doors
Learning objectives After reading this article, you should be able to: Understand issues of thermal performance and energy efficiency in relation to window and door systems; describe optimal detailing of the window-wall interface and how it contributes to building performance, sustainability, and occupant well-being; understand how durability contributes to sustainable windows/doors; and list sustainable O&M requirements for window and door systems.
| May 20, 2011
Hotels taking bath out of the bathroom
Bathtubs are disappearing from many hotels across the country as chains use the freed-up space to install ever more luxurious showers, according to a recent USAToday report. Of course, we reported on this move--and 6 other hospitality trends--back in 2006 in our special report "The Inn Things: Seven Radical New Trends in Hotel Design."
| May 17, 2011
Gilbane partners with Steel Orca on ultra-green data center
Gilbane, along with Crabtree, Rohrbaugh & Associates, has been selected to partner with Steel Orca to design and build a 300,000-sf data center in Bucks County, Pa., that will be powered entirely through renewable energy sources--gas, solar, fuel cells, wind and geo-thermal. Completion is scheduled for 2013.
