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
Market Data | Jul 21, 2022
Despite deteriorating economic conditions, nonresidential construction spending projected to increase through 2023
Construction spending on buildings is projected to increase just over nine percent this year and another six percent in 2023, according to a new report from the American Institute of Architects (AIA).
Mixed-Use | Jul 21, 2022
Former Los Angeles Macy’s store converted to mixed-use commercial space
Work to convert the former Westside Pavilion Macy's department store in West Los Angeles to a mixed-use commercial campus recently completed.
Building Team | Jul 20, 2022
San Francisco overtakes Tokyo as the world’s most expensive city for construction
San Francisco has overtaken Tokyo as the world’s most expensive city for construction, according to a new report from Turner & Townsend.
Libraries | Jul 20, 2022
Canada to open one of the world’s largest library and archive facilities
When it opens in 2026, Ādisōke is expected to be one of the largest library and archive facilities in the world.
Energy-Efficient Design | Jul 19, 2022
All is not lost: 3 ways architects can respond to the Supreme Court’s EPA ruling
The U.S. Supreme Court’s ruling to limit the Environmental Protection Agency’s power to regulate greenhouse gas (GHG) emissions from power plants dealt a significant blow to our ability to fight the climate crisis with federal policy.
Office Buildings | Jul 19, 2022
Austin adaptive reuse project transforms warehouse site into indoor-outdoor creative office building
Fifth and Tillery, an adaptive reuse project, has revitalized a post-industrial site in East Austin, Texas.
Women in Design+Construction | Jul 18, 2022
Registration is open for BD+C's 2022 Women in Design+Construction Conference
Join your AEC industry peers in Chicago, September 26-28, 2022, for the 7th annual Women in Design+Construction Conference, hosted by the BD+C editorial team and the 35-person WIDC Advisory Board.
Airports | Jul 18, 2022
FAA will award nearly $1 billion for airport projects
The Federal Aviation Administration (FAA) will award nearly $1 billion to 85 airports of all sizes across the country to improve terminals.
Building Team | Jul 18, 2022
Understanding the growing design-build market
FMI’s new analysis of the design-build market forecast for the next fives years shows that this delivery method will continue to grow, despite challenges from the COVID-19 pandemic.
Mixed-Use | Jul 18, 2022
Mixed-use development outside Prague uses a material made from leftover bricks
Outside Prague, the Sugar Factory, a mixed-used residential development with public space, marks the largest project to use the sustainable material Rebetong.