Materials shortages, cost spikes throwing Design-Bid-Build process out of whack

The traditional Design-Bid-Build delivery process is under considerable stress this year as materials shortages and cost spikes are upending usual practices, according to a new report from JLL.

Delays are “pretty much universal,” a JLL executive says. “Volatility around materials is hitting developer’s wallets at a higher rate than initially anticipated earlier this year,” according to the report.

Customarily, materials purchasing was the last step in the process, but building teams have had to adjust to the new environment by purchasing much sooner. Project managers are involved early in the design phase, and once they have a general idea of specs, they place orders for materials.

Having a cohesive team of designers, architects, contractors, and market researchers is more critical than ever for project success—even on smaller projects. Such an assemblage working in concert can account for fluctuating materials costs and establish realistic timelines to execute the project while minimizing costs and maximizing efficiency.