Supply Shortages and Your Construction Project

For the past two years, supply chain shortages have put the construction industry through the ringer. Materials are scarce and project costs have reached a 50-year high. Yet, many clients don’t know how much this shortage can impact their construction plans. Below, we explain some challenges facing new construction right now and how clients can best prepare themselves.

Challenge #1: Inconsistent, unpredictable inventory
The immediate effect of global supply shortages is that vendors have less stock available. With reduced labor and major shipping delays, it is also difficult to predict restocks.

This means many online inventories and estimated delivery dates are inaccurate. It’s important for clients to understand that many vendors will list products as “in stock” because they’ve ordered it from the manufacturer, not because it’s currently in their storefront.

Similarly, estimated delivery dates are just that – estimates. For example, raw materials typically see a delivery delay of 3-6 weeks. For materials coming from overseas, the delay can be as long as 5-11 months. This is also true for appliances and furniture due to shortages of steel and small, finished parts.

Some vendors have stopped taking new orders entirely for 2022 due to their backlog, further reducing global stock. The lack of inventory brings us to the next challenge.

Challenge #2: Increased construction costs
Limited stock means that projects are more expensive. How expensive? According to recent data from the U.S. Census Bureau, construction costs went up by 17.5% in 2021 alone. Prices for individual materials have also increased. In turn, price quotes have become volatile; as parts go in and out of stock, quotes that used to be good for months need to be updated every few days.

Tips for Clients
So what can a prospective client do in the face of a supply shortage? The most important thing is for clients to remember that their construction team is always working with them to deliver on their design goals. Besides trusting the process, here are some tips:

Be Flexible: It may take a little longer, be a bit more expensive, or require an atypical approach to achieve your design dreams.

Start Early: If possible, it’s best to start planning out your project as soon as possible. This gives your design and construction team time to source supplies at the best rate and account for any market changes. You can learn more about beginning the new construction process here.

Expect Delays: With the supply chain shortage, even the best planned projects may experience some delays. Your design team will help factor this into your project goals.

Be Prepared to Act Fast: Limited quantities means that price quotes can change quickly. Be prepared for any developments in your project and communicate in a timely manner so your team can best serve you.

If you’re looking for an experienced and resourceful Architect and General Contractor in Fort Lauderdale to see your project through these challenges, contact us at Rose Architecture + Construction.