Project delays due to supply chain disruptions and material availability
Definition
Lingering pandemic effects continue to cause supply chain bottlenecks affecting material delivery timelines. While project delays due to supply chain issues declined from 63% (2023) to 34% (2024), this still represents one-third of contractors experiencing material availability problems. Delays compound project costs, extend overhead allocation, damage customer relationships, and create cascading impacts on multiple project phases. For construction managers, supply chain delays force: (1) Extended project schedules and schedule float absorption, (2) Increased project overhead/management costs as projects extend, (3) Crew idle time or reallocation (inefficient utilization), (4) Potential subcontractor disputes if crews need to be released and re-hired. Material shortage timelines range from 2-8 weeks for specialized items (mechanical/electrical components, specialized finishes), directly extending project duration.
Key Findings
- Financial Impact: $160,000 - $480,000
- Frequency: on_one_third_of_projects
Why This Matters
Supply chain visibility and forecasting SaaS, alternative supplier networks and procurement platforms, material inventory management software, project rescheduling and resource optimization tools
Affected Stakeholders
Owner/Principal/Construction Manager, Project Manager / Operations Manager
Deep Analysis (Premium)
Financial Impact
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Current Workarounds
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Methodology & Sources
Data collected via OSINT from regulatory filings, industry audits, and verified case studies.
Related Business Risks
Critical shortage of skilled construction workers
Rapid escalation of direct labor costs and wages
Material cost volatility and inflation squeeze margins
High interest rates delay or kill project financing for customers
Hiring and deploying inexperienced workers creates safety and quality liabilities
Buy America Act compliance creates project delays and cost uncertainty
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