Two years post-pandemic we are making major strides in recovery, with the construction industry playing a key role in the nation’s economic recovery. However, shifting consumer patterns and shipping slowdowns collided on a large scale during the pandemic, leaving one area in sharp focus: the global supply chain.
Supply chain disruptions have wreaked havoc on the construction industry affecting building material supply, shipping delays, and cost inflation. A proper risk management strategy starts long before construction begins.
Tony Semar, Senior Cost Manager at L&K Partners, shares his perspective and best practices to keep a project moving on-time and within budget.
Early Involvement
Early involvement on a project gives our team the most leverage to meet our client’s needs in regards to cost control, delivery timing, and over project vision. Our pre-construction team is conditioned to advise through initial concept development, feasibility, planning, building material selection and procurement.
How have you addressed potential disruptions or high risk items during pre-construction?
“The key is to be deeply involved at the earliest stage possible. Our team adds value by accurately forecasting costs, identifying long lead time and high risk items, and strategically sourcing materials. We arm our clients with as much information as possible and weigh potential alternatives when necessary. The earlier we can be brought on board, the better for our clients in the long run.”
Importance of Relationships
The importance of a strong working relationship between the client and contractor is of the utmost importance, emphasized even more during a period of heightened challenges such as supply chain disruptions and the Covid pandemic.
When it comes to managing supply chain issues, what role do strong business relationships play with subcontractors and vendors?
“It would be almost impossible to meet our lead-time commitments without having great relationships with our suppliers and subcontractors. We benefit from a lot of give and take and helping each other out, and over time we’ve created strong bonds with many of our vendor partners. Those relationships pay dividends when you need to do something extraordinary for a client.”
Unforeseen Challenges
Forecasting, scheduling, contingency plans, and solid vendor relationships,, will not totally eliminate disruption. Knowing how to react when unpredictable challenges arise takes a thorough understanding of each moving part of the project and a high-level view of the entire project network.
What is the best way to handle unexpected issues?
“Real-time communication is your biggest ally when it comes to managing disruptions. Timely and transparent communication with our suppliers and clients allows us to manage exceptions in times of complication and work together to come up with the best solution with the resources available.”
——-
Tony Semar is Senior Cost Manager at L&K Partners and brings over 2 decades of experience in construction planning, estimating, contract management & negotiation, pre and post contract cost control on a vast range of project types including hospitality, education, retail and corporate interiors- notable projects include NH Collection Madison Ave, TD Bank, and the Verizon Hotel. Prior to L&K, Tony was a Cost Manager at Gardiner and Theobald, serving as a key contributor in the United Nations headquarters renovation in Midtown Manhattan, valued at over $1 billion dollars.
Get in touch with a member of our team by clicking the contact button below