The challenges facing commercial contractors – including increased costs of materials and labor, shortages, and delays – will likely continue in the future, according to a recent Cushman & Wakefield survey.
A whopping 98% of general contractors surveyed by the firm indicated an increase in supplier costs and material lead times, while 75% reported increased project execution timelines. And 96% of GCs said they expect future supplier costs to remain high, while 73% anticipate project execution timelines to increase slightly to significantly. Eighty-eight percent expect lead times to increase slightly to significantly in the next six months.
“Sound planning with clearly defined strategic goals allows for a more certain measure of true risk profile and a better prediction on a project’s cost and estimated time of delivery,” writes Cushman’s Jason D’Orlando. “Project managers must be brought aboard early to revise timelines, reduce risk and deploy new tactics, all strategic efforts that will increase the likelihood of meeting a project’s budgets, milestones and timelines. Preprogramming is the key to running a successful and on-time project in 2022 compared to 2019. Early material procurement and expediting the early works package while you are still in the location analysis and concept planning phases saves time and prevents cost overruns.”