Navigating a Supply Chain Crisis with Help from an Independent Cost Estimator

Supply Chain

Navigating a Supply Chain Crisis with Help from an Independent Cost Estimator

In 2021, no matter what part of the construction sector you work in, you’ve likely felt the squeeze of the ongoing supply chain crisis. Between labor shortages and extreme delays in material shipping – not to mention rising costs of those materials – many projects have been forced to go on hold or cancel completely. The market does show signs of turning tides as we approach the end of the year, though challenges will remain for some time.

Yet, this will be far from the last supply chain crisis, and our industry now has an opportunity to build foundations to weather the next storm. Even if the next crisis is caused by another black swan event like a pandemic, it is possible to navigate a crisis and come out successfully on the other side. Working with an Independent Cost Estimator (ICE) can provide a vital source of expertise when times get tough. Here’s a look at how an ICE can help your team through a supply chain crisis.

The space to focus on what you do best

In crisis, when emotions are running high, it’s common for communication to breakdown. In a supply chain crisis, which often includes multiple unknowns, frustrations will mount quickly. Project leads in various trade areas and owners may be pulled into aspects of the project that are outside their area of expertise under the guise of “everyone working together.” Instead, this usually stretches the team thin, causing further tension. Working with an ICE provides immediate relief in this area. With someone specific focusing on the supply chain and providing strategic recommendations, your team is free to focus on their areas of specialty and doing them well.

Identify risk areas

With an ICE focusing on the supply chain crisis, they can identify specific risk areas surrounding your project. Supply chain issues won’t affect every build in the same way, and it’s important that you have an expert in your corner who can illuminate your specific risks. Once your ICE has identified the risk areas important to your particular project, they will be able to create educated plans of action to help your team work around them within the context of the supply chain issues.

Find vital cost savings

When the supply chain is struggling, material costs often skyrocket. This will affect your project budget for everything from raw materials to appliances that need installed during the final phases. A skilled ICE will be able to identify important areas of savings for you. In some cases, cost savings could mean that a project can continue even amidst a supply chain crisis.

Align stakeholder expectations

Even when a project can continue, things sometimes have to be adjusted. Stakeholders and investors in the project often aren’t on the ground at the worksite and may not fully understand how a supply chain crisis can affect a project. An ICE is a professional skilled at setting expectations and can help you bring understanding to all involved stakeholders. Getting everyone on the same page upfront about what to expect will save you from disappointment later.

Our team is ready to help you navigate the current supply chain crisis and understand how to weather the next storm, whenever it may be. Contact us for more details.