Contract Protection Tips: The construction industry is being impacted substantially by inability to obtain necessary construction products due to supply chain issues. Most construction contracts do not accommodate time extensions due to supply chain impacts
For construction, two major pain points were labor shortages and supply chain disruptions. Now, post-COVID, the push to build again has further strained the supply chains and have forced contractors to re-think or re-design their supply chains, and it’s forced suppliers to do the same
By Joseph Natarelli of Marcum LLP Originally published February 1, 2023 Onshoring for construction contractors is a strategy aimed at reducing supply chain delays by bringing production and manufacturing processes back to the home country. This shift away from relying on offshore suppliers is driven by various factors, including the COVID-19 pandemic and geopolitical tensions that have disrupted global supply chains. Here are some of the plusses and minuses of onshoring, and some strategies to consider. BENEFITS OF ONSHORING • Reduced Supply Chain Delays: Onshoring helps to mitigate supply chain disruptions and delays by reducing the number of intermediaries involved in the production and distribution of goods. • Improved Quality Control: With onshoring, construction contractors have greater control over the quality of the materials and products used in their projects. • Increased Resilience: Onshoring makes supply chains more resilient by reducing their dependence on shipping, thereby reducing the risk of supply chain disruptions
Foremost is the reality that supply chains are becoming favored targets...In the modern environment, IT’s involvement throughout the enterprise is just as critical to profits as vendor management, supply chain continuity, and physical security
And you can bet that the surety market will be watching, evaluating, and assessing bond programs for construction firms
In addition, contractors may need to restructure their supply chains to comply with the new regulations, which could result in delays and inefficiencies. On the plus side, the Buy America regulations encourage contractors to expand their domestic supply chains and foster partnerships with American manufacturers, which will likely contribute to a stronger domestic manufacturing base
Budd of Cohen Seglias Published December 28, 2021 For contractors trying to navigate the construction industry’s current supply-chain battles, President Dwight D
Recently, the interplay between liquidated damages provisions and breach of contract claims arising from construction delays has received increased focus because of unpredictable supply chain disruptions that have plagued the industry globally. Depending on their project’s contractual terms, contractors and subcontractors may be liable for schedule delays caused by supply chain disruptions that delay construction materials and supplies. Therefore, contractors and subcontractors should carefully consider the consequences of the liquidated damages provisions in their contracts and whether the provision can be triggered by a material and supply delay that is out of that parties’ control
Published March 25, 2022 The COVID-19 pandemic has lasted two years, and while offices, projects, and the rest of life begin to return to pre-pandemic normal, the construction material supply chain and costs have not
Anecdotal evidence suggests that force majeure provisions rarely have been invoked in connection with construction projects and, where invoked, have been limited to the period of mandated government shutdown and/or direct supply unavailability resulting from the pandemic