Rigor Is Required to Mitigate Risk as Supply and Labor Shortages Continue to Plague Construction
It
is common knowledge that Oregon, and the rest of the nation, have been
experiencing extreme market difficulties with supply chains and labor
shortages as a direct aftermath of COVID-19. Material availability, cost
escalations, supply chain disruptions, access to labor and inflation
have impacted many areas, including construction.
There are
several ways owners and contractors can protect themselves from market
risk; adequate and frequent communication rises to the top of this list.
Early discussions – that is, pre-contract – between project owners,
generals, subcontractors and suppliers are now par for the course to
identify potential issues in obtaining materials and adequately staffing
the job. These communications will not only aid the contracting parties
in identifying potential delays to mitigate project delays, but will
also strengthen these critical relationships early in the process.