Lead times and supplier prices are expected to continue to increase over the next six months.
Despite challenges, development in the life sciences sector continues, with nearly 21 million square feet (msf) of projects under construction—more than double the pre-pandemic square footage. With this robust pipeline, which includes 32 msf of proposed projects in Boston and the San Francisco Bay area alone, competition for materials and labor will persist through the end of the year.
Life sciences construction, which is particularly vulnerable to backlogs in materials, will continue to experience delays in the following supplies:
- AV and security systems: microchips, logic boards
- HVAC equipment: AC units, air handlers, specialty equipment
- Electrical: light fixtures, electrical switch gear (ATS, UPS, generators)
- Doors, frames and hardware: solid core wood doors, electrified hardware
"Companies should engage project management partners early in the process to plan, project and potentially revise critical timelines, strategies and goals."
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.
Experienced project development teams make every effort to ensure delays caused by material and labor challenges are planned. In this current environment, however, 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.
Monte Carlo Simulations for Project Risk Assessment