Planning for disruptions is not just a precaution – it is standard practice at BTY.
Canada’s government has stepped in to mitigate a rail strike and freight stoppage with the potential to cause widespread disruptions to economic activities. The government intervention with binding arbitration between rail workers and the country’s two largest railways is hoped to prevent a prolonged strike.
The incident underscores the construction industry’s continued vulnerability to supply chains.
We asked our team to share their insights, which we compiled into the following practical steps you can take to minimize and mitigate adverse impacts on your projects.
What steps can you take for projects already in construction or close to starting?
Review Your Construction Contract:
- 🔘 Examine the general conditions related to delay events and change orders.
- 🔘 Determine if the contract entitles the contractor to additional time or costs, depending on the impact of delays on work performance.
Monitor Progress and Performance:
- 🔘 Keep detailed records of project progress, material orders, and delivery dates.
- 🔘 Regularly update the schedule to identify any potential delays and assess their impact on the critical path.
Collaborate to Find Solutions:
- 🔘 If sourcing materials or equipment becomes challenging, consider locally supplied or off-the-shelf alternatives.
- 🔘 Project parties should work together to minimize disruptions and keep progress on track.
What steps can you take for projects with construction starting over the next two quarters?
Evaluate Critical Materials and Products:
- 🔘 Identify key materials essential for project success, such as structural components, glazing, and services installations.
- 🔘 Explore alternatives for sourcing these materials locally or through different suppliers.
Develop a Detailed Procurement Schedule:
- 🔘 Specify key milestone dates for material orders, supplier appointments, and expected delivery dates.
- 🔘 Make the procurement schedule a living document to track and manage delays effectively.
Incorporate Schedules into Contract Documents:
- 🔘 Ensure that both the construction and procurement schedules are formally included in the contract documents.
- 🔘 This creates a binding agreement and clear expectations from the outset.
Choose the Right Contract Form:
- 🔘 Evaluate the form of contract that best supports project success, considering potential delays.
- 🔘 Decide on the type of fee arrangement, whether fixed or percentage-based, and agree on terms that minimize financial risks during delays.
By taking these proactive steps, your team can better navigate disruptions on construction projects, ensuring reliable execution and mitigating the risks associated with unexpected events like rail and freight stoppages.
Ready to safeguard your construction projects against disruptions? BTY’s professionals are here to help.
With a proven track record in Project Management, Schedule Management, Claims, Cost Management, and Project Monitoring expertise, we are trusted by owners, developers, and lenders to manage risk across a $100 billion multisector portfolio.
Contact us today to discover how our tailored contingency planning and delay management strategies can set your projects up for success.
