How Contractors can help their Millwork/Fabricators/Trade Partners across the finish line
November 29, 2023
By Doug Walters
Construction Risk Engineering Consultant, Subcontractor Default, AXA XL
Construction delays incur a myriad of extra cost – overhead, labor, loan interest, and loss of use are just some examples. Delays are very common in the final stages of a project, when only the finishing touches remain. Building finishes encompasses many different scopes, for this article we will be focusing on interior finishes but many of these concepts can be applied to a variety of fabricators and scopes. Millwork type products, include everything from standing and running trim, wall paneling, ceiling systems, cabinets, doors and decorative high-end finishes both inside and outside the facility can be very complex to coordinate and install on time due to the number of components and suppliers involved.
Some fabricated pieces – a high-end cabinet, for example – may require 10+ vendors to build between the core materials, hardware, the external finish, the decorative details on the door, and the glue, dowels, etc. to hold it all together. If we dive deeper, we might find that this cabinet requires 3 fabricators due to special tooling requirements! In these cases, existing supply chain disruptions and labor shortage issues are exacerbated. The trickle-down effects can result in weeks to months-long delays.
Economic uncertainty, inflation, and political turmoil around the globe all continue to impact the supply chain. A recent survey conducted by supply chain risk management software company Coupa found that 50% of supply chain professionals experienced at least three disruptive events within the past year. Disruption is now the rule, not the exception.
Cutting down wait time
For the construction industry, that can mean a lot of waiting around for materials to arrive.
According to a 2022 U.S Construction Costs Trends report by CBRE, the lead time for materials has increased exponentially over the last two years. The average lead time for wood frames and doors jumped by 233%, appliances by 400%, aluminum storefront glazing by 300%, and paint by 200%. If this lag is not properly accounted for, contractors will be hit with unpleasant surprises right when the finish line is in sight.
Issues also arise if there are defects in these materials or products when they do finally arrive. Correcting errors quickly in the field depends on primary contractors having transparent relationships with millwork contractors. Contractors need to conduct site visits at millwork shops, ask the right questions and learn more about their millwork fabricators’ process in order to anticipate and circumvent problems in the final stages of a project. The idea is when the product ships from the manufacture it is correct and the limited remaining time in the project schedule is used effectively to install the product.
Take action to lessen inaction
After years of experience in the field, AXA XL’s risk engineers can make suggestions on areas to observe and questions to ask during site visits to gain clarity on product status during fabrication… and ultimately get millwork across that finish line and meet your opening day commitments.
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