Tips on Mitigating Supply and Labor Shortages for New Construction

The pandemic has upended developer timelines on new construction projects, due largely to supply and labor shortages. As a result, projects just aren’t making it to the finish line on time. However, Patrick Winters, president and principal of Nadel Architecture + Planning, says there are a handful of simple ways that developers can mitigate the losses.

“While supply and labor shortages are definite challenges for today’s developers, there are ways to mitigate these challenges and bring projects across the finish line on time and within budget,” Winters tells GlobeSt.com. “Developing relationships with local suppliers and buying in bulk for economies of scale are two ways to overcome this obstacle.”

The solution requires that developers chose a well-connected contractor. “Developers who hire contractors that work with a broad network of local vendors can circumvent the problems of lost time, rising costs, and materials scarcity that come from relying on overseas sources or only one supplier,” adds Winters.

In addition to leveraging local relationships and hiring contractors that have an in-place network, Winters also says that understanding the market can help developers in this area. “Los Angeles is a unique market with design needs unlike any other market in the country—and possibly the world,” he says. “Because the region is so large and diverse, designing commercial properties for it requires an in-depth understanding of the various neighborhoods and submarkets within L.A.”

In this respect, hiring an architect can also contribute to a more successful project that delivers on time and on budget. “Nadel’s position as one of the longest-running design firms in the market allows us to spot emerging trends and present innovative solutions that others in the industry might miss,” says Winters.

He uses the example of a recent project, the Rise Hollywood, a mixed-use property with 13 live/work units and 2,570 square feet of creative office space. “We incorporated several “cracks” in the design of The Rise Hollywood that allow for maximum views of the neighborhood, including views of the iconic “Hollywood” sign, increased building functionality, and heightened aesthetic appeal. Our expertise in the market helped inform that design feature and distinguish the building from others in the area.”