The pandemic has upended the global supply chain, and developers are feeling the effects. Delays or all-out cancellations for materials have put pressure on already inflated construction and materials costs. When these delays occur after the start of construction, does the burden of cost fall on the contractor, subcontractor or developer? It’s a looming question in the wake of growing supply chain woes.

Construction attorney Cornelius Riordan of firm Robbins DiMonte says that all parties should share in the cost and the risk. “Contractors need to look at it from a team approach. The contract should be structured so that everyone takes a part of the loss,” Riordan tells GlobeSt.com. “If you do it that way, I think that people are more receptive.”

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Kelsi Maree Borland

Kelsi Maree Borland is a freelance journalist and magazine writer based in Los Angeles, California. For more than 5 years, she has extensively reported on the commercial real estate industry, covering major deals across all commercial asset classes, investment strategy and capital markets trends, market commentary, economic trends and new technologies disrupting and revolutionizing the industry. Her work appears daily on GlobeSt.com and regularly in Real Estate Forum Magazine. As a magazine writer, she covers lifestyle and travel trends. Her work has appeared in Angeleno, Los Angeles Magazine, Travel and Leisure and more.

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