Managing Supply Chain Shortages – and Insurers!
From one challenge to another, anyone in construction will tell you there is now another new big issue we all face.
We have moved from battling covid (that really was a long haul, but touch wood we are now emerging) onto the next problem – supply chain shortages.
Of course many companies have hit these problems over the past year, but the recent severe materials supply problems have been hit principally for two reasons:
- Projects on hold/delayed are now restarting and indeed surging to catch up, hence a huge demand for materials on sites in this country
- Huge demand from China and the USA
The effects of this have driven up prices, eroded supply chain margins and of course caused delays on sites. Projects already delayed by covid now find they have to deal with this further problem. There is little more annoying than having a gang on site all day with no materials, twiddling their thumbs!
As we specialise in the construction insurance sector, focusing on Latent Defects and Insurance Backed Guarantees, naturally we look to safeguard our clients on this side of things.
So my recommendation is this:
- Let insurers (or your friendly specialist broker, us) know about delays
- Keep a dialogue open with them, so they are aware of your position and can cater for it with your policies
- Remember that many project dates will have been provided by you some time ago, which will need updating and revising to ensure cover can still be provided
As always, if you have any queries about any of these aspects then give us a call and find out how we can help. Emerging from this pandemic in the UK is great news for us all, but we have a long way to go and let’s hope the world as a whole can get through this soon. Here’s hoping.