Mitigating Supply Chain Disruptions by Design

{"version":"0.3.0","atoms":[],"cards":[],"markups":[["a",["href","https:\/\/www.who.int\/director-general\/speeches\/detail\/who-director-general-s-opening-remarks-at-the-media-briefing-on-covid-19---11-march-2020"]],["a",["href","https:\/\/www.nytimes.com\/interactive\/2021\/12\/05\/business\/economy\/supply-chain.html"]],["a",["href","https:\/\/www.aia.org\/articles\/6440186-supply-chain-issues-blame-covid-and-global"]],["a",["href","https:\/\/www.nytimes.com\/2022\/02\/01\/business\/supply-chain-disruption.html"]],["a",["href","https:\/\/www.architecturaldigest.com\/story\/complicated-supply-chains-may-be-a-thing-of-the-past"]],["b"],["a",["href","https:\/\/www.ibm.com\/products\/supply-chain-intelligence-suite?utm_content=SRCWW\u0026p1=Search\u0026p4=43700071233519099\u0026p5=p\u0026gclid=Cj0KCQjwnNyUBhCZARIsAI9AYlEeeqsez7GIa5vT3PeTl69JV1bnw3Lmf98ICkDwGtrW-hnEmn-cHMYaAtVZEALw_wcB\u0026gclsrc=aw.ds"]],["i"],["a",["href","https:\/\/interiordesign.net\/designwire\/what-designers-need-to-know-about-supply-chain-disruption\/"]],["a",["href","https:\/\/www.nytimes.com\/2021\/09\/01\/business\/waste-salvage-deconstruction-sustainability.html"]],["a",["href","https:\/\/www.insurancebusinessmag.com\/us\/risk-management\/operational\/insurance-implications-of-the-supply-chain-crisis-317094.aspx"]],["a",["href","https:\/\/www.architecturaldigest.com\/story\/as-the-supply-chain-crisis-trudges-on-these-companies-are-finding-business-altering-solutions"]],["a",["href","http:\/\/www.jlhlawoffice.com\/"]],["strong"]],"sections":[[1,"p",[[0,[],0,"June 7, 2022"]]],[1,"p",[[0,[],0,"Since March 2020 when\nCOVID-19 "],[0,[0],1,"was deemed a global pandemic"],[0,[],0," by the World Health\nOrganization, every industry has experienced disruptions in supply chains\n(Illustrated "],[0,[1],1,"here"],[0,[],0," in a New York Times\ninteractive flow chart). According to sources quoted by The New York Times, the\nsubsequent disruptions throughout the following two years started with a\nshortage of shipping containers in China relating to demand for the personal\nprotective equipment. "]]],[1,"p",[[0,[],0,"The resulting confusion and\ndelays at ports \u2013 where many shipments sat unclaimed \u2013 ostensibly upset the\nintricate web of global supply and demand, leaving the design and construction\nindustry with more questions than answers. Kermit Baker, AIA\u2019s Chief Economist,\n"],[0,[2],1,"offered additional nuance and\nan alternative explanation"],[0,[],0," in a recent interview, stating that the\nsituation stems from long-brewing supply chain issues particular to the nature\nof globalism, just lying in wait for a pandemic or another major event to\nserve as a catalyst for crisis."]]],[1,"p",[[0,[],0,"Regardless of the underlying\nfactors, the \u201cGreat Supply Chain Disruption\u201d represents perhaps the largest\ncoincident event of the pandemic, and has profoundly impacted design and\nconstruction. "],[0,[3],1,"As also reported in the New\nYork Times in February of this year"],[0,[],0,", the end to the supply chain turmoil is not\nyet in sight and may not have an \u201cend\u201d as such, but rather an evolution.\nIndeed, perhaps the disruptions resulting from the pandemic are best viewed as\na warning for the future, and as strong argument for completely "],[0,[4],1,"rethinking how the industry\nsources its materials"],[0,[],0,"."]]],[1,"p",[[0,[5],1,"Disruption Mitigation\nStrategies by Design"]]],[1,"p",[[0,[],0,"Given the likelihood of future pandemics, and\nthe certainty of more frequent major weather events and public health crises\nrelated to climate change, the recent supply disruptions can be viewed as a\nstark warning for continued stresses on the global system. In that vein, major manufacturers and\ntechnology companies aren\u2019t waiting to find out what the future holds, rather,\nthey are adjusting course. "]]],[1,"p",[[0,[],0,"In the largest manufacturers,\nsupply chains are already largely managed with support from sophisticated\nsoftware intended to streamline sources and minimize delays. "],[0,[6],1,"IBM"],[0,[],0," and other major technology\ncompanies use words like \u201cagility\u201d and \u201cresilience\u201d to describe their AI-based\nplatforms that promise to see around corners. While this terminology is "],[0,[7],1,"de\nrigueur"],[0,[],0," in today\u2019s marketplace, the issues are perhaps more nuanced than\nwhat might be normally managed by such platforms at a grand scale. \u201cEven when we have the\nproduct produced and ready to go, we\u2019ll run into issues like shipping label\nadhesive not being available,\u201d said Amanda Darley, director of marketing at\nMannington Commercial, quoted in "],[0,[8],1,"Interior Design Magazine"],[0,[],0,"."]]],[1,"p",[[0,[],0,"Within design firms, the\nfirst line of defense may be found in specifications and contracts that enable\nthe use of substitutions and reasonable contingencies. Re-selection of\nmaterials and products is a major source of strain for design professionals,\nresulting in client frustration and a strain on design services budgets, but it\nmay need to be recognized as an unavoidable condition in the design business."]]],[1,"p",[[0,[],0,"The flow of supply chain\ninformation between source and end user \u2013 and all points in between \u2013 is also a major factor in management\nof a supply crisis. Design professionals and (by extension their clients) would\nbenefit from greater transparency in the system: accurate, real-time information\nand projections on product availability should be made accessible, along with\nthe technical product data typically incorporated by the design professional in\nmaking selections. "]]],[1,"p",[[0,[],0,"Local sourcing,\ndeconstruction, reuse and recycling are well known sustainable design\nstrategies naturally aligned with avoiding supply chain disruptions. But\ncan they be scaled to meet the needs of the largest projects? Perhaps only with\nsome significant regulatory changes providing meaningful support. ("],[0,[9],1,"Deconstruction ordinances are apparently on\nthe rise"],[0,[],0,".) Is\nthere a future where deconstruction, reuse and recycling of building materials\nand components may be deployed at a massive scale, reducing strain in\nmeasurable ways on an already strained system? In a world full of rapidly\naging commercial buildings, expansion of the practice at a much larger scale\ncould address both environmental "],[0,[7],1,"and"],[0,[],0," business continuity objectives. "]]],[1,"p",[[0,[5],1,"Immediate Risk Mitigation\nStrategies"]]],[1,"p",[[0,[],0,"Even without the Great Supply\nChain Disruption, some supply chain delays and failures are inevitable, and\nhave been a fact of life for a long time. For many businesses and\nindustries, insurance has filled the gap. Ironically, maritime insurance is the\noldest form of insurance -- covering the risks associated with the long-haul\nocean voyages centuries ago that ultimately formed, the modern system of global\ntrade. Commercial enterprises are already typically covered for supply\nchain disruptions to some degree, and the insurance industry has responded to\nthe current situation by reminding their insureds to gather intelligence,\nsimplify, and remember that"],[0,[10],1," contingent business\ninterruption cover is not an open-and-shut issue, and it has been left to\ncourts to decide whether the cover remains valid. "],[0,[],0,"In other words, supply chain\nrisk is old hat, but we\u2019re in uncharted territory. "]]],[1,"p",[[0,[],0,"Creating contingencies in\nproject specifications and diversifying sources-- choosing two, three or more\nacceptable alternatives in advance may help. Auditing sources for availability prior\nto specification may be necessary. For contractors, building inventory\nand stockpiling may be a growing trend to avoid future delays. \nContingencies should be reflected thoughtfully in project contract documents,\nwith careful attention to the interplay between the various project agreements."]]],[1,"p",[[0,[],0,"No matter what the future\nholds, supply chains have always been and will continue to be an important\nfocus for design and construction as the lifeblood of projects. It is no\nsurprise in an industry full of tenacious creativity and ingenuity that "],[0,[11],1,"design professionals have\nbeen finding ways to keep projects moving forward"],[0,[],0," in the face of an\never-changing, multi-faceted global challenge."]]],[1,"p",[[0,[],0,"Jessyca Henderson, Esq., AIA, CPHC, NOMA, CSI is\nan attorney and architect based in Maryland, providing legal services related\nto sustainable design, building science, and environment. "],[0,[12],1,"www.jlhlawoffice.com"]]],[1,"p",[[0,[7,13],1,"AIA Contract Documents has provided this article\nfor general informational purposes only. The information provided is not legal\nopinion or legal advice and does not create an attorney-client relationship of\nany kind. This article is also not intended to provide guidance as to how\nproject parties should interpret their specific contracts or resolve contract\ndisputes, as those decisions will need to be made in consultation with legal\ncounsel, insurance counsel, and other professionals, and based upon a multitude\nof factors. "],[0,[],1," "]]]]}