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Collaboration Is Key in a Supply-Constrained World

The aviation industry faces challenges when establishing budgets for facility upgrades and renovations due to fluctuating material costs, labor shortages and slow permitting processes. To mitigate these issues, collaboration between engineering firms and aviation clients is crucial. The design-build approach — a single contract for both design and construction that incorporates procurement considerations into the design process — helps secure materials to meet project deadlines.


When facility or infrastructure upgrades or renovations are necessary, the first priorities include establishing a schedule and developing a budget. While cost concerns always feel paramount for engineering and construction projects, determining a suitable budget and schedule has become more complex as material costs and lead times have increased in recent years due to the COVID-19 pandemic, labor shortages and the war in Ukraine.

Between January 2020 and April 2023, the price of nonresidential construction materials increased 38%. Although the price of construction materials has receded from its 2022 high, sticker shock is still a regular occurrence for teams who don’t plan ahead in this tight market.

Increased prices for building materials aren’t the only hindrance for engineering and construction projects in the aviation industry. Slow permitting processes and labor shortages, especially in the skilled trades, are also impacting budgets and schedules. To address these concerns, engineering and construction firms are streamlining processes for aviation projects using a design-build approach.

 

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When facility or infrastructure upgrades or renovations are necessary, the first priorities include establishing a schedule and developing a budget. While cost concerns always feel paramount for engineering and construction projects, determining a suitable budget and schedule has become more complex as material costs and lead times have increased in recent years due to the COVID-19 pandemic, labor shortages and the war in Ukraine.

Between January 2020 and April 2023, the price of nonresidential construction materials increased 38%. Although the price of construction materials has receded from its 2022 high, sticker shock is still a regular occurrence for teams who don’t plan ahead in this tight market.

Increased prices for building materials aren’t the only hindrance for engineering and construction projects in the aviation industry. Slow permitting processes and labor shortages, especially in the skilled trades, are also impacting budgets and schedules. To address these concerns, engineering and construction firms are streamlining processes for aviation projects using a design-build approach.

Building Trust in Design-Build

While a design-build project delivery approach can help pertinent parties identify opportunities to procure requisite materials, establishing a trusted partnership between a design-build firm and the owner is truly what will help aviation projects take flight. Partnership among all parties is advantageous for aviation projects, and when projects are executed under a design-build approach that collaboration doesn’t just help projects — it drives project completion.

Design-Build Expedites Procurement

The first step of design-build planning includes identifying the project elements that will take the most time. The team can then determine the sequence of design and procurement activities. With ongoing supply chain issues resulting in unreliable procurement lead times, project teams are now incorporating procurement considerations into the design process.

To secure the necessary construction materials for aviation projects while meeting project deadlines, project teams are developing timely technical specifications, engaging suppliers early and prioritizing items with long lead times. Under this approach, project teams are providing vendors and suppliers with updated technical documents on a regular cadence to expedite the procurement process and minimize uncertainties. Through early engagement with suppliers, aviation projects are also executed more efficiently because the owner and design-build team have situational awareness about lead times or limitations of certain vendors. Collaboration opens opportunities to explore available alternative materials and systems early in the design process to avoid later time-delaying and costly substitutions. Finally, design-build teams who break out and prioritize design packages for items with longer lead times are avoiding challenges and potential delays.  

In its 2022 annual workforce survey, the Associated General Contractors of America found that 91% of construction firms had difficulty finding and hiring workers, resulting in project delays or higher costs. Although a design-build approach can’t address all factors impacting labor shortages — such as regional demographics or market conditions — the collaboration, innovation and project sequencing characteristic of this approach can provide solutions to workforce headaches. For instance, the project team may consider off-site prefabrication or modular construction processes to address on-site labor concerns. Also, a design-build approach integrates design and construction teams, fostering concurrent activities and expedited project delivery. The design-build team can align construction activities with labor availability to boost productivity.

Design-Build Expedites Permitting

Construction isn’t the only industry contending with insufficient labor. Permitting entities are usually understaffed. Furthermore, after years of pandemic related delays, construction started picking up at airports, but with limited staff and time, permitting entities are now overwhelmed. The design-build approach can provide several benefits — collaboration, industry knowledge and reduced conflict — to accelerate permitting. If there are any permitting challenges during the design phase, the design and construction teams can work together to identify solutions. More importantly, design-build teams typically include individuals with sufficient experience to navigate the permitting process.  

A professional and integrated design-build firm will identify ways to mitigate delays without going over budget. In this supply-constrained world, a trusted partner will maintain open communication and can help aviation clients prepare realistic budgets that account for permitting time, labor shortages and supply chain impediments.

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Author

Eric Bahr

Aircraft Facilities Market Lead