Life Sciences Projects Seeking Materials Face Hefty Delays

Don’t hold your breath waiting for that life sciences project to be completed in the near term.

Like most commercial real estate, that sector is plagued by delays in obtaining materials, according to a new report from Cushman & Wakefield.

The firm projects lead times stretching from four weeks to nearly two years for generators, electrical switch gears, electrical panels, chillers, AHUs, and elevators.

“Persistent challenges continue to impact costs, material lead times, and project timelines across all life sciences projects,” Jason D’Orlando wrote in the report.

Predictably, the global supply chain was expected to result in some slack in costs and project timelines for the construction sector, but then along came inflation.

Electrical switchgear has been a significant pain point with delays doubling, and even tripling in some cases, over the past year as industries focus on electrical conversions to meet net zero targets, Cushman & Wakefield said.

“This has placed a strain on the sector as manufacturers struggle to meet the high demand amid labor difficulties and certain raw material shortages,” according to the report.

In March, NAIOP said that “achieving ‘net-zero,’ the term applied to buildings that generate the energy they consume, is particularly difficult in the industrial sector for two main reasons: concrete and steel, adding to the demand.

The labor component of construction costs continues to increase, especially skilled labor, which increased 3% month-over-month (MoM) in April 2023, the report said.

Cushman & Wakefield said pre-planning and design-bid-build contracting could help minimize the impact of these delays.

“Early material procurement and expediting the early-works package while still in the location analysis and concept planning phases saves time and prevents cost overruns,” it said.