COVID 19 and its affect on builders and developers
Three part series- Part 1 -COVID 19 and its effect on the supply chain for builders
By: Kennedy Homes LLC-Stephen Gravett
Stephen Gravett currently works for Kennedy Homes (during its liquidation)
Supply Chain Effects of COVID 19
As builders and developers, we rely heavily on materials to build our homes. However, with the spread of COVID 19 sustainability has become a problem. Here is one example that Stephen Gravett recently reported. A tornado swept through our project and swept away about 7 window shutters destroying about half of them. No problem Gravett thought, I will just call the supplier and order new ones. "Placing the order was the easy part, explained Stephen Gravett. Then a week later I received a call from our lumber supplier who I placed the order through and he told me that he had no hard date. I asked how that could be. He replied that 3 to 4 factory workers came down with the deadly virus and the entire plant was shut down." As of this writing it has been four weeks and the plant is still not working. "Unfortunately, this is not an isolated case," says Stephen Gravett. "We have had similar delays in pavers, roof tiles, interior trim and doors and services from some professional companies we use such as engineers, surveyors and environmental testing agencies." "This is a worrisome time because even if things return to normal you cannot rule out a repeat of this situation if the virus numbers spike and this whole chain of events starts all over again. For us those shutters will be required to be in place on the building for a certificate of occupancy (CO). If the city will not accept a letter from the manufacturer or supplier asking for relief, homeowner's closings may be delayed."
Stephen Gravett is part owner of Kennedy Homes LLC and manages the operations for 5 Star Developers at Trevi Isle in Palm Beach Gardens.