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Commercial Real Estate Pro Network

Commercial Real Estate Professionals who work with Investors, Buyers and Sellers of Commercial Real Estate. We discuss todays opportunities, problems & solutions in Commercial Real Estate.
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Now displaying: Page 1
Aug 22, 2023

J Darrin Gross

I'd like to ask you, Todd Drouillard, what is the Biggest Risk?

 

Todd Drouillard  

The biggest risks that we face, right, right now, and it's, it's nearly on every project both large and small, it's the the actual long lead times to get either equipment or the materials. And what that comes down to is that, you know, it's really risk to both cost and to, to, to the schedule, you know, it's been, the biggest thing is, is the, so what happens is, you know, a project gets started gets planned, you know, you know, the architect has engaged, we're doing the work, the engineering has been done, the project goes out for, for, for, for, for a bid. And long Behold, some of the equipment that's been best supplied for the project, it could be things like roofing, insulation, roof deck, mechanical, electrical equipment here, and we find out that it that it's a long lead time, and it's beyond the project time. So you'll never get at level one was just a accident, you know, in the amount of time that you thought it would would take. So it's extending the schedules. And as everybody knows, time is money. Especially when you have, you know, you know, all the contractors with their hands in their pockets, you know, you need a you need equipment, you need goods, you need all this thing, all these things to put the pieces, you know, like in place. So, so the biggest risks that we're seeing now is lead times on really equipment and products. And there's ways so there's a couple things that that that we do in the, you know, they like industry to help to help I minimize that. And a couple things that that that we always try to try to try to sell is kind of doing you kind of plan from plan in from the from the worst case back. So it's kind of like planning in real Verse And here's a way to repurchase, or to pre, to pre to pre like, order all, all, all this equipment and have it brought brought to the site within, you know, blah, blah, blah reasonable time, so then it can get installed. So it's that, that idea of, you know, just in time, you know, if you can plan ahead, and, and it takes time, and it takes, you know, takes a, you know, it takes a good a good design team to kind of think ahead, but if that's all done, there's really no risk at all, you know, and it's really hard to kind of push off that, that risk when you're at the, the, the, the will of, of, you know, multiple, you know, folks trying to procure all like, all these things. And one way to do that, again, you know, this to pre pre, pre, like, ordered, you know, you know, these things. And, of course, there's risk in that and, you know, you know, you know that piece of well, because you have to have a lot of trust. But, you know, and there's really not a way, like out of it, unfortunately, until the lead times come come down. But you know, that, you know, that's probably the biggest risk that I face on on like a daily, you know, party, and I'm sure they can, you know, the owners can tractors and everybody else is having the same, you know, like the same like issues?

 

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