Strategic Mitigation of Cost & Time Overruns Due to COVID-19 on SCOR-Based Processes in Construction Supply Chain Management

Abstract

An unparalleled level of difficulty and threat has been posed to construction industry and its supply chain by the COVID-19 pandemic. Overall, the pandemic has caused major disruptions to the construction supply chain, leading to delays and increased costs. The aim of this study is to provide an insight into strategic mitigation of cost and time overruns due to COVID-19 on SCOR-based processes in construction supply chain management. A multiphase research methodology was adopted by the researchers, starting with the literature review and questionnaire survey with 66 construction professionals to shortlist factors affecting construction supply chain due to COVID-19. Semi-structured interview consisting of pre and post strategic implementation impact on cost and time in terms of Likert scale and open-ended question against each factor was developed, asking for the mitigation measures and strategies that the construction companies has implemented to minimize the impact of identified factors. Results show that the pandemic has caused a total of 13 impacts to the construction organizations which were further grouped under five SCOR processes namely plan, source, make, deliver and return. Factors that severely impacted the construction supply chain are shortage of material, operations shutdown/production shutdown, labor shortages, disrupted transportation, border restrictions/closure of ports, disruption in logistic services and product/material price increase. The findings of the study show a considerable level of mitigation by the proposed strategies which is also reflected by the quantitative data. This provides useful insight for construction professional to adopt proactive measures to manage the existing projects in the light of continued pandemic or to minimize such impacts in case of any upcoming unseen pandemic. In essence, the authors' contribution lies in establishing a basis for investigating how the COVID-19 pandemic has affected projects and the supply chain in the construction industry, thus expanding the existing body of knowledge.