Case Study: Delay Due to Material Shortages on Ohio River Bridge Construction (Ohio/Kentucky, 2014)

Project Overview
• Name: Ohio River Bridge Replacement
• Location: Ohio/Kentucky Border
• Year: 2014
• Project Size: $750 million
• Scope: Construction of a new major highway bridge over the Ohio River
• Lead Agencies/Contractors: Ohio Department of Transportation (ODOT), Kentucky Transportation Cabinet /

Category of the Issue, Problem, or Challenge
• Material Supply
• Project Delay

Summary of the Issue, Problem, or Challenge
Shortages of structural steel delayed key fabrication and erection phases.

Root Cause Analysis

• Global Steel Market Volatility: Price spikes and limited supply affected procurement.
• Single Supplier Reliance: Limited vendor options delayed orders.
• Contractual Timing: Late procurement contracts without buffer stock.
• Lack of Alternative Material Planning: No contingency sourcing plans were in place.

Impacts Due to the Issue, Problem, or Challenge

• Delay of 6 months.
• Increased costs from expedited freight and premium pricing.
• Impact on contractor cash flow and scheduling.

Corrective Actions Taken

1. Diversified steel suppliers and developed long-term procurement contracts.
2. Incorporated material market risk analysis in planning.
3. Created on-site buffer stock for critical materials.
4. Monitored global market trends to anticipate disruptions.

Lessons Learned

• Material market conditions can critically impact schedule.
• Proactive procurement and supplier diversification mitigate risk.
• Buffer inventories protect against supply chain shocks.

Audit & Prevention: Project Control Questions to Ask on Future Projects to Help Control the Situation

• Are supplier markets monitored and alternative sources identified?
• Is there on-site inventory for critical materials?
• Are procurement contracts timed to account for market volatility?