Case Study: Subcontractor Delays in Asphalt Supply Chain Impact Roadway Paving Schedule in Illinois (2019)

Project Overview
• Name: Chicago I-90 Reconstruction
• Location: Chicago, Illinois
• Year: 2019
• Project Size: $620 million
• Scope: Interstate reconstruction including paving and drainage
• Lead Agencies/Contractors: Illinois DOT /

Category of the Issue, Problem, or Challenge
• Subcontractor Management
• Supply Chain & Scheduling

Summary of the Issue, Problem, or Challenge
Asphalt subcontractor experienced supply chain disruptions and poor vendor coordination, resulting in intermittent material shortages and paving delays.

Root Cause Analysis

  • Subcontractor relied on a single supplier without backup sources.
  • Ineffective communication between subcontractor, supplier, and prime contractor.
  • Inadequate planning for demand fluctuations and delivery schedules.
  • No contractual incentives or penalties linked to material delivery reliability.

Impacts Due to the Issue, Problem, or Challenge

  • Paving work delayed by 3 months, affecting critical path.
  • Additional costs due to equipment idle time and extended site overhead.
  • Stakeholder frustration and increased risk of liquidated damages.

Corrective Actions Taken

  1. Subcontractor diversified supplier base and established backup contracts.
  2. Prime contractor enforced supply chain risk management plans.
  3. Introduced real-time material tracking and communication platforms.
  4. Contract amendments included material delivery performance clauses.

Lessons Learned

  • Supply chain risks must be proactively managed by subcontractors and primes.
  • Multiple suppliers and backup plans reduce disruption risk.
  • Transparent communication about material status is essential for schedule adherence.

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

  • Does subcontractor have multiple reliable suppliers?
  • Are material delivery schedules integrated into project timelines?
  • Are communication protocols and contingency plans established?
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