Case Study: New York City Subway Station Upgrade Delayed by HVAC Equipment Shortages (2022)

Project Overview
• Name: NYC Subway Station Modernization
• Location: New York, New York
• Year: 2022
• Project Size: $380 million
• Scope: Upgrade of ventilation, HVAC, and passenger facilities in major subway stations
• Lead Agencies/Contractors: Metropolitan Transportation Authority (MTA) /

Category of the Issue, Problem, or Challenge
• Supply Chain Disruption
• Mechanical Equipment (HVAC)

Summary of the Issue, Problem, or Challenge
Significant delays arose when critical HVAC units and components were backordered due to global semiconductor shortages impacting manufacturing and supply chains.

Root Cause Analysis

• Semiconductor shortages reduced production capacity for smart HVAC controls and components.
• High demand for HVAC upgrades nationwide due to increased infrastructure spending.
• Limited supplier base for specialized HVAC systems.
• Insufficient early procurement and contingency planning.

Impacts Due to the Issue, Problem, or Challenge
• 4-month delay in HVAC installation phases.
• Cost escalation due to expedited shipping and redesign of some systems (~$2.9 million).
• Disruption to station commissioning and passenger comfort improvements.

Corrective Actions Taken

1. Diversified HVAC equipment suppliers and prioritized early orders.
2. Adapted system designs to allow substitution of alternative components.
3. Implemented enhanced supply chain risk monitoring for electronic components.

Lessons Learned

• Complex equipment supply chains can be vulnerable to component-level shortages.
• Early and flexible procurement strategies are critical.
• Design adaptability aids in mitigating supply risks.

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

• Are critical equipment components sourced from multiple suppliers?
• Is early procurement aligned with global component availability?
• Are alternative design options considered in case of supply delays?