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
- Subcontractor diversified supplier base and established backup contracts.
- Prime contractor enforced supply chain risk management plans.
- Introduced real-time material tracking and communication platforms.
- 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?