Case Study: Supply Chain Disruptions Delay Seattle Highway Expansion (2022)

Project Overview
• Name: Seattle I-5 Highway Expansion
• Location: Seattle, Washington
• Year: 2022
• Project Size: $500 million
• Scope: Expansion and modernization of I-5 highway including bridge widening and roadway resurfacing
• Lead Agencies/Contractors: Washington State DOT /

Category of the Issue, Problem, or Challenge
• Supply Chain Disruption
• Materials Procurement and Logistics

Summary of the Issue, Problem, or Challenge
Significant delays occurred due to disrupted supply chains for critical construction materials including steel reinforcement bars and specialty concrete admixtures. Global pandemic-related shipping delays and raw material shortages compounded the problem.

Root Cause Analysis

• Global supply chain disruptions affecting steel and chemical suppliers.
• Lack of alternative sourcing strategies for key materials.
• Insufficient inventory buffers and just-in-time procurement approach.
• Limited early risk assessment for supply chain vulnerabilities.

Impacts Due to the Issue, Problem, or Challenge
• 4-month delay in structural steel erection and concrete pours.
• Increased costs for expedited shipping and material substitution (~$5.3 million).
• Rescheduling and idle labor costs impacting overall project efficiency.

Corrective Actions Taken

1. Developed secondary supplier agreements and diversified sourcing.
2. Increased on-site inventory and buffer stocks for critical materials.
3. Implemented real-time supply chain monitoring and communication protocols.

Lessons Learned

• Heavy civil projects must proactively assess and mitigate supply chain risks.
• Just-in-time procurement may be risky for critical materials during global disruptions.
• Early contingency planning and supplier diversification are essential.

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

• Are alternative suppliers identified and qualified for critical materials?
• Is inventory management optimized to buffer against supply interruptions?
• Is supply chain risk continuously monitored and communicated?