By Ines Aviles-Spadoni, M.S., M.A., Research & Communications, UFTI
When major disruptions occur around the world, most people worry about rising food and gas prices or their favorite products from other countries becoming more expensive or harder to find.
But those disruptions can also affect things people may not even think about, such as roads, bridges, and transportation projects – things that keep people and goods thriving and moving efficiently.
“Whenever materials become more expensive, or their delivery is delayed, projects tend to run over budget and behind schedule, triggering contractual and financial adjustments and sometimes forcing owners to re‑scope or defer elements of the transportation program,” said Olusegun Adekunye, a doctoral student at the University of Florida’s M.E. Rinker, Sr. School of Construction Management, who is working on this project. “The management of such situations depends largely on the specific contract clauses and conditions in place.”
Along with his doctoral adviser, Gabriel Castelblanco, Ph.D., assistant professor in the M.E. Rinker, Sr. School of Construction Management, Adekunye set out to examine how global disruptions such as the COVID-19 pandemic, shipping delays, extreme weather events, and conflicts around the world can increase costs, delay transportation projects, and create financial strain for contractors and government agencies. The research also examined how contracts determine who is financially responsible for cost increases, delays, and scheduling issues.
“Many people do not immediately connect global disruptions, such as supply chain crises, to transportation projects because the effects are often indirect and spread across complex economic systems,” Castelblanco said. “Yet transportation infrastructure depends on the same supply chains that deliver materials, labor and equipment worldwide. Our empirical analysis demonstrates those relationships.”
He said disseminating these results would raise public awareness and help decision-makers adopt proactive strategies to strengthen supply chain resilience and prevent cost or schedule overruns.
Take, for example, geopolitical conflicts or tariffs. These disruptions can affect shipping routes and interfere with freight activity, making it more challenging and expensive to get the materials to construction sites.
“The energy crisis stemming from the closure of the Strait of Hormuz is a perfect example,” Adekunye said. “A substantial portion of the disruption in the construction sector is the delivery of labor and materials to the project site; an increase in the price of fuel means an increased freight cost, and ultimately, an increase in the cost of delivering materials to the site.”
To understand the effects of these disruptions on transportation projects, the research team used what is known as triangulation, or looking at the problem from three angles. First, they reviewed all the research on this topic, then analyzed legal cases related to supply chain issues, and also analyzed transportation projects from the Florida Department of Transportation (FDOT).
“One unexpected finding was that, contrary to common assumptions, a smaller proportion of project delays and cost overruns was directly linked to material supply chain disruptions, suggesting that other factors may play a more significant role than typically perceived,” Adekunye said.
In other words, think about it this way: You are at the airport to catch a flight, and an announcement comes over the speaker that your flight has been delayed. While you may immediately think it is weather-related, the delay could also be due to many other issues, such as mechanical problems, staffing, air traffic, and scheduling conflicts.
It’s similar in the transportation world, where projects can be affected by many issues at the same time, adding to costs and delays that are difficult to predict and manage.
The findings can help public agencies, contractors, consultants, and policymakers prepare better for the unexpected, ultimately leading to the better use of public funds by helping projects stay on schedule and within budget.
“If implemented, the study’s findings and recommendations would enhance the delivery of transportation projects,” Adekunye said. “Because the insights can be generalized to other infrastructure and construction sectors, the study has the potential to improve project performance and, ultimately, strengthen the quality and safety of people’s lives.”