Don't Count Your Chickens...
The supply chain's continued attempt to derail our project almost wins. But a little creativity and persistence keeps us on track.
Hey — Jonah here. Welcome to the next edition of Brick + Mortar where readers get insight into the acquisition, financing, design, construction, and operations of small-scale real estate development projects.
First, an update on 501 Main. Then, the finale to one of our supply chain sagas.
501 Main update
What we’ve been up to the past two weeks:
Remainder of windows are in—5 weeks delayed after a 17-week lead time
Standing seam roof is being installed
Majority of MEP rough-ins complete—still a few miscellaneous areas in the basement to button up
Continuing to put up siding—board and batten, parapet panels, shiplap, and corrugated Corten (we have to work around the roofers since we only have one boom lift)
Air sealing and some drywall to prep for insulation
Next week, we’re bringing in a contractor to install AeroBarrier and insulate the attic, exterior walls, and partition walls with cellulose.
A detour to Boston
Three months ago, I shared my struggle getting our meter bank and main disconnect for 501 Main.
The story ends as I hatch an alternative plan with my electrician to patch together a few components to get us what we need. At least this would get us power by mid-November.
Welp.
If only it was that easy.
To close out the story, the inspector and electrician signed off on the solution and I ordered the equipment.
The supplier assured me the equipment would take 6-8 weeks to arrive on site.
I tracked the order like a hawk—another delay would be a major setback to opening up in February. I followed up with the company every week for updates.
Everything seemed to be on time.
Until the second week of November when delivery was scheduled.
Big surprise—sorry, there’s been a delay in shipment. New delivery date Feb 23rd 2023. Pls feel free to cancel your order.
F*** me.
This was potentially a devastating blow to the project.
If the supplier could so nonchalantly push out the order by three months without warning, there’s a good chance it would happen again in February.
And remember—this is all while interest rates continue to climb. Every month we delay opening is $10,000 in lost revenue that can’t be used to cover our rising debt payments.
So back to the drawing board.
Somehow I get it in my head that Canada might not be having the same supply chain issues we are (at least for the specific equipment I need). So I call a few suppliers in Montreal.
Turns out, that wasn’t a bad hunch.
Nothing in stock, but they can get what I need in 3-4 weeks. Much better than the quotes I was getting from American suppliers.
By now, though, I’m jaded by quoted lead times. Talk is cheap. I need something in my hands today.
I let that simmer for a few days. And get distracted by all the other things needing attention on the project.
The end of November rolls around.
I decide to try a few American suppliers again. Perhaps (miraculously) things have changed in that past 3 months since I made those 30+ calls.
Nope.
In fact, procuring the needed equipment remains an absolute pipe dream. Every phone call seemed to go like this:
Me: Hey—I’m looking for two 5-gang meter packs with 200A per position.
Supplier: Hah! Get in line, pal. Hope you don’t need it anytime soon.
Most suppliers won’t even give a lead time. And, if they do, they just say expect to wait a year.
BUT—a supplier in Boston gives me a tip.
Some small multifamily developers have been patching together single meter sockets (i.e. for single-family residences) on site to get their desired number of meters. These units are still rare, but easier to find than the multi-socket packs.
And, as luck would have it, 15 boxes just arrived today in Boston. They don’t ship though so I’d have to come pick up.
My heart skips a beat.
I get this instant rush that maybe—just maybe—we may finally be able to close out this incessant migraine of a problem.
First, I need to check with my electrician.
I call him and get the go-ahead but he says to confirm with the inspector.
The electrical inspector for our region is old-school. Like has-a-pager old-school.
I page him and wait anxiously for his call. In the early afternoon, I get the call and we walk through the situation.
He gives green light, too, but mentions he’s retiring in a few weeks so I should talk to the head honcho electrical inspector overseeing the whole state.
I call the head honcho. Not surprisingly—he doesn’t pick up and I leave a message.
I don’t get a call back until the next morning. He signs off.
Great.
It’s now been 24 hours.
I call the Boston supplier back to tell them I’ll take 9 of the 15 units.
But… too late.
They no longer have 15. They only have four left and don’t know when the next shipment will come in. Could be one week, could be ten. Depends entirely on manufacturer.
I curse some more.
I buy the four in stock and put my name down for five more.
By now, I’m mentally exhausted.
Who would have thought something as trivial as electrical equipment would elicit such a rollercoaster of emotions.
I resign myself to the fact that this isn’t getting resolved soon. Either the Boston supplier comes through before February, or I pray that the first order (which I haven’t yet canceled) will come through by end of February.
But, just as fate would have it—I get a phone call this past Wednesday (less than a week later) from the Boston supplier:
We have your additional five units in stock. Come pick them up.
No f***ing way!
I feel like a 10 year old boy realizing he’s getting the new Xbox for Christmas.
My excitement is so raw—so visceral—that I’m sure the supplier left the conversation thinking I had a bolt loose. No sane person would get that worked up over a handful of meter sockets.
I immediately drop what I’m doing on site and hop in the truck. No chance am I going to risk someone else buying them up.
Three hours later, I’m at the supply house in Boston loading the truck. Still giddy as ever.
Another three hours and I’m back on site unloading.
Phew.
Mission accomplished.
Rarely a week goes by without some seemingly existential threat to the project.
Yet miraculously, we somehow manage to find a solution.
It certainly helps being boots-on-the-ground. It allows for more agility with problem solving.
But a lot of it is getting used to the fact that shit always seems to go wrong. You can almost start to count on it.
The silver lining is that my tolerance to shit going wrong seems to be getting higher. Issues that would’ve wrecked my week at the beginning of the project are now trivial—material delays; subs not showing up or finishing work when planned; paying more than budgeted for materials and services.
It’s never ideal. But I’ve become more comfortable with adapting on the fly.
And I’ve also learned to add a bit more contingency to the budget.
Until next time.
— Jonah 🧱
P.S. Want to connect? Find me on LinkedIn and my projects on Instagram.
It's wild. Suppliers keep pushing back ship dates the same week things are supposed to ship. Can't plan for anything.
Congratulations on your perseverance! The project looks great at this point: well thought out and well-put together(figuratively and literally).