Conference Agenda

The availability, cost, regulatory framework, logistics, and storage of construction materials, as well as global environment, are critical factors in the planning and execution of construction projects. These critical factors are especially relevant in island territories where access to raw materials is limited. This study analyses the issue of scarcity and rising costs of construction materials in Puerto Rico. It examines the complexity of the construction industry in Puerto Rico by performing a literature review and conducting semi-structured interviews to contractors working on different sectors of the construction industry and in various regions throughout the island. The results of the study show that dependence on external supply chains, regulatory restrictions, market volatility, and logistical and storage limitations increases the construction industry's vulnerability to external factors and global disruptive events such as the COVID-19 pandemic and the Ukraine war. This dependence creates bottlenecks that lead to delays, substantial changes in planning practices, and cost overruns. Therefore, the results indicate that advance planning, supplier diversification, and logistics strategies can achieve a balance between financial efficiency and supply security to strengthen the industry's resilience.