Ireland is a small, open economy with a construction sector that is deeply exposed to global supply chains. That access brings opportunity, but such exposure also brings vulnerability, writes Karen Hendrick, procurement manager at Actavo Modular Buildings
When disruption happens elsewhere – whether through energy markets, environmental events, logistics constraints or wider instability – it does not stay contained. It travels, often quickly, and it shows up in our materials, our lead times and ultimately our programmes.
In modular construction, that exposure is even more pronounced. So much of the value is front-loaded into design, procurement and manufacturing that any disruption upstream has a direct and immediate impact downstream. For me, procurement is not a transactional function. It is how we manage that risk exposure and protect delivery.
Programme certainty in modular needs procurement certainty from the outset
Procurement starts long before a project is won. By the time an order is placed, most of the real work has already been done. The relationships are established, the supply routes are understood and the risks are known. The transactional side – placing an order, receiving goods, approving invoices – is the visible part. What sits behind it is years of building and maintaining supplier relationships that can hold under pressure.
In modular, we are involved early, well before a project is confirmed. We start hearing about requirements when sales and design are still shaping the solution. That is when the real procurement research begins. If a client is asking for a particular finish, a specific window type or a certain façade colour, we need to understand availability, constraints and lead times immediately. Some of those details may seem minor at concept stage, but they can become critical later.
Design freeze is a defining moment. Once layouts and specifications are agreed, procurement can move with certainty. Before that, everything is conditional. After that, everything is time sensitive.
The modular environment brings a different discipline. The factory is a controlled production system, and it does not tolerate disruption well. If materials arrive too late, production stops. If they arrive too early, they can block the floor and slow everything down.
This is where procurement becomes operational, not just commercial. It is about timing, sequencing and flow. We rely heavily on suppliers who can support that flow, particularly through agility, responsiveness and warehousing, when needed. If we filled the factory floor with everything needed for a project on day one, we would have no space left to build. So we work with suppliers who can hold stock and release it in line with production.
That level of coordination does not happen through short-term engagement. It is built over time.
The strongest procurement strategies are built over years, not at project stage
There is a perception that price drives procurement decisions. In reality, price is only one factor, and not necessarily the most important one. Reliability, flexibility and technical capability matter more when programmes are under pressure.
The suppliers we depend on are the ones who can respond when things do not go to plan. They are the ones who can offer an alternative when the original option is unavailable, who can adjust delivery schedules, and who understand our standards well enough not to compromise them.
“If they can’t get me option A, they’ve got me option B”
Equally important is technical knowledge. Procurement is not just about sourcing materials; it is about ensuring that everything we bring into the process meets the required performance and compliance standards.
Every product needs its documentation, its certification, its proof of performance. If something new is introduced, it is not enough that it looks the same or costs less. It must be equal or better.
In modular, substitution without full technical validation is a risk, not a saving
Managing suppliers is about balance. Relying on a single supplier creates exposure. Spreading work too thinly across many suppliers reduces accountability and weakens relationships. We aim for a small number of strong suppliers for each key category, typically two or three, and we maintain active relationships with all of them.
That balance allows us to stay competitive while ensuring that suppliers remain engaged and responsive. It also means that when one route is under pressure, there are alternatives available.
Ireland’s vulnerability to global shocks becomes very real at this point. Procurement is constantly scanning for early warning signs, and those signals do not always come from within the construction sector.
It can be something as simple as weather patterns in another part of the world. A wildfire affecting timber supply, changes in energy costs impacting glass production or disruptions in transport routes can all have knock-on effects. You are always watching and then almost joining the dots.
A broad understanding how materials are made is just as important as knowing where to buy them. Many of the products used in modular construction are energy-intensive to produce. When energy costs rise, those impacts feed directly into availability and pricing. When logistics are disrupted, delivery times shift.
Procurement resilience comes from understanding the full supply chain, not just the final supplier
Programme alignment is another critical area. In modular, long lead items must be identified and managed with precision. We operate systems that track these items against the project programme, allowing us to determine exactly when orders need to be placed and when decisions must be finalised.
Where approvals are delayed, lead times cannot simply compress to absorb that pressure. Procurement works closely with suppliers to recover time where possible, drawing on the strength of established relationships to do so.
There is also the interface between factory and site. Modular does not remove dependency on site readiness. If site works are delayed, that delay travels back through the programme and into procurement.
The key is communication. Issues need to be identified early and shared quickly so that adjustments can be made. When that happens, we can slow orders, ask suppliers to hold stock or adjust manufacturing sequences. Without that visibility, problems accumulate and become much harder to manage.
At its best, procurement operates with a full view of the project lifecycle. It connects sales, design, finance, production and suppliers. It balances competing priorities and ensures that decisions made in one area do not create unintended consequences in another.
For clients, particularly those engaging with modular for the first time, the key takeaway is that procurement and design cannot be separated. Decisions made early – on specification, on timing, on approvals – have a direct impact on delivery.
There is also a need to understand that modular is not simply a faster version of traditional construction. It is a different system, with different constraints and opportunities. Designing without considering those differences can lead to inefficiencies that undermine the benefits of offsite delivery.
In practice, procurement – done well – is a risk mitigator, and in a world where external shocks are increasingly common, the ability to anticipate, adapt and respond is what keeps projects moving. From my experience over the past three decades, that capability cannot be improvised.
It is built over time, through relationships, systems and a deep understanding of the wider marketplace.
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