20-0605 Possibility of Remote Location

QUESTION

We are currently using LBC version 4 for our project, which is located in Costa Rica. We would like to request the use of the remote location exception for the sourcing of materials since sourcing locally is difficult due to the market’s condition in Latin America.
For this justification we made two analysis shown in the attached document. The first one is a general list of construction materials required for this project and their closest manufacturer’s location. With this, we were able to find that our main sources are Costa Rica, Colombia, Mexico, United States and some countries in Europe and Asia.
The second exercise was an estimated materials construction budget, based on percentages for the different cost areas: structure, electric and mechanic, architectural finishes and landscape. With this analysis we were able to understand the market and how the budget is distributed in the manufacturers’ locations, concluding the project’s need to the remote location exception.
The sourcing distances we wish to apply are as follows:
  • A minimum of 20% of construction budget from within 2000 km
  • A minimum of 30% of construction budget from within 5000 km
  • A minimum of 25% of construction budget from within 11000 km
  • A maximum of 25% of construction budget from beyond 11000 km
Note - irrespective of the above, we will always seek to source locally where feasible.

ANSWER

Based on the provided projection of material sourcing, it appears you may have the ability to source at least 75% of materials, by cost, from within 5000 km (see this post where we granted a project some flexibility outside of the remote sourcing option). We would strongly suggest you source materials from as close to the project location as possible and strive to meet the requirements as written in the LBC 4.0 Standard. However, for this project in a remote location (Costa Rica), if you are unable to meet the requirements of this Imperative as written in the LBC 4.0 Standard, you may instead either 1) source at least 75% of materials, by cost, from within 5000 km, or 2) adhere to the adjusted sourcing radii as a remote location noted below:

  • 20% or more of the materials construction budget must come from within 2000 kilometers. 
  • An additional 30% of the materials construction budget must come from within 5000 kilometers. 
  • An additional 25% of the materials construction budget must come from within 9000 kilometers. 
  • 25% of materials may be sourced from any location.

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