Mass Timber isn’t risky nor experimental.
It is engineered.
It is tested.
It is code-supported.
The idea that mass timber introduces structural fragility misses the point entirely.
The real variable is coordination.
In my earlier analysis of Mass Timber and Duration Risk in Long-Cycle Development, I explained how time — not material — determines capital performance.
Today, we extend that thesis.
Institutional Friction Is a Sequencing Issue
When developers introduce mass timber late in the process:
- Insurers react instead of align
- Lenders slow underwriting
- Credit committees require education
- Peer reviews extend schedule
Timber isn’t the problem.
Late coordination is.
Procurement Discipline Is Capital Discipline
Mass timber must be treated as a system decision — not a design upgrade.
If fabrication slots are not secured early, you introduce volatility into the schedule.
I addressed this directly in Mass Timber Procurement Strategy on Evolve Development Group.
Procurement is not a logistics issue.
It is a duration control mechanism.
The Real Risk Model
Mass timber introduces advantage when:
- Insurers are engaged during schematic design
- Fire engineering is delivered early
- Lender education begins before underwriting
- Procurement is locked before design development
This is not about defending timber.
It is about respecting sequence.
Closing
Mass timber does not increase risk.
It exposes unprepared teams.
And in long-cycle development, exposure becomes duration.
Duration becomes IRR compression.
Related field notes: Mass Timber and Duration Risk in Long-Cycle Development
Frequently Asked Questions
Is mass timber inherently riskier than concrete or steel?
No. The risk typically originates from late coordination with insurers, lenders, and procurement teams — not the material itself.
Why do lenders hesitate on mass timber projects?
Because many teams introduce timber late in underwriting, forcing education and additional review during capital approval.
How does sequencing affect IRR in mass timber development?
If procurement and institutional alignment are delayed, schedules extend — and IRR compresses due to longer capital exposure.
When should insurers be engaged on a timber project?
During schematic design. Early fire engineering and risk modeling prevent underwriting friction later.
Is procurement a construction issue or a capital issue?
It is a capital issue. Securing fabrication early stabilizes schedule and protects return timing.
