The key to high-quality and fast construction is reliable suppliers. The start of construction begins from the moment you lay the foundation. One of the first and main questions is whether the workers will be able to complete the project within the established framework. Will construction optimization help to ensure that contractors perform their duties on time? Will external factors influence the regular work schedule?
This is not the whole list of questions that arise at the initial stages of the project implementation. Many factors can affect the development of a contract project, some of which you will not be able to influence. However, every day more and more contractors are trying to take over the control and management of the project with the help of construction quoting to achieve maximum efficiency.
One of the areas that contractors want to control today is the supply of necessary construction materials. Based on analytical data, the price for building materials is 30-60% of the total cost for the construction of the whole project. Why is it so important for contractors to control the supply of building materials? Let’s take a look at some of the major problems that a contractor may face in this area.
4 Challenges with Supply Chains Contractors Usually Face
There is a list of common problems for present-day representatives of the construction sector. For example, many contractors complain of bouncing costs or poor delivery scheduling together with bad management of routes & risk management. But it is worth noting that many challenges can be solved with the help of digitization and automation.
For example, some errors and imperfections take place from the side of the contractor and their team. Managers, estimators, and designers can provide inaccurate reports with prices, material volumes to orders, etc. These insights can be provided to the suppliers. To prevent misunderstanding and extra costs in the context of material supplies, implement high-quality contractor bidding software in your existing corporate system.
Additionally, pay attention to the most common weak spots of supply chains in the construction sector. It will be easier to solve various issues with the help of ready-to-use tips and hacks. That is why take a closer look at four hot-topic challenges concerning supplies of building materials.
1 – Price Bouncing
Every year there is an increase in prices for building materials, and if something happens to them, then for the company it can turn into a disaster. In order not to go bankrupt in the initial stages of construction they will have to use their reserves, which can also lead to bankruptcy and construction closure.
2 – Difficulty in Management and Planning
Due to the same increase in prices, it is pretty difficult to plan your budget. Based on the human factor, contractors can also make a mistake due to a miscalculation in the number of materials needed. However, this problem is solved by the presence of several suppliers.
3 – Unknown Delivery Times
If inventories are held in small quantities, then this indicates that contractors are dependent on delivery dates, trying to keep up with the plan in terms of timing and finances. If at least once the delivery of the necessary materials is delayed, this can lead to a delay in the construction itself, which will subsequently lead to overspending on the budget plan. Established delivery dates help contractors to control not only the construction process itself but also its financial management.
4 – Urgency in Delivery
Unfortunately, when there are problems with your supplier, there is no urgent delivery of materials on the market. This results in contractors having to pay for a delivery, often to the highest-paid companies or private individuals, which is not only wasted money but also time.
To sum up, do not forget about these sharp questions that might arise from time to time when it comes to supply chains and various related matters. Your task is to optimize your management and improve all the pre-construction stages together with budget planning and costing. It is possible to do this through the best-matching software and digital-friendly tools for communication, spreadsheet processing, and estimating.
