For the best customer experience, custom home builders know that good planning, coupled with proper management of homeowner expectations, is critical\u2013especially in a tough construction industry experiencing potential cost fluctuations that make every dollar count.<\/p>\n\n\n\n
By the time a home construction project is ready to break ground, months and tens of thousands of dollars have been spent planning and designing the average custom home, which today costs about $500,000<\/a> (in the US).<\/p>\n\n\n\n However, even as the build date draws near, additional planning, known as the construction procurement process, is necessary to ensure dollars are well spent when purchasing materials and scheduling contractors and labor. Construction procurement also ensures that those purchases are in line with the original scope and vision of the project as agreed with the owners.<\/p>\n\n\n\n A well-designed home not only informs the customer on how much the build will cost and how long it will take to complete, but also provides the builder with the necessary plans and information to make well-informed construction procurement decisions.<\/p>\n\n\n\n As a custom home builder, you will have to think through not only what materials to purchase, but from what dealers. You will have to decide if a dealer can meet the timelines of your project team and at the level of quality the homeowner expects. In the end, you will need to reach out to multiple dealers through a series of RFQs to answer these questions. Keeping dealer quotes organized is critical to making accurate procurement decisions that will keep your project on budget, your customers happy about their dream projects, and your profitability protected. <\/p>\n\n\n\n Obviously, when deciding how to source your materials, you will want to work with the dealers that provide the best materials at the best price. But finding accurate pricing in today\u2019s inflationary market can be a challenge; so it\u2019s best to submit RFQs to those dealers who do more than offer just a low price. You want to work with a dealer that can offer a wealth of services, up-to-date<\/em> pricing, and has the time to work with you on finding suitable material alternatives in times when supplies are running short or prices turn out higher than expected. <\/p>\n\n\n\n Also, you will want to search for dealers who can properly schedule and manage material shipments. Logistic breakdowns or miscommunication can cause material shipment delays that can cost you thousands of dollars\u2013wasted dollars that are hard to pass on to the homeowner and likely will come out of your pocket.<\/p>\n\n\n\n A successful procurement phase of the home construction project brings in the best available materials at the best price. To ensure your success, be sure to navigate around these key problems that are not always self-evident:<\/p>\n\n\n\n Be sure to keep detailed reports that track your conversations with dealers about prices and availability. You want a record of what your dealer commits to you, and you\u2019ll need an easy way to include these commitments in your construction progress reports<\/a> that you supply to homeowner. Progress reports are essential when tracking large projects and require the services of multiple contractors.<\/p>\n\n\n\n Be sure your quantity takeoffs are done early and done right so that you include all the materials needed for the build. Increasingly, builders are getting more done faster using digital tools to perform takeoffs<\/a>, and from these takeoffs, create complete material estimates<\/a> that include the most recent, most accurate pricing straight from the dealer.<\/p>\n\n\n\n With your busy schedule, you need to work with dealers who are there when you need them. Modern builder and supplier tools<\/a> allow you to research and send quote requests and material orders 24\/7, whenever the time is convenient to you. After all, you want your free time to be spent spending time with your friends and family and not pouring through material catalogs.<\/p>\n\n\n\nWhy it pays to have a construction procurement strateg<\/strong>y<\/strong><\/h2>\n\n\n\n
Common procurement issues<\/strong><\/strong><\/h2>\n\n\n\n
Miscommunication<\/strong><\/h3>\n\n\n\n
Inaccurate data<\/strong><\/h3>\n\n\n\n
Lack of flexibility<\/strong><\/h3>\n\n\n\n
Construction management software helps your project schedule and budget<\/strong><\/h2>\n\n\n\n