Construction work can be an exciting proposition, particularly if it is new construction. The work can represent a sign of growth, of innovation or your ability to continue to offer the best possible value to your customers. However, construction work can also be an expensive proposition, particularly if you haven’t optimized the process.
Strategies for sourcing construction needs
When it comes to strategizing how to manage your construction spend, most owners choose one of two tactics. The first is to grant total power over the situation to the general contractor. Under this model, the contractor is responsible for all purchases related to the project. The second model places more responsibility on the owner to choose the solutions themselves and make item purchases by taking certain items out of the GCs bid. In this model, the owner of the project works with their architect to determine the project’s necessary specs—including, bar joists, decking, flooring, roofing and lighting—and find the best possible solutions themselves.
Adopting a strategy of leaving all purchases to the general contractor reduces the workload for the project's owner and is commonly used by owners in situations where a pared-back staff has placed multiple projects on the Project Manager’s shoulders. However, those who choose to handle the individual decisions inside a project find it offers improved cost visibility, ensures they get the materials they want and eliminates middleman markups that come with having the products purchased through a GC
or their subs. A 20% markup, for example, on a $100 light fixture can grow astronomically when considering all the fixtures needed for a given project.
Finding the support you need while controlling costs
As a project owner, you’re understandably concerned about your bottom line and you want control over the materials used in your new building as well. However, you simply don’t have the time to manage the entire project yourself.
Topco Indirect can help.
Whatever your needs, we can help you fill the void in a manner that protects your bottom line. Our vast network of suppliers and our dedicated team of construction experts work with projects just like yours every day, and know that a new construction project can be an exciting time. We want to help you savor it, but for a lot less spend. Contact us today to learn more about how we can help you find the best solutions for your construction needs.