The Builder’s Digest

4 Problems with the Construction Materials Supply Chain

Posted by Eamonn O'Rourke on Aug 30, 2019 7:52:00 AM

Smart, efficient sourcing is key to success. The minute you break ground on a new construction project, the clock starts ticking. Will your team bring the job in on time and under budget? Will workflows gel so subcontractors can get their part done on time? Will mistakes, weather or delays in receiving materials put you over schedule?Depositphotos_18016281_original

All these factors and more can make or break a construction project — and your contracting company. Some of the issues, like weather, are beyond your control. But more contractors today are taking control and finding efficiencies, wherever they can.

One of the areas where contractors can take back control is the materials supply chain. According to CityLab, the cost of building materials can represent 30-60% of total costs for a housing construction project. Being able to control and plan for those costs is vital. Here are four problems your contracting business might be encountering with the construction supply chain.

1) Rising Cost

The cost of building materials is still on the rise, although the rate has slowed in 2019. This makes materials a precious commodity. And if materials get stolen or damaged on site, it’s not just an inconvenience. It’s a disaster. This might lead contractors to keep stockpiles low and risk running out to avoid a budget nightmare.

2) Difficult to Plan

Those rising costs also make it difficult to plan a project’s budget. Profit margins in the industry are already tight, and that means a contractor might err on the side of caution and underestimate the amount of materials needed. But this becomes a problem down the road when an emergency building supplies store run is needed.

3) Uncertain Delivery Times

Keeping stockpiles low means a contractor is dependent on materials delivery times to stay on schedule and under budget. And one traffic jam can hold up materials that are needed before the project can proceed, leading to costly budget overruns. Contractors need delivery times they can schedule in advance and depend on.

4) Immediate Need

Construction sites are chaotic. Problems can and will arise. When those problems involve materials, in many markets there is no immediate materials delivery service. Instead, contractors have to pay someone — often the highest-paid worker on site — to make a supply run. That means lost time and money.

At RenoRun, we are putting our energy into fixing these problems. Our service lets contractors order materials in advance or right now, anywhere and anytime they need, all from their smartphones, meaning you can plan ahead and address emergencies all with one service. To learn more, contact RenoRun online today.


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