When you work with The Purchasing Department we manage all material handling and can control project costs by:
- Reducing over-ordering because exact quantities are determined by the takeoff. We estimate that cost reduction can be 10% or more. The takeoff quantities also help reduce or eliminate the typical 10% material contingency fee.
- Eliminating supply chain mark-ups from Subcontractors and GCs. This can be 10% to 20% or even as high as 40% or more of material costs.
- Reducing product waste by tracking material usage and against actual materials purchased. Cost reduction can be 10% or more.
- Eliminating fraud and theft by tracking all purchases against the material takeoff. Cost reduction can be 10% or more.
- Increasing labor productivity by letting the General Contractor focus effort on labor while we handle all material purchasing.
We estimate there is a 10% to 15% increase in labor productivity under this arrangement.