Construction materials take up a significant part of the construction cost. Higher the cost of construction materials, higher will be the building cost. To generate more profit, contractors try to lower the cost of materials to create higher profits. The trick is in knowing how to reduce the overhead expenses. It requires planning the construction, procuring construction material from the best possible source, and updating your knowledge base with advancements in building materials. While you must have planned your project well, here are a few ways to save more on the construction materials:
1. Buy Building Materials at Wholesale Price
Contractors survey at shops and wholesalers to find the best price of their construction materials. Buying in wholesale gives larger quantities of materials at a much lower price. Retailers tend to sell at a higher cost usually. Retailers trick buyers with discounts and sell lesser amounts. With wholesalers, it is a different experience.
While exploring cost-saving strategies, it’s also beneficial to consider diverse material sources. Our guide on sourcing building materials in the US complements these strategies by offering a variety of options for cost-effective and quality material procurement.
Before beginning the construction, estimate the construction material required, divide it into sections like interiors, exteriors, doors, etc. Planning this will give you a clear idea of what is available with a wholesaler and what not. You can save money by buying in bulk from a wholesaler. Ensure that unused materials are returned to the store and the amount is credited back to your bank account.
2. Build A Network with Suppliers for Better Payment Terms
While growing the construction business, one should procure material from multiple suppliers to know the quality and the prices. If you start dealing with one supplier, you wouldn’t know what others are offering; and you will lose on discounts. Having a connection with multiple suppliers is an advantage. You can compare the prices, look for better products, and get good deals too.
Stick to the supplier who offers a reasonable price regularly. But don’t commit your business to one supplier for the entire tenure. Negotiation skills matter when it comes to dealing with the supplier to get the best deal each time.
You can also establish a credit system with suppliers who will be selling you the building materials. You can pay them in 15,30, or 60 days after procuring the material. Paying earlier than specified dates can lead to good discounts too.
Understanding the fundamentals of procurement is key to cost savings. Our detailed exploration of what is procurement in construction provides the necessary background to better appreciate the nuances of cost-efficient material acquisition.
3. Use Scraps and Extras for Other Projects
Construction sites have a lot of raw material that is used on a need basis. In a building, measurement and size are crucial, which means the extra raw material is left unused. You can find materials such as lumber, plywood, windows at almost every site. Look around for scraps at other construction sites as well or at buildings under renovation. They are likely to have scraps that can be given away and will be of use to you. Talk to the contractor, and you could save up on a lot of expensive raw material.
Also, if there is unused material, ensure that they are returned to the store and the amount is credited back to your bank account.
4. Shop Around for the Best Deal/Ask for Discounts/ Ask for Delivery at the Construction Site
While looking for estimates, never settle with the first one. This is obvious but does not strike contractors when they are eager to start a new project or quickly finish the renovation. Take quotes from 3-5 suppliers, settle with the one who gives discounts, deliver the raw material at home, and maintain the same costs for a long time. Access aggregated volume buying discounts through sites.
Enhance your approach to material sourcing with our guide on effective strategies for purchasing construction materials online, a key factor in reducing project costs.
5. Look for Efficient Materials so that the Purchase is Less
When buying materials in bulk, quality is often compromised, ending up in spending extra on re-work, modifications, etc. When deciding on raw materials, specify to your team and the supplier what quality you are looking for. Cheap quality products fail to provide the strength, good looks, and ultimately you end up spending more rather than saving. The market is full of efficient material that saves energy and costs both. Insulated sheets, cool roofing, insulating foams, etc., are making their way in the construction market as cost efficient materials that can serve the purpose even if purchased in lesser quantity.
The construction industry sees developments too. New trends and designs can help save resources; there are efficient solutions that can save a lot of money. Keep an eye and keep your research strong while buying construction materials.
6. Buy Easy to Install Materials
Easy to install materials save time and money. Buy easy to install products as they minimize the risk of failure. Train your team to install the products to prevent installation failures and save time when it is to be again for a new site.
Failure of installation will affect the building’s further procedures, and you will have to go back and make the necessary adjustments. Electrical products, electrical switches, and boxes are available to be installed easily. Look for what fits your requirements and discuss with the architect before making any purchases.
7. Build during the Off-season so that Materials are at Low Cost
The construction industry has its peak seasons and dull seasons like any other industry. Winter is a slow time for the construction industry. Starting construction during winters can save between 4-5% of the total building cost. Costs for materials are reasonable, services are better, and saving is higher during the dull season. Therefore, many contractors prefer starting projects during this season.
Specific projects such as roofing or renovation can save up to 10 percent during the winter season.
Sourcing and procuring construction materials can be a challenge when starting a new project. There are hundreds of products to buy; ACC blocks, concrete, bricks, mortar, blinds, locks, interior services, etc. Each one has its specification, each supplier is specified in selling their products, cost is a major factor, and many aspects can lead to a higher or lower price of the final building. Prices of raw materials keep changing. Keep a track of the change and procure materials accordingly. In the Covid times, construction has become cheaper with metal framing as compared to lumber.
