I-COSTOn most jobs the majority of the cost goes to suppliers and subcontractors, so how you choose, order from and manage them has a direct effect on your margin. These are the habits that make the biggest difference.
1. Keep an approved list, with what each one supplies
For each supplier and subcontractor, keep their contact details, the trades or materials they supply, insurance and accreditation details, and notes on past performance. A simple "what they supply" note makes it much quicker to pick who to ask for each package.
2. Ask everyone for prices the same way
Send each supplier the same items, quantities, specification and delivery dates. If one quote is for a different specification or excludes carriage, you can't compare it fairly.
3. Compare like for like
Put the replies side by side, item by item. Check carriage and other costs, lead times, exclusions, payment terms and validity, not just the total. The cheapest headline price is not always the cheapest job.
4. Order in writing before work starts
Place a purchase order or subcontract order with the agreed items, quantities, rates, delivery address and date before anything is delivered or any work starts. Record its value against your budget straight away.
5. Track progress and deliveries
Know when each order has been accepted, when it will be dispatched and what has actually arrived. Check deliveries against the order on arrival and report anything short, damaged or wrong immediately, in writing.
6. Pay for what you received
Match invoices to the order and to what was delivered or completed. Record credit notes, and close orders once they are complete so the remaining value stops counting as committed.
7. Review performance
After each package, note how the supplier or subcontractor did on price, quality, delivery and paperwork. Over time this tells you who to ask first.
Subcontractors too: the same steps apply to labour-only and supply-and-fix subcontractors: the same scope for everyone, a written order, progress you can see and payment against what was done.
Managing suppliers in I-Cost
In I-Cost your supplier list holds what each one supplies, I-Cost suggests who to ask, and you send one quotation request from the estimate to several suppliers. They price it in a free portal, the replies line up side by side, and the best one becomes a purchase order in one click, with order progress and QR delivery notes after that. See supplier management in I-Cost.
Questions
How many quotes should I get for a construction package?
Usually at least two or three, all for the same items, quantities, specification and delivery dates, so they can be compared like for like.
How do I manage subcontractors on site?
Give every subcontractor the same written scope, place a written order before they start, track their progress and deliveries, and pay against what was completed.