The risk of bankruptcy is considerably higher in the construction sector than in other industries. With a return on sales of between 1% & 4%, building contractors have the lowest returns of everyone who is involved in the construction supply chain. The reason for this is intense price competition, which is exacerbated by the need to utilize employee and machinery employee fully. A number of people concentrate too much on new orders and too little on rising profit margins by optimizing purchasing and calculations.
The primary measures for most effective use of purchasing performed by our specialist construction project management team to improve your company’s result tenably are: enhancing payment conditions, decreasing all direct material costs, reducing equipment costs and overheads, increasing the reliability of supply, forming purchasing partnerships and reducing expensive cross-departmental purchasing by introducing centralization.