8 Biggest Margin Killers in Construction (And How to Stop the Leaks)

The 30 Second Summary:

• Overpaying starts with lazy quotes. Compare suppliers fast to save real money. • Supplier chasing burns hours. Let software handle the "any update?" calls. • No approvals means uncontrolled site spending. The invoice is always a nasty surprise. • Delivery mistakes cost twice: once in materials, again in wasted labour. • Hire kit kills margin when it's forgotten on site. Daily charges never stop. • Rebates get missed without live tracking. Avoid the October panic spend. • Poor site comms causes "who ordered?" chaos and double ordering. • No live reporting means you're flying blind until it's too late to fix.

Margins do not disappear in one big hit. They leak out through small repeatable mistakes across every site.

Below are the 8 biggest killers in construction procurement. All fixable with the right process.

1. Material Quotes: Stop overpaying on autopilot

When time is tight you ring the usual supplier and crack on. That's how you end up paying £2 extra per board without knowing.

The fix: Compare quotes from multiple suppliers in 60 seconds. Send one request and let them compete for your business.

2. Supplier Chasing: Stop the "Any update?" calls

Quotes take days. ETAs are vague. You chase. Then you chase again.

The fix: Automate supplier chasing. The system sends reminders so you aren't stuck waiting by the phone.

3. Uncontrolled Site Spending: Take back control

If anyone can order then budget control is guesswork. Set a simple approval flow: site staff request, you approve in seconds.

The fix: Use mobile approvals. See the request, tap approve and keep the job moving without losing control.

4. Delivery Errors: Stop paying for damaged goods

Wrong items signed for anyway? Now you're chasing credits while the job slows.

The fix: Check deliveries against the PO instantly. Reject damaged goods on the spot before they become your problem.

5. Hire Equipment: Stop paying for "ghost" kit

A lift sits in the compound for "a few more days." Nobody off hires it. Charges rack up.

The fix: Use automated off hire reminders. Know exactly what kit is still on hire and when it's costing you money.

6. Missing Rebates: Stop leaving money on the table

Rebates typically run on an annual Jan to Dec cycle. Without tracking you panic spend in October trying to hit tiers.

Here's the smart play: hit the top rebate tier with one supplier, then move spend to the next supplier. Maximise total rebates across multiple suppliers instead of getting stuck in Rebate Prison.

The trap: Suppliers may pay the top tier anyway only if you sign up for another year. That's Rebate Prison.

The fix: Track rebate progress in real time. No October panic. No supplier lock in. You stay in control.

7. Site Communication: Stop the "Who ordered?" chaos

Plot A orders plasterboard. Plot B orders the same. Nobody knows who ordered what until two deliveries show up.

The fix: Link quotes, orders and deliveries to specific plots. Everyone knows what's coming and where it's going.

8. Live Project Reporting: Stop flying blind

If you're using spreadsheets you're always behind. By the time you see the problem the profit's gone.

The fix: Track spend vs budget per site in real time. See overspends early enough to actually do something about them.

Want to stop these leaks?

These 8 margin killers are costing you money on every job. The good news? They're all fixable with the right construction procurement software.

Start your 30 day free trial and see how simple construction procurement can be. No credit card needed. No pressure. Just better margins.