As we step into a new year and the first quarter, project procurement takes center stage for us and our clients. Starting early in the year with the procurement of your capital expenditure projects is not only essential but frequently proves to be more economically advantageous. Here are some of the benefits of starting procurement in the first quarter.
1. Contractor Appetite:
The beginning of the year contractors are typically hungrier for work and more motivated. Leading to more competitive pricing and obtaining bids quicker; enabling you to assess and compare proposals more effectively. This contrasts sharply with later in the year when contractors might be inundated with ongoing projects, potentially driving up costs due to increased demand.
2. Optimal Scheduling:
Procuring capex work in the first quarter ensures the best scheduling options. By taking an early spot, you can set the pace for your project, with proper phasing and avoiding potential delays that might arise later in the year when contractors’ schedules become increasingly full.
3. Material Pricing and Lead Times:
Locking in pricing on materials for a project early on gives you the advantage of securing favorable prices, and protecting your budget from potential fluctuations later in the year. This is especially important with roofing materials which can often come with extended lead times. Starting early allows ample time for the delivery of materials, preventing unforeseen delays in your project timeline.
4. Phased Projects:
Many capex projects involve multiple phases, requiring careful planning. This can be especially important in areas of the country where the construction season is shorter due to weather; typically spanning April to October. This window becomes even smaller when working with office, commercial and industrial properties; where a lot of the work has to be scheduled on the weekends so that tenant operations are not interrupted. With only 52 weekends a year and weather limitations in many areas this limits availability more.
Start the year off right by prioritizing your capital expenditure project procurement in the first quarter. Starting procurement early sets the tone for a year of efficiency, cost-effectiveness, and successful project outcomes. By taking advantage of contractors’ increased appetite for work, securing optimal scheduling, and proactively managing material pricing and lead times, you position your projects for success from the outset. At SCS, we are dedicated to supporting you in navigating the complexities of project procurement to lay the groundwork for a year marked by well-executed, timely, and budget-friendly capital expenditure projects. Here’s to a successful and prosperous year ahead!
