Labor Materials Permits Contingency FAQ Contact

MATERIAL SOURCING

Commodity pricing is volatile. Managing material acquisition directly impacts your bottom line.

Close up of stacked copper pipes

Rough Materials vs. Finish Materials

Rough materials (lumber, concrete, drywall, copper wire) should generally be supplied by the contractor. They get trade discounts at supply houses, and managing the logistics of delivering 50 sheets of drywall is not worth your time.

Finish materials (tile, flooring, lighting fixtures, appliances) are where you can intervene. GCs often apply their 20% margin to these items simply for placing the order. By purchasing finishes yourself (Owner-Supplied Materials), you instantly save the margin.

Supply Chain Risk

If you supply the materials, you own the logistical risk. If the tile arrives broken, or three weeks late, causing the installer to sit idle, the contractor will charge you for the downtime. Calculate whether the 20% margin savings covers your risk exposure.

Current Commodity Volatility

Always check local commodity indices before finalizing budgets. Lumber and copper see intense quarterly fluctuations. Lock in prices early if macroeconomic indicators suggest supply tightening.