How to Organize Material Flow on a Construction Site? From Requisitions to Cost Control

In construction companies, the moment a project moves into the “in progress” stage is when theory meets practice. The schedule kicks off, and materials must arrive exactly when needed.

The most common challenge?
A lack of clear communication between the project manager, warehouse, and construction site.

With Contractors.es, this process is organized step by step.


Step 1: Requisitions Based on Estimates

The project manager, working from an approved estimate, submits a material requisition for a specific work stage, for example, the first stage of the project.

This is crucial because:

  • the requisition is directly linked to the budget,

  • materials are assigned to the project from the start,

  • the company maintains budget control at the very beginning of the delivery process.

This approach minimizes the risk of accidental or unrelated orders.


Step 2: Warehouse Handling – Transfer or Direct Order

Once the requisition is submitted, the warehouse makes an operational decision:

  • If the material is available in the main warehouse, it is transferred to the project.

  • If stock is insufficient, an order is placed with direct delivery to the construction site.

The system automatically:

  • updates inventory levels,

  • records the operation history,

  • assigns costs to the correct project.

Every operation is logged, ensuring full traceability of materials – from source to destination.


Step 3: On-Site Material Acceptance

Upon delivery, the foreman:

  • accepts the order in the system,

  • uploads the delivery note directly from the construction site.

Benefits:

  • documents are available in real time,

  • no manual transfer to the office is needed,

  • the project reflects the actual, up-to-date costs.

This eliminates delays and reduces the risk of accounting errors.


Step 4: Material Shortages and Items Not Included in Estimates

Construction rarely goes exactly as planned. Sometimes:

  • a material is missing on-site,

  • additional equipment is required,

  • items appear that were not included in the original estimate.

In such cases, employees can submit a requisition directly from the site.

Once approved:

  • the cost is automatically added to the project,

  • it is reflected as a real expense,

  • the project budget updates immediately.

This ensures that additional expenses become part of a controlled process rather than “disappearing” in paperwork.


Step 5: Material Quality Control – Material Information Requests

A delivered material is not always ready for immediate use. The project manager may need to confirm:

  • whether the material meets technical requirements,

  • whether it complies with the design,

  • whether it can be approved for use.

With Contractors.es, it is possible to submit a material information request to the manufacturer.

This process:

  • documents the inquiry,

  • archives responses,

  • secures the company legally and technically.

It is crucial for quality control and potential inspections or claims.


Step 6: Project Changes and Additional Costs Under Control

Every project change:

  • goes through an approval process,

  • is assigned to a specific project,

  • has associated additional costs.

The system tracks expenses not included in the original estimate, allowing the company to analyze:

  • the scope of changes,

  • their impact on profitability,

  • whether renegotiation with the client is needed.

Instead of discovering budget overruns at the end, management sees them in real time.


Why This Process Matters

In many construction companies:

  • requisitions are managed separately from budgets,

  • delivery documents reach the office late,

  • additional costs are only recorded at final settlement,

  • project changes have no formal approval workflow.

This creates information chaos and loss of margin control.

In Contractors.es, warehouse operations, requisitions, deliveries, project changes, and additional costs are all part of a single, integrated project management system.

The result:

  • full traceability of materials,

  • real-time insight into actual costs,

  • control over project changes,

  • stronger formal compliance,

  • protection of project profitability.


Summary

Construction logistics is not just about moving materials. It is simultaneously a financial, operational, and formal process.

Organizing it within a single system results in:

  • fewer uncontrolled costs,

  • fewer delays,

  • greater transparency,

  • more predictable financial outcomes.

This is why managing requisitions, deliveries, quality control, and project changes within one system is no longer optional – it is a standard in modern construction company management.

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