How Home Builders Use Our Price Lockdown Solution to Beat Inflation During Construction

What is a construction project without building Materials? Considering that building materials take up to 60% of the cost of construction projects, it’s safe to say that it is an important component for the successful completion of a building project.

The rising price of items has generated concerns across industries in recent times. It’s everywhere. The impact is felt in the prices of food, transportation and construction materials isn’t exempted from the surge. We all seem to be caged in this new reality. A cause for concern however is the persistent upward trend of this inflationary pressure. But, is this ending anytime soon? No one knows for certain. Facts from the National Bureau of Statistics show that inflation rose for a 10th consecutive month in November, 2022 with an upward graph since 2020.

In order to manage the trend, industry experts have continued to proffer solutions for how to navigate the rising prices. One of the ways that building contractors manage the increased cost of materials during on-going projects is with the use of variation of Prices (VOPs). However, experts in the industry under the auspices of the Federation for Construction Industry (FOCI) have lamented that the 5% pegged for VOPs on ongoing projects is no longer sustainable.

Another way that has been embraced globally to manage rising prices of items across industries is through the use of the price lock down. How does this work? This approach allows parties to lock in the prices of items for an agreed period of time.

In our quest to continuously proffer solutions to make it better, faster and cheaper for home builders to access building materials, we’re excited to introduce the Price LockDown Solution(Program). This was designed to help home builders manage the spiraling costs of building materials. For us, home builders do not have to sacrifice their margins and quality of work to stay within budget.

What is Price LockDown, and why do home builders need this feature?

The “price Lock down” program enables home builders to lock in prices of bulk building materials for an agreed period to time - 30, 60, and 90 days in which the prices of materials will not be affected by price changes within this period of price lock down.

Why home builders are taking advantage of Price Lock Down

You’re getting the best deal

One of the reasons home builders are signing up for price lock down is to enable them to take advantage of the best deal by locking in invoiced price at the beginning of the project. This way you're confident that the spend on building materials is within the set budget.

Avoid price fluctuations due to inflation

Figures don’t lie. The ongoing inflation rate has been around for a while with an upward trend. If the inflation rate continues during an on-going project - a price lock down will protect you and your client from expending more money.

Minimise Cost Overrun and Variation Of Price Request

It takes a lot of work to win a project bid. The client has entrusted you (home builder) with management of the building project. One of the ways to stay true to the terms of the contract is to work within budget. Yes, Price Lockdown can help you achieve this.

How does it work?

We have made it easy and simple. All you have to do is:

Sign up on the platform and place order for building materials
Generate invoice online for the required materials
Make payment for 50% of the invoice amount.
And the balance of 50% will be paid at an agreed time during which the price will not change, and be locked down.

It's that simple!

We understand that navigating prices in an inflationary environment can be a struggle, especially in the construction industry. At MaterialsPro, we are committed to providing solutions that make home builders more efficient one step at a time.

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