As 2025 winds down, every dollar counts. Margins are thin, supply chains remain unpredictable and builders need answers now to protect profitability. That’s where a smarter strategy comes – your fall playbook to finish strong.
The first play to call? Procurement cost reductions.
More than just chasing the lowest sticker price, procurement cost reduction means boosting margins by lowering the total cost of purchasing through smarter contracts, stronger supplier relationships and clearer spend visibility.
When executed right, it transforms procurement from a cost center to profit driver.
Here are five proven strategies from CBUSA to help you finish 2025 strong and set the foundation for an exponentially profitable 2026.
1. Consolidate spend and optimize categories
One of the easiest wins in procurement is consolidating purchases across projects. Instead of splitting HVAC, plumbing, or window orders among multiple vendors the better way is to group them into a single category and negotiate based on total volume.
Research shows category management can yield 10-15% savings. For builders, this means fewer fragmented orders, stronger bargaining power and predictable supply.
BUILDER TIP: Audit your top five spend categories this fall and identify where duplications exist.
2. Renegotiate contracts before they expire
Don’t let contracts roll over. Reviewing terms six to twelve months before renewal gives you leverage. Benchmark against industry averages and use aggregated purchasing data to strengthen your case.
CBUSA members do this collectively, creating volume leverage for stronger rebates and supplier commitments.
BUILDER TIP: Make contract review part of your quarterly procurement calendar.
3. Improve spend visibility and eliminate maverick spending
Maverick spending (aka rogue spending) occurs when team members bypass formal procurement channels, approved vendor lists or existing contracts. Let unchecked, it drains margins. In fact, procurement experts say that for every dollar spent outside procurement’s control companies lose out on 6-12% potential savings.
Real world impact
One enterprise had more than 60% of its spend under procurement’s control. But the remaining “unmanaged” purchases – departments ordering independently outside approved channels – steadily eroded savings. As a result, the company fell short of capturing the full 12% in negotiated contract savings.
Real world fix
You need to centralize purchasing data by:
- Using dashboards or procurement software to flag unauthorized buys
- Monitor material costs
- Compare actual vs. budgeted spend.
Buildertrend, CBUSA’s parent company, offers purpose-built tools to ensure everything from lumber to fixtures flow through approved channels and stays on budget.
- Job Costing & Budgets: Every purchase order ties directly to the project budget, so you can track actual vs. estimated costs in real time.
- Change Orders: When scope changes, the financial impact is immediately captured and routed through the correct vendor contracts, preventing off-contract buys.
- Purchase Orders: By creating and managing POs within Buildertrend, builders can lock in negotiated pricing with suppliers and prevent unauthorized purchases. See purchase order tools.
These tools create a “single source of truth” for procurement by enforcing compliance, improving visibility and eliminating costly side deals.
BUILDER TIP: Mandate a “one-platform” rule for all purchases to eliminate side deals and off-contract buys.
4. Build stronger supplier relationships
The best suppliers are strategic partners. They also share forecasts, collaborate on specs and commit to volume buys in exchange for better pricing and guaranteed availability.
Companies that engage suppliers strategically save 5 – 8% more than those that treat suppliers as a mere transactional vendor.
CBUSA builders frequently experience savings like this because of the hard-earned relationships they’ve built with vendors.
“When CBUSA gets involved, our vendors like 84 Lumber listen differently,” said Justin Einstein, Vice President of Operations at Aubuchon Homes. “We get better prices and better commitments on deliveries.”
BUILDER TIP: Choose two key suppliers and set up Q4 meetings to discuss 2026 planning.
5. Leverage technology and contract intelligence
Manual procurement is slow, error-prone and costly. Many enterprises lean on advanced contract management software to cut process waste and improve compliance. Studies reveal this can save 7 – 12% in process costs.
For builders, the most important step is centralizing. Platforms like Buildertrend provide one hub to manage contracts, purchase orders and supplier communication – all without relying on scattered emails or paper files.
BUILDER TIP: If you can’t implement full automation this year, at least digitize your top 10 contracts for easier tracking.
Real-world results straight from the source
Procurement cost reduction isn’t theory – it’s reality for CBUSA builders:
- Ryan Knibbe, Estimating & Business Systems, Engelsma Homes:
“There were a couple jobs where we were able to purchase the materials before the committed buy reset and went up significantly. That was very clear savings we were able to get by ordering materials a little earlier while we were locked into pricing we knew was going to go up.” - Justin Einstein, Vice President of Operations, Aubuchon Homes:
“CBUSA set up committed buy programs with local suppliers … This has allowed us to stabilize pricing and continue moving forward with reasonable cycle times where other builders couldn’t.” - Tim Jackson, Owner/President, Tim Jackson Custom Homes:
“How I purchase with CBUSA is a game changer. With the website, I get CBUSA pricing immediately versus chasing quotes from multiple vendors.”
These aren’t one-off wins because they’re proof disciplined procurement pays off.
Your fall procurement playbook checklist
- Audit top spend categories for duplication
- Renegotiate at least three major contracts before year-end
- Centralize purchasing to eliminate off-contract buys
- Meet with top suppliers for 2026 planning
- Digitize contracts and explore automation tools
The difference between limping into 2026 and finishing 2025 strong comes down to procurement. Builders who consolidate spend, renegotiate contracts, improve visibility, strengthen supplier partnerships and embrace technology won’t just cut costs – they’ll gain a competitive edge.
With CBUSA’s group purchasing power you don’t have to do it alone.
See if CBUSA is the right fit for your business.
Ask about membership today and discover how smarter procurement can power your year-end finish.
FAQ
Procurement cost reduction lowers the total cost of purchasing and not just the sticker price. Builders do this through smarter contracts, stronger supplier partnerships and better spend visibility. Unlike cost-cutting, procurement cost reduction protects quality and creates lasting savings instead of one-time budget trims.
Maverick spending (or rogue spending) is when team members buy outside approved contracts or suppliers. This erodes margins by 6-12%. Builders fix it by centralizing purchasing with tools like purchase orders, job costing and change orders so every order flows through one platform.
Fall is when suppliers are eager to lock in volume before year-end and builders are planning for the next cycle. Reviewing contracts now helps you renegotiate before renewals auto-roll and ensures stronger supplier commitments heading into 2026.
Research shows organizations often achieve 8-15% savings in the first year of structured procurement programs and 3 – 5% annually once programs mature.
The recent study, Mastering Construction Costs and Capabilities revealed that in construction, procurement levers and category strategies can lead to 5 – 10% cost reductions in standard materials and categories.
No. Procurement cost reduction doesn’t mean sacrificing quality. Instead of chasing the lowest price, builders focus on total value – securing better terms, consistent supply and stronger partnerships. Done right, it improves quality because suppliers are more invested in performance.
The ROI often outweighs the upfront cost. Digital systems save hours of admin work, reduce overspending, and capture rebates that far outweigh subscription costs. Builders using CBUSA’s parent platform, Buildertrend, keep budgets and purchase orders centralized to protect margins.