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Builders Business Toolkit

Practical Strategies for Reducing Costs, Improving Planning & Strengthening Supplier Relationships

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Running a successful building business in Queensland, Victoria, and New South Wales isn’t just about delivering high-quality projects—it’s about managing costs, planning efficiently, and working smart with suppliers.

This guide will help you:

Reduce overhead costs without cutting corners

Improve project planning for efficiency and profitability

Manage supplier relationships for better pricing and reliability

1. Reduce Overhead Costs Without Cutting Corners

Overhead costs can eat into profits, especially in today’s construction market. Builders must identify areas to save money while maintaining efficiency and quality.

1.1 Streamline Operations & Reduce Admin Costs

Administrative tasks can be a hidden drain on time and resources. Automation and digital tools can save hours each week:

Job Management Software: Platforms like Buildxact or Wunderbuild streamline quoting, scheduling, and invoicing.

Accounting & Payroll: Use tools like Xero or MYOB to automate payroll, invoicing, and expense tracking.

Paperless Systems: Cloud storage and digital contracts reduce paperwork and admin costs.

1.2 Cut Material Costs Without Sacrificing Quality

Materials are one of the biggest expenses, but smarter purchasing and waste management can make a difference:

Buy in Bulk: Builders buying groups like TAG negotiate better rates with suppliers.

Reduce Waste: Plan material usage carefully—cutting down on offcuts and excess orders can significantly lower costs.

Consider Alternative Materials: Using James Hardie Fine Texture Cladding, saving you time and money by minimising other trades, available from multiple TAG suppliers, can help reduce labour costs while maintaining high-quality finishes.

1.3 Optimise Labour Costs

Reduce Downtime: Scheduling trades efficiently avoids costly standstills on-site.

Invest in Training: A well-trained crew works faster and makes fewer mistakes, reducing rework costs. Check out industry training through Association of Professional Builders.

Outsource Where Needed: Using TradieHR or similar HR solutions can help manage staffing costs effectively.

2. Improve Project Planning for On-Time, On-Budget Builds

Proper planning reduces costly mistakes, delays, and budget blowouts. Builders should focus on clear project roadmaps, communication, and budget control.

2.1 Develop a Clear Project Timeline

A structured plan helps projects run smoothly and predictably. Here’s how:

  • Use Gantt Charts: Free tools like TeamGantt help track tasks and deadlines.
  • Plan for Delays: Weather, material shortages, and site issues can cause setbacks—factor in a buffer when scheduling.
  • Regular Check-Ins: Weekly site meetings help keep projects on track and address issues early.

2.2 Budget Accurately & Control Expenses

Staying on budget is easier when you track costs in real-time. Builders should:

  • Use Budgeting Software: Procore helps track job costs and cash flow.
  • Monitor Expenses Weekly: Waiting until the end of the project to assess costs is too late—stay on top of them weekly.
  • Negotiate Payment Terms: Managing cash flow is critical—consider supplier trade credit or extended terms to ease pressure.

2.3 Ensure Efficient Labour & Material Management

Efficient scheduling and materials handling can prevent costly bottlenecks.

Builders should:

  • Schedule Trades Wisely: Avoid overlapping trades that slow each other down.
  • Order Materials in Advance: Supply chain issues are common—working with TAG-approved suppliers ensures reliability.
  • Use Pre-Fab or Modular Construction: Modular homes, can speed up builds while maintaining quality.

3. Manage Supplier Relationships for Better Pricing & Reliable Supply

Building strong relationships with suppliers helps reduce costs, ensure timely deliveries, and improve overall project efficiency.

3.1 Establish Smart Supplier Partnerships

Consistent, loyal partnerships often lead to better pricing and priority service. Builders should:

  • Communicate Clearly: Let suppliers know your project pipeline so they can plan stock availability.
  • Negotiate Bulk Orders: TAG members gain access to exclusive supplier discounts through established partnerships.
  • Ask About Credit Terms: Some suppliers offer trade credit or flexible payment terms—use this to improve cash flow.
  • Audit Your Suppliers Every Few Years: It’s smart to regularly review supplier pricing and service levels to keep them competitive and honest. If a supplier becomes less reliable or their prices increase significantly, consider alternative options.

3.2 Compare & Benchmark Supplier Pricing

Don’t assume your current supplier is the cheapest—regularly compare prices across the market:

  • Use Price Comparison Tools: Check out Cordell Connect for industry price comparisons.
  • Leverage Buying Groups: TAG negotiates pre-arranged supplier deals, ensuring members always get competitive rates.
  • Consider Alternative Suppliers: If one supplier is out of stock, have a backup option to avoid project delays.

3.3 Solve Supplier Issues Proactively

When supplier issues arise (e.g., delivery delays, price changes), proactive problem-solving is key:

  • Build a Relationship Manager Contact: Knowing someone within the supplier company makes resolving issues easier.
  • Have Alternative Supply Options: Don’t rely on a single supplier—TAG’s network of approved suppliers ensures multiple options.
  • Use Contracts for Large Orders: Written agreements prevent last-minute price changes or supply disruptions.
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How TAG Supports Builders

Builders in Queensland, Victoria, and New South Wales face rising costs, supply chain challenges, and planning complexities. The right strategies—and the right industry connections—can make all the difference.

TAG supports builders by offering:

Exclusive supplier pricing to lower material costs

Industry connections for smoother supply chain management

Business resources to improve efficiency and profitability

By reducing overheads, improving project planning, and strengthening supplier relationships, builders can increase their margins and scale their businesses sustainably.

Learn more about TAG’s builder support services: Check our FAQs

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