procurement strategy

Material Procurement Strategy: When to GC-Furnish, When to Sub-Furnish, and Why It Matters for Your Margin

GC-furnished materials (GC buys, sub installs) and sub-furnished materials (sub buys and installs) have different cost structures, cash flow patterns, risk profiles, and operational implications. The same project can be materially different in outcome depending on how the material procurement is structured. Good GCs make this decision deliberately based on project-specific factors — long lead items, volume leverage, quality control needs, cash flow preferences — rather than defaulting to whatever the sub wants.