Vendor management is critical to the success of any construction project, big or small. We manage a reliable network of vendors to meet our projects’ needs. Given the size of our projects, we adopt labor only contract models for most trades including excavation, grading, and site preparation; concrete; exterior and interior wall framing; roofing; and brick and stone masonry. For very few trades, mostly those requiring licenses and registrations, we give out material plus labor contracts. This approach helps us in controlling costs and equally important, avoid possibilities of Mechanics’ Lien on our properties.

Booming construction activity all over Dallas metroplex and Texas in general, has resulted in acute shortage of skilled and ethical construction labor. To overcome this challenge, we have built working relationships with multiple vendors for every trade. We are able to tap into our ever-growing network of labor contractors and put them on job when we need.

Several factors and events beyond our control could disturb construction schedules in a short or without notice. During such events when work on site is either not commenced per schedule or temporarily halted; the labor contractors tend to abandon the job which would result in significant project delays and even litigations. For this reason, we do not sign up labor contracts until we know the job is ready for execution. Due to our “just-in-time” labor management approach, we are able to overcome the risk of contractor abandonment.

Input costs are soaring due to booming construction activity. Given our excellent credit and vendor friendly payment terms, we are able to negotiate better pricing and delivery terms with our suppliers. We maintain accounts with several major wholesalers, home improvement stores, and equipment rental companies. The more the supplier relationships, the better will be our ability to negotiate both for pricing and delivery. If one supplier is not able to meet our needs, we always have a backup plan to tap into another supplier. The large number of supplier relationships we have is a testimony of our credibility in the market place.