Practical EPC guide
5 Procurement Mistakes EPC and Construction Companies Must Avoid
Procurement mistakes in EPC and construction projects can delay site execution, increase material costs and reduce project margins. Here are five common mistakes—and how procurement teams can prevent them.
Short answer: EPC teams prevent procurement mistakes by linking every requirement to the BOQ and budget, using structured approvals, comparing total vendor value, tracking Purchase Orders through delivery, and matching invoices before payment.
Remember these three points
- Link every request to the BOQ and budget
- Compare total vendor value, not price alone
- Match every invoice before payment
Purchasing Without Checking the BOQ and Budget
A material may be required at the site, but that does not mean it should be purchased without checking the approved quantity and available budget.
Better approach: Link every Purchase Requisition to the relevant project, BOQ and cost head. Before approval, check the approved budget, committed cost and remaining balance.
Managing Purchase Requests Through WhatsApp and Excel
Requirements shared through calls, messages and spreadsheets are difficult to track. Requests may get duplicated, missed or approved without proper records.
Better approach: Use a structured Purchase Requisition with item specifications, quantity, delivery location and required-at-site date. Route it through a role-based approval workflow.
Selecting Vendors Based Only on Price
The lowest quotation may come with delayed delivery, unfavourable payment terms or poor material quality.
Better approach: Compare vendor quotations based on price, taxes, freight, delivery schedule, payment terms and technical compliance. Supista makes these quotations comparable in one view, helping teams make more informed decisions.
Not Tracking Purchase Orders After Issuing Them
Many teams issue a Purchase Order but do not actively track pending quantities or promised delivery dates. A delayed material can stop several dependent site activities.
Better approach: Monitor ordered, delivered and pending quantities against every Purchase Order. Teams should receive early visibility into delayed deliveries and unfulfilled vendor commitments.
Approving Invoices Without Verifying the Delivery
Paying an invoice without checking the Purchase Order and material receipt can lead to overbilling, duplicate payments or payment for rejected quantities.
Better approach: Use three-way matching between the Purchase Order, material receipt and vendor invoice. Differences in price, quantity or tax should be resolved before payment approval.
Build a More Controlled Procurement Process
A reliable procurement process should follow:
Purchase Requisition → Approval → Vendor Comparison → Purchase Order → Material Receipt → Invoice Verification → Payment
Supista EPC and Construction ERP connects this complete process with project BOQs, budgets, vendors and site inventory. This gives procurement, project and finance teams a single view of every requirement—from request to payment.
Common questions
How can construction companies prevent procurement cost overruns?
Link every purchase request and order to the project BOQ and budget. Monitor committed, actual and remaining costs before approving new purchases.
What is three-way matching in construction procurement?
Three-way matching compares the Purchase Order, material receipt and vendor invoice before payment. It helps identify differences in quantities, prices and taxes.
How can EPC companies improve vendor selection?
Compare vendors using total cost, delivery schedule, payment terms, technical compliance and past performance—not price alone.