How to choose a local building supplier

The cheapest quote is worthless if half the order is backordered. Contractors buy from suppliers they trust. Simon-Kucher's survey found that most builders and contractors consistently buy from their preferred suppliers, and that the loyalty rests on reliability, availability and service, not price alone (Simon-Kucher). These are the checks that matter before a supplier gets your job.

1. Do they actually deliver to your jobsite?

Ask for the delivery radius in miles from their yard, not the list of cities on their website. Then ask about the second delivery: the one at 7 a.m. with the three items you forgot. Suppliers who charge per trip get expensive on long jobs.

2. Stock depth on your recurring items

Identify the ten items you buy on every job and ask what they keep on hand. A supplier that stocks your core list will often beat a cheaper one that special-orders it every time.

3. How they handle a partial fill

Ask directly: "If you can only supply part of this list, will you tell me up front?" Suppliers that quietly ship short force you into an emergency purchase at retail price.

4. Lead-time honesty

Ask for lead times per line, and notice whether they hold. Clear lead times help both sides plan (LBM Journal).

5. Terms and paperwork

• Credit terms, and how long approval takes.
• Tax-exemption and resale handling. In Texas, for example, that is the Comptroller's resale or exemption certificate (Texas Comptroller, Form 01-339).
• A certificate of insurance (COI), if your project requires one.
• A W-9 on file (IRS Form W-9).
• Returns on over-ordered material, and any restocking fee.
• Lien notices. Suppliers on private projects often send notices to protect their payment rights. In Texas these are governed by Property Code Chapter 53. Know what you'll receive, and why. This is general information, not legal advice.

Supplier scorecard

Score each check from 1 to 3 after every job. After a few jobs, the scorecard makes the decision for you.

6. What you can see before you send

On Bluezupply, each supplier lists its business, categories and delivery radius, and you decide who receives your request. Your current suppliers can join too, so you don't have to give anyone up. In the Fort Worth pilot, start from the plumbing supply houses in Fort Worth, ready-mix concrete suppliers in Fort Worth, lumber suppliers in Fort Worth, and HVAC equipment suppliers in Fort Worth, then pick the ones whose radius covers the job.

7. Keep two or three, not one

Loyalty to a single supplier costs money on commodity items, and it leaves you exposed when they're out of stock. Keep a short bench of two or three suppliers per category and quote them together on every job. With one request, multiple quotes, that costs you no extra time.

8. Questions to ask on the first call

• "What's your delivery radius from the yard, and do you charge per trip?"
• "Which of these ten items do you keep in stock?"
• "How do you tell me when a line is backordered?"
• "How long do your quotes hold on commodity items?"
• "What do you need from me to open a credit account?"
• "Who do I call when a delivery is wrong?"

Write the answers in the scorecard. Comparing suppliers on the same questions makes the choice much easier.

When a supplier is new to you

Start with a smaller order or a single category before you trust them with a full package. Check the first delivery against the ticket line by line. If they handle the first problem well (a short count, a wrong item), that tells you more than any sales pitch.

Big yard or small yard?

Neither is automatically better. Large distributors may offer deep stock and wide delivery networks. Smaller local yards may offer flexibility and faster answers on small orders. A bench that mixes both covers more situations, and quoting them together shows you which one wins on each job.

Review the bench every few months

Suppliers change. A yard gets new management, a branch loses its best counter person, a distributor adds a category. Look at your scorecards every few months and decide whether to add or drop someone.

Red flags when you choose a supplier

• They can't give a delivery radius, or the answer changes every call.
• They won't quote lead times on special-order lines.
• Quotes arrive as a single lump sum with no line detail.
• Short shipments show up without warning.
• Nobody can tell you who to call when a delivery is wrong.

One red flag isn't a dealbreaker. It's a reason to give that supplier smaller orders until they prove otherwise.

Worked example

A small framing crew buys almost everything from one yard. On a rush job the yard is short on sheathing, and the crew pays more at a big-box store to keep the schedule. With two backup yards already quoting every job, the crew already has their prices and a relationship, and can place the order with one call.

Then compare the quotes they send back.