The three-quotation rule: a simple habit that cuts material costs
Why collecting at least three vendor quotations for every requisition is the easiest cost-control habit a construction company can adopt.
· 4 min read
Many established contractors follow an unwritten rule: never place an order without at least three quotations. It is a simple habit, yet it is often the first thing dropped when a site is under pressure.
Why three?
One quote gives you no comparison, and two can easily come from vendors who know each other. With three, you usually get a realistic view of the market price, and vendors know they are competing for the order.
Making it stick
The rule only holds up when following it is easy. A few things help:
- Keep a shared list of vendors for each material type, so the purchase team isn't starting from scratch.
- Record every quote against the requisition, not in a chat.
- Highlight the lowest price automatically, so the manager can approve in seconds.
- When a higher quote is chosen, note the reason, such as faster delivery or better quality.
DravyaX asks purchase executors to add quotes before a requisition goes to the manager, and marks the lowest one, so the habit becomes part of the workflow.