This is an advanced strategy…

Experienced builders try to attempt this method.

We tried to do this in our second building, but nearby store owners didn’t agree.

The mason guy who came to our house informed me that the building owner gave 20 lakh to the material supplier store in one shot.

The owner had a deal with the material supplier near their building to supply cement and steel at the same price till their house construction is over.

Whether material price increases…

Or material price decreases…

Material suppliers need to supply the building material at the agreed price.

This is really a good method.

From building two houses, I can say for sure… material price always changes. In most cases, it’s increasing.

If you notice our house construction expenses Excel sheet, you will see how drastic the price difference we paid for the cement & steel we bought. 

(select Cement and Steel in the Item Name column.)

This always happens.

Even for the small changes in material price, your house’s calculated budget will vary a lot.

After knowing this fact in the first building, we went to the nearby material supplier shop with my dad when we were ready to start the second building. We tried to discuss this with the shop owner.

Our condition was like this…

You supply the materials to our building without raising or decreasing the price. If you need, we can even pay the advance cash amount whatever you need.

The shop owner didn’t agree.

This guy is a cement and steel supplier.

I understood he cannot help with cement because he also cannot stock cement for longer.

So I asked to at least do it for the steel. Because the shop owner has no issue storing steel in his shop.

He has plenty of space… we are also ready to give cash to buy the item.

All he needs to do is buy the items with our cash and store them in his store. Buyback is also guaranteed by us…

For some reason, the store owner didn’t agree with this idea.

We also didn’t force him.

We cannot buy the steel and keep it open longer. It will change colour if water touches steel.

So our plann to buy and store steel for the whole building we didn’t did it.

We never tried with the other stores apart from this store due to Trust issues.

Anyway… if you can also do similar price locking from any shops, do it. Especially for cement, steel, hallow blocks, msand, Psand etc.,

For us, all the product prices are increased before finishing our construction work.

Before starting your house construction, discuss with the supplier to supply material at a constant price without increasing or decreasing price (price decreasing rarely happens).

You will save money if you can execute this step with any one supplier.