Early Procurement
Buying critical items during precon so lead times don't set the schedule.
Quick Answer
Early procurement is the practice of purchasing critical equipment and materials, or awarding key trade packages, before the full design is complete or the main contract is bid. It is used when lead times would otherwise delay construction. Owners typically authorize it through an early release or separate agreement, trading some design flexibility for schedule certainty.
The Full Picture
Some items take longer to deliver than the time between bid award and when they are needed on site. Switchgear, generators, elevators, structural steel, and custom curtain wall can take many months. If procurement waits for the full design and a single bid, those lead times set the project finish date. Early procurement breaks that dependency.
Mechanically, the team identifies long-lead items during design, finalizes the specifications for those items first, and releases them as early packages. The owner authorizes the purchase through a notice to proceed, a pre-GMP amendment, or a direct owner purchase later assigned to the contractor. Early packages can be equipment-only purchases or full trade scopes such as foundations or steel.
In practice, a CM-at-risk contractor on a hospital might release packages for site work, foundations, and structural steel while interiors are still in design, and buy switchgear and air handlers under owner-approved purchase orders months before the GMP is set. Each release needs its own scope definition, budget check, and coordination with the design that will follow.
For preconstruction, early procurement shifts risk. Committing to equipment before the design is final means later design changes can make the purchase wrong or require costly revisions. The benefit is schedule and price protection, especially when materials are volatile. Good practice ties each early release to a design freeze on the affected system and tracks commitments against the overall budget.
Real Examples
Common Misconceptions
People assume: Early procurement is only about speed.
Actually: It also manages price and supply risk by locking in costs or production slots before market conditions change. The trade-off is reduced flexibility to change the design for the items already bought.
People assume: Only the GC can do early procurement.
Actually: Owners often purchase equipment directly and assign it to the contractor later, especially for major MEP equipment. Who buys, who carries the risk, and how the items flow into the contract must be defined up front.
Frequently Asked Questions
What items are typically procured early?
Items with long lead times or volatile pricing, such as electrical switchgear, generators, transformers, chillers and air handlers, elevators, structural steel, and custom curtain wall or glazing.
How does early procurement work with a GMP contract?
Early packages are often authorized through pre-GMP amendments or early release agreements. Their committed costs are then carried into the GMP when it is finalized.
What are the risks of early procurement?
Design changes after purchase, storage and insurance costs for items delivered early, and coordination problems if the rest of the design does not match what was bought. These risks are managed with design freezes and clear authorization.
How is early procurement different from fast-tracking?
Fast-tracking overlaps design and construction phases overall. Early procurement is one tool within that approach, focused on buying specific items or packages ahead of the main bid.