GUIDE: 12 Problems of Procurement (and how to solve them)

The evolution of procurement: Why main contractors are ditching spreadsheets

By ProcurePro, updated 12 Mar 2025
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For years, spreadsheets have been the default tool for managing procurement. They’re familiar, flexible, and require no additional costs. But, as projects grow in scale and complexity, Excel starts to show its limits.

Procurement isn’t just about tracking numbers. It’s about managing risk, maintaining visibility, and ensuring contracts align with project requirements. Yet, many main contractors still rely on disconnected spreadsheets, email chains, and manual approvals to manage millions in subcontractor packages.

This approach isn’t just slow — it creates gaps, delays decisions, and increases the likelihood of errors.

Why spreadsheets fail for complex procurement

Spreadsheets work well for small-scale budgeting, but they weren’t built for procurement at construction’s pace.

  • Manual data entry increases errors: A single mistyped figure can throw off cost reports, contract values, or approvals.
  • Scattered files create confusion: Teams work from different versions, leading to conflicting information and outdated pricing.
  • Approval tracking is inconsistent: Email chains and verbal approvals make it difficult to confirm who signed off on what — and when.
  • No real-time updates: Procurement moves quickly, but spreadsheets require manual updates, leaving teams working with last week’s data.
  • Limited visibility across teams: Without a shared system, project managers, commercial teams, and directors struggle to see where procurement stands.

Our conversations with commercial managers generally feature the phrase “I still can’t believe that we’re in (enter any year after 2008) and still relying so heavily on Excel". The truth is, Excel is here for the long haul, but in applications that require collaboration and scalability, it's being replaced by modern, collaborative solutions.

What main contractors gain from modern procurement software solutions

Spreadsheets don’t scale. They weren’t built to handle live collaboration, structured workflows, or procurement tracking across multiple teams and projects. Procurement software removes those limitations by centralising data, automating tedious admin, and providing real-time updates instead of version-controlled chaos.

Reduce manual tasks

Procurement teams waste hours updating spreadsheets, chasing approvals, and moving data between systems. Automation eliminates those steps.

  • No more duplicate data entry: Procurement schedules update automatically when tenders are sent, contracts are signed, or approvals are submitted.
  • Faster scheduling and approvals: Deadlines, milestones, and contract execution dates are tracked in one place, with notifications keeping everything on schedule.
  • Approvals without the back-and-forth: Instead of chasing signatures through email, workflows automatically route approvals to the right people and record timestamps.

Establish consistent workflows

Without a defined process, every team member approaches procurement differently. That leads to inconsistent scopes, missed inclusions, and contract disputes.

  • Pre-built templates: Standardised scope-of-works templates ensure every contract is structured correctly, reducing scope gaps and variations.
  • Step-by-step processes: Procurement follows a consistent sequence from tendering to contract execution, so teams don’t waste time figuring out what comes next.
  • Built-in compliance checks: Approval workflows, contract terms, and procurement policies align with internal standards, reducing risk.

Improve audit trails

Tracking approvals, contract revisions, and scope changes is difficult when information is scattered across emails and spreadsheets. Procurement software creates a clear, time-stamped record of every decision.

  • Complete approval history: Every tender recommendation, contract revision, and scope change is logged and attached to the relevant package.
  • Stronger legal protection: In the event of a dispute, teams can retrieve contract versions, approval records, and correspondence instantly.
  • Better risk management: Missing approvals, unsigned contracts, and unverified suppliers are flagged before they become costly issues.

Ways to mitigate cost risks and scope gaps

Procurement gaps don’t appear out of nowhere. They creep in through incomplete scopes, misaligned expectations, and approvals that take too long. The result? Variations, cost overruns, and disputes that could have been avoided.

Consolidate scoping early

A well-prepared scope of works prevents costly adjustments later. Standardised templates, shared learnings, and early alignment across teams ensure every package is scoped correctly before tendering.

  • Build a structured scope library: Pre-configured templates eliminate the risk of missing key inclusions, reducing reliance on memory or guesswork.
  • Capture lessons from past projects: If a subcontractor flagged an ambiguity in a previous contract, that insight should feed into future scopes to prevent repeat issues.
  • Ensure scope alignment before tendering: Commercial, site, and design teams should agree on scope details upfront to avoid contract misalignment.

Validate bids thoroughly

Choosing a subcontractor requires more than comparing bottom-line figures. Without a structured comparison process, low bids often come with exclusions that surface too late.

  • Compare bids on an equal basis: Side-by-side pricing breakdowns highlight gaps, making it clear where costs differ and why.
  • Clarify inclusions and exclusions: Every tender response should explicitly state what is and isn’t covered, preventing disputes over assumed responsibilities.
  • Factor in subcontractor history: A supplier with a track record of cost blowouts should be assessed differently from one that consistently delivers within budget.

Automate approvals

Approvals slow procurement when they rely on manual tracking. Delays in sign-offs mean packages sit idle, pushing back contract execution and impacting project timelines.

  • Create structured approval workflows: Pre-set approval sequences ensure decisions move forward without unnecessary back-and-forth.
  • Use automated notifications: Real-time alerts prompt team members to review and approve as soon as their input is needed.
  • Enable digital signatures: Contracts move faster when sign-offs happen instantly, without printing, scanning, or chasing emails.

Standardising these processes keeps procurement on track, reducing risks that eat into margin and delay delivery.

Where real-time analytics unlock savings

Procurement teams need more than just spreadsheets and instinct. Real-time analytics pull together costs, supplier history, and project timelines, giving teams live data to act on before issues become costly.

Dashboards consolidate procurement activity across projects, highlighting patterns that spreadsheets miss. A subcontractor with consistent delays, for example, won’t seem like a major risk on a single project. But across multiple jobs, the trend becomes obvious — giving teams time to adjust.

Spot cost anomalies before they drain margin

Pricing inconsistencies are a hidden drain on profitability. Real-time data makes them easy to catch.

  • Material price shifts: If concrete costs £120 per cubic metre in Bristol but £140 in Cardiff, it’s worth questioning supplier rates.
  • Labour rate discrepancies: A subcontractor charging £280 per square metre for tiling on one project but £320 on another could indicate scope misalignment.
  • Variation creep: A 7% increase on a package might seem minor, but across 20 packages, it adds up fast.

With live cost tracking, teams can challenge inflated rates before they become locked into contracts.

Flag supplier risks before they delay projects

A supplier’s history tells you everything you need to know about their reliability. Analytics dashboards surface performance trends that might otherwise go unnoticed.

  • Consistent programme slippage: A facades contractor who has missed completion dates on three consecutive projects is a risk for any schedule-driven job.
  • Quality concerns: If a fit-out supplier has a track record of defects and rework, procurement teams can negotiate stronger performance clauses.
  • Financial instability: A subcontractor with a declining credit score or late payment issues could be a liability mid-project.

By tracking supplier risks across projects, procurement teams can make informed decisions instead of reacting to problems as they arise.

The financial impact of real-time decisions

Procurement decisions should be based on today’s data, not last month’s reports. A quantity surveyor in Manchester reviewing a cost report from four weeks ago might see that steel prices spiked 6%—but by then, the contracts are signed, and the opportunity to negotiate has passed.

Live dashboards ensure teams act on financial risks as they emerge, whether that’s locking in better rates, adjusting procurement strategies, or reallocating budgets. The result? Fewer cost overruns, stronger margins, and fewer surprises at the end of a project.

How digital transformation supports supply chain resilience

Supply chain instability isn’t new, but procurement teams still rely on outdated methods to manage subcontractor relationships. Without real-time data, risk assessment becomes reactive rather than strategic. A procurement solution gives main contractors live visibility over vendor capacity, financial health, and performance history, helping prevent supply chain failures before they happen.

Integrate vendor data

A subcontractor’s reliability isn’t always obvious from a single project. Tracking their past performance, delivery consistency, and contract compliance across multiple jobs provides a clearer picture.

  • Performance tracking: Capture subcontractor timelines, defect rates, and cost accuracy across projects.
  • Capacity monitoring: Identify subcontractors overcommitted across multiple sites before awarding contracts.
  • Financial stability checks: Automatically flag subcontractors with declining credit ratings or late payment histories.
  • Compliance management: Store insurance, safety certifications, and regulatory documents in one central location.

Predict capacity constraints

Labour shortages and material delays can derail a project, but early indicators often go unnoticed. A procurement solution helps teams spot problems before they impact timelines.

  • Lead time forecasting: Identify which trades are stretched too thin across projects.
  • Bid response tracking: Flag packages with low subcontractor interest, signalling potential capacity issues.
  • Regional availability insights: Compare subbie's workloads across locations to prevent bottlenecks.

Enable live collaboration

Disconnected teams create procurement blind spots. Site managers, commercial teams, and procurement leads need real-time access to the same data to avoid delays and misalignment.

  • Live Procurement Schedules: Automatically update procurement progress across all teams.
  • Instant risk alerts: Notify teams when a subcontractor’s financial status changes or a package is at risk.
  • Centralised contract access: Ensure every team works from the latest scopes, tenders, and approvals.

With digital procurement, supply chain risks don’t go unnoticed until it’s too late. Instead, teams have the data they need to make informed, proactive decisions.

FAQs about procurement software

Many contractors are rethinking how they manage procurement. Below are two common questions about procurement solutions and how they fit into existing workflows.

Is procurement software only for large contractors?

No. While tier-one contractors benefit from procurement software at scale, mid-sized firms and regional builders face the same challenges. A £50 million contractor managing 20 subcontract packages per project deals with scope gaps, approval delays, and risk exposure just like a £500 million firm.

Procurement software structures workflows, reduces admin, and ensures consistency — whether for a small fitout or a multimillion-pound development.

Can procurement software integrate with existing systems?

Yes. Most procurement solutions connect with construction management, finance, and document control platforms. For example, a contractor using Procore for project tracking, Viewpoint Jobpac for financials, and DocuSign for contract execution can link all three to procurement software.

This eliminates duplicate data entry, improves cost tracking, and keeps procurement schedules updated without manual inputs. Cloud-based platforms also sync with Microsoft Power BI for live reporting, removing the need for static Excel dashboards.

Looking ahead for main contractors

Spreadsheets still serve their purpose (we've even incorporated spreadsheets into our pricing breakdowns), but procurement has largely outgrown them.

Main contractors managing multiple projects can no longer afford to rely on version-controlled files, email chains, and manual approvals. Procurement solutions centralise data, automate workflows, and provide a structured process that works across teams — eliminating the gaps that spreadsheets create.

A single platform means procurement isn’t scattered across tools. Tendering, contract execution, and analytics live in one place, giving teams visibility over every package. Quantity surveyors no longer have to chase approvals, commercial managers get real-time cost tracking, and directors can see procurement risks before they impact project timelines.

Contractors are moving fast to modernise procurement. The teams making the shift aren’t just improving efficiency — they’re reducing cost overruns, mitigating risk, and making procurement a strategic advantage.

See how a construction-focused solution can streamline your processes.

ProcurePro

ProcurePro

ProcurePro is revolutionising procurement for the construction industry! Consolidate 15+ fragmented procurement processes traditionally managed with Excel, Word and 1000s of emails, into a single paperless platform and enjoy 50% faster procurement.