What Are Requisitions in Construction in the USA?

Requisitions in construction play a critical role in ensuring the smooth procurement, budgeting, and tracking of materials, labor, and services throughout a project. In the construction industry in the USA, requisitions are formal requests used by contractors, project managers, and procurement teams to obtain necessary resources while maintaining transparency and compliance with budget constraints.

These requisitions facilitate effective project management, helping construction firms, suppliers, and stakeholders streamline workflows, prevent delays, and control costs. Properly handled requisitions contribute to on-time project completion, adherence to contracts, and legal compliance in the industry.

Understanding Construction Requisitions

A construction requisition is a documented request for materials, labor, or equipment submitted by contractors, project managers, or procurement officers to authorize and track expenses. It serves as a preliminary step before purchase orders (POs) are issued, ensuring budget alignment and accountability.

Requisitions are typically required for:

• Material purchases (concrete, steel, wood, plumbing, electrical supplies)
• Equipment rentals (cranes, bulldozers, scaffolding)
• Subcontractor services (HVAC, masonry, roofing, plumbing, electrical)
• Permits and inspections (government approvals, environmental compliance)

Once a requisition is approved, it is converted into a purchase order, leading to procurement, invoicing, and payment processing.

Types of Requisitions in Construction

1. Material Requisitions

A material requisition is used to request construction supplies and raw materials required for specific project phases.

Key Components of a Material Requisition:

• Project name and location
• Type and quantity of materials needed
• Preferred supplier or vendor details
• Delivery deadline
• Estimated cost and budget allocation

Process of Material Requisition:

1. Site engineer or project manager identifies material needs.
2. Requisition form is filled out with specifications.
3. Procurement department reviews and approves the request.
4. Purchase order is created and sent to suppliers.
5. Materials are delivered, inspected, and recorded in inventory.

2. Labor Requisitions

Labor requisitions are used to hire skilled workers, subcontractors, or temporary labor for a project.

Common Reasons for Labor Requisitions:

• Hiring subcontractors for specialized tasks (electricians, plumbers, HVAC technicians)
• Scaling workforce for high-demand phases (foundation work, finishing, roofing)
• Replacing absent or terminated workers

Steps in Labor Requisition Processing:

1. Site supervisor determines labor shortages or needs.
2. Requisition is submitted to HR or hiring managers.
3. Approval is granted based on project budget and timeline.
4. Contracts are issued, and workers are onboarded.
5. Labor costs are tracked to ensure compliance with payroll budgets.

3. Equipment Requisitions

Heavy machinery and tools are crucial for construction, and equipment requisitions help manage rental, purchase, and allocation.

Types of Equipment Requisitions:

• Owned Equipment Requests – Used for relocating in-house machinery between job sites.
• Rental Equipment Requests – Needed for short-term use of cranes, excavators, or scaffolding.
• Purchase Requests – Used when acquiring new machinery for long-term projects.

Approval Process for Equipment Requisition:

1. Site engineer assesses equipment needs.
2. Request is submitted with cost estimates and supplier details.
3. Approval is granted based on project budgets and timelines.
4. Equipment is dispatched or rented from a vendor.
5. Usage is monitored, and returns or maintenance are scheduled.

4. Change Order Requisitions

In construction, project changes are inevitable, and a change order requisition is necessary to modify contracts, budgets, or material requirements.

Scenarios Requiring Change Order Requisitions:

• Design modifications requested by the client or architect.
• Unforeseen site conditions requiring additional work.
• Material substitutions due to supply chain issues.

Steps in Change Order Requisition:

1. Contractor submits request for additional work or materials.
2. Project manager reviews impact on cost and timeline.
3. Revised contract or budget is approved by stakeholders.
4. New purchase orders or work orders are issued.
5. Project adjustments are documented for record-keeping.

Importance of Requisitions in Construction

1. Budget Control and Cost Tracking

Requisitions help prevent unauthorized spending, ensuring every purchase aligns with the project’s financial plan. By tracking expenses, project managers can maintain cost control and avoid budget overruns.

2. Streamlining Procurement Workflows

A structured requisition process reduces delays by ensuring that materials, labor, and equipment are requested and approved in an orderly manner.

3. Compliance with Legal and Safety Standards

Requisitions help projects stay compliant with OSHA, EPA, and state regulations by ensuring permits, labor laws, and safety equipment are properly accounted for.

4. Transparency and Accountability

Documented requisition requests create an audit trail, reducing the risk of fraud, mismanagement, or procurement errors in construction projects.

Common Challenges in Construction Requisitions

1. Approval Delays – Bureaucratic red tape can slow down procurement.
2. Budget Constraints – Limited funds may lead to requisition denials or modifications.
3. Vendor Issues – Supply chain disruptions can delay material deliveries.
4. Miscommunication – Poor documentation can result in incorrect orders.

Best Practices for Managing Construction Requisitions

1. Implement Digital Requisition Systems

Using construction management software like Procore, Buildertrend, or CoConstruct improves efficiency by automating approvals and tracking expenses.

2. Set Clear Approval Hierarchies

Defining who can approve which requisitions helps eliminate delays and confusion.

3. Maintain an Updated Inventory System

Regularly tracking materials and equipment ensures requests are based on actual site needs, preventing over-ordering or shortages.

4. Standardize Requisition Forms

Using standardized templates for requisitions ensures consistency, completeness, and compliance with project protocols.

Comparison of Requisition vs. Purchase Order

Conclusion

Requisitions in construction are essential for managing materials, labor, and equipment efficiently while ensuring projects stay within budget and comply with regulations. By implementing a structured requisition process, construction firms can avoid delays, control costs, and maintain accountability across all project phases.

A well-managed requisition system ensures that every construction request is properly documented, approved, and executed, leading to successful project completion and financial stability.

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