On a multi-phase development, FBM Sourcing charges in two ways that always come as a pair. For products we source for you, we quote a direct price, with our work inside that price and no commission on top. For suppliers you nominate, we charge a 5% commission. Each phase is simply a set of orders; every item in it falls under one of the two modes, and you know which before anything is ordered.
This article is written for developers and the general contractors and builders who deliver for them, planning how the China procurement for an apartment, hotel or mixed-use scheme will be charged across several phases.
What Are the Two Modes?
All quotations, invoices and shipping documents are issued by FBM Sourcing — you deal with us, and we carry the responsibility. For suppliers you nominate, we charge a 5% commission; for products we source for you, we quote a direct price.
- Products we source for you — a direct price. Our work is inside that price and there is no commission on top: sourcing, drawings, quality control, consolidation, loading and after-sales are included, and sea freight is quoted to you before shipment.
- Suppliers you nominate — a 5% commission. This covers suppliers you bring to the project. We manage the order for a 5% commission; after-sales is not included, because claims fall under the supplier’s own warranty, but we help you communicate with the supplier.
The mode is set by who found the supplier. If you bring the supplier, the item is managed for 5%. If we find the factory, compare it and stand behind it, the item gets a direct price.
How Do the Two Modes Apply Across Phases?
- Each phase is a set of orders. Items we source are quoted at a direct price on that phase’s quotation; orders with suppliers you nominate carry the 5% commission.
- The rate does not step with order size. The commission on suppliers you nominate is 5%, whatever the size of the order or the phase.
- Repeat categories stay with the same factory. Once a category has been bought from a factory, we keep it for your following projects so quality stays consistent; any change of factory is agreed with you in advance.
- The documents do not change. In every phase, quotations, invoices and shipping documents are issued by FBM Sourcing, and your purchase order is placed with FBM Sourcing rather than with each manufacturer.
How the goods themselves move phase by phase is covered in phased delivery aligned to your construction schedule and mixed-container consolidation for apartment projects.
Planning procurement for a phased development?
Share your unit mix, phasing and product categories, and tell us which suppliers you already work with. Our team will review it and get back to you.
What Changes for the Developer Between the Two Modes?
| Question | Products we source for you | Suppliers you nominate |
|---|---|---|
| How is it charged? | A direct price, our work inside it | 5% commission |
| What is included? | Sourcing, drawings, quality control, consolidation, loading and after-sales | Order management; we help you communicate with the supplier |
| After-sales | Included | Under the supplier’s own warranty |
| Contact with the factory | All communication runs through us; we contract with the factory in our own name | Of course — the supplier relationship is yours |
| Sea freight | Quoted to you before shipment | |
How Should a Developer Judge the Direct Price?
Against what you pay now for the same specification. We do not quote a margin figure on items we source, because finding the line that actually makes the product, comparing several and standing behind the result is priced inside the product. The practical test is to send us your current quotation for a few items and let us price the same specification line by line. For the lines where you already have a supplier you trust, nominate it and we manage the order for 5%.
What Should a Developer Prepare Before the First Phase?
- The schedule or BOQ for the first phase, with drawings for anything built to order
- Which suppliers, if any, you want to nominate, and for which items
- The phase structure and the construction programme the deliveries have to meet
- The destination port and the site constraints on receiving containers
On container planning, the rule is full containers only. Sometimes, on a large project, the kitchen cabinets and doors alone fill full containers; sometimes the kitchen cabinets and doors share containers with the other product categories of the same project; and sometimes, in one batch, we combine a dozen or more product categories from several projects of the same client into a few containers — always full containers, and for us this is routine, well-practised work.
For the wider developer workflow, see China procurement for property developers and developer vs contractor: two procurement paths from China.
Planning procurement for a phased development?
Share your unit mix, phasing and product categories, and tell us which suppliers you already work with. Our team will review it and get back to you.
Frequently Asked Questions
How does FBM Sourcing charge on a development project?
In two modes that always come as a pair. All quotations, invoices and shipping documents are issued by FBM Sourcing — you deal with us, and we carry the responsibility. For suppliers you nominate, we charge a 5% commission; for products we source for you, we quote a direct price. Our work is inside that price.
Does the 5% rate change with the size of the order or the phase?
No. The commission on suppliers you nominate is 5%, whatever the size of the order or the phase.
Can one development use both modes?
Yes. The mode is set item by item by who found the supplier: items from suppliers you nominate are managed for 5%, and items we source get a direct price. You know which applies to each item before it is ordered.
Is after-sales included?
For products we source for you, after-sales is inside the direct price. For suppliers you nominate, after-sales is not included, because claims fall under the supplier’s own warranty, but we help you communicate with the supplier.
How should a developer judge the direct price on items FBM Sourcing sources?
Against what you pay now for the same specification. We share examples of previous quotations to show the price range.
About FBM Sourcing
FBM Sourcing manages the entire China procurement package for overseas construction projects. Since 2014 we have worked with developers, general contractors, builders, commercial project owners, interior design and construction companies and FF&E solution providers across more than 20 countries and over 1,000 containers, as their sourcing partner in China — from the schedule or BOQ through factory selection, sampling, inspection by our own team before shipment, consolidation and shipping. All quotations, invoices and shipping documents are issued by FBM Sourcing, and sea freight is quoted to you before shipment. If you have a development package to price, start at China building materials and FF&E procurement.
