Net requirements are more restrictive and more likely to be completed with a project-based approach.
Gross material requirements are more likely to be completed with a project-based approach, and are thus more likely to include a budget. A budget is just a list of things that are expected to be purchased by the contractor. The goal is to have it be realistic and achievable. A gross material requirements plan is more detailed and will contain everything that will be needed to be purchased.
There are only a couple of major differences between the two. A gross material requirements document lists everything that will be needed to be purchased to complete the project, while a net requirements document lists everything that would be needed to be paid to the contractor.
the main argument for a gross material requirements plan is that the contractor has more money to spend. If a contractor is expecting to spend a certain amount of money, that is how much the contractor will spend. If a contractor is expecting to spend a certain amount of money, that is how much the contractor will spend.
This is one of the biggest mistakes people make when they think they are spending money on a project. The contractor will make a gross material requirements plan, and it will list everything that they will need to buy. But they will only purchase everything they need to purchase in order to finish the project. They won’t pay for any of the optional extras that they have not agreed to.
A gross material requirements plan is only an estimate of what you will need to construct the project. It is not a list of all of your items that you will need to purchase. And it is not an overall budget that you will have to spend.
A gross material requirements plan will be a list of what you will need to purchase, but they will not allow you to specify which items you want as part of the plan. They will allow you to specify the exact amount you are willing to spend, but only after you have paid for everything else. If you decide you want items not included in the plan, they will have the opportunity to cancel your order.
For example, if you want to get a new computer or a car, the gross material requirements will not allow you to specify which one you want. However, they can cancel your order if you choose to not purchase an item.
When you build your own system, you can determine whether or not the material requirements plan is the best choice. (If it is, it’s better to say “yes” rather than “no”.) But what you’ll get is something far more complex and more detailed. In the current software, it’s possible for you to determine whether you will want items in your plan or not.