Introduction

Building materials manufacturers supplying cement, aggregates, and concrete to infrastructure megaprojects operate under long-cycle, high-value contracts. These agreements often span years and include:

• Volume commitments
• Price adjustment clauses
• Regulatory compliance milestones

Gartner (2024) notes that over 45% of infrastructure suppliers face margin erosion due to poor contract visibility and execution tracking.

Salesforce Manufacturing Cloud enables manufacturers to digitize and operationalize contracts — turning legal agreements into actionable production and delivery plans.

The Nature of Long-Cycle Infrastructure Contracts

• Multi-Year Durations → Roads, metros, airports, ports
• High Volumes → Continuous material supply required
• Price Escalation Clauses → Energy, fuel, and freight adjustments
• Strict Compliance → Quality, safety, and environmental norms

Challenges in Managing Infrastructure-Focused Sales Agreements

1. Multi-Year Project Timelines

• Forecasts drift over time
• Commitments are hard to track manually

2. Volume Commitments & Price Escalation Clauses

• Frequent renegotiations impact margins

3. Regulatory & Compliance Requirements

• Government audits and certifications required

4. Sales–Production–Finance Misalignment

• Contracts managed by sales
• Execution owned by operations
• Billing handled by finance

5. Manual Contract Tracking

• PDFs and spreadsheets limit real-time insight

How Salesforce Manufacturing Cloud Aligns Long-Cycle Contracts

1. Centralized Contract & Agreement Management

• Digitizes all infrastructure contracts
• Links them directly to accounts, projects, and forecasts

2. Contract-Driven Demand & Capacity Planning

• Converts volume commitments into production signals
• Improves long-term kiln and grinding planning

3. ERP & Financial System Integration

• Syncs Salesforce with ERP for billing, invoicing, and adjustments
• Improves revenue recognition accuracy

4. Milestone & Compliance Tracking

• Tracks delivery milestones and certifications
• Generates audit-ready compliance reports

5. AI-Powered Risk & Renewal Insights

• Einstein AI flags underperforming contracts
• Identifies margin erosion risks
• Highlights renewal and upsell opportunities

Case Study: Building Materials Manufacturer Improves Contract Execution

A building materials supplier supporting national highway projects faced:

• Missed delivery milestones
• Poor visibility into margin leakage

After Salesforce Manufacturing Cloud:

• Contract adherence improved by 30%
• Margin predictability increased significantly
• Compliance reporting automated across projects

The Future of Infrastructure Contract Management

• Blockchain Smart Contracts for milestone enforcement
• AI-Based Margin Simulation Models
• Sustainability-Linked Contracts (carbon reporting & incentives)
• Digital Twin Project Planning

Conclusion

Long-cycle infrastructure contracts demand precision and transparency. Salesforce Manufacturing Cloud empowers building materials manufacturers with:

• Centralized, digital contract management
• Contract-driven production planning
• ERP-aligned billing and compliance
• AI-powered risk detection

With Salesforce, infrastructure supply becomes predictable, profitable, and compliant.

🏗️ Ready to modernize your infrastructure contract execution?
👉 Book a Manufacturing Cloud Strategy Session with Perigeo