Construction Material Management

Part – I (Introduction):
• Introduction: Materials are the inputs to the construction activity on which
certain operations are performed using other resources to create a facility. It helps
making the best and most efficient use of the materials.
• Importance: Material management is very important for the smooth and timely
completion of the project.
• Definition: Material management is the single, manpower organization concept
embracing, planning, organizing, motivating and controlling of all these activities
and personnel principally concerned with flow of materials.
• Procurement: It deals with accruing materials for construction from suitable
sources.
• Transportation: Materials used on construction site undergo considerable
movement, hence transportation is very important.
• Inventory Control: It deals with laying the policies regarding how much
quantity of a material should be held in stock, taking into account the progress of
the work.
• Storage: When certain materials have to be held in stock before they are used, it
is necessary to store them properly to guard against deterioration, pilferage etc.

Part– II (Classification of Materials):

Classification for Control:
SL.
NO. CLSSIFICATION CRITERIA

Annual value of consumption of item (not

1 A-B-C (Always Better Control) unit rate of items)

2 H-M-L (High, Medium, Low) Unit price of material

3 V-E-D (Vital, Essential, Desirable) Critical nature of items production

S-D-E (Scarce, Difficult to obtain, Purchasing problem with regard to

4 Easy to obtain) availability

G-O-L-F (Government, Ordinary,

5 local, Foreign) Source of material

F-S-N (Fast moving, Slow

6 moving, Non moving) Issues from stores

7 S-OS (Seasonal, Off seasonal) Seasonality

8 X-Y-Z Inventory value of items

Part – III (Procurement of Materials – Source of Material):

• Source Selection: To obtain best results, the purchasing activity must be
based on a systematic procedure which covers all aspects related to purchasing.
• Source Supply: An appropriate supplier has to be selected, which is the main
responsibility of the purchase department.

Part – IV (Procurement of Materials– Purchasing):

• Introduction: Purchasing the materials along the correct lines are the most
important factor contributing to effective and efficient materials management.
• Price of material: Price would normally refer to the amount paid for the
material and is expressed as Rs. per unit measure.
• Centralised and Decentralised purchasing: Centralised purchasing
indicates that the entire purchase is done at one place. Decentralised purchasing
indicates that materials are purchased at different places on the basis of their
needs.
Part – V (Inventory Control):
• Introduction: Inventory means ‘stock in goods’. It is also known as stock
control and constitutes important functions.
• Necessities:
(a) Lead Time: It is the period of time elapsed between the point of time when the
need for material is contemplated and the point of time the material is actually
available on the site of construction for use.
(b)Inventory Costs: When a material is to be procured certain formalities have to
be completed. Normally the cost involved in this will depend upon the quality
of materials used.

Part – VI (Storage and Transportation of Materials):

• Introduction: Storage is the principal aspect of materials management and
should be organised to provide maximum efficiency.
Very often construction organisations have to transport materials from its main
store/regional store, to work sites and hence materials management department
has to be particular about transportation of materials.
• Storage:
Types of Storage-
(a) Open Space Storage: Where materials like sand, aggregates, stone etc. can be
stored.
(b) Closed Storage: Here Costly materials like cement, equipment parts are
stored.
• Transportation:
Types of Transport-
(a) Service: Transport is a service which provides safety and time and place utility
for materials.
(b)Quality: Transport must ensure regularity, safe and adequate supply of its
goods.
(c) Price: Transport is a service which provides safety and time and place utility
for materials.
Part – VII (Logistic):
Logistics may be followed in material management at site level, although yet to be
established in site level. Whereas presently, 3-PL logistics have been incorporated by
many companies.