Materials

Management
Aditya Constructions

Submitted by:
Nitin Mohan Gupta
S.Y.B.M.S.
A – 35
 Introduction

Aditya Construction is a private company which was started in the 1980’s.

They specialize in all types of civil and plumbing work. Their earlier
construction was done in and around Mumbai. Some of their major
constructions include:

1. Mehul Towers – constructed during the years 1985 – 86 in Kandivali

2. Dheeraj Apartments – constructed during 1984 – 85 in Dahisar area

Since, then their operations have shifted from Mumbai to Gujarat where
they have done the entire construction work over areas the size of Vile –
Parle and Santa Cruz. One of the best examples of their work is the Pardi
area in Gujarat developed entirely by Aditya Constructions.

Aditya constructions have also set up several residential building

complexes in several cities of Gujarat. The company has made several
civic buildings all over Gujarat. Raj Hospital is a famous hospital which has
been constructed by the firm.

Several shopping malls construction contracts have also been given to the
company. The company has also taken work at highly discounted rates
since the Gujarat earthquakes and is working to rebuild the areas affected
by the unfortunate incident.
 Hierarchy in the Company

Owner
(Mr. Atul Desai)

1 Civil Engineer
(For each construction project)

2 site supervisors

Labor Contractors

Aditya Constructions has their own labor contractors who find laborers for
construction projects from around the command area of the project site.
 Government

Any new construction that has to be undertaken has to be first approved by

the government civic body i.e. the municipality of that particular area. The
main thing that the company checks for before moving on with the project
is:

 The validity of the purchase of the land which is going to be worked

 Any special restrictions set by the authorities for the land area to be
used for construction
 Importance of that land for the local habitants

After the above requirements are satisfied the company’s architect for the
project is called and asked to make a plan which is to be submitted to the
civic authorities. The rules followed for the construction of residential
buildings and other civic buildings are different. The rules have been set
before hand and the architect has to get the plans passed through the
proper authorities before the actual construction work and other functions
can start.

The Ownership of the land to be constructed upon has to be run a check

upon by the officials and it has to be proven whether this has been
procured properly or not.
 MATERIALS

Aditya Construction

New Constructions Repairs Interiors

Exteriors Interiors

Materials requirements used for each of the above works done by the
company are different. The most common materials used are –

A. Cement
B. Sand
C. Bricks

New constructions are done on a project by project basis i.e.

If the company is asked to take a contract having seven buildings to be
constructed the company work on each building is considered as one
project. The designs for all the buildings are designed and submitted to the
government officials beforehand. When the officials pass the plans made
and submitted by the each project site is appointed with a civil engineer
and two site supervisors. New Constructions include both exterior and
interior works.

The Material requirements are calculated on the basis of the project

requirements. They purchase orders sent are a little below the calculated
cost so that if there is excess wastage the materials can be called for
accordingly.
The materials used and the rates for new constructions are

 Cement – Rs. 165/bag (50 kg)

 Sand – Rs. 2,500/100 cubic feet
 Bricks – Rs. 2,500/1,000 bricks
 Rubble – RS. 1,500/100 cubic feet
 Metal No. 1 – Rs. 1,600/100 cubic feet
 Metal No. 2 – Rs. 1,600/100 cubic feet
 Tor Steel – Rs. 32,000/ton (1,000 kg)
 Mild Steel – Rs. 30,000/ton (1,000 kg)
 Laborer – Rs. 110/day
 Specialists – Rs. 250/day
 Ceramic – Rs. 350/day
 Electricals – Rs. 120/running ft.
 Plumbings – Rs. 100/running ft.
 Fittings & Fixtures – Rs. 5,000/flat
 Paints (Int.) – Rs. 3/sq. ft.
 Paints (Ext.) – Rs. 2/sq. ft.
 Lobby and Passages – Rs. 200/sq. ft.
 Miscellaneous (Taxes, Levies, Rates, Duties etc.) – Rs. 100/sq. ft.

Most of the materials do not require material handling or storage facilities to

store them. Most of the materials can be stored in the open except cement.
Cement requires storage so as to protect it from humidity. Cement when
comes in contact with humidity looses its holding capability and looses it
properties i.e. its grade falls. Hence, for storage of cement it is stored within
closed areas such that the walls are 2 feet away from the stocks and the
ceiling is a feet higher than the cement height. Also the cement is placed a
feet above the flooring level.
The Chemicals are available in their very own storage cans which ensure
quality does not deteriorate. The usage procedure of materials is FIFO i.e.
First In First Out
The Basic Rates and the consumption of materials are shown below:

Item
No. Name Rate (Rs.) Consumption Value Consumption (Rs.)

1 Cement 165/Bag (50 kg) 8,000 13,20,000

2 Sand 2,500/100 cub.ft 1,00,000 25,00,000

3 Bricks 2,500/1,000 1,60,000 4,00,000

4 Rubble 1,500/100 cub.ft 20,000 3,00,000

5 Metal No.1 1,600/100 cub.ft 25,000 4,00,000

6 Metal No. 2 1,600/100 cub.ft 25,000 4,00,000

7 Tor Steel 32,000/ton 120 38,40,000

8 Mild Steel 30,000/ton 100 30,00,000

9 Labor 110/day 1,00,000 1,10,00,000

10 Specialists 250/day 5,000 12,50,000

11 Ceramic 350/day 100 35,000

12 Electricals 120/running ft. 20,000 24,00,000

13 Plumbings 100/running ft. 4,000 4,00,000

14 Fittings 5,000/flat 200 1,00,000

15 Paints(Int.) 3/sq. ft. 1,00,000 3,00,000

16 Paints(Ext.) 2/sq. ft. 50,000 1,00,000

 17 Lobby & Passages 200/sq. ft. 3,500 7,00,000

18 Miscellaneous 100/sq. ft. 20,000 2,00,000

TOTAL COST 2,86,45,000

The ABC Analysis

Sr. No. Item No. Value Consumption Cumulative Cost

1 9 1,10,00,000 1,10,00,000

2 7 38,40,000 1,48,40,000

3 8 30,00,000 1,78,40,000

4 2 25,00,000 2,03,40,000

5 12 24,00,000 2,27,40,000

6 1 13,20,000 2,40,60,000

7 10 12,50,000 2,53,10,000

8 17 7,00,000 2,60,10,000

9 3 4,00,000 2,64,10,000

10 5 4,00,000 2,68,10,000

11 6 4,00,000 2,72,10,000

12 13 4,00,000 2,76,10,000

13 4 3,00,000 2,79,10,000

14 15 3,00,000 2,82,10,000

15 18 2,00,000 2,84,10,000
 16 14 1,00,000 2,85,10,000

17 16 1,00,000 2,86,10,000

18 11 35,000 2,86,45,000
70% of the cost is taken for ‘A’ Items
I.e. 70% of 2,86,45,000 = 2,00,51,500

Hence, Items No. 9, 7, 8, 2 fall in ‘A’ Category

Therefore, exact % of ‘A’ Item is

2,03,40,000 / 2,86,45,000 * 100 = 71.01%

(A+B) Items together form 90% of Value Consumption [i.e. 70% + 20%]
Therefore, 90% of V.C is 2,57,80,500

The value of ‘B’ Items is 2,57,80,500 – 2,00,51,500 = 57,29,000

Hence Item No. 12, 1, 10, 17 fall in ‘B’ Category

Therefore, the exact cost of ‘B’ Items is 56,70,000

% of ‘B’ Items is 56,70,000 / 2,86,45,000 * 100 = 19.79%

Balance Items are ‘C’ Items

Category Value Consumption Items

% Cost (Rs.) % No. of Items

A 71.01 2,03,40,000 22.2 4

B 19.79 56,70,000 22.2 4

C 9.2 26,35,000 55.6 10

 A - 71.01
B - 19.79
C - 9.20

Repairs
Repairs are of three types:
1. Structural Repairs
2. Replastering
3. Water Proofing

In repairing the major new components used other than the standard
materials are
a) Polymer – Rs. 175 to 200 per kg
b) Epoxy – Rs. 400 per kg
c) Quartz Sand – Rs. 3.50 per kg

The major function of Polymer, Epoxy and other chemicals is to strengthen

the damaged R.C.C. (Reinforced Cement Concentrate) structure while
Quartz Sand is mixed with these chemicals to increase the effect of the
chemicals.

Interiors
The materials used here are:

 Plaster of Paris
 Tiles
 Flooring Material (Granite, Mosaic Tiles, Ceramic)
 Wooden Flooring
 Fall Ceiling
 Furniture
a) Plywood
b) Fevicol
c) Nails, screw
d) Sumica
e) Polish Wood
• Normal polish
• Melamine Polish
• Lamination Polish
 Plumbing Work
1. Galvanized iron pipe for supply of water
2. Outer Drainage pipe
• Asbestos cement pipe
• P.V.C. pipe
• C.I. pipe
 Electrical Works
a) Conduit P.V.C. pipe
• 1 x 18 wire – Light Point
• 3 x 20 wire – Geysers
• 7 x 20 wire – Heavier Electrical – used in main
connections
b) Cables
• Armor Cables – used as highly damage resistant
• Normal Cables – used as lining Cables
c) D.P
d) Plugs
e) Switches

 Painting
a) Exteriors
• Cement Paint
 • Acrylic Paint

b) Interiors
• Whitewash
• Dry distemper
• Oil bound distemper
• Oil paint
• Plastic paint
• Acrylic Paint
• Velvet Paint
• Luster Paint

Suppliers & Quality Checking

 Cement – Since it is the most important material used in

construction, cement is only bought from named suppliers like
Gujarat Ambuja which provide branded sealed bags. These
companies have their distributors located in areas from where these
goods are procured. Paints, Plumbings are also purchased through
their respective branded companies.

 Sand – It is procured from local suppliers and its quality is judged by

the “Silt Content Test” i.e. if 100 gms. of sand is placed in a liter of
water then the silt formed at the bottom of the beaker should be less
than 1% i.e. about only a gm of the sand should settle down in the
form of silt. Electricals and wood for furniture etc. are also purchased
from local suppliers only.

 Bricks – the suppliers are usually local suppliers. The bricks are
tested by first checking the color of the brick is red, then by dropping
the brick from a height of 10 ft. and finally the bricks should not melt
 when water is poured on them. These are general tests which are
seen while the work is done and not done in the lab.

 Chemicals – are purchased from specific branded companies and

then are tested in a lab for the necessary quality.

The Certificates for these tests are provided to the customer only when the
customer or client asks for it. All the suppliers are informed about the
requirements via a call and the delivery is done by the suppliers who bear
the transportation costs for the materials they supply.

Machines

Most of the machines used are only used in new constructions. The
company usually rents the machines but they have started buying the
machines since they are cheaper that way.

1. Crane – Crane is basically used to lift

heavy materials and building aids like
bamboos to the place where they are
needed.
There are several types of cranes but
the most used by the company is the
movable crane.

2. Earth Movers and Bull Dozers – These

are used to move the dirt, sand and
earth away from a site and is either
sent else where or is used for
construction if it is suitable for use in
the construction
3. Cement Mixer – One of the most
important machines used in
constructions today. They are
also of two types – one is the big
version which is automatic with
controls in it. It sits on a huge
truck which is used to transport
wherever it is needed. The
second is the hand version –
small and equally movable and is
used for smaller type of mixing.
4. Truck – These trucks are the basic
way in which the materials are
transported from the suppliers to
the construction site. These trucks
do not require men to empty it and
hence it is time saving especially
when the workers are paid on a
daily basis.