What Is Construction Material Management?

Construction material management is all about managing quantity planning, sourcing, budgeting, storing, and on-site handling of construction inventory. It encapsulates all the critical processes involved in managing the materials for the construction projects executed by a construction company.

Additionally, material management also encompasses all the talents, technologies, and processes involved in buying, storing, disseminating, and managing material and non-material resources. The scope of material management knows no limits. However, its goal is to make sure that the materials are available where and when needed on-site and managed most efficiently.

Interestingly, construction firms become highly agile when they practice material management. They benefit from cost-saving, change incorporation, time management, and enhanced profitability. By using this approach, firms can better predict the demand for various construction materials such as ready-mix concrete, steel, bricks, blocks, sand, and more according to the project lifecycle.

The following article will prove to be a great help in understanding why effective construction management is significant for the success of a construction project.

Scope Of Material Management In Construction

Material management has a broad scope in the construction industry. It plays a significant role in the optimization of the acquisition and storage of materials. Moreover, it also ensures the efficient utilization of all materials. From purchasing the right materials from the right suppliers, and ensuring timely delivery, to better utilization of resources, material management is a complex domain, performing multiple functions.

Forecasting And Planning

Construction projects having a huge scope and having working sites covering several miles need the timely availability of the right materials. From analyzing inventory levels to forecasting new requirements, construction management has also taken the new role of keeping the project agile.

Material Procurement

Procurement plays an important role in material management, therefore managers need to have complete control over the procurement process. The materials manager should be involved in making material estimates and issuing purchase orders.

Other critical areas, such as materials assessment, purchase requisition, raising indents, supplier selection, refilling stock, and purchase orders, need regular monitoring for optimal operational efficiencies. They also need to stay updated about the flow of materials from the suppliers to project sites. Professionals also ensure a standard material storing process to achieve a certain backup and minimum holding cost simultaneously.

Stock Reconciliation And Inventory Tracking

Inventory management involves the effective handling of assets and keeping track of inventory. Usually, firms classify their inventory and keep track of it through regular inspection. The firms need to properly transport materials to the project site, keeping the requirements in view. The requirements may include on-ground requirements of the site, material quantity, and outline specifications.

Stock reconciliation is an important aspect of construction material management. It includes an effective system for the utilization of materials across the projects. It controls the use of cost on the project, the workability of the site, and the wastage of materials. Proper tracking, verification, and stock maintenance are necessary to ensure the successful completion of the project.

Why is construction material management crucial?

Construction material almost occupies 65-70 percent of the project budget. So, it becomes necessary to utilize and store the materials effectively. Moreover, charting all the processes from approvals delivery tracking is necessary. It ensures the availability of materials when they are required.

To optimize the utilization of materials, it is necessary to keep real-time insight into inventory. All materials should be accounted for to ensure that there is minimal wastage and maximum utilization. For multi-site projects, this process becomes complicated because they require a sophisticated technological solution.

Firms have relations with multiple sellers and engage the right suppliers for the right project. Choosing the most suitable buyer becomes very important if the project is unique. Buyers choose the right sellers and analyze the description of the project. Moreover, they negotiate prices with them, receive approvals and keep track of the flow of materials. The entire process needs to be checked properly to ensure there are no delays and bottlenecks.

Key benefits of material management solution

Construction companies can get a solution to their problems by opting for material management software designed for these purposes. Management of materials on the cloud helps firms to stay one step ahead while having control over the materials' inventory.

On-site quality control and quality assurance

The quality control and quality assurance of materials need to be updated and specified accurately. The objective is to see the quality of materials and to reject the damaged and defective materials. Quality and quality assurance are necessary to accomplish a project successfully.

Conclusion

Material management is an important aspect of the construction project, including the planning, utilization, procurement, and management of project inventory. Managing the inventory and keeping track of the materials used are necessary. Filtering out the defective materials while receiving them should be done to ensure the investment is not being wasted. Material management maximizes the utilization of materials and minimizes wastage of materials.