Most Common Challenges in Material Management in Construction

Changes in a project's scope are inevitable. So, exceeding the initial planned budget isn't uncommon. These examples sometimes arise as a result of the final contractor guarantees unreasonable estimates to the owner without the direct involvement of his subs and specialty contractors. An example would be the owner's request for substitution of material with one in all higher quality and better price (e.g. modification of scope) whereas maintaining the overall project budget. In several things, the contractors can conform to such changes while not stringent additional prices from the owner. The challenges in material managements that are faced by House construction company are as follows,

1. Selection of Materials

The buying process depends on the categories of material ordered.

Although the purchasing method might involve negotiating specifications and costs directly with a manufacturer, Contractors got to purchase materials from a supplier-distributor. The choice of a good provider is vital for guaranteeing that materials are delivered within the quantities required and at the dates fixed.

Some firms have freelance agents, looking at the sort of material, for supplier choice and procurement. Suppliers are sometimes selected based on the lowest price; but contractors might consider suppliers with higher costs which will give higher service or have a record to provide the proper material within the quantities required at the days fixed. In some things, incomplete proposals from suppliers might delay the selection method.

For major material, the contractor sometimes negotiates costs with the manufacturer directly, if the manufacturer is laid out in the contract documents. However, the contractor needs to obtain the material through the supplier-distributor when a mark-up has been applied. If the manufacturer isn't laid out in the contract documents, the contractor requests bids from completely different makers. Contrary to miscellaneous materials, major materials ought to be unreal and need lead times. If the quantity requested is a smaller amount than the quantity calculable and there are shortages, the contractor can need to wait until the material is made-up, which might cause disruptions and delays.

2. Material procurement

Once a provider is chosen, the contractor needs to consistently follow up on the standing of the ordered material to assure it arrives at the duty site within the quantities and dates fixed. In several firms, this method starts with the generation of a material requisition schedule (e.g. release forms) specifying material varieties, quantities required and dates once the material ought to be delivered. On large jobs, the schedule is typically ready by the site workers then sent to the purchasing department to request the material from the suppliers-distributors beneath the contract. In smaller firms or smaller jobs, the material could also be procured directly by the field personnel. To avoid surplus, several contractors request solely eighty % of planned material. Further quantities are purchased once the duty is close to completion and an improved estimate is accomplished.

Material is mostly requested for delivery to the duty site. In some instances, this might not be possible thanks to storage or access limitations. During this case, the material is delivered to different locations like the contractor's warehouse or another contractor cargo deck.

The material could also be delivered to a warehouse once vital specialty things are ordered early and will not be put in now, once the job site storage area is out of stock or if the material is used for fabrication. Storage material before moving it to the duty site will increase indirect prices due to re-handling. Some firms use a prefabrication shop to assemble parts in an exceedingly controlled atmosphere. Preassembly benefits embody enhanced production time and reduced labour prices as compared to assembly within the field wherever poor climatic conditions and area limitations might cause work delays. The rise in productivity and savings in labour prices outweigh further prices encountered due to fabrication and re-handling. Some site personnel, significantly job foremen, might not favour fabrication due to worry of loss of management on material and installation.

3. Job site storage and handling

Contractors encounter the bulk of their material-management issues at the duty site, as well as material tracking, storage problems, material distribution, and re-handling.

Tracking materials is one in all the most important challenges the contractor faces. Tracking identifies undelivered material as ordered or delayed. Tracking is additionally essential in calculation what materials are accessible to reduce theft or loss, to spot wherever it's stored on-site and to regulate inventory prices. In some instances, suppliers might deliver the materials that require to be returned.

There is no direct price to the contractor during this case; but indirect prices may well be incurred with potential delays to end affected activities. In different instances, the material can be misplaced or settled by warehouse personnel or not properly known before storage. Additionally, the material may well be lost, broken or taken when it issued, which represents a serious downside for the contractor. An automatic system, like bar codes, may greatly improve tracking and internal control and minimize loss and material malposition.

Material damage is another challenge visage by the contractor. The material might get broken throughout delivery or whereas in storage. If the material {is damaged or broken} before delivery and the person receiving it acknowledges the damage, the material is returned at no price for the contractor. However, this may cause a delay if the material is required now. If the person receiving the material doesn't establish any injury, the contractor might find yourself chargeable for the broken material, which can lead to a loss. Similarly, the contractor assumes responsibility for damages to material whereas it's stored before installation.

Material re-handling on the duty site is another huge issue for building contractors in Bangalore. Most of the time, contractors have trailers for material storage before installation. The material is affected by these trailers to the building because itis required. This material can be later moved around the building to make area for different trades before it's put in. This re-handling will increase indirect prices related to that individual material.