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Abstract

The cost of construction material in a construction project may range from 30-80 % of total construction cost making it a prime uncertainty in a construction project. Construction project cost overrun is a vital subject that should be considered in the construction industry. Construction project cost overrun has resulted in a delay in completion of projects and in some cases leading to litigation. The research aimed to find out the key causes and effect of poor material management and measures taking in place to improve it. A questionnaire survey administered to 45 construction professionals, their perception of root causes and effects of poor material management toward the causes and effects that were extracted from the literature review. Moreover, the relationship between different material management practices and project performance in terms of cost, quality and time were acquired from this questionnaire. The study found the top 3 most common root causes of poor material management identified were Negligence of workers, Incorrect takeoff from design and drawing document and Management of surplus material. In addition, the top three effects of poor material management identified were Wastage of material, Increase in cost of production and Quality issues.
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Material management practices on
construction site in Nigeria
Taofik Sanni1, Dr. Alex K. Eyiah2
ABSTRACT
The cost of construction material in a construction project may range from 30 80 % of total construction cost making
it a prime uncertainty in a construction project.
Construction project cost overrun is a vital subject that should be considered in the construction industry.
Construction project cost overrun has resulted in a delay in completion of projects and in some cases leading to
litigation. The research aimed to find out the key causes and effect of poor material management and measures taking
in place to improve it.
A questionnaire survey administered to 45 construction professionals, their perception of root causes and effects of
poor material management toward the causes and effects that were extracted from the literature review. Moreover,
the relationship between different material management practices and project performance in terms of cost, quality
and time were acquired from this questionnaire.
The study found the top 3 most common root causes of poor material management identified were Negligence of
workers, Incorrect take-off from design and drawing document and Management of surplus material. In addition, the
top three effects of poor material management identified were Wastage of material, Increase in cost of production and
Quality issues.
Keywords: Material management and construction.
1.0 INTRODUCTION
Materials management is the system for planning and controlling all of the efforts necessary to
ensure that the correct quality and quantity of materials are properly specified in a timely manner,
are obtained at a reasonable cost and most importantly are available at the point of use when
required. In most countries, the construction industry constitutes a large part of the economy.
Previous studies show that the construction industry contributes between five to ten percent (5-
10%) of Gross Domestic Product (GDP) in all countries and employs about ten percent (10%) of
the working population (Ofori, 2012).
The main reason for construction material to be so influential in a construction project is because
the cost for material handling may range from 30 80 % of total construction cost (Proverb, et al
(1999). Therefore, ineffective material management can cause an inevitable loss for a construction
project. Material management can be considered as a prime uncertainty in a construction project.
Bell and Stuckart (1986). defined materials management functions which include planning and
material take off, vendor evaluation and selection, purchasing, expenditure, shipping, material
receiving, warehousing and inventory and material distribution. Material management is
dependent over various other factors it has high uncertainty as interrelated to other processes and
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stages of the construction project and. Effective implementation challenges of material
management increase considering the nature of construction project being phase basis with
unstructured communication and no clear responsibility between the parties.
1.1 STATEMENT OF THE PROBLEM
Construction materials are a major cost component in any construction project. A factor that affects
the performance of construction projects to a large extent is the poor management of materials
during site activities in Nigeria. The factors influencing materials management have been the
subject of inquiry especially in aspects such as time overrun, cost overrun, and low quality of work.
However, studies that focused on and discussed solely on factors of materials management is very
limited. Furthermore, in order to improve project performance, it is necessary to identify the factors
affecting materials management.
(Kasim et al, 2005), identifies improper construction materials management as a factor affecting
the general performance of construction projects in respect to construction time, quality, cost and
overall construction productivity. (Rivas, 2011), informed that late delivery of construction
materials, unavailability of materials before commencement of construction work, and the long
distance of materials from the work location is the principal causes of materials-related problems
on construction sites.
The occurrence of this situation had made most of the projects abandoned at the final stages with
the complaint of lack of capital. However, even if the materials are purchased, the mode of
delivering, handling and storage turn to be a problem. Construction materials are most at times
overestimated and bought the place to store for proper keeping and managing them become a
problem. They are placed in the yard at the chosen location anyhow without any surface
preparation on the floor and always get contaminated with foreign materials. Most completed
projects have heaps of sand, chipping, quarry dust, rusted steel rods, and rotten timber, broken
down vehicles left at the site. The contractor ignores these materials at the site with the idea of
using them on another project. However, the question is what about if no project is not taken in
the next 5 10 years? What will happen to those abandoned materials? Most project professionals
still doubt whether construction planning is possible (Gascuena et al., 2010).
Poor material management has been the major problem in the construction industry in Nigeria
leading to collapse of building (Quality), abandoning of project due to cost overrun (Cost) and late
deliveries of project (Time).
1.2 OBJECTIVES OF THE STUDY
The objective of this study seeks to specifically:
1. To identify the key causes of poor material management
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2. To identify the effect of poor material management in construction
3. To identify factors to improve material management in construction.
1.3 SIGNIFICANT OF THE STUDY
The construction industry is one of the most important components of every economy. However,
with the scientific and technological advancement in the industry, it is still popular for its client
dissatisfaction, project delays and cost overruns. Mostly, these problems can be associated with
improper material management that leads to delays, cost overrun and poor quality.
The findings and suggested recommendation from this study will enlighten construction project
stakeholders on the impact of material management on construction project and how materials are
managed.
Moreover, this study will generate a list of root causes for ineffective material management that
can be used as a benchmark to control the existing and future projects and also serve as a source
from which imminent researchers could access information for further studies on the topic.
2.0 LITERATURE REVIEW
Material management is defined as the process to provide right material at right place at right time
in right quantity to minimize the cost of project. Material management is concerned with the
planning, identification, procuring, storage, receiving and distribution of material. The
responsibility of Material management department for the flow of material from the time the
material is ordered, received, and stored until they are used is the basic responsibility of material
management. The main goal of material management is to ensure that the materials are available
at their point of use when needed hence, efficient procurement of material represents a key role in
the successful completion of the work. In order to make materials management on site effective
for fast-track projects, there needs to be an integrated material handling process from the design
stage to the usage of materials.
Three important phases that hold the key to a successful materials management are materials
purchasing, materials usage, and storage. It is used to reduce cost, which increases profitability
and streamlines production. Apart from the management of material cost and its supply, it helps in
its proper utilization, transportation, storage, handling and distribution. Selection of personnel for
marketing, purchasing, inventory control, stores management and materials handling and their
training and placement is also to be seen by the materials management department this indicates
that it is very essential to have a materials management department in any organization to support
the management in the production activities. It also helps in the marketing, sales promotion and
control of all the types of materials for its quantity, quality and cost.
Materials management is not only concerned during the monitoring stage but also a decision about
the procuring of materials at the planning and scheduling stage. Hendrickson (2008) conducted a
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study for twenty heavy construction sites and these are the benefits from the introduction of
materials management system:
Reduction of 6% in craft labour cost occurred due to the improved availability of materials
as needed on site and 8% saving due to reduced delay for materials.
Comparison between two projects reveals that a change in productivity from 1.92 man-
hour per unit without a system to 1.14 man-hours per unit with a new system. In addition,
much of the difference was attributed to the timely availability of materials.
Warehouses cost were found to decrease by 50% on one project with the introduction of
improved inventory management.
2.1 MATERIAL MANAGEMENT PROCESS AND TECHNIQUES
Materials management is the system for planning and controlling all of the efforts necessary to
ensure that the correct quality and quantity of materials are properly specified in a timely manner,
are obtained at a reasonable cost and most importantly are available at the point of use when
required. Material management process initiates from need generated from site then this
information conveyed to the store department and material are ordered in the store, indent is
generated. Vendor selection is to be carried out for the least value and best items. Materials are
received at store department and inspection is carried out. Below in Figure 1 is a material
management process flow chart (source from Patil & Pataskar, 2013).
Figure 2.1: Material Management Processes (source from Patil & Pataskar, 2013)
Materials management processes involve the planning, procurement handling, stock and waste
control, and logistics surrounding materials on construction projects. A good materials
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management environment enables proper materials handling on construction sites. In order to
better-understand materials management, the following processes are discussed: planning,
procurement, logistics, handling, stock and waste control.
PLANNING
The process of planning construction methods has been defined as "understanding what has to be
built, then establishing the right method, in the most economical way to meet the client's
requirements" (Illingworth, 1993). This is a detailed scheme for achieving an objective for certain
work tasks. In the case of materials, there is a need for appropriate planning, which must be done
concurrently with engineering, construction, and other project plans (Stukhart, 1995). Stukhart
(1995) also mentioned material planning will provide guides for all the subsequent activities and
can have a great impact on the project plan. The materials planning process covers setting up and
maintaining the records of each part used in each plant to determine target inventory levels, and
delivery frequency (Payne et al, 1996). As a result, excellent management of the materials record
will help the flow of materials at the site in order to avoid several problems such as materials out
of stock and materials that have not been delivered.
Stukhart (1995) mentioned that, material planning would provide guides to all the subsequent
activities and that this could have a great impact on the project plan. The materials planning process
covers the setup and maintenance of records and determines the target inventory levels, and
delivery frequency (Payne et al, 1996). Planning of access and routing of materials within a
construction site has an important implication for the development of an effective materials
management strategy (Faniran et aL, 1998; Olusegun et aL, 1998) particularly in terms of
increasing productivity and profit, and facilitating the timely completion of construction projects
(Wong and Norman, 1997). The requirement for efficient materials planning is, to increase
productivity and profit of the company, and facilitate the completion of construction projects
(Wong and Norman, 1997). Thus, better planning of raw materials on site can help to eliminate
project delays and reduces activity times, resulting in better service.
TESTING
Quality is a prime factor to measure the performance of a project. Quality assurance of building
materials is vital in order to create strong durable and cost-effective structures (Savitha, n.d.). Each
construction project has a different set of specification and requirements. The contractors are
required to select and procure suitable construction materials so that they can meet the contract
specification. Unless a specific brand and model number is stated, it is advisable to conduct a
thorough study and analysis of the different material properties to check for its compatibility in
the different zones of the building. The materials are only ordered after receiving approval (Low
& Ong, 2014). Proper assessment of the various materials is important to ensure the quality and
durability of the final product.
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PROCUREMENT
Procurement is not only about appointing contractors and preparing contract but is also very much
a starting point in the process of delivery (Mead & Gruneberg, 2013). Activities included in the
procurement process range from purchasing of equipment, materials, labour and services required
for construction and implementation of a project (Kasim, et al., 2005). Another author has defined
procurement as identifying and analyzing user requirements and type of purchase, selecting
suppliers, negotiating contracts, acting as a liaison between the supplier and the user, and
evaluating and forging strategic alliances with suppliers. For many organizations, materials and
components purchased from outside vendors represent a substantial portion of the cost of the end
product, and hence effective procurement can significantly enhance the competitive advantage of
a project (Morris & Pinto, 2007). Many authors have suggested that choosing the best option of
procurement can help to reduce the impact of uncertainties such as late deliveries, substandard raw
material qualities, resource constraints and so on (Morris & Pinto, 2007). Therefore, to
successfully deliver a project it is not about adopting a procurement system with best practice
tactic to fix all problems, but to embrace an approach that has the best-fit tactic that gets the job
done most efficiently (Keith, et al., 2016).
LOGISTICS
Logistics is a concept that emphasizes movement and it encompasses planning, implementing, and
controlling the flow and storage of all goods from raw materials to the finished product to meet
customer requirements (Stukhart, 1995). Raw materials for construction are usually varied, bulky,
heavy, and required proper handling in the supplying process. Consequently, the construction
industry requires active movement of materials from the suppliers to the production area in both
the factory and the worksite (Pheng and Chuan, 2001). The primary focus of the logistics concept
in construction projects is to improve coordination and communication between project
participations during the design and construction phases, particularly in the materials flow control
process (Agapiou et al, 1998). They also mentioned that problems arise in the materials flow
control process, which includes delays of materials supply, due to some materials, purchased just
before they are required and waste of materials during storage, handling and transporting when
procured in large quantities without complying with the production needs on site. The previous
research suggested that the routing of materials is one of the main causes, which affect cost and
time during construction projects (Varghese and O'Connor, 1995). Hence, the factors that should
be taken into consideration during the logistics process for effective materials management
include:
optimum forecasting of materials movement (Mahdjoubi and Yang, 2001); and
Planning of access and routing of material within a construction site (Olusegun et aL,
1998).
HANDLING
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Various materials posses’ different features and properties, that makes the handling of materials
critical. Effective material handling involves handling, storing and controlling of construction
material (Kasim, et al., 2005). Proper protection during storage is often ignored, and this can result
poor material quality or material deterioration. Moreover, it is also advised that transportation,
loading and unloading of material should not be conducted in the rain. It is also recommended that
the storage area needs to be enclosed, clean and dry with good air circulation and for some
materials need to be stacked on pallets, not more than a certain safe height to prevent dampness
and so on (Low & Ong, 2014). By adopting proper material handling and storage will help to keep
the material intact and in good quality. In addition, will reduce the loss of profit due to theft,
damage and wastage as well as running out of stock (Kasim, et al., 2005).
STOCK AND WASTE CONTROL
Material waste is a significant factor in construction cost, Calkins (2009) states material waste is
9% by weight in the Dutch construction industry and 20-30% of purchased materials in the
Brazilian construction industry. Material wastes are caused by several sources such as design,
procurement, material handling, and operation and so on. Shen et al. (2003) defined building
material wastages as the difference between the value of materials delivered and accepted on site.
Moreover, material waste has been recognized as a major problem in the construction industry and
it can also implicate inefficiency in project delivery. Adopting a proper stock control will help to
increase productivity and also can be one of the ways to improve waste control in the construction
site. By introducing minimizing strategies to reuse materials in both the design and construction
phase can be a mean to reduce waste (Dainty & Brooke, 2004).
Some authors simplify these stages into distinctive phases. As a matter of fact, one of the research
projects done by Manteau (2007) on the material management practices in Ghana explains that the
current material management phases in the Ghanaian construction industry are bidding phase,
sourcing phase, material procurement phase, construction phase and post-construction phase. A
study conducted in India by Patel & Vyas (2011) has summarized the material management
processes into 8 main parts. They were planning, benchmarking, purchasing, receiving, inspection,
storage, issuing material and inventory control.
Therefore, it is very evident that in various countries these processes are carried out in different
ways. There can be many factors that might influence these processes such as culture, work
environment, belief and so on. Moreover, different groups have learnt to deal with uncertainty in
different ways, often because they find themselves faced with different levels of uncertainty.
Adams (1965) writes of ‘risk thermostat’ in relation to individuals’ ability to deal with and be
comfortable when exposed to risk. Therefore, already established material management processes
that are being practiced.
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2.2 PROJECT PERFORMANCE
Performance measurement is defined as the process of evaluating performance relative to a
defined goal. It provides a sense of where we are and, more importantly, where we are going
(Rose, 1995). Rose further stated that measurement can guide steady advancement toward
established goals and identify shortfalls or stagnation. (Willis and Willis, 1996) maintained the
importance of measuring performance because it will indicate the status and direction of a
project. It is widely accepted view that, at a minimum, performance measures of a project are
based on time cost and quality (Barkley and Saylor, 1994). (Atkinson, 1999) noted that these
three components of project performance as the ‘iron triangle’.
2.3 MEASURING OF PROJECT PERFORMANCE
Brown and Adams (2000) obtained an evaluation framework to measure the efficiency of building
project management (BPM) by using conventional economic analysis tools such as time, cost and
quality. Lehtonen (2001) stated that performance measurement systems are imminent in
construction firms. Samson and Lema (2002) stated that effective and efficient management of
contractors' organizational performance requires a commitment to effective performance
measurement in order to evaluate, control, and improve performance today and in the future.
Tangen (2004) obtained that performance measurement is a complex issue that normally
incorporates at least three different disciplines: economics, management and accounting.
Measurement of performance has garnered significant interest recently among both academics and
practitioners. Tangen (2004) remarked the choice of a suitable measurement technique depends on
a number of factors, including the purpose of the measurement; the level of detail required; the
time available for the measurement; the existence of available predetermined data; and the cost of
measurement.
COST PERFORMANCE
Cost is defined as the degree to which the general conditions promote the completion of a project
within the estimated budget (Bubshait and Almohawis, 1994). (Salter and Torbett, 2003) indicated
that cost variance was the most common technique used to measure design performance. It is not
only confined to the tender sum but the overall cost that a project incurs from inception to
completion, which includes any costs arise from variations, modification during the construction
period and the cost arising from the legal claims, such as litigation and arbitration. It can be
measured in terms of unit cost, percentage of net variation over final cost (Chan and Tam, 2000).
TIME PERFORMANCE
It is very important for construction projects to be completed on time, as the clients, users,
stakeholders and the general public usually looks at project success from the macro view where
their first criterion for project success appeared to be the completion time (Lim and Mohamed,
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2000). (Salter and Torbett, 2003) and (Odeh and Battaineh, 2002) mentioned that time variance is
one of the techniques for assessing project performance in construction projects. The element of
time could indicate to project managers that the project was not running as smoothly as scheduled.
QUALITY PERFORMANCE
In the construction industry, quality is defined as the totality of features required by a product or
services to satisfy a given need, or fitness for purpose (Parfitt and Sanvido, 1993). In other words,
the emphasis of quality in the construction industry is on the ability to conform to established
requirements. Requirements are the established characteristics of a product, process or service as
specified in the contractual agreement and a characteristic is any specification or property that
defines the nature of those products, processes or services, which are determined initially by the
client. In order to achieve a completed project that meets the owner's quality expectations, all
parties to a project must acquire an understanding of those expectations, incorporate them into the
contract price and other contract documents to the extent possible, and commit in good faith to
carry them out (Ganaway, 2006).
2.4 EFFECT OF POOR MATERIAL MANAGEMENT
The success of a construction project lies in the ability of all the stakeholders to plan effectively,
as well as properly manage the resources. Furthermore, this grand plan encompasses of sub plans,
which helps to determine, sequence, strategize how to allocate the resources effectively.
Construction projects are well known for being complex and are subjected to high uncertainty and
variability. Construction materials are involved throughout the construction project and variability
and uncertainty can be traced back to construction material. Therefore, formulating a good material
management plan is highly mandatory to support the grand plan.
Unavailability of materials when needed can affect productivity and it may cause delay and
difficulties to meet the schedule. On the other hand, having excessive materials on site will also
create problems for the managers. Storage of materials can increase the cost of production thus
increasing the overall cost of the project. Furthermore, if the site lacks space to store all the
materials may burden the managers to rent alternative storage areas that will cause more trouble
and cost (Haddad, 2006).
In most contracts, the cost and time required to complete the specified scope of works are defined
in project documents. Control of quality of materials and workmanship is achieved through proper
quality control plan and its implementation through a preset level of quality control and inspection
of various activities and materials. Budget control is done through monitoring progress payments
and variation costs. The schedule is monitored by ensuring timely approval of materials, shop
drawings, timely procurement of materials and execution of works as planned. Quality control and
safety are achieved through inspection of works during the construction process, ensuring the use
of approved materials and workmanship (Rumane, 2011).
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It is a fact that those construction projects that are unable to use their resources efficiently will
reduce their productivity reflecting their poor management skills. According to a study done by
Baldwin & Bordoli (2014) state that 40% of the time lost on the site can be attributed to bad
management, lack of materials when needed poor identification of materials and inadequate
storage. By formulating an ineffective materials management plan can have a negative impact on
cost, quality and time, which will affect the project delivery.
There have been various studies conducted in different countries to identify the factors causing
cost overrun, delay and quality issues in construction projects. Surprisingly, the factors are more
or less very similar in various cases, but the ranking of the factors was different. The fact that
cannot be ignored is that factors related to construction material appeared in most of this list of
factors causing cost overrun, delay and quality issues.
In a study conducted by Wanjari & Dobariya (2016), the highest factor causing cost overrun in
India construction industry was identified as price escalation of raw material. In another study
done by Cheng (2014) about an exploration into cost influencing factors on construction projects
revealed that material shortage or supply delay is a prominent project risk that will influence the
project cost. Similarly, the study conducted to identify the delay factors in construction projects of
Turkey found out that material is a significant factor causing project delay (Gunduz, et al., 2013).
Furthermore, it was explained that problems such as late delivery of materials, poor procurement
of construction material and shortage of construction materials are prime factors causing project
delay.
2.5 ROOT CAUSES OF POOR MATERIAL MANAGEMENT
During the past years, various academics researchers have conducted studies investigating to find
out the issues causing ineffective materials management in construction projects. Among these
studies were:
A study carried out Zakeri et al (1996) suggested that transport difficulties, waste, improper
handling on site, misuse of specification, lack of proper work plan, inappropriate materials delivery
and excessive paperwork all have an immense effect on materials management. Another
researcher, Dey (2001) emphasized that the common issues regarding material management are as
follows:
Incorrect materials take-off from design and drawing documents;
Constant design changes
Choice of type of contract for specific material procurement
Management of surplus material.
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A study done by Kasim (2008) investigates the problems in material management by conducting
research on 6 case studies. Case study A and B are two small projects from two different
construction companies, while the other 4 case studies are larger or more complex studies. The
interviewees under study experienced constructional professionals ranging from 8- 32 years’
experience. Moreover, the cost of the projects ranged from £ 1.78 million to £ 4.2 billion. 17
possible issues causing ineffective material management were revealed. The major problems that
were discovered are material management activities related to constraints site storage, site logistics
with regards to material handling and distribution and also ordering and delivery of materials to
the construction site. The following are the identified following causes:
Site storage problems
Logistics problems
Inadequate loading area
Improper handling
Supply chain challenge
Project size challenge
Project location challenge
In another study conducted by Sohrab Donyavi (2009) states the common problems in material
management are as follows:
Failure to order on time which may cause a delay in the projects;
Delivery at the wrong time which may interrupt the work schedule;
Over-ordering; Wrong materials or wrong in direction of materials requiring re-work;
Theft of materials from delivery into production;
Double handling of materials because of inadequate material
Moreover, a study conducted Kasim (2008) highlighted that problems could emerge due to
human error, especially because some construction firms still rely on manual methods for
material management, which involves paper, based techniques. In addition, she states that the
problematic use of paper-based reports for exchanging information relating to materials
component with the supply chain can result in misunderstanding and poor coordination.
2.6 IMPACT OF MATERIAL MANAGEMENT ON PROJECT PERFORMANCE
As previously mentioned, existing studies on construction project performance have briefly
mentioned the effect of material management on project performance. Therefore, reviews of
literature summarize that the key criteria of project performance affected due to material
management as in Table 2.1. A summary is presented in Table 2.1 for 28 previous papers that
mentioned the effect of material management to project performance. Generally, the criteria of
project performance are identified both from positive and negative perspective effects. From
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positive effects, effective material management has a positive impact on time optimization, cost-
saving and quality maximization, (Shahi et al. 2004). On the other hand, ineffective material
management has negative effects on project performance such as time delay, cost overrun and poor
quality, (Bell and Stukhart, 1986). However, in the context of this paper, the criteria are termed in
impartial form namely; time, cost, quality, productivity and waste. Discussion of material
management effect on 3 criteria of project performance is as in the following.
TIME
Time is defined as a degree that general conditions promoted completions of a project within
allocated duration (Chan et al. 2002). It is an essence of a construction contract, hence most of the
contract has a similar provision about completion time and clearly stated in it (Cooke and Williams,
2009). Therefore, it is important for the construction project completed on time. Furthermore, time
is widely recognized as minimum performance measured and one of the primary criteria of project
success (Ali and Rahmat, 2010). As shown in Table 2.1, a total of 24 papers mentioned that
material management affects time performance. The insufficient stock of materials leads to idling
time as workers try not to exhaust the stockpile or it is worsened by work stoppage (Nagapan et
al. 2012). Due this shortage, materials need to be reordered and cause longer idling time.
Consequently, the work progress will be delayed. Therefore, the availability and sufficient quantity
of materials affect the time performance.
COST
Cost of construction project is defined as a price to a client including consultant’s fees, main
contractors’ and trade contractors’ charges including their overhead and profit (Towey, 2013).
Cost is one of the major considerations in the entire cycle of construction projects. Unfortunately,
majority of the projects failed to achieve project completion according to the contract cost (Smith
et al. 2014).
Table 2.1 shows 21 existing papers stated that material management has an effect on cost
performance. With effective material management in construction projects, it is able to reduce the
overall cost of material (Patil and pataskar, 2013). For example, in purchasing process, discounts
and bulk order may be economical as it reduced the transportation and ordering cost (Aziz, 2013).
It has been estimated that a saving of 2% material cost possibly will increase profits by 14.6%
(Ren et al. 2012). Thus, by minimizing the procurement cost of materials, the higher chances for
reducing the overall project cost and concurrently increasing company profit. However, the
reasonable time needs to consider as if the materials ordered too early, it may affect the company
capital, interest charges and storage charges (Patil and pataskar, 2013). The total quantity required
also vital to be considered as the main reason for cost variance in construction projects is due to
overstocked materials on site (Gulghane and Khandve, 2015). Because of overstocked materials,
organizations need to spend extra expenses on cost for labour wages and transportation charges to
move out the materials from the site.
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Lack of standard or poor-quality control in material management contributes to the increase in
construction cost. This is because the chances to loss material during handling and implementation
stages is higher and it requires a material replacement (Aziz, 2013). For instance, the materials
with poor quality will damage due to lack of durability, strength and density (Enshassi et al. 2007).
The planning and procurement are claimed as an equally important process that controls total
project cost (Gulghane and Khandve, 2015). However, material control and expediting also
important as the former process is to avoid shortage and surplus of materials occurred on site.
While the later process ensures the material is delivered in a timely manner by suppliers (Ren et
al. 2012). In sum, all mentioned processes are important to reduce the escalation of construction
cost.
QUALITY
Quality is defined as the specific characteristic, features or nature of products, execution or
installations of a task on a construction project as stipulated in the contract document (Dell, 2013).
However, the term quality has sometimes become a problem as it is a subjective matter and
understood differently by different people and organizations (Ali and Rahmat, 2010). Therefore,
it is important to consultant be able to identify client’s requirements and specify clearly in contract
document. As shown in Table 2.1, 8 papers mentioned that material management affects quality
performance. Availability of resources such as materials and equipment as planned during project
duration is one of the factors contributing to quality performance (Jha and Lyer, 2006). The
available equipment also needs to be in good condition and in sufficient quantity. Without the
proper and sufficient equipment, it will jeopardize the satisfactory quality of work done (Huughes
and Thorpe, 2014). Similarly, the materials itself also need to be inappropriate quality according
to the specification (Nagapan et al. 2012). Using the appropriate quality of materials can lead to
the satisfactory quality of work, subsequently will be accepted by consultant (Enshassi et al. 2007).
In sum, the available resources must be in accordance with the specification, sufficient quantity
and functional.
No.
Authors
Criteria of project performance
Time
Cost
Quality
1
Gulghane & Khandve
(2015)
2
Alanjari et al. (2014)
3
Barry et al. (2014)
14
4
Caldas et al. (2014)
5
El-Gohary (2014)
6
Hughes &Thorpe (2014)
7
Othman et al. (2014)
8
Safa et al. (2014)
9
Abdul Rahman et al.
(2013)
10
Aziz (2013)
11
Patil & Pataskar (2013)
12
Doloi et al. (2012)
13
Meng (2012)
14
Nagapan (2012)
15
Sardroud (2012)
16
Ameh & Osegbo (2011)
17
Haseeb et al. (2011)
18
Ren et al. (2011)
19
Kasim & Ern (2010)
20
Nwachukwu & Emoh
(2010)
21
Wan & Kumaraswamy
(2009)
22
Kazaz et al. (2008)
23
Enshassi et al. (2007)
24
Caldas et al. (2006)
25
Novan & Berkhovich
(2006)
26
Kasim, et al. (2005)
27
Song et al. (2005)
28
Thomas et al. (2005)
Total Frequency
24
21
8
Table 2.1: Summary of Material Management Affecting Project Performance
2.7 IMPROVING MATERIAL MANAGEMENT IN CONSTRUCTION
The traditional construction methods apply for paper-based work during the construction process.
This can produce excessive paperwork and contributes poor materials management in construction
projects (Zakeri et al, 1996). There is also give problematic, error-prone and inefficient in the
recording and exchanging information of materials component within a supply chain. The
implementation of ICT can help the management of construction activities to become more
effective and faster. The emergence of ICT systems could transform conventional methods and
15
improve materials management. The use of ICT has also increased with new software related to
the construction industry and can support the effective management of materials practices.
Therefore, the ICT-enabled solution could help in order to overcome the problems. For example,
improving materials supply management through an intelligent system to facilitate bidding,
requisition and ordering of materials.
The development of ICT in the construction industry can transfer information much faster globally
than traditional methods. According to Bjork (1997) that ICT as electronic machines and programs
including computers and the software, other devices like the telephone, the photocopying machine
and the telefax for processing, storage, transfer and presentation of information. Information
delivery has traditionally been dominated by paper documents such as drawings and specifications.
The growth of ICT has been very rapid in other areas of business (such as publications,
advertisement and manufacturing) to expand their business operations
globally. In the construction industry, the development of ICT has improved through emerging
technologies that can support any type of construction activities. Griffith et al, (2000) stated that
there are great opportunities if construction organizations can spend their money on technology
advancement in information and telecommunication. There are could also expand in ICT usage by
powerful computer and better connectivity provided into the construction industry (Sun and
Howard, 2004). New information technologies could also improve materials management are
developed and vary in the construction industry.
The implementation of ICT in materials management could facilitate the effective and efficient
control of materials on site. A common use of ICT in materials management is in the cost
estimating process by using software such as Microsoft Excel and Lotus 1-2-3 (Sun and Howard,
2004). The Internet is widely used for electronic mail (e-mail) and electronic commerce including
electronic invoicing, payments and receipt of materials process (Harris and McCaffer, 2001). In
order to improve productivity in ordering and quotation activities, contractors and suppliers could
change their activities from conventional to more sophisticated or innovative
tools and techniques. Accordingly, there is scope to make more use of computer-based systems to
improve materials management on construction sites (Faniran et al,1998).
Bar-coding
The bar-coding technologies are well established and widely employed for identifying and tracking
products across most industries and around the world than any of the other auto-ID technologies.
In the construction industry, the application of bar-coding has been introduced since 1987 for
materials management, plant and tool control (Chen et al, 2002). By the implementation of the
bar-coding technologies, the management of construction materials can be facilitated effectively.
The barcoding provides instantaneous and up-to-date information of quantities of materials
exchanged between the storage keeper and the group leaders. In particular, bar-coding
technologies can provide the following functions:
Automatically track real-time data of construction materials on the site;
Automatically record historical data of construction materials consumed in the project;
16
Automatically monitor materials consumption of working groups; and
Automatically transfer real-time data of materials to head office via Intranet and/or Internet
Anatomy of a Bar-coding (source: Wyld, 2006)
Radio Frequency Identification
Radio Frequency Identification (RFID) is also a category of auto-ID technology. According to
RFID Journal (2007a), RFID can be described as a system that transmits the identity of an object
or person wirelessly, using radio waves. RFID can also, be viewed as data carrier technology and
can facilitate data exchange between the carrier and a host information management system
(Furness, 2000). The RFID systems consist of two main components which are the tags (or
transponders) and the reader that includes an antenna. The RFID tags and readers work together
to provide the user with a non-contact solution to uniquely identify items and the locations.
3.0 RESEARCH METHOD
The target population for the study is made up of all the construction personnel directly or
indirectly involved with material management in construction which includes Project manager,
Building contractor, Quantity surveyor, Structural engineer, Site engineer, etc. And also
construction firm within D1K1, D2K2, D3K3 and D4K4 classifications.The study is undertaken
in Kwara State, Nigeria. The study covers an examination of the Material Management Practices
On Construction Site In Nigeria.
Data was obtained through the use of structured questionnaires. The respondents for the
questionnaire were the construction personnel and other general information from the construction
firm, the background of the respondent and the role or position in the firm. 45 copies of the
questionnaire were distributed and all was sent through Email.
Statistical Package for Social Sciences (SPSS) version 25 and other relevant software such as
Microsoft Excel was the main tool employed to analyze the data in order to help interpret results.
The justification for the choices of this programme is that these techniques make data analysis very
easy, facilitate word processing and also give accurate pictorial presentations. Frequencies and
percentages on tables and graphs were used. The reason for this is because the study adopts a
quantitative approach. The interview results were compared and contrasted. These techniques
helped the researcher to assess the respondent’s knowledge on the material management practices
on construction site in Nigeria.
17
4.0 RESULT AND DISCUSSION
The result indicates that out of 45 questionnaires that were distributed, all were successfully
completed and returned. Out of the 45 questionnaires returned, 10(22.22%) were answered by
Building contractor, 8(17.8%) were responded by the quantity surveyor, 13(28.9%) were
responded by the Site Supervisor, 13 (28.9%) were responded by the Project manager and 1(2.2%)
was responded by others (Architect).
From the above result that among the 45 questionnaires that were successfully returned, 4 (8.9%)
of the participants construction firm falls under K1D1, 10 (22.2%) of the participants construction
firm falls under K2D2, 18 (40%) of the participants construction firm falls under D3K3 and 13
(28.9%) of the participants construction firm falls under D4K4.
4.1 CAUSES OF POOR MATERIAL MANAGEMENT
The analysis of the factors causing poor material management in construction was conducted based
on the groups of causes discussed earlier on in the literature review. These groups of causes have
been ranked based on their important influence on poor material management causes. Relative
Importance Index (RII) approach was adopted in ranking the group factors.
Figure 4.2: Causes of poor material management
FACTORS
RII
Negligence of workers
1.11
Incorrect take-off from design and drawing document
1.1
Management of surplus material
1.02
Constant change in drawing
0.25
Lack of conformance to requirement
0.25
Not determining what and when material needed
0.25
Ineffective supervision
0.25
Incorrect quality delivered
0.24
Re-handling of material
0.24
Unidentified scope
0.22
The above table depicts the results of the survey analysis based on the Relative Importance Index.
This suggests the views of the respondents on the causes of poor material management in
construction. The foremost factor identified by the respondents is Negligence of workers, it is
18
essential to ensure that workers are discipline when dealing with materials. Incorrect take-off from
design and drawing document is ranked second. Anytime the design and drawing take-off is done
incorrectly its causes error in the activity accomplish, it is either the activity is over predetermined
activity or under, it is important to employ a competent quantity surveyor. Then the management
of surplus material is next on the ranking, it is important to prevent surplus of material to occur in
construction.
4.2 EFFECT OF POOR MATERIAL MANAGEMENT
In this section, the analysis of the effect of poor material management in construction was
conducted based on the groups of causes discussed earlier on in the literature review. These groups
of causes have been ranked based on their important influence on poor material management
causes. Relative Importance Index (RII) approach was also adopted in ranking the group factors.
FACTORS
RII
Rank
Wastage of material
0.45
1
Increase in cost of production
0.27
2
Quality issues
0.26
3
Delay of works
0.25
4
Inadequate storage area
0.24
5
Damage of materials
0.24
5
Over ordering
0.23
7
Theft
0.21
8
The questionnaire went on further and sought to find out the effects of poor material management
factors identified in the study. The top three effect pick based on respondents’ response are wastage
of material, Increase in the cost of production and quality issues. Above is the summary of the
findings on the effect of poor material management as perceived by the respondents.
19
4.3 MEASURES TO INPROVE POOR MATERIAL MANAGEMENT
This section elaborates more from the respondent on measures that can be in place in place to
improve material management.
In this, section 11 respondents responded whereby 3(27.27%) of respondents highlighted that
employing experienced and competent material manager is a factor of improving material
management, he is to engage an effective material management process and oversee the whole
process to a successful project. Respondents also highlighted that construction personnel should
be trained on site on how material is managed. 2(18.18%) of respondents highlighted that the use
of technology in monitoring and keeping record of the flow of materials is an effective factor of
improving material management, 4(36.36%) of respondents highlighted that frequent and effective
inspection should be conducted to improve poor material management and the remaining,
2(18.18%) of the respondent highlighted on the effect of poor material management which
includes cost overrun and over ordering.
5.0 CONCLUSION TO THE RESEARCH
The analyses of the results were carried out based on the chosen methodology for this study. Data
on the background of the respondents were considered in the initial stages of the discussion,
followed by the presentation of the major effect and causes of poor material management as
identified in existing literature, which the researcher had examined thoroughly. The responses on
the major effect and causes of poor material management were ranked in order of prominence from
the perspective of the consultants and contractors. Finally, the measures to improve material
management were also analyzed.
The paper demonstrated that with effective material management in construction, firms can save
a substantial amount of money and makes more profits out of it. Material management is very
important since materials form about 50% - 60% of the construction project. Therefore, proper
management of this material will go a long way to benefit both the client and the contractor and
the economy as a whole.
5.1 RECOMMENDATIONS
Research into effective material management is a vast area of study, which can be explored with
new approaches and perspectives. The primary aim to highlight the impact of material
management in construction practices. Consequently, objectives were set to achieve the specific
aim stated above; and in view of the findings of this research, the following recommendations are
therefore prescribed for effective material management in construction practices.
20
The use of information communication technology (ICT) vastly uses in all activities so
because it making work easier, faster and minimal error. It is recommended construction
industry should engage in the use of information communication technology (ICT) for easy
recording (ordering and arrival time and quantity, old and new material, time and quantity
of material requesting for activities, reviver name, etc.) the flow of materials.
Materials in construction are managed by personnel known as a material manager. He plans
and oversees material movement through the cycle of construction, identifies material
requirement from the construction cycle and more. It is recommended that firm should
employ a competent material manager by passing effective interviews.
Training and development are the process of improving or sharpening skills, attitude and
knowledge of workers by educating them. It is recommended that firm organize an
educational program to enlighten workers on how to handle construction materials.
Material management process is a very common term used in construction. It is the process
that organizes, plan and control the steps they use in managing tangible component. It is
recommended that construction firm engages in effective material management process.
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