ABSTRACT
This research study considers the management of
materials on building construction sites. In the study, method of material
procurement practice on construction site, factors affecting material
management on building construction site as well as causes wastages on construction sites were
determined. The study further Suggest measures for effective material
management in construction site. Data for the study was obtained through a
structured questionnaire administered to respondents in different construction
sites and head offices of the construction companies in charge of the sites in
FCT Abuja. Findings reveal that, 25% of respondents organization procure
materials for sites by head office provisions without site requisition, 66.67%
of respondents organization procure materials for sites by head office
provisions with site requisition and 8.33% of respondents organization procure
materials for sites through direct purchase by site manager or engineer. The
respondent identified the following as the main causes of material wastage on
building construction sites: Damage by mishandling, inadequate storage
facilities on site, delay in material supply, inadequate supervision, poor site
security, Weather and other natural occurrence, Rework, alteration of designs,
over ordering of construction materials, theft and Vandalism. Also pictorial
presentations are shown in chapter four based on the findings in the work,
appropriate recommendations were made for effective material management on
building construction sites.
CHAPTER ONE
1.0 INTRODUCTION1.1 BACKGROUND TO THE STUDY
Cost wise, all construction works depend on two
factors, namely, cost of materials and cost of labour and According to Khyomesh
(2011), 30 to 70 percent of project cost is consumed by material with about 30
to 40 percent of labour. But labour cost
is nearly the same for good construction work as well as bad construction;
therefore attention should mainly be directed to the
cost of materials and management of materials. Waste of construction materials
on site refers to the difference between materials delivered to construction
site and those that are actually used for the construction work (Onabule, 1991)
hence from Onabule’s specification it can be affirmed that construction waste
are those materials supplied to site for construction and are not being
used in the actual construction constituents. This
supports Seeley (1997) views that not all materials delivered to construction
sites are used for the purpose for which they are ordered. Furthermore,
Formoso, Isatto, and Hirota (1999), defined waste as “any losses produced by
activities that generate direct or indirect cost but do not add any value to
the product”. Rational management of material to avoid waste is an important
consideration for reducing construction cost and construction duration.
Therefore, there is a need for efficient materials management in order to
control productivity and cost in construction projects. Hence the overall
objectives of any on-site management activity should be directed to provide
full-guard on construction materials and to perform efficient usage of such
materials (Mohammed and Anumba 2006).
Material management is the process that coordinates
planning assessing the requirement sourcing, purchasing, transporting, storing
and controlling of materials, minimizing the wastage and optimizing the
profitability by reducing cost of material. The goal of material management is
to ensure that materials are available at their point of use when needed, the
material management system attempts to ensure that the right quality and
quantity of materials are appropriately selected, purchased, delivered, and
handled on site in a timely manner and at a reasonable cost.
Most often contractors carry out project with little
or no profit which is so due to procurement systems in which the lowest bidder
is often awarded the contract. In trying to cope with lowest bid contract and
at the same time avoid construction cost overruns contractors involves in the
use of substandard elements, shoddy jobs through use of cheap inexperience
labour which most often results in building collapse, abandoned projects, and
liquidation of contractors. But researchers have continuously identified that
efficient management of materials can result in substantial savings in project
costs, (khyomesh, 2011; AbdulRahman and Alidrisyi, 1994). Also said that with
good construction material management construction, cost overrun can be avoided
profits can be made even with the lowest bid and the various bad practices by
contractors can be avoided. It is against this background that this study is
initiated for effective material management on construction sites.
The cost of building materials has been identified to constitute
the major concern in the course of construction. The cost of materials has been
put or placed at an average of 60% of the contract sum. Bearing this in mind
and to optimize the cost of construction, it is expedient that a good material flow
must be maintained on building site to avoid excessive wastage and save idle
time. One of the ways by which this can be done is through materials
storage.
Materials storage can simply be defined as merely keeping
materials in a safe place until it is required or requested for use in a manufacturing
process. Manufacturing process also includes construction process according to
Mezue (1994). To obtain good material storage, a system whereby materials are
systematically organized by administratively keeping them safely and providing
for the best means of flowing in and out of the stores must be adopted.
A good storage system should
make available a balanced flow of raw materials, finish materials, component
tools, and equipments necessary for production. It should also provide
maintenance materials and spare parts as may be required and keep scrap and
other materials as the need may arise.
The stores personnel must be effective in their functions in order
to maintain a good storage system. Such functions includes supplying of
materials and plants for effective use in project, inspection of materials i.e.
to check that they are accurate in quality and quantity, receiving materials
for safe custody and protection, identification of materials using code numbers
and store catalogue, issuing and dispatching of materials, recording and
controlling materials and accounting for and taking stock.
In construction industry, the
materials that may be available for storage, ranges from raw materials e.g.
steel, aluminum, zinc, timber, cement, fine aggregate, coarse aggregates e.t.c,
precast materials and other materials still undergoing manufacturing process,
to package materials e.g. bituminous materials, asphalt paint, coal tar,
preservatives e.t.c .
A higher percentage of
construction work is concentrated in Lagos and Abuja compare to other part of
the country, this is the reason for choosing construction industry in Abuja;
FCT as an area for case study. It is seen there that building contractors
engages in different types of construction work, ranging from small firms to big firms in the
construction industry which will of course will allow for proper research and
comparism of different firms as regards to their challenges faced with regards
to material management, storage system and the various ways of reducing to a beeriest
minimum wastage of materials on building site in order to breakdown the
construction cost as well as providing profit to the contractor.
Management is described as
the art of directing industrial activities i.e. the ability to accomplish a
plan when others do the work. It is the art of getting work done efficiently,
effectively, solving and removing all hurdles encountered in between. It
therefore requires ablest, daring, energetic person, who can take correct
decision at the right time. It also needs qualities of leadership of self ideas
and self responsibilities. One who throws responsibilities on others can never
be a good manager on long term basis; though he may become successful for a
short duration.
Material management involves the planning, organizing, co coordinating
and controlling material resources towards the achievement of good objectives.
Management on its own is defined by Culvert (1986) as a social exercise, partly
art and partly science involving the organization of a numbers of measures put
in place in order to achieve a profitable ends.
Material management is a process for
planning, executing and controlling the field and office activities in
construction. The goal of material management is to ensure that construction
materials are available at their point of use when needed. Material 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, obtained at a reasonable cost and most
importantly, available at the point of use when required.
Poor materials management can result in increased costs during
construction. Efficient management of materials can result in substantial
savings in project costs. If materials are purchased too early, capital may be
held up and interest charges incurred for the excess inventory of materials.
Materials may deteriorate during storage or get stolen unless special care is
taken. Delays and extra expenses may be incurred if materials required for
particular activities are unavailable.
Effective construction materials management process is a key to
success of a construction project. Costs for materials handling, may range from
30-80% of total construction costs. Therefore, there is a need for efficient
materials management in order to control, productivity and cost in construction
projects. The review has been carried out to explore the local practice in the
construction materials management and develop a construction materials
management system to facilitate the management of construction materials mainly
in the building construction.
Many construction industries
in Nigeria pay less attention to materials management on their building sites
due to lack of proper management skills. Currently there are vigorous debates
amongst various interest groups about the chronic skills shortages in the
country and the inability of the education and training system to meet the
needs of the economy. Despite these debates and ongoing policy reforms, the
nature of the skills shortage in construction remains poorly defined (CDE,
2007).
In the course of this
research work, many building sites faces wastage and lack of management of
materials, mostly affected are those upcoming firms. This is because the
management of most of these companies do not put in place the necessary and
qualified personnel. Sometimes, some of these companies employ those who do not
have academic qualification and training. Compare to other big and developed
construction companies such as; Julius Berger, Dantata and sawoe that have many
qualified personnel as regards their areas of learning and training and the
small and developing building industries that have few professionals and many
quacks.
Control of building
materials on sites varies with company’s management policy as regards to
materials on sites. Building materials usually constitute a major portion of
the total cost in a building construction project which makes control of this resource
very important. The cost of materials to an overall cost of construction is
averagely put at sixty percent (Navon and Berkovich 2005).
1.3 AIM AND OBJECTIVES OF THE STUDY
1.3.1 AIM
The aim of this project is to examine methods of managing
construction materials effectively on building sites.
In order to achieve the stated aim, the study is set out with the
following objectives.
1.
To identify the challenges
of materials control on building sites.
2.
To determine method of
material procurement practices on construction sites.
3.
To determine the causes of
material wastage on building construction sites.
4.
To identify the factors
affecting effective material management and suggest measures for effective
material management on building construction sites.
From the proposed objectives
of the study, the study answered the following research questions:
1. What are the major methods of material
procurement practices on building construction site?
2. What are the effects
of good and proper management of purchased material, how are profits eroded due
to material wastage and what are the means of controlling such loses on sites?
3. What are the measures put in place to
ensure materials are
properly
managed on building construction sites to avoid/reduce wastage and pilfering?
The
followings are the formulated hypotheses which are to be tested in this project
research work.
i.
Improving materials management
and materials storage in
the
building industry; both on site and during production will have no effect on
wastage.
ii.
Labour is not one of the
causes of wastage both on site and
during
production.
iii.
Site manager supervision has
no effect on wastage in the
building
site.
iv.
Labour proper supervision
has no effect on wastage in the
building
industry.
v.
Other company’s personnel (e.g.
architects, engineers,
builders,
project managers, stores keepers. e.t.c) have no business with materials
management on site.
1.6 SCOPE AND DELIMITATION
1.6.1 SCOPE
This research will focus on
major challenges faced as regards to materials management on building site in
Abuja FCT. It will examine causes of material wastage and how it can be
minimized. It will also throw light on how construction personnel can manage
the materials available on site. Highlight will also be given as regards to the
performances of labour on site as in the areas of materials management. Target
respondents for the study are principal actors on the building sites; namely:
The Architects, Site engineers, Builders, Quantity surveyors and other
construction professionals available on the construction sites.
The study adopted descriptive survey research methods which
employed the use of questionnaire to collect data from the respondents. One of
the limitations associated with the use of questionnaire is that the
respondents may not provide all the needed information due to their busy
schedule. This weakness might have
affected the results of the study.
Another significant limitation to this study was the aspect of
transportation and also meeting the respondents as at the time given.
Construction is labour and
capital intensive due to this fact; the activities on construction sites has an
enormous influence on the quality of materials, material management, the
quality of building project and the performance of each construction worker on
building sites.
The primary users of
building and construction materials are the Builders and the Civil Engineering
contractors. They are naturally concerned about the regular availability of
materials and affordable cost of materials in the open market. Hence; the
subject matter that is challenges facing material management on building sites
will provide a better image for the industry as a whole and reduce the
financial loss. This research will also help professionals in construction
industry to determine the best practices to be employed in outsourcing for
labour for better project quality performance.
Material management is the
concept that integrates all the activities of planning, scheduling and
controlling right from the design stage till the final production including
delivery to the consumer or client. It undertakes the function of planning,
organizing, integrating and measuring the volume and flow of material. Proper
and scientific management of materials is required not only to optimize the
period of construction, but also to economies the cost of construction.
It is further important to note
that:-
1.
materials are going to
represent a larger and larger proportion of the total cost of what we make and
2.
Problem of materials
procurement and control are going to become more difficult and complicated in
the further time.
To some extend; a higher
percentage of construction work is concentrated in Abuja compared to other
developing state within the country. This is the reuason for choosing
construction industry in Abuja as an area for case study. This will help to
compare small and large construction industries within Abuja and to know the
various challenges facing material management on their building and
construction sites.
Management:
Management is defined as the organizational process that includes
strategic planning, setting, objectives, controlling of resources, developing
the human and financial assets needed to achieve the objectives and measuring results.
Material Management:
Material management is defined as a management system that is
required in planning, organizing, economizing and controlling the quality and
quantity of the materials, punctual equipments, placement, good price and the
right quantity as required. It is a management system that integrates purchasing,
shipping and material control from supplier to sites
Material requirement
planning (MRP) system
Material requirement planning system (MRP system) is a technique
for determining when to order dependent demand items and have to reschedule
orders to adjust changing requirements.
Based on the above definitions, in general; material management is
therefore is the process of planning, executing and controlling the right
sources of materials with the exact quality, at the right time and place
suitable for minimum cost. Capability to co-ordinate and integrate purchasing,
shipping and controlling of materials from the suppliers are required for
material cost control. The important phases that hold the key to a successful
material management are as follows:-
a.
Materials planning.
b.
Materials purchasing.
c.
Materials handling.
d.
Materials logistics.
e.
Materials storage.
f.
Materials stock and waste
control.
Each of the phases
or processes was stated out of its characteristics as important roles for
effective material management.
a. Materials planning:
Materials’ planning includes measuring, ordering and scheduling.
It is emphasized that planning is a very important process in order to increase
the productivity, profitability and hastening the time to complete the
construction procedures. The production of the building project will be hanged
or delayed if the material planning processes are not implemented properly.
b. materials
purchasing:
This phase includes market research and buying of materials
required for the building project. By making sure that all materials needed are
listed and estimated for. Making available of all the building materials on
site during construction can help to hastened up production process.
The purchasing process is dependent on the types of material
ordered. In general, materials purchased fall into two categories:
miscellaneous material or commodities, and major materials. Although the
purchasing process may involve negotiating specifications and prices directly
with a manufacturer, materials contractors need to purchase materials from a
supplier-distributor. The selection of a reputable supplier is critical for
ensuring that materials are delivered in the quantities needed and at the time
and date specified.
Some construction companies have independent agents, depending on
the type of material, for supplier selection and procurement. Suppliers are
usually selected based on lowest price; however, contractors may consider
suppliers with higher prices that will provide better service or have a record
to supply the right material in the quantities needed at the times specified.
In some situations incomplete proposals from suppliers may delay the selection
process.
For miscellaneous materials, most contractors select their
suppliers-distributors based on a bidding process, unless there are blanket
purchase orders or yearly contracts for certain types of materials. In this
case, the contractor buys those materials from that particular supplier. This
blanket or yearly contract ensures that the price for those materials will be
fixed for a predetermined period, usually one year. The way in which the
contractor gets a blanket or yearly contract is through bidding or a negotiated
process with suppliers. The contractor requests price for certain commodities
by specifying the expected volume to be used in a given year based on history
of use for that particular product. Due to high competition in their market
areas, some contractors don’t use blanket or yearly contracts because they are
able to get competitive prices by requesting bids from their suppliers at any
time.
For major materials, the contractor usually negotiates prices with
the manufacturer directly, if the manufacturer is specified in the contract
documents. However, the contractor has to buy the material through the
supplier-distributor after a markup has been applied. If the manufacturer is
not specified in the contract documents, the contractor requests bids from different
manufacturers will comes a case of price differences. Contrary to miscellaneous
materials, major materials need to be fabricated and require lead times. If the
amount requested is less than the amount estimated and there are shortages, the
contractor will have to wait until the material is fabricated, which can cause
disruptions and delays.
In the building construction industry, material ordering and
delivery are critical to the successful execution and completion of the
project. The person in charge of procuring materials or the purchasing
department, in the case of a large company, need to ensure that the correct
quantities are ordered. They also need to verify the release dates at which the
material is needed and clearly specify those deliveries to dates to the
supplier. Other challenges that face the building construction sites includes
bid procurement issues, where and when to purchase materials and material
storage and distribution at the job site. To avoid these challenges, organized
coordination and communication between the parties involved are essential.
Bid procurement
Changes in a project’s scope are inevitable; therefore, exceeding
the initial planned budget is not uncommon. For instance, the electrical
contractor is usually one of the last trades hired in a project and in many
times is asked by the general contractor (GC), prior to finalizing the
contract, to absorb some of the cost increases associated with such changes.
This situation usually arises because the GC promises unrealistic 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
of better quality and higher value (e.g. change of scope) while maintaining
overall project budget. In many situations, the GC will agree to such changes
without demanding extra costs from the owner. The electrical contractor, being
one of the last trades involved in the project, may be asked to squeeze his bid
to accommodate this situation. The problem could be minimized if the electrical
contractor is involved in the project’s planning and design. The electrical
contractor can provide expertise with materials and means and methods for installation,
as well as give more realistic cost estimates to the owner. The electrical
contractor could give advice about the difficulty, cost and time required for
installation to better assess the effect that the changes in scope could have
on cost and schedule.
Material procurement
Once a supplier is selected, the contractor has to systematically
follow up on the status of the ordered materials to ensure it arrives at the
building or construction site in the quality, quantities and time or dates
specified. This process starts with the generation of a material requisition
schedule (e.g. release forms) specifying material types, quantities needed and
dates when the material should be delivered. In large construction projects,
the schedule is usually prepared by the site staff then sent to the purchasing
department to request the materials from the suppliers-distributors under
contract. In smaller companies or smaller projects, materials may be procured
directly by the field personnel. To avoid surplus, many contractors request
only 80 percent of planned material. Additional quantities are purchased when
the project is near completion and a better estimate is realized.
Materials are generally requested for delivery to the building
site. In some instances this may not be feasible due to storage or access limitations.
In this case, the materials are delivered to other locations such as the
contractor’s warehouse or another subcontractor storage area.
Materials may be delivered to a warehouse when critical specialty
items are ordered early and won’t be used immediately, when the building site
storage area is unavailable or if the material will be used for prefabrication.
Warehousing materials prior to moving them to the building site increases
indirect costs due to rehandling.
C. material handling:
Material handling is the
movement, protection, storage and control of materials and products throughout
manufacturing, warehousing, distribution, consumption and disposal. Material
handling involves short-distance movement of materials within a confines area,
a building or between a site and a transportation vehicle.
It utilizes a wide range of
manual, semi-automated, and automated equipment and includes consideration of
the protection, storage, and control of materials throughout their distribution
on building site. The operators use material handling equipment to various
materials in a variety of industrial settings and moving construction or
building materials around building sites.
Majorly there are two types
of material handling on building sites. They are:-
a-
Manual handling
b-
Automated handling
Manual handling refers to the use of a
worker’s hands to move individual containers of materials or roll of materials
by lifting, lowering, filling, emptying or carrying them. This can expose
workers to physical conditions that can lead to injuries, so for that reason;
safety and health measures are to be put in place. Provisions of safety tools
such as; helmet, safety boots, hand gloves e.t.c. and for health; first aid
should be located within the building sites.
Automated handling
refers to the use of equipments, that is whenever there is technically and
economically feasible materials to be handled, equipments can be used to reduce
and sometimes replace the need to manual handling of materials.
D. material logistics:
Material logistics is generally the detailed organization and
implementation of building materials. Material logistics is the management of
the flow of materials between the point of purchase and the building site. Logistics
management is the part of a supply chain management that plans, implements and
controls the efficient and effective forwarding and reverse flow of materials
and storage of materials from the supply stage and in the site.
E. material
storage:
According to AWE (2007) defines material storage as the process of
keeping materials in a safe place until it is required or requested for use in
a construction process. Storage under normal or proper conditions includes
stacking, the materials in frames, retaining them in bins and boxes, protecting
them from impact damage and enclosing them from adverse weather conditions.
F. material stock and
waste control:
Stock control can be categorized as a technique planned to be the
cover and to ensure all materials are available on site when needed. Stock control
includes raw materials, processed materials, assembled components, maintenance
materials and finished products.
It is very important as the
construction materials were delivered as required and as requested and with the
progression by the proper management of stock control. At the same time,
construction activities will generate big amount of the waste and it will cause
difficulties to the industry. However; with the proper planning of material
management which is efficient and effective will help to reduce the waste of
materials during construction project and within the site. This will in turn
increase the profitability of the company.
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