The right material strategy may increase labour productivity by 4% to 12%, which is why efficient material management is vital on any worksite, regardless of size or location. If supplies are improperly handled, it can have a cascading impact, delaying the following processes and increasing costs.
Material ordering and delivery prove to be crucial in the construction industry for the proper execution and completion of any project. In the case of a prominent organization, the person in charge of acquiring supplies or the purchasing department must guarantee that the necessary items in the exact quantities are ordered. They must also confirm the release dates for the material and explicitly state those dates as well as the place of delivery to the provider.
We’ve highlighted some common material management issues contractors may encounter at each stage. From obtaining a bid to handling supplies after they’ve been delivered, an accredited construction contractor with material management expertise can help finish the construction timely.
Bid Procurement
It is standard for the scope of a project to alter as it progresses, which can have an impact on the bidding process. An excellent example is if the property owner decides to modify the materials to something of higher quality without changing the overall budget of the project. Typically, the general contractor will agree to this and then collaborate with their on-site contractors, such as the electrical contractors, to establish what modifications may be made and how to make them.
For example, suppose the property owner wishes to use higher-quality materials but does not wish to increase the entire expenditure. The general contractor or project manager must collaborate with on-site tradespeople (such as mechanical or electrical contractors) to establish what, how, and where concessions can and cannot be made.
This problem can be prevented by simply keeping all of the contractors in communication and involved throughout the project. Obtaining all of the contractors, including the electrical contractor, from the start will help avoid this problem. The contractors can all present the owner with more realistic costs and timetables, and they will be able to assist the general contractor in determining what modifications to the project can genuinely be done to achieve the adjustments the owner desires.
Purchasing Materials
The majority of job sites will handle two sorts of supplies:
- Fittings, fasteners, ties, wires, cables, straps, and conduits are miscellaneous goods.
- Fixtures, alarm systems, cement, glass, and switchgear are job site-specific (and occasionally custom-designed) materials.
Although some builders will prefer to negotiate specifications and prices directly with manufacturers, others must acquire components from a supplier-distributor. It is vital to find a trustworthy supplier to ensure that products are supplied in the amounts required and on the dates stated.
Depending on the type of material, some organizations may use independent agents to select and buy suppliers. Suppliers are often chosen based on the lowest price. However, contractors may consider higher-priced suppliers that give superior services or have a track record of supplying the proper material in the quantities required stated. In some cases, incomplete supplier offers may cause delays in the selection process.
Getting The Correct Bill Of Materials Listings
Errors in the billing sheet might have serious consequences. Inaccurate inventory, for example, might cause production downtime, adding time to the total product development cycle.
Missing components on a bill of materials will have the same effect, and product pricing inaccuracies will reduce your overall investment return.
If you’re having trouble preserving an accurate bill of materials, you might want to consider hiring some help. Construction firms may manage their projects more efficiently thanks to modern enterprise resource planning (ERP) software.
We must not overlook material requirements planning (MRP), a critical component of ERP. It is pertinent to hire a reliable construction contractor for efficient material management services to deflect this problem completely.
Also read: Can Efficient Material Management Save Costs?
In conclusion, a bill of materials is essential if you wish to avoid mistakes in material sourcing and procurement. It is preferable to use modern planning software for this purpose as it will make your life easier.
Handling And Storage On The Job Site
The majority of material-management concerns that construction contractors face occur on the project site, including material tracking, storage issues, material distribution, and rehandling.
One of the most intricate difficulties for an electrical contractor is keeping track of products. Undeliverable items are identified as requested or delayed by tracking. Tracking is also necessary when determining what resources are accessible to reduce theft or loss, identifying where it is held on-site, and controlling inventory expenses. Suppliers may supply materials that must be returned in some cases.
In this situation, the contractor incurs no direct expenses. Nevertheless, indirect costs may be paid due to potential delays in completing affected activities. In other cases, warehouse staff may misplace or shift material, and it may not be correctly identified before storage. Furthermore, material may be lost, damaged, or stolen after it has been issued, posing a significant difficulty for the contractor. A computerized system, such as bar codes, could increase tracking and inventory control while reducing loss and material misplacement.
About Taurus
Taurus is a Fort Saskatchewan-based authorized construction contractor. We have a team of builders who are highly skilled and knowledgeable. Taurus Projects takes great pride in its team of qualified construction professionals, and oversees all kinds of construction projects, from material management to site services. Learn more about Taurus.
For professional construction management services, contact us now.