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FACTORS
AFFECTING MATERIAL MANAGEMENT ON CONSTRUCTION SITE
CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND OF THE STUDY
Material
management can be defined as a 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. Baldva (1997) noted that Materials management is a process
for planning, executing and controlling field and office activities in
construction. While Eduardo (2002) viewed Materials management as 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.
According to
Khyomesh and Chetna, (2011) Building materials account for 60 to 70 percent of
direct cost of a project or a facility, the remaining 30 to 40 percent being
the labour cost. Therefore, efficient procurement and handling of material
represent a key role in the successful completion of the work. It is important
for the project manager to consider that there may be significant difference in
the date that the material was requested or date when the purchase order was
made, and the time at which the material will be delivered. These delays can
occur if the contractor needs a large quantity of material that the supplier is
not able to produce at that time or by any other factors beyond his control.
Chan (2002) noted that the project manager should always consider that
procurement of materials is a potential cause for delay. The management of
Construction
processes to reduce, reuse, recycle and effectively dispose of wastes has a
serious bearing on the final cost, quality, time and impact of the project on
the environment. (Dania, 2007)
The goal of
materials management is to ensure that construction materials are available at
their point of use when needed. The materials 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, (khyomesh and chetna 2011). The scope of materials waste is
vast, and this waste occurs in the industry irrespective of the size of the
building firm, instructions about handling, storage and stacking are not
provided with the goods or sent in advance to the site (Abdulazeez, 2000).
Materials
management in construction is also regarded as the efficient use of goods and
equipment before, during and upon completion of a building process. Petra
(2013) observed that Successful materials management requires the participation
of all persons involved in a construction process. For Materials may
deteriorate during storage or get stolen unless special care is taken. Delays
and extras expenses may be incurred if materials required for particular
activities are unavailable. Ensuring a timely flow of materials is an important
concern of material management (Shah, 1993).
Thus, Materials
management is an important element in project management. Materials represent a
major expense in construction, so minimizing procurement costs improves
opportunities for reducing the overall project costs. Poor materials management
can result in increased costs during construction. On the other hand, 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 on the excess inventory of materials (Wendy, 2006).
Johnston (2001)
opined that Material Management is divided between head office and site in
major construction companies. The selection, pricing, ordering, preparation of
schedules and payment accounts are dealt with at head office, learning the
receipt storage, protection and use of materials to management on site. Due to
the high cost of materials, if not properly managed during the period of
execution of contract can lead to abandonment of project.
In his
submission, lan (2008), opined that the rate at which materials are been squandered
on site due to poor management is getting too rampant in our society and if not
curbed, it can jeopardize the future of our construction industry. This is
particularly true in view of the fact that mismanagement of construction
resources (i.e materials, plants and labour) affects the continuity and profit
margin of such project and if not checked can lead to technical insolvency or
bankruptcy.
Therefore,
attention must be paid to how materials are been procured, stored and managed
in order to achieve perfect work, effective handling of materials, right usage
of materials and control of construction resources.
This, explain
the reason why Johnston (2001), noted that Materials management begins with
planning and estimation, these can be achieved through proper site
co-ordination measure of reducing wastes, the location and security of
materials on sites, procurement of quality materials as being specified and
effective administration of site together with quality control.
Lee and Donald
(2001), observed that the problem associated with the absence of proper
materials management on construction site could be wastage of resources making
contract cost more than budget sum, reduction of profit margin of the
contractor ineffectiveness of project handlings reduction of output e.t.c. and
if these are not properly taken care of it might be disastrous to the firm.
No construction
project can commence and proved effective without an adequate supply of raw
materials, apart from the careful planning of materials required by the
builder, it is to his advantage to foster a good relationship with the
suppliers, many of whom will have been selected due to their fulfillment of
orders to the standard required and meeting of delivery times over a number of
years (Pheng and Chuan, 2001).
Besides the
builder’s own suppliers, the architect may specify that a certain supplier must
be used and these are termed “nominated supplier” whatever the type of
suppliers to be used, the information passed to them and receive from them is
the same and in all but in the smallest firms this information and document
will pass through the buyer. (Yang, et al., 2003).The buyer must also ensure
that the architect receives any samples from the suppliers in the very early
stage of contract procedure to satisfy him of the relative merits of the
material. It may, for example, not be possible to obtain the specified material
in time in conjunction with the building programme, but by obtaining samples of
similar products the architect may decide on a new form of construction or
design to prevent hold ups.
In most cases, a
buyer will send enquiries to two or three suppliers or in some cases, direct to
manufacturers for such items as sand, gravel, brick, block, cement, e.t.c,
regarding prices, delivery dates and such, for use at the estimating stage of
the project. This will enable the estimator to use the figures obtained in the
preparation of the tender figure.
To enable quick
checks to be made on delivery or non-delivery of materials a card index system
is generally adopted, this enables the purchasing or procurement department to
keep a constant eye on the supplies. These cards contain all necessary
information and are best filed in date offer for case of reference. Even when
bulk delivers have been placed according to programme, by taking the extra time
and trouble to write out a card for each delivery the chance of losing sight of
the delivery date is very much reduced, as regular checks will be on the file.
As materials are received, the information will be recorded on the card.
Construction
projects can be accomplished by utilizing management processes and these
processes include planning, organizing, executing, monitoring, and controlling
(Ahuja et al 1994 in Al Haddad 2006). During any construction project the three
inter-related factors of time, cost, and quality need to be controlled and
managed. Successful completion of projects requires all resources to be
effectively managed. Prabu and Baker, (2006) regard Materials management as a
means to achieve better productivity, which should be translated into cost
reduction. For, according to Ademeso and Windapo (2008), poor planning and
control of materials, lack of materials when needed, poor identification of
materials, re-handling and inadequate storage cause losses in labor
productivity and overall delays that can indirectly increase total project
costs. Effective management of materials can reduce these costs and contribute
significantly to the success of the project.
Materials
management functions include planning and taking off materials, vendor
evaluation and selection, purchasing, expenditure, shipping, material
receiving, warehousing and inventory, and material distribution. (Narimah
2011), Almost 60% of the total working capital of any industrial organization
consists of materials costs (Dey, 2001). Materials management can only produce
what it should with the right quantities of the right material at the right
time (Arnold and
Chapman 2004).
Thus, any improper handling and managing of materials will cause a huge effect
on the total project cost, time and quality. There is a need to explore on the
area of materials management, the issues relating to materials management
problems
1.2 STATEMENT OF RESEARCH PROBLEM
The present
state of the building construction industry in Nigeria reflects various
problems ranging from delays in project execution/delivery, substandard work,
disputes, to cost and time overrun as a result of material shortage and
wastages on sites, theft and displacement of materials on sites, as well as
poor accounting and security system of the concerned sites/firms (Adafin,
2011). According to Dahiru (2010), lack of materials not only causes delays,
but a consequent decrease in productivity and resulting to cost overruns. This
is no doubt lack of effective material management is one of the major cause of
this problem. Failure of the project manager to make available materials need
could lead to delay. Non-compliance strictly with project bill of quantities,
schedule of materials, specifications and construction programme in material
stock control practice is another contributing factor which tends gradually to
decrease profitability of a project also often leads to extension of time
respectively, and hence no proper material stock control practice (Inyang Udoh,
2002). Besides that, Dey (2001) noted that the rate at which materials are being
wasted due to improper management is becoming unbearable to the contractors due
to its effect on their profit margin and proper usage of material to achieve
quality job been done through various techniques.
1.3 JUSTIFICATION OF THE STUDY
A major part of
professional builder’s responsibility in building production management entails
the selection, purchase, testing, storing and use of construction materials. As
noted earlier, materials are a major expense in construction, thus the ability
of contractor to manage his team and the flow of supplies are absolutely
necessary for the successful project delivery and profit maximization. This
requires the architects and engineers to specify exact supplies during
preconstruction to avoid overstock. The construction management team is
required to buy the correct amount of material at the right time to avoid cash
flow, storage and deterioration problems. Subcontractors need to keep track of
inventories, while suppliers are required to deliver as ordered and on time.
The post-construction team has to evaluate remaining materials for reuse and
recycling purposes.
However, this is
not easy; First, if materials are purchased early, capital may be tied up and
interest charges incurred on the excess inventory of materials. Even worse,
materials may deteriorate during storage or be stolen unless special care is
taken. For example, electrical equipment often must be stored in waterproof
locations. Second, delays and extra expenses may be incurred if materials
required for particular activities are not available. Accordingly, ensuring a
timely flow of material is an important concern of project managers. (Harris
and MacCaffer, 2001)
Thus, to
determine the misery behind proper materials management in construction sites
in Nigeria, so as to guide against project delay and abandonment, also to
create a standard method based on size of construction site to control cost of
contract and materials wastage. It is not only desirable but necessary to
undertake careful study of material management. Additionally, since Proper
material management will benefit the firm in terms of increase profit margin,
quick execution and reduce cost of the project. This brings the need for an
evaluation of materials management in Nigeria construction industry.
1.4 RESEARCH
QUESTIONS
The following
are the research questions as related to this study.
What are the
principle and procedures of good materials management?
What is the
current practice of materials management?
What are the
factors militating against materials management on construction sites?
What are the
measures to be put in place to ensure effective materials management on
construction sites?
1.5 AIM AND OBJECTIVES
1.5.1 AIM
The aim of the
research is to assess professional’s perception on material management
practices on construction sites in selected states in Nigeria with a view to
proffering solutions to the identified problems.
1.5.2 OBJECTIVES
The specific
objectives of this research are;
To establish theoretical
frame work on construction materials management.
To study the
practices of construction material management by construction firms in Nigeria
3. To investigate the factors militating against effective materials management
on construction site in Nigeria
To assess
professionals perception on the measures to be put in place to ensure effective
materials management in the construction industry in Nigeria.
1.6 RESEARCH
METHODOLOGY
In order to
achieve the objectives of this research, the work was pursued through the
following;
1.6.1 LITERATURE
REVIEW
Relevant
literatures were reviewed from various textbooks, past projects, journal,
government gazette, and internet materials etc. so as to articulate existing
knowledge on how effective construction material management is carried out.
1.6.2 FIELD
SURVEY
Primary data
were collected using structured questionnaire as the instrument of the study to
those that are responsible for materials management in construction firms.
Besides that, Personal interview of professionals were used to generate data in
relation to the stated objectives. This was carried out by visiting the
building construction site under construction. The head offices of these
construction firms across Lagos, Abuja and Kaduna were also visited.
1.6.3 ANALYSIS
OF RESULT
Data analyses
were undertaken using descriptive statistics. Frequency, means, percentages and
standard deviation were used to express the statistical result. This was
achieved using Microsoft excel and statistical package for the social science
(SPSS) soft wares.
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