In any construction organisation, material required for construction work occupies an important position because it constitutes 40 to 60 percent of the total cost of the construction work. The success of a construction project largely depends upon material management. It is necessary to have a suitable material management planning before and during the project work. It means that there must be an efficient use of the right material from its procurement to final conversion into construction material. The following are some of the important features of materials management in the construction industry :
- The material must be procured from a reliable place.
- It must be procured at the right time.
- The procurement of construction material must be in right quantity.
- The procured material must be at specified quality.
- It must also be procured at a reasonable rate.
- There should be procured at a reasonable rate.
- There should be proper inventory control and storage of the material.
- Efficiently managed Material Department contributes to increase the profit earning capacity of the construction organisation.
- There should be perfect and close co-ordination between the various construction sub-wings.
- Wastage of material should be avoided by proper inventory control and storage.
- New techniques of Material Management result in the saving of time and improvement in quality of construction. The concept of Material Management is of recent origin. It is a technique that helps the construction organisation in reducing the material cost which constitutes a major portion of the total cost of any project. Material Management must relieve the organisation in locking up of huge capital. Efficient management improves the capital turnover ratio. It covers all the aspects of material costs, material supply and its efficient utilisation. The Management must watch market conditions and price fluctuations. Materials Management must safeguard the interest of the organisation while performing these functions.
