📦 Material Management
Materials typically account for 40-50% of project costs. Managing them well directly impacts your profitability and schedule.
Key Principle
The right material, in the right place, at the right time. Material delays and losses kill projects.
Procurement Process
Planning
Before ordering:
- Review drawings and specifications
- Verify quantities from takeoff
- Check for owner-furnished materials
- Identify long-lead items
- Confirm delivery schedule needs
Vendor Selection
Consider:
- Price (get 3 quotes minimum)
- Lead time
- Delivery reliability
- Return policy
- Credit terms
- Technical support
Build relationships with:
- Primary suppliers (volume discounts)
- Backup suppliers (emergency needs)
- Specialty suppliers (unique items)
Purchase Orders
Include:
- Detailed specifications
- Quantities and units
- Pricing (unit and total)
- Delivery date and location
- Contact for receiving
- Project/cost code
- Special instructions
Track:
- PO number
- Order date
- Expected delivery
- Actual delivery
- Quantity received
- Back-ordered items
Long-Lead Items
Common Long-Lead Items
| Item | Typical Lead Time |
|---|---|
| Switchgear | 12-20 weeks |
| Elevators | 16-24 weeks |
| Generators | 12-16 weeks |
| Custom windows | 8-12 weeks |
| Structural steel | 8-12 weeks |
| HVAC equipment | 6-12 weeks |
| Custom millwork | 6-10 weeks |
Managing Long-Lead Items
- Identify early - Review specs during bidding
- Submit quickly - Don't wait for notice to proceed
- Track submittals - Push for quick approval
- Order immediately - Upon approval
- Expedite regularly - Check status weekly
- Plan for delays - Build float into schedule
Receiving Materials
Receiving Process
When materials arrive:
- Verify delivery matches PO
- Count quantities
- Inspect for damage
- Note any discrepancies on delivery ticket
- Sign with exceptions noted
- Store properly
- Update inventory
- Distribute to work areas as needed
Delivery Ticket Review
Check:
- Material description matches PO
- Quantities are correct
- No visible damage
- Certifications/test reports (if required)
- Material meets specifications
If problems:
- Note on delivery ticket
- Take photos
- Notify supplier immediately
- Document in writing
- File claim if needed
Documentation
Maintain records of:
- Delivery tickets (signed)
- Packing slips
- Mill certifications
- Test reports
- Photos of received materials
- Damage reports
Storage and Handling
General Storage Requirements
Protect from:
- Weather (cover or shelter)
- Theft (lock up valuable items)
- Damage (proper stacking/handling)
- Contamination (keep clean)
- Temperature extremes (climate-sensitive items)
Storage by Material Type
Lumber:
- Off the ground (on stickers)
- Covered to prevent warping
- Separated by size/grade
Pipe and conduit:
- Stored on racks
- Ends capped to prevent debris
- Sorted by size
Electrical equipment:
- Climate-controlled if sensitive
- Secure storage (high value)
- Original packaging until install
Finish materials:
- Interior storage
- Climate-controlled
- Away from construction dust
Material Security
Prevent theft:
- Locked gang boxes for tools
- Secured laydown area
- Inventory high-value items
- Deliver as needed (not early)
- Security cameras if persistent problem
Inventory Management
Tracking Methods
Simple (small jobs):
- Spreadsheet log
- Visual inspection
- Count what's left
Moderate (medium jobs):
- Inventory management software
- Barcode scanning
- Weekly counts
Complex (large jobs):
- Dedicated material coordinator
- Real-time inventory system
- Just-in-time delivery
What to Track
At minimum:
- Material description
- Quantity on hand
- Location on site
- Date received
- PO reference
- Cost code
Preventing Loss
Track waste:
- Excess cuts
- Damage on site
- Theft
- Returns to supplier
Reduce waste:
- Accurate takeoffs
- Proper storage
- Train crews on handling
- Order cut-to-length when possible
- Return excess materials
Just-in-Time Delivery
Benefits
- Less storage needed
- Reduced damage and theft
- Better cash flow
- Less clutter on site
Challenges
- Requires reliable suppliers
- Needs accurate scheduling
- Less flexibility
- Weather dependency
When to Use
- Limited site storage
- Urban sites
- High-value materials
- Finish materials
- Theft-prone areas
Making It Work
- Confirm deliveries 48 hours ahead
- Have backup suppliers identified
- Build relationships with suppliers
- Communicate schedule changes quickly
Material Cost Control
Accurate Takeoffs
Reduce over-ordering by:
- Double-checking quantities
- Accounting for waste factors
- Using consistent units
- Breaking down by area/phase
Standard waste factors:
| Material | Waste Factor |
|---|---|
| Framing lumber | 5-10% |
| Sheetrock | 10% |
| Tile | 10-15% |
| Paint | 10% |
| Wire/conduit | 5-10% |
| Pipe | 5-10% |
Controlling Costs
Strategies:
- Get competitive quotes
- Buy in bulk when possible
- Negotiate payment terms
- Use supplier price locks
- Substitute equivalent materials
- Return unused materials
Watch for:
- Price increases after order
- Short shipments
- Unauthorized substitutions
- Hidden delivery charges
Tracking by Job
Code materials to:
- Specific project
- Phase or area
- Cost code
- Budget line item
Compare:
- Actual vs. budget
- Quantities used vs. ordered
- Waste percentage
Common Problems
"Materials aren't on site"
Causes:
- Poor planning
- Supplier delays
- Submittal delays
- Communication breakdown
Solutions:
- Track deliveries on master schedule
- Maintain long-lead log
- Confirm deliveries 48 hours ahead
- Build buffer into schedule
"We ordered the wrong thing"
Causes:
- Didn't verify specs
- Assumed instead of checking
- Old drawings used
- Change not communicated
Solutions:
- Verify all specs before ordering
- Use current drawings only
- RFI when unsure
- Formal change control
"Materials were damaged"
Causes:
- Poor handling
- Improper storage
- Weather exposure
- Theft/vandalism
Solutions:
- Train crews on handling
- Proper storage procedures
- Cover and protect
- Security measures
"We have too much waste"
Causes:
- Inaccurate takeoffs
- Poor cutting layout
- Damaged materials
- Design changes
Solutions:
- Improve takeoff accuracy
- Plan cuts before cutting
- Better storage
- Track and analyze waste