Engineering Encyclopedia Project Management

Managing Materials During Construction

• A Place to Work

In order to have the correct material available when needed, the material must arrive at jobsite, be
inspected and protected, stored where it can be found, issued to the right person, and used where
it was intended. Field material control encompasses the remaining steps from receipt to end use.
The construction warehouse/storage function is responsible for material control from receipt to
issue.

Storage of Materials

With materials representing over 40% of the costs of a typical project the proper handling and
storage can impact the success of the project. The Project Engineer should pay particular
attention to the maintenance and record keeping associated with the storage of materials at the
jobsite. Remember, it is just as important to keep the incorrect material out of the project, as it is
to get the correct material into the project.

Maintenance

The proper maintenance of project materials not only prior to being installed but prior to the on-
stream date are important to assuring the material will function properly when required to do so.
Protective maintenance should be continued after release from warehouse control and when
material or equipment is installed in the final location. Following is a list of items which the
Project Engineer will want to become familiar with.

• Materials should be kept off the ground on pallets, sleepers, dunnage, temporary
concrete slabs, etc.

• Materials should be covered (as required) by tarpaulins, plastic sheets, temporary

shelters, etc. Delicate items such as electronics should be placed in inside dry
storage.

• Machined or metallic surfaces should be protected by rust preventative. The

vendors’ recommendations should be followed.

• Lube oil in machinery should be checked periodically for level and cleanliness.

• Large shafts in rotating equipment should be rotated periodically.

• Instruments and electrical equipment should be stored inside.

• Piping should be capped to keep out dirt and debris and to protect ends.

• Flange surfaces should be protected by wooden discs.

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Engineering Encyclopedia Project Management
Managing Materials During Construction

• Paints and other highly flammable materials should be kept in segregated storage
and at safe distance. Responsible personnel must be clearly designated and
reporting requirements established.

Record Keeping

Job Procedure should cover protective maintenance of materials and equipment at the jobsite from
time of receipt until such materials or equipment are turned over ready for commissioning.
Protection includes protection from weather, environment, physical damage and any other
potential damage or deterioration. Periodic inspections should be made of materials in open
storage.

Accurate records must be kept to record the acceptance and issue of materials from the jobsite
storage area to the jobsite. The loss of almost any item can jeopardize the completion of the
project. Objectives of field material record keeping are:

To know at all times:

• What material has been received at site

• That the materials at the site are properly stored

• When the materials are scheduled for installation

• That the material can be easily retrieved from storage

• That bulk commodity materials are pre-packaged for issue

• That claims are filed promptly for items damaged in shipment or shortages in
shipments

• What shortages and surpluses are ordered and their arrival

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Engineering Encyclopedia Project Management
Managing Materials During Construction

ISSUES RELATED TO MANAGING PROJECT SURPLUS AND EXCESS MATERIALS

Introduction

A well executed project should have no more than 3% or 4% material surplus or excess at the end
of commissioning. Excessive materials which are surplus or excess are usually an indication of
unsatisfactory material control or significant late changes in the scope of work.

Procedures to Return Surplus Materials

New or good-as-new DC surplus material can be turned in to DC surplus inventory for full credit
by completing Form A-7287 provided the material:

• Is expected to have future use while remaining in new or good-as-new condition

until used; and

• Is not shown on the list “Materials not acceptable for DC surplus inventory”; and

• Consists of items with a line item value greater than $1,000.

Items with a line item value of $1,000 or less are transferred to Dhahran Reclamation Yard for no
credit by use of Form A-112 “Reclamation Receipt."

There are three exceptions to the above limitation of $1,000 or less value. They are:
• Portions of a major assembly which have already been accepted for DC surplus
inventory; or

• Spare parts (with adequate cross-reference data provided by SAPMT) for

engineered items which have already been accepted for DC surplus inventory; or

• Specialized fittings for items which have already been accepted for DC surplus
inventory.

Cannibalized/damaged material is turned in to DC surplus inventory for appraised credit provided:

1. Replacement parts are on order or are attached but not affixed; or

2. Repair/replacement of cannibalized/missing parts is undertaken by the user that

wants to return the material.

DC material which is not acceptable for turn-in to DC surplus inventory but is salable is
transferred to the Auction Yard with Form A-8764 “New or Good-as-New Material Disposition”
at appraised value, based on the return obtained on similar material at recent auctions.

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Engineering Encyclopedia Project Management
Managing Materials During Construction

DC material with a line item value greater than $1,000 that is in new or good-as-new and
unsalable is transferred to Reclamation with Form A-8764 at zero value.

DC material with a line item value greater than $1,000 that is not new or good-as-new and
unsalable is transferred to Reclamation with Form A-112 at zero value.

Material that has been previously issued to users from DC surplus inventory is returned by users
for credit equal to the original issue cost. Users that want to return material to DC surplus
inventory must provide R&DCU with a copy of the original issue document.

Material which is no longer in new or good-as-new condition is not accepted for return but is
transferred to Reclamation with Form A-112 at zero value. Material which has been modified
after issue is rarely accepted for return to DC surplus inventory.

List of material which is specifically excluded from DC surplus inventory include:

• SAMS material

• Air conditioning equipment unless complete with all components; no parts

accepted

• Buildings (unless complete with all components)

• Chemicals and lubricants

• Coated/lined pipe (Surplus at the uncoated pipe price only)

• Construction camp equipment

• Electrical cable (as specified)

• Electric motors less than 10 h.p.

• Ferrous scrap

• Firebrick, insulation, and related cement

• Gas cylinders

• Gaskets

• Lumber, plywood, wallboard

Saudi Aramco DeskTop Standards 9