12/13/19

BUILDING TECHNOLOGY 4 (BT-4)

SPECIFICATION
WRITING &
ESTIMATING
Prepared by:
Ar. REYNALDO C. VENTURA, JR.
MSCM, UAP, Int’l Assoc. AIA, PEM, ACP

Construction Materials Management

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Definition
It is concerned with planning, organizing and
controlling the flow of materials from their
initial purchase through internal operations to
the service point through distribution.

OR

Material management is a scientific

technique, concerned with Planning,
Organizing &Control of flow of materials, from
their initial purchase to destination.

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Construction Materials Management

¨ Comprises the integrated functions of;

• materials take-off
• purchasing
• quality management
• expediting If these functions are not
managed properly, what
• shipping would you expect?
• receiving
• warehousing
• and issue

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The Purpose of Materials Management

¨ Obtaining the best value for purchased
materials.
¨ Assuring supplies are on hand when and
where required.
¨ Reducing inventory to the lowest amount
required.
¨ Assuring quality requirements are met.

¨ Providing efficient, low cost transport, security

and storage of materials within construction
sites.

Basic Principles of Material Management

1. Effective management & supervision
depends on managerial functions of
• Planning
• Organizing
• Staffing
• Directing
• Controlling
• Reporting
• Budgeting

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Basic Principles of Material Management

2. Sound purchasing methods
3. Skillful & hard poised negotiations
4. Effective purchase system
5. Should be simple
6. Must not increase other costs

Elements of Material Management

1. Demand estimation

2. Identify the needed items

3. Calculate from the trends in

Consumption
4. Review with resource constraints

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AIM OF MATERIAL MANAGEMENT

To get
1. The Right quality
2. Right quantity of supplies
3. At the Right time
4. At the Right place
5. For the Right cost

Objective of material management

Primary Secondary
•Right price •Forecasting
•High turnover •Inter-departmental
•Low procurement harmony
•& storage cost •Product improvement
•Continuity of supply •Standardization
•Consistency in quality •Make or buy decision
•Good supplier relations •New materials &
•Development of products
personnel •Favorable reciprocal
•Good information relationships
system

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Some of foreseen problems:

¨ Material shortages

¨ Excessive surplus

¨ Costly labor delays

¨ Late Delivery

¨ Etc…

Areas of Concern in Material Management?

¨ Lack of identity for materials management

¨ Lack of awareness of the total materials
management concept as a process
¨ Lack of direction by senior management to
adopt materials management as a total
management concept
¨ Lack of technically competent, well-trained
personnel who perform the materials
management activities.

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Areas of Concern in Material Management?

¨ Lack of effective use of automated systems to

capture, share and efficiently use needed
control information for materials management
and for other aspects of project management.

Terminologies

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Common term you will encounter:

• Order Lead Time
• Packing List
• Approved Vendor List
• Back-charge
• Consumables
• Demurrage
• Logistics
• Modularization
• Over, Short & Damage Report (OS&D)

Order Lead Time

Amount of time required to obtain an

item from a vendor once the order
requirement is known.

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Packing List

A document which itemizes in detail the

contents (assemblies, sub-assemblies,
and loose pieces) of a particular
package or shipment.

Bill of Lading

Abbreviated as : B/L or b/l.

A carrier’s contract and receipt for
goods which it agrees to transport from
one place to another and to deliver to a
designated person, or assigns for
compensation.

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Consumables

Materials which are purchased on a

bulk basis, but which lose their identity
in the assembly; e.g., welding rods,
gases, paint, and shims.

Demurrage

A charge made for detention of a ship,

freight car, or other cargo conveyance
during loading or unloading beyond the
scheduled time of departure.

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Logistics

Term often associated with the

movement and storage of materials.

Modularization

A special construction technique where

entire, integrated facilities are
assembled (constructed) away from the
jobsite in order to take advantage of
shop fabrication, and then are
transported to its final location ready
for installation.

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Over, Short and Damage Report

A report showing discrepancies in
billing received and freight on hand.
For example;
q If one has freight not covered by billing,
Ø He is “over”,
q If less freight than the amount billed,
Ø He is “short”,
q And if freight is received in bad condition,
Ø He reports ”damage”.

Promised Delivery Date (PDD)

The vendor’s committed delivery date

mutually agreed to at the time of
purchase and included in the purchase
order.

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