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Material Management

Material Management. Materials should be ordered early Minimize risk of price inflation, lack of materials Just in time delivery minimizes space required for storage and cost to contractor (theft, damage, inflation) Owner does not pay until materials are installed – minimize material expenses.

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Material Management

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  1. Material Management

  2. Materials should be ordered early • Minimize risk of price inflation, lack of materials • Just in time delivery minimizes space required for storage and cost to contractor (theft, damage, inflation) • Owner does not pay until materials are installed – minimize material expenses

  3. Major materials • Steel, rebar, hvac, etc • Require approvals, long lead time for fabrication and delivery • Steel requires shop drawings and fabrication • Materials usually purchases using purchase orders • Common items may be purchases at local vendors with an account • Fig 9-1

  4. Supplier Selection • Same as sub selection • Want quality, reliability, low cost • Must deliver materials when needed in quantity desired • Must have quality (concrete)

  5. Purchase Orders • Long form -used for major purchases • Includes contract terms, signed by PM or Co official • Short form – used for minor purchases • Signed by supers, for local suppliers • Must show quantity, description of material, unit price, total cost of each item • Can attach material or performance specs

  6. Need to determine when GC assumes ownership • Either at shipping point or on site • Free on board job site (supplier pays shipping) • Free on board shipping point (GC pays shipping)

  7. Open purchase order • Similar to a unit price contract • Used for large concrete pours • All concrete is paid out of one PO instead of issuing 1 PO for each day or delivery • PO log • All PO’s are logged in • Keeps control of costs

  8. Scheduling Material Deliveries • Initiate material procurement early in process • Materials need to be available when needed • Locks in price to avoid inflation • Adequate time for shop drawings, approvals, product data and samples to be approved • PM must come up with schedule for materials • Must actively monitor major purchases • Must keep on top of entire material procurement process for all major components to avoid delay

  9. Material Management on site • Need to have a flow of labor materials and traffic on site • Material storage needs to have least impact on construction • Should be stored near where they will be used • Move materials only once on site • Delivery routes should avoid impacting construction • Materials must be inspected upon delivery • Must be properly stored

  10. Material Management on site • Is site secure • Is material secure • What is it • How easy is it to steal • What is its value • Must inspect material before you take it • Once you “own” it collecting damages is harder

  11. Griffiss Contract

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