Wednesday 15 December 2021

How to control material cost during construction project cost management

The cost management of enterprises is directly related to the economic benefits of enterprises, but also to the survival and development of enterprises. a project from the initial construction to completion, the required project costs, material costs accounted for a considerable proportion, but also constitute one of the main projects of the cost of the project, generally 50% to 60%. it can be seen that to control the cost of engineering, the control of material cost is the most important.

The importance of controlling material costs

due to the variety of materials required for construction work, the current supply channels of the building materials market are also diversified. generally in addition to the main materials (cement, rebar, sandstone) according to the contract by the construction unit according to the budget price supply, the rest of the materials need to be purchased by the construction units themselves, coupled with the current recruitment, bidding market irregularities and budget quota lag, resulting in the project materials cost management complications.

therefore, under the premise of ensuring the quality of the project, it is of practical significance to save the use of materials and control the cost of materials, so as to reduce the capital occupation and reduce the cost of the project.

The development of material procurement plan

the project department formulates the procurement plan according to the project contract, the design document, the project management implementation plan and the related procurement management system. the procurement plan includes the scope, content and management requirements of the procurement work, the procurement information, including the quantity, technical standards and quality requirements of the product or service, the inspection methods and standards, the supplier qualification examination requirements, the procurement control objectives and measures. the procurement plan should take full account of the reasonable operation of funds and the actual situation of the site and the needs of the project progress.

Strengthen the construction process of material management

in the construction process, we should clarify the content of project cost control and carry out cost control in a targeted manner. in engineering projects, the contents of cost control generally include material use control, engineering quality control, visa change management, digital management.

Control the use of materials (limited picking)

in the construction process, to reduce the cost of materials must pay attention to saving material usage. in construction management, in order to ensure the quality and quantity of materials, it is necessary to strengthen the site management of materials.

to strictly implement the limit picking, issued the construction task, to attach the limit picking list, as the hair department's control basis, to prevent mis-issuance, indiscriminate distribution and other unplanned materials, from the source to achieve targeted materials.

in the construction process, we should adhere to the quota of material consumption, the implementation of the quota picking system. construction personnel can only collect materials in installments within the prescribed limits. if an insufficient amount of material is found, the material personnel should report the material to the project department and explain the reason for the insufficient use of the material. upon completion of each phase of the project, material officers and technicians (such as at least two persons) shall inventory, report on the use and surplus of the material, and analyze the causes of material consumption or over consumption.

Strict control of the quality of the project, put an end to rework

construction personnel should strictly follow the design drawings to standardize the construction, strictly monitor the construction process, eliminate non-conforming factors, timely take the necessary corrective measures to prevent the emergence of engineering quality problems. this will enable the quality of the project to be grasped and unnecessary losses to be kept to a minimum. to achieve a molding of the project, a qualified, to eliminate the phenomenon of rework, to avoid causing unnecessary materials and increase the cost of the project.

Standardize on-site change visa management

engineering changes and visa increases are common in project construction. engineering changes often result in a backlog of materials. insufficient attention to on-site visa management work, resulting in insufficient management, a large number of first construction, after the change order phenomenon.

this requires that engineering and technical personnel must timely handle the on-site visa and be signed by the supervisor, the owner's representative to confirm, seriously deal with the design changes that must occur, for the design changes involving materials, cost increases, must be through the design unit representative, the owner's representative and the director of the engineer's signature party is valid.

The use of digital management tools to control material costs

red circle project management system can enter material budget data online, during the construction process, but also through the software timely reporting of actual material costs. at the same time, the system can effectively regulate the change visa approval management and quality and safety management, farewell to "blind sign" and "formalism".

in addition, the procurement of materials, materials data clearly visible, to avoid accounting confusion. the system can trigger alerts when there is a risk of over-budgeting the actual cost of the material. management can combine the early warning mechanism to find out the material process excess situation in a timely manner, so that the quantity of materials can be controlled, save material waste, reduce material costs. really realize the goal of controlling material cost in advance and controlling material cost in the process.

In a word, from the proportion of material cost in construction cost, strengthening material cost control is a favorable way to effectively reduce construction cost and improve enterprise efficiency. 


Only long-term adherence, conscientious implementation to all aspects of construction, while appropriate use of digital management tools, in order to effectively control the cost of the project expenditure, to achieve the goal of reducing costs and increasing revenue.

No comments:

Post a Comment