A STUDY OF MATERIAL MANAGEMENT TECHNIQUES ON CONSTRUCTION PROJECTS OF A MEDIUM SIZE CONSTRUCTION COMPANY

1.1 Introduction

Construction materials management is the system for planning and controlling all of the efforts necessary to ensure that the correct quality and quantity of materials are properly specified in a timely manner, are obtained at a reasonable cost and most importantly are available at the point of use when required. Material management process initiates from need generated from site then this information conveyed to the store department and material are ordered in the store, indent is generated. Vendor selection is to be carried out for the least value and best items (Patil & Pataskar, 2013). Similarly, Zeb et al., (2015) also define material management as a procedure for executing, planning, and controlling site activities in the construction projects. Construction material constitutes a major cost component in any construction project.

As a prelude to other parts of this study, this chapter will discuss the background upon which this study was initiated, the statement of problems that led to this study, the Aim and Objectives of the study. Others are Significance of the study, Scope of work, Research hypothesis and questions, Limitations of the Study and Definition of technical terms.

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1.2 Background of Study

The Nigerian Construction Industry has recorded some impressive numbers over the last few years. For an industry that is still heavily dependent on government expenditure, the Nigerian construction industry continues to occupy an important position in the nation’s economy even though it contributes less than the manufacturing or other service industries, (Aibinu & Jagboro, 2002). it is no surprise that the industry is growing at the same time that the government’s revenue is also growing. The building and construction industry is one of the most important sectors of any given economy. The significance of this industry is often measured by considering its impact on the economy through quantities such as its contribution to the Gross Domestic Product (GDP) and the amount of employment it creates.The construction industry plays a very important role in the socio-economic growth of a country and is therefore considered an agent for national development. It does this by increasing the nation’s gross domestic profit.

Construction projects are usually occurring in our daily lives from the construction of residential buildings to commercial buildings. Despite its daily occurrence, it’s considered as the most difficult of humankind endeavours. This is due to the fact that different construction projects require different sophisticated and complex processes for the successful completion of the project. Inorder to successfully complete the project with the consideration of the expected quality of the project, adequate time and money are required. The capital/budget responsible for the duration of the project for the procurement of materials, labour and equipment is to be effectively managed in order to prevent delays in the project and cost overrun. This is where the concept of “Material Management” comes in. Materials management is a process that coordinates planning, assessing the requirement, sourcing, purchasing, transportation, storing and controlling of materials, minimizing the wastages and optimizing the profitability by reducing the cost of materials (Chetna, 2011).Materials management involves the integrated coordination of all material related functions. These functions can be carried out efficiently only when sufficient emphasis is placed on early project planning, use of qualified personnel, adequate personnel training and proper communication amongst those involved in the process (Keitany & Mutwol, 2014).

The function of material management begins with the planning phase which involves the identification and determination of required materials that need to be purchased and checking for the availability of such construction material in the required quality and quantity.Construction materials are said to make up a major portion of the total cost of the construction project. According to Khyomesh (2011), 30 to 70 percent of the project cost is consumed by material with about 30 to 40 percent of the labour. As a result of this, material management has been identified as a critical component that improves productivity in construction projects. It is therefore imperative that construction companies involved in construction projects should understand the effects of proper material management towards the successful completion of construction projects.

The successful completion of a building project is not totally dependent on material management alone but also depends on having the right people who possess the right skills and equipment that are able to deliver the project on time and within the stipulated budget. It is the work of effective material management to ensure that materials are in the right place at the right time and at the required quality and quantity. But this cannot occur if there is no cash flow and capital to procure the important labour and materials. Due to the lack of material management, most contractors complete construction projects with little or no profit. This is due to the fact that construction projects are usually awarded to contractors with the lowest bid during the tendering process leaving the contractor with little money to work with. With good material management, construction cost overrun can be avoided, profits can be made even with the lowest bid and hence help contractors keep away from fraudulent practices. Ineffective material management for construction projects can lead to significant cost blowouts and delays in project completion

Therefore, in Nigeria where the research was carried out, the activities that was conducted is to Study the Material Management Techniques on Construction Projects of a Medium Size Construction Company in Nigeria.

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1.3 Statement of Problem

Investigation revealed that construction projects success is critically affected by the capacity of the contracting firms, the design variations, the nature of the contract and the economic stability of the location of the project. The construction industry in Nigeria is faced with certain problems ranging from the poor management of materials to misappropriation of funds required for the completion of the projects. This has led to the low productivity of workers in the delivery of construction projects.

One of the major problems faced by the construction industry is the construction delay. This may be due to material shortage on-site by unreliable material suppliers. This can occur as a result of poor communication between the supplier and the site supervisor. There are also other causes of delay for instance; Aibinu and Jagboro (2002) argue that the main cause of delay is poor planning.

According to Frimpong (2003), poor risk management is to blame; other causes that havebeen highlighted include; poor organizational culture (Kagiri & Wainaina 2008). However, much research has not been done on material management and its impact on project delivery in Nigeria. Hence, this study, therefore, seeks to identify the causes of ineffective management and ways of achieving effective material management.

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1.4 Aim and Objectives of Study

The aim of the study is to scrutinize the Material Management Techniques on Construction Projects of a Medium Size Construction Company in Nigeria. In achieving this aim, the following specific objectives were laid out as follows:

1. To examine the level workers’ motivation in the Nigerian construction industry responsible for poor management of materials.
2. To investigate the roots causes of ineffective material management in Nigeria’s construction industry.
3. To identify factors affecting the accuracy of the building construction projects delivery material cost estimating process.
4. To assess the current practices of managing materials on building projects, the problems associated with materials management and measures for managing materials in building projects.

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1.5 Research Questions

The study came up with research questions so as to be able to ascertain the above stated objectives. The specific research questions for the study are stated below as follows:

• Is the poor motivation of workers in the Nigerian construction industry responsible for poor management of materials?
• What are the factors affecting the accuracy of the building construction projects delivery cost estimating process?
• What are the roots causes of ineffective material management in Nigeria’s construction industry?
• What is the relationship between building project delivery labour productivity and material management cost performance?
• What are the current practices of managing materials on building projects, the problems associated with materials management and measures for managing materials in building projects?

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1.6 Research Hypothesis

In order to pursue the objective of this study, the following generalized statements have been designed to guide and aids in obtaining the result for the experiment to be conducted. For this work, the null hypothesis will be represented with H0 while the alternative hypothesis will be represented with hypothesis H1.

Hypothesis One

• H0: There is no significant problem caused by ineffective material management in Nigeria’s construction industry.
• H0: There is a significant problem caused by ineffective material management in Nigeria’s construction industry.

Hypothesis Two

• H0: There is no significant level workers’ motivation in the Nigerian construction industry responsible for poor management of materials
• H1: There is a significant level workers’ motivation in the Nigerian construction industry responsible for poor management of materials

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1.7 Significance of Study

Construction clients, contracting organizations, specialist, consultants and suppliers, individual professional contractors, lecturers and students in the construction and allied field would find the study very useful as it will contribute to their own effort to optimize their level of involvement in construction activities. Based on the results and findings of this research work, construction stakeholders, would be able to appreciate and control the parameters involved in the productivity and cost performance concept of construction projects.

This study will be of immense benefit to other researchers who intend to know more on this study and can also be used by non-researchers to build more on their research work. This study contributes to knowledge and could serve as a guide for other study.

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1.8 Scope of Study

The study focuses on the Study of Material Management Techniques on Construction Projects of a Medium Size Construction Company in Nigeria using Akwa Ibom State building projects as a case study.

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1.9 Limitations of the Study

During the course of this study, many things militated against its completion, some of which are:

1. Time Constraint: The time frame given to accomplish this project was very short due to school academic calendar and it was carried out under pressure which made the researcher not to implement some necessary features.
2. Research material: availability of research material is a major setback to the scope of the study.
3. Frequent power failure: This made the researcher append more money on fuel to ensure sustainable power.
4. Financial Constraint: Insufficient fund tends to impede the efficiency of the researcher in sourcing for the relevant materials, literature or information and in the process of data collection (internet, questionnaire and interview).

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1.10 Definition of Terms

Material Management: It is a procedure for executing, planning, and controlling site activities in the construction projects.