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📦 Material Management

Materials typically account for 40-50% of project costs. Managing them well directly impacts your profitability and schedule.

Key Principle

The right material, in the right place, at the right time. Material delays and losses kill projects.

Procurement and material management flow
1
Planning and takeoff
Review drawings and specs, verify quantities from takeoff, identify long-lead items, and confirm delivery schedule needs before ordering anything.
2
Vendor selection and purchasing
Get competitive quotes, evaluate vendors on price, lead time, and reliability, then issue detailed purchase orders with specs, quantities, and delivery dates.
3
Submittal and approval
Submit product data for long-lead and specified items, track the review cycle, and order immediately upon approval to protect the schedule.
4
Receiving and inspection
Verify deliveries against the PO, count quantities, inspect for damage, note exceptions on delivery tickets, and maintain receiving documentation.
5
Storage and inventory
Store materials properly by type — protect from weather, theft, and damage. Track inventory levels, locations, and cost codes on site.
6
Distribution and waste control
Distribute materials to work areas as needed, track usage against budget, monitor waste percentages, and return excess materials to suppliers.

Procurement Process​

Planning​

Before ordering:

  1. Review drawings and specifications
  2. Verify quantities from takeoff
  3. Check for owner-furnished materials
  4. Identify long-lead items
  5. Confirm delivery schedule needs

Vendor Selection​

Consider:

  • Price (get 3 quotes minimum)
  • Lead time
  • Delivery reliability
  • Return policy
  • Credit terms
  • Technical support

Build relationships with:

  • Primary suppliers (volume discounts)
  • Backup suppliers (emergency needs)
  • Specialty suppliers (unique items)

Purchase Orders​

Include:

  • Detailed specifications
  • Quantities and units
  • Pricing (unit and total)
  • Delivery date and location
  • Contact for receiving
  • Project/cost code
  • Special instructions

Track:

  • PO number
  • Order date
  • Expected delivery
  • Actual delivery
  • Quantity received
  • Back-ordered items

Long-Lead Items​

Common Long-Lead Items​

ItemTypical Lead Time
Switchgear12-20 weeks
Elevators16-24 weeks
Generators12-16 weeks
Custom windows8-12 weeks
Structural steel8-12 weeks
HVAC equipment6-12 weeks
Custom millwork6-10 weeks

Managing Long-Lead Items​

  1. Identify early - Review specs during bidding
  2. Submit quickly - Don't wait for notice to proceed
  3. Track submittals - Push for quick approval
  4. Order immediately - Upon approval
  5. Expedite regularly - Check status weekly
  6. Plan for delays - Build float into schedule

Receiving Materials​

Receiving Process​

When materials arrive:

  1. Verify delivery matches PO
  2. Count quantities
  3. Inspect for damage
  4. Note any discrepancies on delivery ticket
  5. Sign with exceptions noted
  6. Store properly
  7. Update inventory
  8. Distribute to work areas as needed

Delivery Ticket Review​

Check:

  • Material description matches PO
  • Quantities are correct
  • No visible damage
  • Certifications/test reports (if required)
  • Material meets specifications

If problems:

  • Note on delivery ticket
  • Take photos
  • Notify supplier immediately
  • Document in writing
  • File claim if needed

Documentation​

Maintain records of:

  • Delivery tickets (signed)
  • Packing slips
  • Mill certifications
  • Test reports
  • Photos of received materials
  • Damage reports

Storage and Handling​

General Storage Requirements​

Protect from:

  • Weather (cover or shelter)
  • Theft (lock up valuable items)
  • Damage (proper stacking/handling)
  • Contamination (keep clean)
  • Temperature extremes (climate-sensitive items)

Storage by Material Type​

Lumber:

  • Off the ground (on stickers)
  • Covered to prevent warping
  • Separated by size/grade

Pipe and conduit:

  • Stored on racks
  • Ends capped to prevent debris
  • Sorted by size

Electrical equipment:

  • Climate-controlled if sensitive
  • Secure storage (high value)
  • Original packaging until install

Finish materials:

  • Interior storage
  • Climate-controlled
  • Away from construction dust

Material Security​

Prevent theft:

  • Locked gang boxes for tools
  • Secured laydown area
  • Inventory high-value items
  • Deliver as needed (not early)
  • Security cameras if persistent problem

Inventory Management​

Tracking Methods​

Simple (small jobs):

  • Spreadsheet log
  • Visual inspection
  • Count what's left

Moderate (medium jobs):

  • Inventory management software
  • Barcode scanning
  • Weekly counts

Complex (large jobs):

  • Dedicated material coordinator
  • Real-time inventory system
  • Just-in-time delivery

What to Track​

At minimum:

  • Material description
  • Quantity on hand
  • Location on site
  • Date received
  • PO reference
  • Cost code

Preventing Loss​

Track waste:

  • Excess cuts
  • Damage on site
  • Theft
  • Returns to supplier

Reduce waste:

  • Accurate takeoffs
  • Proper storage
  • Train crews on handling
  • Order cut-to-length when possible
  • Return excess materials

Just-in-Time Delivery​

Benefits​

  • Less storage needed
  • Reduced damage and theft
  • Better cash flow
  • Less clutter on site

Challenges​

  • Requires reliable suppliers
  • Needs accurate scheduling
  • Less flexibility
  • Weather dependency

When to Use​

  • Limited site storage
  • Urban sites
  • High-value materials
  • Finish materials
  • Theft-prone areas

Making It Work​

  • Confirm deliveries 48 hours ahead
  • Have backup suppliers identified
  • Build relationships with suppliers
  • Communicate schedule changes quickly

Material Cost Control​

Accurate Takeoffs​

Reduce over-ordering by:

  • Double-checking quantities
  • Accounting for waste factors
  • Using consistent units
  • Breaking down by area/phase

Standard waste factors:

MaterialWaste Factor
Framing lumber5-10%
Sheetrock10%
Tile10-15%
Paint10%
Wire/conduit5-10%
Pipe5-10%

Controlling Costs​

Strategies:

  • Get competitive quotes
  • Buy in bulk when possible
  • Negotiate payment terms
  • Use supplier price locks
  • Substitute equivalent materials
  • Return unused materials

Watch for:

  • Price increases after order
  • Short shipments
  • Unauthorized substitutions
  • Hidden delivery charges

Tracking by Job​

Code materials to:

  • Specific project
  • Phase or area
  • Cost code
  • Budget line item

Compare:

  • Actual vs. budget
  • Quantities used vs. ordered
  • Waste percentage

Common Problems​

"Materials aren't on site"​

Causes:

  • Poor planning
  • Supplier delays
  • Submittal delays
  • Communication breakdown

Solutions:

  • Track deliveries on master schedule
  • Maintain long-lead log
  • Confirm deliveries 48 hours ahead
  • Build buffer into schedule

"We ordered the wrong thing"​

Causes:

  • Didn't verify specs
  • Assumed instead of checking
  • Old drawings used
  • Change not communicated

Solutions:

  • Verify all specs before ordering
  • Use current drawings only
  • RFI when unsure
  • Formal change control

"Materials were damaged"​

Causes:

  • Poor handling
  • Improper storage
  • Weather exposure
  • Theft/vandalism

Solutions:

  • Train crews on handling
  • Proper storage procedures
  • Cover and protect
  • Security measures

"We have too much waste"​

Causes:

  • Inaccurate takeoffs
  • Poor cutting layout
  • Damaged materials
  • Design changes

Solutions:

  • Improve takeoff accuracy
  • Plan cuts before cutting
  • Better storage
  • Track and analyze waste

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