Sample Undergraduate 2:1 Construction Literature Review

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Planning for Material Deliveries in Construction

Introduction

Construction projects are becoming progressively larger and more complex in terms of physical size and cost, hence the risks and potential for losses require better control. Project management has evolved mainly because of the need to control costs and schedule (Chen and Griffis at el, 2012). In the latest construction world a proper project management should give an overall success to the specific project within the constraints of cost, time, schedule, quality and the safety measurements. Project management plays a major role not only in the architectural and engineering industry but also the development of infrastructure of each and every country. (Edum-Fotwe and McCaffer, 2000).

According to Risku and Karkkainen (2006) material delivery is one of the major parts of project management because materials are consuming huge amount of the construction cost. According to Asad (2005) Poor materials management can result in increased costs during construction. Efficient management of materials can result in substantial savings in project costs. Therefore Rivera (2004) stated Materials are major part of the construction project and the special concern should be provided from the planning stage of the project to end of the project. In the construction projects; amount of required materials cannot be reduced because it will affect the quality of the project. Meanwhile uncertainty is there in material supply due to the price fluctuations and availability of the certain materials. Therefore Sun, Liu and Lan (2011) suggested the material procurement planning (MPP) which is deals with the problem that purchasing the right quantity of material from the right supplier at the right time, a purchaser can reduce the cost for materials via a reasonable MPP model. Here the purchasing of material at the right time is one of the key elements of MPP.

Risku and Karkkainen (2006) stated that the latest project management systems for construction projects facing new set of challenges in the delivery process of construction material. Mainly two requirements are expected for proper material delivery process. Those are transparency to material availability, and short response time in the material supply chain. Now a days the major challenge in the construction industry is delay in material delivery which is cause to the late completion of the project (Assaf and Al-Hejji 2005). A proper plan in material delivery and inventory management should be scheduled in the initial stage of the project plan and it can be lead to reduce the delay in material delivery in construction projects (Construction best management, 2008). Therefore this study will carry out on a delay in delivery of materials in BOI approved construction project. According to this study examine the delivery of material in projects under planning function and management.

Important of purchasing appropriate materials

According to the definition provided by McConville (as cited in Hadikusumo et al., 2005, pp 48), purchasing is “a fundamental function of material procurement that refers to the acquisition of goods and services and an establishment of mutually acceptable terms and conditions between a seller and a buyer”. As far as the construction industry is concerned, purchasing can occur in all phases of a construction project. The purchasing function of a construction firm is central to materials management and specially includes the commitment of project funds for construction materials.

Construction materials occupy a significant part of the construction’s value contributing nearly 50%. Thus when selecting construction materials, it is very important that painstaking decisions should be made. Even though typically 10 to 15%, but up to 45% (WRAP, 2007) of the total materials ordered for construction projects are either unused or end-up as waste. Therefore purchasing the appropriate material is getting more important.

Purchased materials and services typically represent the largest single element of cost in a company which stresses the importance of purchasing (Ibid and pooler et al, 2004 cited Otterheim, strand, 2007)

The purchasing department may also contribute to a competitive position in more indirect ways. The indirect contributions may be in

Reduction of quality costs

Production standardization

Stock reduction

Increasing flexibility and fostering purchasing synergy

The indirect contributions have often in practice saved more money than the indirect savings on purchasing prices (Van Weele, 2005 cited Otterheim, strand, 2007)

Significance of material procurement process

According to Sun and Liu et al (2009) the process of obtaining raw materials from outside suppliers is considered as material procurement. This process consumes more cost of total operating capital.

Now a day fast track approach is used to reduce the project schedule. The procurement process is very important and should be carried out in a possible manner to achieve the success of the project.

According to Othman and Rahman (2010) five aspects can

According to the analysis of interviews and surveys carried out during the study of the Procurement Process described in this paper (Rivas 1998), five features can expose the relevance of Procurement:

Schedule pressures: Should finish the project within a less possible period, avoid or minimise financial and other indirect costs.

Cooperation and coordination with construction: by following the construction schedule procurement. Improvement of the efficiency for procuring supplies will help to save the resources.

High relative value: Supplies managed by procurement represents 50%, to 70% of the total cost for the project, it is imperious to have a strict and permanent control of the acquisitions, having in mind the financial approach being represented by such situation.

Depends on the operation of the project needed equipments supply by the process of procurement.

Potential critical of the supplies: due to important relationships and interrelation between various part of the project.

Accurate situation diagnostics of the material purchase function in the construction sector, in relation with the proactive purchase implantation in material purchase functions. Therefore, the significance of this work is in analysing the validation of a purchase area with a new implementation of proactive purchasing.

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Proactive purchasing

The concept of proactive purchasing management is also addressed by Carr (1996), who defines proactive purchasing as purchasing willingness to take risks and to effectively use current knowledge to make decisions about the future. Purchasing pro action includes purchasing foresight and purchasing willingness to initiate change. According to Vrijhoef and Koskela (1999) the implementation ...

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Material delivery and inventory control

After a PO for a construction material is being submitted to the selected supplier, a period of time, usually called “delivery lead time,” elapses before the actual delivery of materials to the project warehouse takes place. According to Arnold and Chapman (2001) once materials are delivered, they represent an inventory used during the construction process. In this context, inventories ...

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