Materials Costs

Modem constructions need many materials, some in raw condition and others in semi-processed or well-processed condition. For instance, one of the basic materials for construction, i.e. sand is procedure in raw condition so also rough stones for many works. Semi-processed items like timber sections, stone slabs and lime also account for some cost in construction. Well-processed materials use much of a manufacturing process using energy and made in highly sophisticated plants or factories. Such materials are cement, steel, glass, tiles, aluminium sections, cables, bitumen, paints, sanitary ware, boards etc. The cost of these items depend on the sophistication in the process. The cost of the items also depend on the government policies, taxation and other levies, and their demand. The grade of quality also accounts for the cost. The cost of work depends on the efficiency and care with which the materials are procured, utilizing an optimum cash flow. Greater care is to be exercised on the materials which contribute to the maximum cost but at the same time, also continuously required for ensuring the desired output of the work. 

Each type of work needs a different material procurement approach. In a road work where supply of stone is to be made continuously along the length of road, it may need an expenditure of about 70% on supply of aggregate. The identification of quarries for supply of stone aggregate becomes important. For work involving bitumen for road construction, a tie up with a petroleum product agency is necessary as the cost of bitumen might account for as much as 65% of the work. Thus, each work has its uniqueness in deciding the principal material components and therefore, it is necessary to establish the manner in which the flow of materials to the site is to be ensured. Sometimes, the necessity of material is not evident from the bill of quantities in the contract. For instance, an agency doing a road work, using a fleet of trucks, might need to plan supply of treys and tubes to keep the vehicles on the road always, just like a road contractor doing a hill road has to form his material processing policy for the supply of explosives and drill bits regularly. 

Thus, materials like cement, steel and bricks which may account for as much as 65% of the total cost need carefully planned procurement action. At the same time, indirectly required items also need careful attention. Previous experience of similar works in each situation will be of great help.