Perceptions of Material Management/Production Practices as Measures of Financial Planning and CostControl on Construction Sites

Abstract

Financial planning and cost control on construction projects are necessary to avert cost overruns, ensuring that the final cost does not exceed the projected capital outlay. Material management and production practices constitute financial planning and cost control measures that are mandatory to increase the profit margin of construction firms. This is against the backdrop of the likely resource commitment made by construction firms in obtaining project finance to purchase materials. This study investigates the material management/production practices of construction firms on construction sites in Port Harcourt, and their perception as measures in financial planning and cost control, using the survey research method. The study is specifically targeted at eliciting the perceptions of professionals and site workers, on the effectiveness of material management/production practices and further measures needed on construction sites. Structured questionnaires were distributed to project management professionals, site administrators as well as skilled and unskilled workers on ten construction sites in Port Harcourt. The findings revealed that the materials management/production practices by construction firms and on sites in Port Harcourt are primarily carried out during planning, purchasing, transportation, and handling/storing. Waste control and other material management/production practices such as Just in Time (JIT), Economic Order of Quantity (EOQ), and warehousing management are also carried out. The professionals and site workers perceived the need for other key measures to be put in place to ensure effective materials/production management. These include the training of management staff and site workers on the need to reuse and recycle materials, provision of security to guard against theft, proper allocation of materials, adequate work supervision, and ensuring an accessible site layout. These practices are required to achieve effective materials/production management, as measures of financial planning and cost control on construction sites.