Engineering Encyclopedia Project Management

Managing Materials During Construction

• Material normally supplied by contractors (such as consumables and expendables,

hand or power tools, scaffolding, concrete forms, slings, block, tackles, welding
equipment, rods, automotive parts)

• Material which does not conform to the current engineering specifications (such as
asbestos cement pipe and related fittings, over-the-ditch tape wrapping, primer and
asbestos outer wrap, galvanized cable tray)

• Small quantities of pipe

• Prefabricated pipe spools

• Prefabricated structural steel pieces

• Radio and computer components

• Shelf-life material (such as paint, adhesive)

• Spare parts

• Structural plate, structural steel, sheet metal

• Used or damaged valves (For turning in used or damaged valves to Reclamation

for possible use and refurbishing, see GI 365.000)

Procedure to Return Excess Materials

SAMS excess may be returned to SAMS inventory provided the material:

• Is in new or good-as-new condition; and

• Meets the description in the item description data base of the Materials Cataloging
System of an SAMS catalog number; and

• Is expected to have future use as determined by Materials Control Department

(MCD) and remains in new or good-as-new condition until used.

Material is returned to SAMS inventory for full moving average unit price (AUP) credit (without
overhead) to the user. The user receives AUP credit plus overhead if the return is because of
incorrect issue by MSO.

New or good-as-new SAMS material, which has limited use and is deemed salable is returned
with Form A-8764 “New or Good-as-New Material Disposition” for partial credit to the user.

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Managing Materials During Construction

SAMS material that is not new or good-as-new is returned to Reclamation with Form A-112
“Reclamation Receipt”; no credit is given to the user.

There are other stipulations which apply in particular situations. The Project Engineer will have to
discuss these with the MSO.

Steps to Avoid Surplus and Excess Materials Generation

The creation of surplus and excess materials are primarily the result of slower than planned
progress during detailed engineering, i.e. late identification of exact quantities and technical
details.

Projects which are fast tracked may also experience materials excesses and surpluses above
normal because of the compressed schedule and the requirement to place purchase orders before
the details of the drawings are ready.

Steps which the Project Engineer may exercise to avoid surplus and excess material include:

• Prepare the design basis and present the Project Proposal thoroughly and
completely

• Address potential problem areas early

• Prepare “neat” takeoffs

• Accurately control the issue of materials to the Contractor

• Store materials at the jobsite so they are in good-as-new condition all the way up
to return after commissioning.

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Managing Materials During Construction

WORK AID 1: GUIDELINES IN THE MANAGEMENT OF MATERIAL

ACTIVITIES DURING THE CONSTRUCTION PHASE

The work aid provides guidelines for the development of Material Management activities during
the Construction Phase.

The participant should develop a list of items to ensure that all steps of the materials handling
and logistics processes are considered and in place prior to the start of construction.

The Participant should consider all elements of materials management in preparing the outline for
the Materials Management Plan. On page 2 the elements of materials management are identified.

The Participant should assure that all steps of the procurement process have been considered in
preparing the list of items which must be addressed in order to have a comprehensive Materials
Management Plan for the Construction Phase. The steps are reviewed beginning on page 6.

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Managing Materials During Construction

GLOSSARY

AUP Average Unit Price

CPM Critical Path Method

DC MATERIALS Direct Charge Materials

IK CONTRACTOR In Kingdom Contractor

MCD Materials Control Department

MSO Material Supply Organization

OOK CONTRACTOR Out of Kingdom Contractor

PO Purchase Order

PR Purchase Requisition

SAMS Saudi Aramco Material System

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