CHAPTER 16

MATERIAL
MANAGEMENT
 FIBER REINFORCED
POLYMER REBAR
 The Need: Reinforced concrete is a very common
building material for the construction of facilities and
structures
 Insufficient concrete cover, poor design or workmanship
and the presence of large amounts admixtures and as
well as environmental factors all can lead to cracking of
the concrete and corrosion of steel bars
 The Technology: composite materials made of fibers
embedded in a polymeric resin, also known as fiber-
reinforced polymers (FRP’s) have become an alternate
to steel reinforcement for concrete structures
Dry Dock #4 Pearl Harbor, Hawaii

Caissons and port facilities

 MATERIAL MANAGEMENT
PROCESS
 In the traditional contractual relationship, the owner contracts with a GC or CM to
build his facilities and with an architect to perform the design
 The GC, through this contract with the owner, is obliged to perform the work in
accordance with the architect’s instructions, specifications and drawings. Thus
the architect is the owner’s agent during the design and construction of a project
 The lines of communication between the three parties are established as shown
in fig. 16-1
 The materials that comprise facilities in building construction are subject to
review by the architect or design professional.
 The contractor delegates responsibility for some of the categories of work
involved in the project to subs and suppliers
 As result of this delegation, a distinct life cycle evolves for the materials that
makes up the project.
 The four main phases of this cycle are shown in fig. 16-2
Fig. 16-1 The Owner-Architect-Construction
Relationship

Fig. 16-2 Material Life Cycle

 THE ORDER
 When the contract for construction is awarded, the GC immediately begins awarding
subcontracts and purchase orders for the various parts of the work. How much of the
work is subcontracted depends on the individual contractor
 Some GC’s subcontract all of the work in an effort to reduce the risk of cost overruns
and to have every cost item assured through stipulated sum subcontract quotations.
Others perform almost all the work with their own field forces
 The subcontractor, through the agreement, must provide all materials and perform all
work described in the agreement
 AGC of America publish the standard subcontract agreement for use by their members.
See appendix G for the sample of this agreement
 All provisions of the agreement between the owner and contractor are made part of the
subcontract agreement by reference
 The most important referenced document in the subcontract agreement is the General
Conditions. Procedures for the submittal of shop drawings and samples of certain
materials are established in the General Conditions
 The General Conditions provide that “where a shop drawings or sample is required by
the Contract Documents…….any related work performed prior to Engineer’s review and
approval of the pertinent submittal will be at the sole expense and responsibility of the
Contractor.”
 sales location, factory or the purchaser’s yard or job site
 The Bill of Lading is a contractual agreement between a common carrier and a shipper
to move a specified item or group of goods from point A to point B at a contracted price
 THE ORDER CONT’D
 The purchase order is a purchase contract between the contractor and the supplier. This
document describes the materials to be supplied, their quantities and the amount of the
purchase order
 Purchase orders vary in complexity and can be as simple as a mail order house (e.g., Sears)
order form, or as complex as the construction contract itself
 When complex and specially fabricated items are to be included in the construction, very
detailed specifications and drawings become part of the purchase order
 Some typical purchase order forms are shown in figures 16-3 and 16-4
 One item of importance in the order is the basis of the price quotation and responsibility for
shipment
 Price quotations normally establish an FOB location at which point the vendor will make the
goods available to the purchaser
 FOB means Free On Board and defines the fact that the vendor will be responsible for
presenting the goods free on board at some mutually agreed upon point such as the vendor’s
 This is important because if the FOB location is other than the vendor’s location, the vendor is
indicating that the price includes shipment
 The vendor may quote the price as cost, insurance and freight (CIF). This indicates that the
quoted price includes item cost plus the shipment cost to include freight and insurance
expenses to the FOB location
 In the event the vendor ships the goods, it is of interest to establish at what point in time title of
ownership passes from vendor to the purchaser. This is established by the Bill of Lading
 If ownership passes to the purchaser at the vendor’s location, the contract for shipment is made
out between the purchaser and the common carrier
 THE ORDER CONT’D
 In cases in which the vendor has quoted a CIF price, he acts as the agent of the purchaser
in retaining a carrier and establishing the agreement on behalf of the purchaser
 The bill of lading is written to pass title of ownership at the time of pickup of the goods by
the common carrier at the vendor’s location
 If goods are to be paid on delivery (i.e., COD), the title of ownership passes at the time of
payment. In such cases the bill of lading is between the vendor and common carrier
 The sequence of events in CIF and COD transactions are shown in figures 16-6 and 16-7
 The invoices normally states the payment procedure and establishes trade discounts that
are available to the purchaser if payment is made in a timely fashion
 Terminology relating to trade discounts is as follows:
 ROG/AOG: the discount period begins upon receipt of goods (ROG) or arrival of
goods (AOG)
 2/10 Net 30ROG; this expression appearing on the invoice means 2% can be
deducted from the invoiced amount if the carrier pays within 10 days of AOG/ROG.
Full payment due within 30 days of AOG/ROG
 2/10 PROX Net 30: payment is due in full by the end of the following month
 2/10 EOM; the discount (2%) is available to the 11 th of the month following ROG.
Payment is due in full there after
 Trade discounts received are treated as earned income in financial statements
 The special conditions of the purchase order may include a hold “harmless” clause. Such
clause protects one of the parties to the purchase order from liability arising out of
damages resulting from the conditions of the purchase order
Figure 16-3 Field Purchase Order
Figure. 16-4
Formal
Purchase
Order
Figure 16-5 Procurement Documents
and Title Transfer Sequence
Fig. 16-6a Typical Bill of Lading
Figure 16-6b Continued
Figure 16-7
Typical
Invoice
 APPROVAL PROCESS
 The contract drawings prepared by the architect are generally not specific enough to
facilitate accurate fabrication of the materials involved
 Therefore to produce the necessary materials for a project, subcontractors and suppliers
must provide details that further amplify the contract drawings
 These details can be classified into three groups:
 Shop drawings
 Product data
 Samples
 Shop drawings are defined in the general conditions as “All drawings, diagrams,
illustrations, schedules and other data or information which are specifically prepared or
assembled by or for the contractor and submitted by contractor to illustrate some portion of
the work”.
 Design professional are responsible for verification that the supplied shop drawings
correctly interpret the contract documents
 Dimensions, quantities and coordination with other trades are the responsibility of the
contractor
 Approved shop drawings become the critical working drawings of a project and are
considered a part of the contract documents
 Product data may be submitted to illustrate the performance characteristics of the material
items described by the shop drawings or may be submitted as verification that a standard
product meets the contract specifications
 Product data are illustrations, standard schedules, performance charts, instructions,
brochures, diagrams and other information furnished by the contractor to illustrate a
material, product or system for some portion of the work
 APPROVAL PROCESS CONT’D
 Mill test reports, concrete mix designs, masonry fire rating tests, curtain wall wind test
reports and mechanical equipment performance tests are examples of product data
 Product data are particularly important when a subcontractor or supplier submits data
on a product that is variance from the contract specifications
 Samples usually involve the finishes of a project and are physical examples of materials to
be supplied. The architect may require samples of plastic laminate finishes for doors and
counters, flooring, wall coverings, paint, stucco, pre-cast concrete, ceilings and other items
 The approval process involving shop drawings, product data, and samples have several
sub stages that are critical to the material life cycle. These are:
 Submission by the sub or supplier
 Review of the submittal by the contractor
 Review by the architect or design professional
 Return of submittal to the sub or the supplier
 Usually six copies of shop drawings are submitted for approval
 Timing of submittals are submitted immediately or 15 days after the contract award
 Once the submittals are reviewed by the contractor, the process of checking for
conformance with the intent of the contract documents is performed
 A submittal, whether it is a shop drawing, product data or sample is governed by the
contract drawings and specifications
 APPROVAL PROCESS CONT’D
 The contractor is required by the general conditions to clearly note to the
architect or design professional any variation from the contract documents
 The amount of time involved in the contractor’s review of submittals may vary
from 1-5 days
 It must be remembered that time spent in reviewing, checking and coordinating
submittals is one of the most effective methods of ensuring a highly coordinated
and smooth running project
 Once the contractor has completed the review of a submittal, the document is
transmitted to the architect for approval
 As a general rule 2-3 weeks is a good estimate for the time required by the
architect to complete the review and return the submittal
 The final stage of the approval process for a material item is the return of the
submittal to the supplier or subcontractor. The submittal may be in one of the
following four states when returned to the contractor:
 1) approved, 2) approved with noted corrections; no return submittal needed, 3)
approved with noted corrections; however, a final submittal is required, 4) not
approved; resubmit
 The first through third designations would release the vendor and subcontractor
to commence fabrication and delivery. The fourth stage would require that the
approval process be repeated
 The material is now ready for fabrication and delivery
 FABRICATION and DELIVERY
PROCESS
 Of the four phases of material’s life cycle the fabrication and delivery
process is the most critical
 Generally, the largest amount of time is lost/or gained in this phase
 The duration of the fabrication and delivery process depends on
directly on the nature of the material and the amount of physical
transformation involved
 Contractors generally devote the largest amount of time and effort to
controlling and monitoring the fabrication and delivery phase
 Unfortunately, the fabrication and the delivery usually only become
activities on the job schedule when the delivery becomes a problem
 At the completion of fabrication, the delivery of the material is made
and the final phase of the life cycle is begun
 INSTALLATION PROCESS
(CONSTRUCTABILITY)
 The installation process involves the physical incorporation into the
project of a material item
 Depending on how effectively materials are scheduled and
expedited, materials arriving at the job site may be installed
immediately, partially installed or stored or completely stored for
installation
 One of the most important aspects of the effective storage of
materials is the physical protection of material items.
 The magnitude of the amount of materials involved warrants
meticulous layout of materials
 Reinforcing steel, for instance, may be organized in a “lay-down”
area and then directly hoisted as needed. Adequate lay-down areas
must be provided within each of the vertical hoisting equipment
 MATERIAL TYPES
 Building construction materials can be logically grouped into three major categories:
 Bulk materials that require little or no fabrication (table 16-1)
 Manufacturer’s standard items that require fabrication (table 16-2)
 Items that are fabricated or customized for a particular project (table 16-3)
 Grouping materials into categories can be of value in determining which materials
warrant major contractor control efforts
 Obviously, material items that require fabrication have longer life cycles because of
submittal requirements and fabrication. These materials require a great deal of
control by the contractor
 Bulk material category includes those materials that require very little vendor
modification and can be delivered from vendor storage locations to the job site with
very little fabrication delay
 Manufacturer’s standard material items include materials that are usually stocked in
limited quantities and are manufactured for the project after the order is executed
and submittals are approved
 The fabricated category of construction materials must conform to a particular
project’s unique requirements
 The fabricated item, is composed of or results from modifications of standard
components
Table 16-1 Typical Bulk Materials Table 16-2 Typical Standard Material
Items