CHAPTER 16 MATERIAL MANAGEMENT

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CHAPTER 16MATERIAL MANAGEMENT
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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 (FRPs) have become
  an alternate to steel reinforcement for concrete
  structures

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Dry Dock 4 Pearl Harbor, Hawaii
Caissons and port facilities
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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 architects instructions, specifications and
  drawings. Thus the architect is the owners 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

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Fig. 16-1 The Owner-Architect-Construction
Relationship
Fig. 16-2 Material Life Cycle
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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 GCs 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
  Engineers review and approval of the pertinent
  submittal will be at the sole expense and
  responsibility of the Contractor.
• sales location, factory or the purchasers 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

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THE ORDER CONTD

• 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 vendors
• This is important because if the FOB location is
  other than the vendors 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
  vendors location, the contract for shipment is
  made out between the purchaser and the common
  carrier

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THE ORDER CONTD

• 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 vendors 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
  11th 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

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Figure 16-3 Field Purchase Order
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Figure. 16-4 Formal Purchase Order
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Figure 16-5 Procurement Documents and Title
Transfer Sequence
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Fig. 16-6a Typical Bill of Lading
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Figure 16-6b Continued
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Figure 16-7 Typical Invoice
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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

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APPROVAL PROCESS CONTD

• 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

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APPROVAL PROCESS CONTD

• 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 contractors
  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

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FABRICATION and DELIVERY PROCESS

• Of the four phases of materials 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

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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

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MATERIAL TYPES

• Building construction materials can be logically
  grouped into three major categories
• Bulk materials that require little or no
  fabrication (table 16-1)
• Manufacturers 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
• Manufacturers 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 projects unique
  requirements
• The fabricated item, is composed of or results
  from modifications of standard components

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Table 16-1 Typical Bulk Materials
Table 16-2 Typical Standard Material Items
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