Optimization of construction cost in construction materials

Construction industry is one of the significant industries of a developing country. Development of a country depends on the growth of infrastructure development. Construction is the second largest industry (Iyer 2003) in India since it generate ample potential to provide employment opportunities. However, construction project implementation in India is still facing many challenges. Projects taken up for implementation will suffer slippages at the beginning or at intermediate stages and the end result is cost and time overrun. The ultimate result will be project failure. The main reasons are failure to solve project specific problems, and new technology adoption. This paper attempts to find out an appropriate method on the light of experience. The secondary objectives are to study the present scenario with an objective to identify the project slippage reasons which need specific attention. The methodology adopted is an interaction study with the technical heads and promoters of the construction projects. The primary aim is to get a feedback of the method adopted in the construction implementation, technical competency, slippages, setbacks, technology adoption, methodology used, and co-ordination between agencies, the development of positive relationships, the failure to control the cost and time overrun. A designed and tested questionnaire survey was conducted in 100 selected projects spreading all over Kerala, to find the slippage reasons in projects. The data collected were analyzed with statistical tool and the results are examined in detail. Two case study were also conducted in construction part concentrating the area of material management. The results obtained in the case study shows that only few number of the projects are only well planned and another few projects are somewhat planned and the rest of the projects are not planned. It shows that construction industry deserves considerable attention to develop new technologies and management techniques to eliminate cost and time overrun. A method is suggested to optimize the material control. Success of a project depends on its effective implementation. The main reasons for project failure are lack of advance planning, comprehensive engineering, management strategy, inconsistency in monitoring, constant follow up, and finally the absence of a methodological approach. For complex and multi-disciplinary projects in a developing country like India, especially in Kerala, present unsolved and specific problems which will vary from project to project. Hence problem and its solution are project specific. There is no definite solution but, workable solutions are possible, in the light of experience. Materials management is an important area in project execution and planning and control. This study is mainly concentrated to bring out the role of materials in project cost and how far effective its control in construction material management. So minimizing procurement and carrying costs will reduce total project cost considerably. Poor material management can lead to increased project cost, during construction. Early purchase of material will lead to capital tied up and interest may incur whereas delay in certain activities will delay the completion of the project, and the cost will increase. A correct inventory control will considerably reduce project cost, and the project can be completed in fast-track method. A method is suggested through this study by dynamic control of inventory. Though all the materials are equally important in construction, some key materials are specifically control the project cost. Such materials are identified and optimized their procurement and carrying cost. A new method is proposed for optimizing the construction materials and reduce the total project cost..