Materials Cost Control Tips for Construction Projects

On most building projects materials are the largest single cost. They are also the cost that owners and contractors can influence most through careful planning and daily discipline. Small leaks, such as a few damaged bags of cement here, extra sand there and offcuts that could have been used, add up to a large sum over a whole project. These tips are general and can be applied to a small house or a larger commercial building.

Start with accurate quantities

You cannot control what you have not measured. A bill of quantities prepared from complete drawings gives you the quantity of each material and a clear basis for ordering. Add a sensible allowance for wastage, but do not add large “just in case” margins; they invite waste. If you do not have a bill, ask your builder or a quantity surveyor to work out quantities for the main materials, for example cement, sand, aggregates, blocks, reinforcement bars and roofing. See our guide to bills of quantities and cost estimates.

Compare suppliers and buy wisely

Get quotations from more than one supplier for large items, and compare like with like: the same grade, size, brand and delivery terms. The cheapest price is not a bargain if the quality is poor or the delivery is unreliable. For large purchases, check whether the price includes transport and offloading. Where prices are rising, buying in good time for the next stage may save money, but only buy what you can store safely.

Order in stages

Ordering everything at the start ties up money and creates storage and security problems. Ordering too late stops work and wastes labour. Aim to order materials in line with the programme, so that they arrive shortly before they are needed. Keep a schedule showing what is needed for each stage, and update it when plans change.

Store materials properly

• Cement: keep it in a dry, covered store, off the floor on pallets, and use the oldest stock first. Cement that has hardened into lumps should not be used for structural work.
• Sand and aggregates: keep them on a clean, firm base so they are not contaminated by soil, and separate different grades.
• Reinforcement bars: store off the ground and under cover, and keep different diameters apart. Heavy rust and dirt should be removed before use.
• Blocks: stack neatly and handle carefully to avoid breakages. Read our article on choosing quality blocks.
• Timber and roofing sheets: keep them flat, supported and protected from sun and rain.

Check every delivery

Count and inspect deliveries before signing for them. Compare the delivery note with the order. Reject damaged or incorrect items on the spot, and record the quantity actually received. Disagreements are far easier to settle when the check is done at the moment of delivery.

Reduce waste

Waste has several sources: over-ordering, damage, poor workmanship that has to be redone, mixing more mortar or concrete than is needed, and offcuts thrown away. Plan cutting of timber and bars to use lengths efficiently. Use batch boxes to measure sand and aggregates for mortar and concrete so the mix is consistent, rather than relying on guesswork. Mix only what can be used before it begins to set. Accurate setting-out and levels also mean less plaster and screed are needed to correct errors.

Prevent loss and theft

Theft of cement, steel and tools is a known problem on construction sites. Appoint someone responsible for the store, keep it locked, and keep a simple record of materials in and out. Compare consumption with the work completed. If a lot more cement is used than the work would suggest, find out why.

Watch for price changes

Prices for cement, steel and fuel can change during a project. Agree in your contract how price changes will be handled, and keep an eye on the market. Where it is practical, secure prices for key materials early. Keep a record of the prices you pay so that you can see trends.

Keep simple records

A basic ledger or spreadsheet is enough: date, supplier, item, quantity, unit price, total and the stage of work it relates to. Compare actual spending with the budget for each stage regularly. Early warning of an overspend gives you time to adjust, perhaps by simplifying a finish or phasing an item. Our tips on project management explain how this fits into the wider control of a project.

Do not cut quality to cut cost

Savings that weaken the structure, for example thinner reinforcement, weaker concrete or poor foundations, are false economies and can be dangerous. Look for savings in waste, in good purchasing and in simplifying non-structural finishes, not in the elements that keep the building safe.

If you would like help preparing quantities, a budget or a materials schedule, you are welcome to contact Fani Nigeria Limited, or see our quantity surveying and project management services.