Part 1: Use Materials More Efficiently
This is a big opportunity for cost savings on construction sites and that is why it’s first on our list. For most new construction projects, it’s the biggest expense. To use materials more efficiently you have to be careful not to damage them when handling them, keep the inventory on site just long enough and make sure it’s protected while in your possession. You also need to limit the amount of unnecessary move while using most of it and recycling what’s left.
It begins when the materials arrive on site, and you start taking ownership of them. First of all, you want to make sure nothing gets damaged by lifting and transporting equipment. I know it may sound like a waste of time but taking a minute to use softeners and protection under your crane rigging may save a few hundred dollars on damaged materials. That will have to be replaced and brought back to the workplace. Second, all construction site input must be inspected for damage, quantity and quality, as soon as they arrive. Workers need to make sure that what has been ordered is what has been delivered. Any damaged material must be reported to the delivery driver immediately to be able to submit a claim to the transportation company. Incorrect quantities or types of materials also have to be reported to the vendor immediately to be credited and have your project management team reorder the right materials. Remember, this material has to be installed as soon as it arrives on site so, time is of the essence.
Excess movement is also a big source of waste. Most construction sites have a limited footprint. A limited footprint only allows you to have so much inventory. Everything extra ends up having to be moved two, three and even four times around site to make room for work that has to be performed in a location where that extra material is currently staged, before that material get finally used.
Unfortunately, with all the risks associated with complex supplies chains, sometimes, the safest bet is to have excess material on hands even though it means moving it multiple times around site. The cost of these moves, even though substantial, would be less than the cost of having some critical path steps delayed or the entire project delivered behind schedule.
One way to mitigate the moving costs and the supplies chains risks is to keep the materials on “wheels”. You can do that by keeping standard, 53’ or flat beds trailers, loaded in a staging area, close by the jobsite and moving and unloading them, as needed. It can also be done, on a smaller scale, on the workface, by using carts and loading them with extra materials. That way, a single worker can easily move heavy objects without mechanical assistance.
Then, there is the storage to this material. First, you want to make sure that you don’t have to store it for too long. Except for items with a long lead time, there should be a constant flow arriving at the jobsite, to reduce the occupied footprint, management of inventory, theft and vandalism. The ideal state is just in time, the material gets installed as soon as it shows up on the jobsite. That also reduces the carrying cost of inventory. Vendors want to get paid when they’ve done their part of the deal. Having paid material sitting around is very damaging to your cashflow and unpaid vendors are unhappy and will try to raise their prices the next time around.
Also, all the materials stored on site should be stored in such a way that it’s easy to pick it up and move while not being damaged by the elements. That means everything elevated from the ground, on blocking or pallets. That also means that critical electrical or motorized equipment is warehoused in climate-controlled rooms or trailers. Slightly less critical materials, like drywall, should be inside the building or covered so it does not get damaged by humidity.
Using your different materials in the most effective ways is closely tied to the quality of the trades people being employed. We’re only going to touch briefly on this subject here, but the best workers can actually precut the materials mentally before cutting the actual physical pieces. They also verify their measurements before cutting any kind of materials, like the saying goes, measure twice, cut once. All materials can come in various lengths and the ones being purchased have to be the ones closest to the length of the actual dimensions needed. That’s when communication between the project manager and the field superintendent is key. You want to give the trades what they need so that, before cutting pieces, the tradesman can optimize the various lengths needed for a particular project, with the ones available on site and create a minimum amount of waste. Because waste can have a significant cost. Each piece of wasted material has to be picked up, moved to a container or a dumpster and then hauled away from site.
Most disposal companies will charge the general contractor by weight, volume or a combination of both. Obviously, it’s better for all of us, our planet and your wallets if the materials are being presorted on site and recycled through companies or agencies that will reuse or recycle . Some materials, like most metals, can be sold to scrap yards, further improving the bottom line.
Like a good general in war, a good superintendent will make sure that his troops have a constant flow of supplies. So, they can stay focused on what matters most, the actual construction and keep advancing the project.