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Rapidly advancing technology and growing project sizes are driving the construction industry faster than ever before. In an atmosphere of scant margins for error, strategic materials management serves as the linchpin for projects delivered on time and on budget.

Responsibility for materials management often falls on project managers — even those with specialized materials procurement teams. PMs shape strategy by making data-driven decisions and aligning materials management goals with the goals of the project itself.

For MEP leaders in charge of acquiring and handling materials, a strategic mindset demands attention to the smallest details and the loftiest goals. This article will explore some materials management strategies for teams to stay ahead of the game.

Early Involvement in Design and Preconstruction

As MEP expands its role in design and preconstruction, strategic materials management includes adhering to plans while mitigating risks impacting scope, schedule and budget.

It's key to establish clear guardrails around decisions on specialty purchases or rentals as early as possible. Is the acquisition within scope, schedule and budget? The decision should be coordinated, documented and introduced in multi-trade and owner-architect-contractor (OAC) meetings. Teams can also create staging certainty through advanced work packaging (AWP) that sequences installation across trades, facilitates incremental planning and allows bundling of materials and delivery for specific phases. 

It's also important to focus on the details: Write Requests for Information (RFIs) as specifically as possible, to clarify agreement on sensitive or unique materials.

Teams should conduct multiple takeoffs, at key stages before finalization. A growing understanding of the developing project helps guard against over- or undersupplying. Before finalization occurs, review documents thoroughly, scrubbing out incongruities while maximizing efficiencies and cost reductions. 

Building Procurement and Supplier Relationships

Thorough preparation and analysis of past and current encounters with suppliers can offer direction.

First, lean on proven relationships. Prevent headaches by relying on proven providers, while continuing to cast a wide net for multiple suppliers. And always keep the lines of communication open: Be transparent, authentic and truthful. Immediately share any snags or hiccups. 

Balance local vs. national suppliers based on project needs. Small suppliers that can punch above their weight, as shown by historical data, could compete against lower-priced but distant national outfits. 

Being proactive is a key strategy for keeping things on track and on schedule. Avoid delays by preparing contingency plans and funds. Even early RFIs can ask whether alternative manufacturers or spec-equivalent materials would be acceptable if Plan A falters. And stay proactive with change orders: Gather prices even before approval and articulate any concerns over lead time and material prices as early as possible.

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Efficient Inventory Management, Storage and Transport

Strategic inventory management and storage protect investments by preventing materials from being mishandled or lost. A thorough documentation system should track every material – its quantities, storage, handlers, deliveries and destination.

Determine acceptable levels of risk regarding security and physical conditions at potential storage sites. When contracting for space, mitigate risks by detailing terms and responsibilities to the letter. 

When having a material transported, the specialty contractor responsible must actively manage the process, tracking the shipment and adapting to changing conditions and timelines. 

Mega projects, teeming with people and players, require special attention to tactical materials management. Keep essential materials in order well ahead of the project schedule to prevent delivery and storage hitches that could hinder the project’s progress. For large or sensitive pieces, third-party riggers can offset risk by utilizing their specialty equipment to deliver materials safely and intact, but the process demands constant communication, documentation and crystal-clear contracts. 

Balancing Material Quality vs. Cost

Strategic tactics can help bridge the inherent conflict of cost vs. quality:

• Practice pricing vigilance.

  Don’t miss a good price on a high-quality item. Actively review data, use comparison tools and price trackers, get quotes from multiple vendors and continuously update estimating software.

• Maintain data hygiene.

  Constantly update takeoff software for the highest quality conclusions. 

• Weigh knowns vs. unknowns.

  Meet specs and budget limits, but weigh the risks when a new product lacks historical data on crucial considerations such as reliable delivery, performance and durability. 

• Consider warranty protections.

  Factor in support and the protections of construction warranties. Time really is money. Will a malfunctioning item be covered by a comprehensive warranty — and will the supplier be prepared to remediate the situation quickly?

• Calculate value adds.

  Price tags don’t account for total costs. Factors such as favorable delivery terms, storage options, ease of installation (without reworks) and product quality can save money in the long run. 

Technology for Maximized Materials Management

Technology helps materials managers procure, track, compartmentalize and stage down to the micro level.

1. Use databases to find savings.

   Search databases to find quantities and locations of leftover “attic stock,” saving time and money while supporting sustainability. 

2. Take advantage of AI.

   Optimize inventory and material needs through AI and predictive technologies. AI can spot hidden efficiencies and actionable trends, empowering strategic data-driven decisions.

3. Automate as much as possible.

   Automate the intersection of scheduling and materials forecasting. Humans need time to conduct backpassing, working backwards from the project’s end date to establish windows of opportunity, while AI quickly determines what is needed when and where. 

4. Integrate multiple digital tools.

   Integrate materials management with building information modeling (BIM) and virtual design construction (VDC) for improved coordination. By detecting early clashes and offering resolutions, these state-of-the-art tools can help instill the confidence to expedite materials procurement. 

Making the Most of Materials Management

An effective materials management culture drives every detail, price, conversation and decision through the lenses of project scope, schedule and budget. 

Layering on strategy — through due diligence, communication, technology and robust documentation — equips materials management to fulfill its role in delivering sophisticated projects fully equipped to serve the needs of occupants and their communities. 

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