We'll be looking into one of the most undervalued responsibility of a quantity surveyor, and that is
called material reconciliation.
We all know that most of the construction projects are going into laws and there are different reasons
for that.
And one major reason for this is not having a proper monitoring of the materials that is being delivered
to the site.
Now, as I said earlier, this is one of the most underrated responsibility of a quantity surveyor.
Most conception projects or project managers don't give importance to this exercise in a project.
If a regular material reconciliation is being done in any project, then definitely these projects can
become economical.
If this exercise is done, then the percentage of the materials that is being wasted can be easily identified
and then accordingly, proper actions can be taken, which can save a lot of money in that project.
Now, if you browse through the net to find out the wastage limit, the permissible limit, you can
find different articles on it.
In this table, I mentioned to permissively restaged limit of some major construction materials.
You can also easily growth in the net and find out the limits and you can understand forest material.
What will be the excess wastage that is happening in any project?
Now let's understand what the main problem that happens with the materials that is being delivered in
your site.
Mostly for any material to come inside, there needs to be an issue to that supplier, be told that
any supplier will not be delivering anything to the site, your construction site.
So proper documentation is being done in this part.
That is the LPO.
Or you can also call that the local purchase order.
Only once that is issued, the material is delivered to the site and once the material comes to the
site, the store in charge is responsible for storing that material properly in the stores or in the
warehouses.
Now, the major problem comes at this stage when the material is released to say the most of the projects
don't keep a proper documentation while releasing the materials to the site.
At this stage, if a proper documentation is being maintained, then definitely this can be used by
a quantity surveyor to do a proper material reconciliation.
Maybe if the amount of material Reconciliation's sheet can be prepared, like how a quantity surveyor
prepares an interim payment application every month, definitely a material reconciliation can be also
prepared accordingly using all these documents.
And this can be used by the project judge to understand if the stage is being in excess or what other
materials that is getting wasted in excess.
Anyway, when they joined a new company, which was almost 50 percent days into their completion.
The first thing that the project manager asked me to do was a material reconciliation.
And that time I was new to the system and really did not know how to go about it, like how to start
this process.
The once I interacted with the store department, I found out that there was not proper documentation
being maintained, that it was becoming difficult to understand how to prepare this sheet.
After interacting with them, I found out how this could be sold and I instructed them to keep a record
of whatever material is being released to the site so that at the end a proper record can be kept for
what the materials were delivered and what they released to the site.
And from these figures, the Vistage can be easily calculated.
I prepared a format during that time, which I still use whenever I am responsible for any project for
this sheet I have used.
Whenever I start a new project and I make it a point to talk to the storekeeper and instruct him to
keep a proper documentation of what is being released to site what is coming to the site, definitely
documentation will be there because without an LPO or without a purchase order, no materials can be
delivered for each material.
You can prepare different steps and make this format.
I'll explain this format.
The first column is a number then as your material description, then you have the LPO number based
on which the delivery is being made.
Then you have the delivery order number, the delivery date, the quantity that is being delivered.
The unit of measurement is a number of meters.
So another thing, this major method of reconciliation is done for measurable items.
The major countable item through the panels or the DBS aid use for the such items of material reconciliation
is not done because we all know that it can.
Obviously counted and only what is required for the site is being ordered, and that is also used,
there is no need for a separate sheet for such items.
Whatever comes to the site is installed on the site, but it may be materials, mainly the pipes, the
ducts, then the cables.
These are the material that is measurable.
So you can easily understand how much is installed.
And from the abuse, you can understand how much material is delivered to the site.
And then to understand how much material is being released to site a proper documentation needs to be
maintained.
As I said earlier to the store department can maintain a book for it.
There can be some number given to it.
And whenever a supervisor or a foreman or an engineer comes to take that material, the details of that
material like how much quantity is being taken and the date, everything can be mentioned and the same
needs to be done so that you can understand which one man or the supervisor has taken that particular
material to say so.
For example, you're under site release number three, four, five on this date, this material was
taken so again.
And another day this much material was taken that you can knock down all these details in this sheet.
So try to make audiotapes of one size together.
That'll be different LPO that will be coming for that particular pipe.
So that is why you can see here that are to help us to tell you what is being made so that total deliveries
being made can be tracked down.
And the total material that is being released to the site can also be noted down for you will not have
an idea in each load that will be the site release will be mixed.
You don't know from which lot of material this by this five hundred fifty five was released to say it
can be from this load, from this delivery.
It can be from this delivery.
So so you need to make sure to always maintain the cumulative number that is the cumulative of the orders
being delivered and cumulative of the materials being released to the site.
So a total as of date if you are making a reconciliation sheet for a particular month, and if this
is the cumulative materials being delivered of this particular item, this is the cumulative material
that is released to the site.
So once you have this information, the next information which you need to have, the quantity that
is installed or certified delayed by your client or the consultant.
So that also you can mention here that you can easily get it from your certified payment applications.
Out of the five thousand five hundred meters that was delivered, three thousand 250 was released to
a site three thousand fifty meters certified till late for your balance actual stock.
If you see here, there are two types of stock.
One, this violence stop, which is actual and the other one is the balance that is physical.
So what is the difference now?
Balance talk, actual earth quantity delivered minus quantity that is installed.
So that is the actual side.
So what is being delivered and what is being installed?
So in actually in your store, this should be the material, the remaining balance, material impact,
but balanced physical earth, the quantity that is delivered minus the quantity that is released to
the site.
Out of the five thousand five hundred meters, three thousand 250 meters is released to the site.
So in physical physically, if you see in your store, this is the quantity of material that will be
stored.
So your wastage is actually going to be your actual stock minus physical to the two hundred meters is
your wastage.
Now you can mention a column for standard waste.
Each person to use for MBP materials.
It is around two to five percent D I've mentioned it, that's five percent.
And then you can calculate your actual percentage of this particular material so that the Vistage quantity
divided by whatever is released at, say, out of the three thousand two hundred fifty meters, two
hundred meters less wastage, that means around six point one five percent wastage, which is about
the permissable standard wastage limit.
So you can put formulas to highlight whatever is going over the permissible limit.
So one district is prepared, your project team can look into it, your project manager can see that
this type of team member is being wasted about the permissible limit and accordingly, the execution
team can be notified about it.
And a reason for this can be obtained from them and also instruct them to do a proper usage of the materials.
So like this, you can prepare different types of different materials and keep an update among.
Update and this can be monitored every month by the project team and accordingly, proper actions can
be taken to help, this concept is clear.
So I hope the site quantity surveyors who are watching this video can use this format, this template
in their project and can advise the project managers to maintain this sheet so that a proper cost control
can be done in your project.