Corrective Action Recommendation for Material Management in Construction Project’s Cost Control

Abstract

In construction project operation, often there is a project cost variance in terms of the material, equipments, manpower, subcontractor, overhead cost, and general condition. Material is the main component in construction projects. Therefore, if the material management is not properly managed it will create a project cost variance. Project cost can be controlled by taking corrective actions towards the cost variance. The objective of this research paper is to identify the main cause of the cost variance and to recommend the corrective actions. The approach to serve that objective is by conducting surveys to high rise building construction projects in order to identify the cause of project cost variance in material purchasing, and by interviewing experts in order to obtain recommendations in taking corrective actions. Method Analysis used in this research is Delphi method. The result of the research shows that the corrective action towards the variance of the material purchasing cost is actually a preventive action (before process).