Examining the Effect of Material Management Issues on the Schedule and Cost Performance of Construction Projects Based on a Structural Equation Model: Survey of Indian Experiences

Abstract

An effective material management system is key to the success of construction projects. However, the Indian construction industry suffers from many material management issues that lead to ineffectiveness in the material management system. Previous studies in the field have not comprehensively examined the issues affecting the schedule and cost performance of construction projects. To address this gap, this study identified a total of 33 material management issues from the existing literature and conducted interviews with 15 material management experts with more than 10 years of experience in material management. The data were collected through the use of a questionnaire survey completed by 86 procurement professionals. The results revealed six factors with a significant positive influence on the disruption of projects’ schedule and cost performances. Improper delivery of materials is the most critical material management factor, followed by inadequate planning of materials, lack of information and communication, financial issues in procurement, changes in scope of materials, and difficulty in transportation. The findings of this study enable construction practitioners to effectively focus on the few critical factors to improve the material management system and thereby enhancing projects’ schedule and cost performances.