Mr. Seth Boahen

TOPIC
A STUDY OF THE MATERIAL MANAGEMENT STATEGIES OF CONSTRUCTION FIRMS IN GHANA
CASE STUDY OF FIRMS ENGAGED BY THE GHANA HEALTH SERVICE IN NORTHERN REGION- TAMALE

CHAPTER ONE
INTRODUCTION
1.1 GENERAL BACKGROUND
The competitive nature and complexity inherent in the construction industry is the outcome of long standing arm’s length and adverse relationships. Still, actors are becoming more and more aware to the fact that successful material management strategies necessitate a balanced approach to supply management. The construction industry is one of the oldest and largest industries in Ghana and to say the world at large. Construction activity provides employment on a large scale.
Material management, according to Omotosho (2006) is of central importance to the economic health of the construction industry. Material component in construction can be regarded as any item that is permanently fixed in position as a component of the final product (Olubodun, 1989). Material is a very significant construction input, most particularly in building. Shortage of and defects in, materials for construction works is a major contributor to equipment down times and the loss of labour productivity on building sites, thus causing astronomical rise in construction cost as opined in Olubodun (1989).
The cost of materials has been identified to constitute a major cost on the cost of construction by various authors. Olubodun (1989) established that the material contents for building usually range between 45% and 60% of total cost. Meanwhile, Ene (1997) noted that the cost of materials accounts for between 60% and 70% of total construction cost while Carter R. and Price (1992) stressed that the cost of materials has been put at an average of 65% of contract sum. Ayeni (1986) and Wahab (1996) cited in Omotosho (2006) ranged it between 50% and 60% of the overall cost of all the resources that go into construction. Adantey and Ago (1999) emphasized that in the 1980’s in

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