Abstract:
Inventories are any stored resource that are used by the contractor or organization which keeps
in hand for efficient construction works and successful completion of construction project. The
company manages this substantial portion of asset of the company in different way of managing
system indeed they should be seen as a potential factor in optimization of resource used and in
cost reduction. In construction project operation, often there is a project cost variance in terms of
the material, equipment, overhead cost, and general condition. This is due to consist impact in
construction project which caused to the occurrence of many problems such as cost overrun, delay,
and material wastage, dispute between stockholders, storing and handling material. Inventory
management aims to optimize the investment by maintaining adequate and satisfactory levels of
materials capable of meeting the needs of once construction projects. This research paper is
sought to assess inventory management practice, problems associated with inventory management
and measures for managing inventory in building construction project. The study was analyzed
using descriptive survey design approach. And data was collected by questionnaires, interview
and site observation. Quantitative data was analyzed and ranked by relative important index while
the qualitative data was analyzed by content analysis method. The study shows that awareness
regarding to material management practice were relatively high on Purchasing of materials,
Material planning and Proper Transportation. The study also identified major problems such as
late delivery of ordered materials, Rejection of materials due to non-compliance to the
specification and damage to materials during transportation to the site. Always Better Control
(ABC) and Periodic inventory review were identified as the major inventory management practice
on the study, which are effectively used by the construction company. Generally, the study
concludes that, the major activities on inventory management, asses the level of awareness
regarding to material management practice, Problems related with inventory management and
measures for effective inventory management system were analyzed. Finally, the study
recommends that the construction companies should use effective inventory management system
to increase their profit and save their time by avoiding project delay and cost variance
