What is material reconciliation in construction?
Material reconciliation compares the material a project received and issued with the material the completed work should have used. The difference, after an allowed wastage, is unexplained loss. It is done per material, usually for cement, steel, aggregates and other high-value items.
Also called: Material reconciliation statement, Theoretical versus actual consumption.
There are two checks. The stock check confirms that opening stock plus receipts, minus issues and returns, equals what is physically in the store. The consumption check confirms that what was issued matches what the measured work needed.
Most firms do it monthly or at each client bill, in a spreadsheet. By then the loss is weeks old and nobody can explain it.
Closing stock = opening stock + received − issued + returned. Excess = issued − (work done × standard consumption) − allowed wastage
120 m³ of concrete at 6.5 bags of cement per m³ needs 780 bags. The store issued 842. With 2% allowed wastage (about 16 bags), 46 bags are unexplained.
In ERP Infra
Average consumption per unit of work is set by you for each material. Issued against needed is worked out from each day’s work done, per site, and anything above the allowed wastage is flagged the same day.
Material leakage: how it worksLet’s put every site on one screen.
Tell us how many projects and sites you run. We will walk you through the system on a call and suggest where a pilot would pay back first.
Book a free demo on WhatsApp