Stored Material

Updated 6/2/21

Prior to projects starting we are often asked to estimate the amount of off-site stored materials we will be including in our requisitions throughout the project. Unfortunately, stored material requisitioning is impossible to predict accurately and is different on every job. Some complicating factors are:

• The value of a lot of stored material makes it into our requisitions without being tracked as such.

• The actual outstanding balance of stored material is being reduced throughout the job when material is delivered even as new stored material is added to that balance. When the question is asked, our clients and their bank engineers are usually talking about the total amount of stored material requisitioned throughout the job, not the maximum outstanding balance at any given time (even though the latter would be more rational given the risks they are trying to control).

• Different bank engineers treat on-site and off-site stored material differently (or fail to draw the distinction at all).

• Whether payments for shop drawings, deposits, and payment for project management time count as stored material or are tracked together with stored material changes from job to job.

Nevertheless, and notwithstanding the hitches above, the following are some guidelines and historical data to inform our estimates for future projects if or when these estimates are requested. This table provides percentages of total trade costs for each division (not percentages of material cost).

Nevertheless, and notwithstanding the hitches above, the following are some guidelines and historical data to inform our estimates for future projects if or when these estimates are requested. This table provides percentages of total trade costs for each division (not percentages of material cost).