Materials are the largest cost on many projects, and the easiest to leak: used more than needed, damaged in storage, lent to another project, or lost. Stock control answers three questions: how much came in, how much was used, and whether that use is reasonable for the work installed.
The documents you need
| Document | Contents | Used for |
|---|---|---|
| Delivery note or goods received note | Material, quantity, condition, date, who received it | Recording goods in and matching them to the PO |
| Material request slip | Material, quantity, work item code, who asked and who approved | Recording goods out to a specific work item |
| Stock card | One card per material: in, out, balance | Knowing the stock at any time |
| Stock count record | The physical count of the store on a given date | Checking the stock card against reality |
| Transfer slip | Material moved to another project | So its cost moves too |
Example stock card: cement (50 kg bags)
| Date | Details | In | Out | Balance |
|---|---|---|---|---|
| 01/06 | Opening stock | 20 | ||
| 03/06 | Delivery note SJ-118 | 120 | 140 | |
| 05/06 | Slip 041, II.2 foundations | 45 | 95 | |
| 12/06 | Delivery note SJ-131 | 160 | 255 | |
| 15/06 | Slip 052, III.1 ground beams and columns | 95 | 160 | |
| 26/06 | Slip 067, IV.2 plaster | 120 | 40 | |
| 30/06 | Stock count: 40 bags counted | 40 |
Comparing actual use with expected use
Actual use = opening stock + deliveries minus the counted balance: 20 + 280 minus 40 = 260 bags. Expected use = the work actually installed (from the progress measurement) × the cement coefficient: say 230 bags, plus a 5% waste allowance makes 241.5 bags.
| Item | Bags |
|---|---|
| Actual use | 260 |
| Expected use from the work installed | 230 |
| With a 5% waste allowance | 241.5 |
| Difference to explain | 18.5 bags, about Rp1.1 m at Rp60,000 a bag |
The difference can come from wasteful mixing, work that was broken out, cement that set because it was stored too long, or material taken without a slip. Go through it with the site manager every month, for the largest materials: cement, steel, blocks, tiles.
Steps for stock control
- Make one person responsible for the store, and keep one locked storage place.
- Record every delivery from the delivery note and match it to the PO: type, quantity and condition. Reject damaged goods on the spot.
- Every issue uses a request slip with the work item code, signed by the site manager.
- Update the stock card every day.
- Count the stock physically every week or month, on the same cut-off date as the cost report.
- Compare actual with expected use for the main materials, and follow up any difference beyond the allowance.
- Store materials properly: cement on pallets and covered, steel off the ground, oldest used first.
Leftover materials at the end
- Count and record all leftover materials in a final stock count.
- Return them to the supplier where allowed, move them to another project with a transfer slip, or sell them, and record the result.
- Material moved out reduces this project’s cost and adds to the receiving project’s cost, so the cost report per project stays right.
Common mistakes
- Materials booked as cost when bought, with no stock card, so waste never shows.
- Goods issued without a slip, or slips without a work item code.
- No stock counts, so the stock card drifts far from what is in the store.
- Materials lent to another project without a transfer slip.
The full guide is in How to build a construction cost report that catches overruns early. It has a free template (Excel or Google Sheets) and a checker that reads your own workbook.
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Common questions
What is a material stock card?
A record per material of every delivery, issue and the balance, so the store’s stock is known at any time.
How do I tell if materials are being wasted?
Compare actual use (opening stock + deliveries minus the balance) with expected use (installed quantity × coefficient) plus a waste allowance.
How often should stock be counted?
Every week or month, on the same cut-off date as the cost report.
How do I record leftovers moved to another project?
With a transfer slip, so their cost leaves the original project and goes to the receiving one.