Effects of Construction Material Management Practices on The Construction Project Cost: The Case of Oromia Construction Corporation
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Date
2026-10
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Addis Abeba Universty
Abstract
This study examined the effects of construction material management practices on project cost at Oromia Construction Corporation (OCC). Four practices were tested: material planning, procurement, waste reduction and logistics. A quantitative approach with descriptive and explanatory design was used. Data were collected from 172 employees using structured questionnaire with 95% response rate and the reliability checks showed strong internal consistency with Cronbach's alpha values greater than 0.7. Descriptive results showed procurement and cost performance in the Agree range, though planning, waste reduction and logistics scored in the Moderate range. Correlation analysis found strong positive relationships between all four practices and cost performance, though waste reduction had the strongest correlation (r=0.705), followed by planning (r=0.699), procurement (r= 0.661) and logistics (r= 0.626). The regression model explained 59% of the variation in project cost (R = 0.770, R² = 0.593, adjusted R² = 0.583) and the regression coefficients showed that every practice had significant positive effect on cost performance. Material planning had the largest effect (B = 0.341, p = 0.002), followed by waste reduction (B = 0.321, p = 0.004), logistics (B = 0.228, p = 0.020) and procurement (B = 0.153, p = 0.028). The study concluded that material management practices directly shape project cost and recommended that the corporation should strengthen planning before projects start, train workers on waste reduction, improve procurement timing and build better communication for logistics.
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Material planning, material procurement, material waste reduction, material logistics, construction project cost, Oromia Construction Corporation