Article #061 Getting Paid for Material Delivered and Stored on Site in Construction Projects by Using Material Inspection Request (MIR) Process

One of the elements of an interim payment on construction projects is the payment for the contractor’s procured material delivered, stored, and inspected at the project site. The contractor needs to provide supportive details of all material delivered as well as quantify the remaining material stored at the project site. Those could include invoices, delivery notes, and material inspection among others. This information will be submitted for the project owner or his authorized representative to be reviewed and approved for payment.

Using Project Management Information Systems (PMIS) like PMWeb, project owners can formalize the process for making payment against material stored and inspected at the project site. PMWeb custom form builder will be used to create a template to capture the details of all material delivered and stored at the construction site. The Material Inspection Request (MIR) will be used to capture the details of all delivered material including a description of the material item, the material delivered details including delivered and approved quantities, and unit of measure. In addition, the form will include details of the material manufacturer, material country of origin, storage location, date of arrival, and delivery note reference details. The MIR for will include a checklist that details items that need to be verified against the delivered material including quantities claimed, identification, packing, quality, shelf life, material test certificates, confirmation that material delivered is by the contract specifications, and any other details that need to be confirmed. The items included in the checklist are intended to enforce compliance with the contract’s requirements when it comes to accepting material delivered to the construction site as well as eliminate the disagreements between the contractor and supervision consultant when it comes to inspecting material deliveries.

All supportive documents such as material invoices, delivery notes, and inspection forms will be uploaded and attached to the material valuation form. The attachments could also include pictures of the delivered material stock as well as those stored at the site. The attachment tab will also include the material submittals which were used to document the delivered material submittal review and approval process. In addition, links to other PMWeb records as well as imported MS Outlook emails can be added.

A workflow will be assigned to the Material Inspection Request (MIR) form to ensure that the form was formally reviewed and approved. Formal approval for MIR is a must as those will be used as supportive documents for payment against material stored on site which will be part of the interim payment valuation. The workflow will change the status of the document from draft to approved. When approved, the record cannot be edited.

The data captured in the stored material form for the different project periods will provide the project owner and another stakeholder with information on material deliveries that took place during the project duration and the material stored at the project site. The content and layout for the form can be modified to reflect the project’s reporting requirements.

About the Authorfounder

Bassam Samman, PMP, PSP, EVP, GPM is a Senior Project Management Consultant with more than 35-year service record providing project management and control services to over 100 projects with a total value of over US $5 Billion. Those projects included Commercial, Residential, Education and Healthcare Buildings and Infrastructure, Entertainment and Shopping Malls, Oil and Gas Plants and Refineries, and Telecommunication and Information Technology projects. He is thoroughly experienced in complete project management including project management control systems, computerized project control software, claims analysis/prevention, risk analysis/management (contingency planning), design, supervision, training, and business development.

Bassam is a frequent speaker on topics relating to Project Management, Strategic Project Management, and Project Management Personal Skills. Over the past 35 years, he has lectured at more than 350 events and courses at different locations in the Middle East, North Africa, Europe, and South America. He has written more than 250 articles on project management and project management information systems that were featured in international and regional magazines and newspapers. He is a co-founder of the Project Management Institute- Arabian Gulf Chapter (PMI-AGC) and has served on its board of directors for more than 6 years. He is a certified Project Management Professional (PMP) from the Project Management Institute (PMI), a certified Planning and Scheduling Professional (PSP), and Earned Value Professional (EVP) from the American Association of Cost Engineers (AACE) and Green Project Management (GPM).

Bassam holds a Masters in Engineering Administration (Construction Management) with Faculty Commendation, George Washington University, Washington, D.C., USA, Bachelor in Civil Engineering – Kuwait University, Kuwait and has attended many executive management programs at Harvard Business School, Boston, USA and London Business School, London, UK.


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