Dear Readers,
Wish You a Happy Engineers Day
Materials reconciliation is playing vital role in construction industry. It is directly linked with contractual related. If we are not taken properly it will have a huge impact on project cost. However based on the proper documents and proper method we can come out this difficulties. Considering the contents it will be blocked in two or three parts.
• What is meant by reconcile?
o Getting two things to correspond /
agree
• Reconciliation
o Reconciliation is the process of
ensuring that any two related values agree after taking in to consideration the
data relating to possible variance
o Theoretically we can reconcile any
two values whose relationship can be expressed in the form of a mathematical
equation.
o For Material reconciliation, it is
the process of comparing the standard data with actual data after considering
data relating to variances. (Difference between Theoretical Consumption Vs
Actual Consumption)
o Result of reconcile is either
wastage or Savings
• Basic Components for Reconciliation
o Raw Material Receipt
o Raw Material Stock
o Raw Material Issue
o Consumption of Material
Will be Continued....
