Managing Material Cost in Construction Projects

Abrar Ul Hassan , Er. Sakshi Bhatia

In the development of project budget cost estimation of construction material is considered one of the fundamental important functions. To mollify the risk of material price volatility, material hedging concept is another idea reducing unpredictability. This research coordinated application of fuel hedging with hedging of material used by carrier like airlines. Utilization of weather hedging as a point of reference for construction material supporting application of hedging in the industry of construction. A guidance is provided by this thesis to apply material hedging with data and numbers from the practical use. In addition to this, this postulation coordinated the model introduced by Macdonald (2013) with this research model and gave a detail which is of less level in detail to help real execution of hedging material. In order to look into the feasibility of hedging material application more work, research and investigation needed to be carried out. Feasibility of material hedging and its application can be known by carrying out investigation in this area. Investigation of reliability and validity of this thesis model, in order for its application should be carried out so that appropriate facts can be put forth and used.