2016 MAY

Al haddad, Zainab201100327

Construction logistics and Materials Security

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Zainab ahmed yusuf alhaddad

201100327

Gabriel huston

21 may 2016 21 May 2016

By submitting this assessment for marking, either electronically or as hard copy, I confirm the following:

This assignment is my own work Any information used has been properly referenced. I understand that a copy of my work may be used for moderation. I have kept a copy of this assignment

Industry placement

Bachelor of transport and logistics

TLB7501

Industry project

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Table of Contents

AKNOWLDGMENT 5

INTRODUCTION 5

PROBLEM 8

REASERCH METHODOLOGY 12

SAMPLE 12

SURVAY INSTRUMENT 12

FISHBONE 13

SURVAY RESPONSE 13

SEMINAR 13

ONSERVATIONAL DATA COLLECTION 14

JORNAL ARTICAL 14

ANALYTICAL TOOLS 15

NETS ANALYSIS 15

BENCHMARK 18

LITERATURE REVIEW 19

SYSTEMS THEORY 19

LOGISTICS REGRESSION THEORY 20

ACADEMICS AND EXPERTS POINT VIEWS 21

FINDINGS 27

STORAGE AND THEFT 27

INSPECTION AND TRACKING 29

THEFT ESTIMATED RATIO 30

SAFETY STOCK 31

INSURANCE 31

SOLUTIONS 32

RECOMMENDATION 37

JIT LOGISTICS 38

CCTV AND ALARM 38

LIGHTNING 39

BOUNDRIES 39

SINGNS 40

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SECURITY GUARDS 40FUTURE POTENTIALS 40

CONCLUSION 42

REFERENCES 43

APPENDICIES 45

APPENDIX 1. SURVAY 45

APPENDIX 2. PROOF OF ATTENDANCE53APPENDIX 3. SEMINARS AND BUSINESS CARDS 54APPENDIX 4. GDP GROWTH 56APPENDIX 5. ORDERS DOCUMANTATIONS 57

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ACKNOWLEDGEMENTS:

I would like to show my gratitude to Dr. Gabriel Huston for sharing his pearls of wisdom with me during this

course and providing me with sufficient advices and valuable evaluation for the research. I would like to

give a special thank for my degree tutors whom have provided me by the insight and expertise in this

degree which enabled me to complete this project in professional manners. A special gratitude to Mr. Kym

Channel whom has inspired me by the words he said in geography course, “I knew that outstanding mark is

yours”; it made me confidant in every work I present and it’s the reason why I am proud of what I am

presenting now.

INTRODUCTION:

Construction industry shares up to 7.3% in 2014 GDP of Bahrain which is a large ratio compared to other

sectors in the kingdom. The first quarter of 2014 has shared by 1.4% in the GDP. Big increase in percentage

showed a noticeable industry growth in the last quarter where it reached up to 12.5% of GDP shares.

(Appendix.4)

Industry growth has increased the demands of building raw materials which created higher needs for

inventory management and security. Large quantity of materials is hard to be controlled especially when it

contains small objects. GCC construction industry; mainly medium to small level companies, show a small

initiative toward security and management systems due to the cost of technology development. This is

exactly the scenario of AlRAWI Property where it invests at minimal costs percentage considering

management development as in-direct cost related to profitability.

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Al-RAWI property is an emerged company from a 2005 partnership

and was established as a standalone entity in 2015. Al RAWI main

focus is housing design, land acquisition and construction as

general contractor. Construction operations includes all

construction related tasks including materials ordering,

purchasing, labor management, supervision, inventory and

storage, sales and marketing.

The main office of "Al-RAWI Property" includes four employees currently supervising total of seven

projects. The company acknowledges the significant need of housing industry and Bahrain ESKAN Bank

funding in order to cope up with the continues rise of population.

This project is studies the “Effective control of materials theft through comprehensive inventory

management and security solutions”. This project looks into materials security issues challenging AlRAWi

Property and highlights the security standing on construction industry.

It investigates security of the materials placed on project sites and not stored on a warehouse or a storage

yard. This project will look into optimizing on site inventory loss for construction companies especially mid

to small size companies. Optimizing inventory loss is one of the most important aspects in transport and

logistics because it manages the transportation and access of inventory. The process includes planning for

exposed materials security in which it creates better operational performance. On-site storage technique

may look effective for cost based business but it needs higher security procedures than it is for a

warehouse.

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The chart below clearly shows the scoop of the project focus.

The purpose of this research is to find suitable industry solutions through investigating companies’ security

procedures and stock control. Solutions have to accomplish a balance between investments and

performance quality.

This project could be a critical step toward getting AlRAWI Property trust in transport and logistics

qualification. This major is going to support the company in relation to inventory management, projects

development, performance evaluation and problem solving. The project could be an opportunity to turn

the company into a loss prevention consultant for small to medium size construction companies.

This research could be an opportunity for GCC construction industry as well, to further investigate security

procedures and enhances security regulations. The industry has to look into standardizing security

investments for projects to reduce the risks and save its resources.

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PROBLEM:

The project was located in Hamad Town district, one of the busiest construction areas in Bahrain. This

district includes one of the cheapest lands for housing projects and new developed roads infrastructure.

This motivates property developers and construction companies to invest in this district. As a result of the

booming regional economy, Hamad Town District has experienced a large increase in population in 2001,

as a consequence, a correspondingly increase in housing demand. This has supported the ALRAWI Property

to increase its market shares in the district.

Population and destrict size change since 1991 (Thomas, 2016)

AlRAWI Property has continued to deal with same suppliers of when it was operating under ARAEK

property name. That is because suppliers provide low price and quality construction materials. The

company sees that reducing cost of materials and labors salaries are the only method to maintain better

profitability; ignoring the fact that less spending could sometimes results in lower operations performance,

lower profitability and damage of reputation.

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The company dedicates low investment for materials security solutions in order to avoid extra costs

incurring in developing systems, procedures and technologies. That is because; Al RAWI depends on ESKAN

bank customers who are funded by low percentage. However, Al RAWI uses security labor to monitor the

big construction projects during night hours while small projects do not take enough attention. In both

scenarios the company still suffers from materials theft which increases loss percentage and limits future

growth opportunities.

ALRWI places Marble next to the site with no security procedure

Thefts might take long time till project operations finish then it can be discovered. Theft of materials is a

problem occurring starting of the first day materials are positioned on site. Through observation and survey

results it has been noticed that there is no good or bad time for theft. It could be just after shipment is

received; it could be within off working hours or during operations. Theft mainly occurs when materials are

exposed to the public and not secured adequately (Appendix.1). This shows that dependence on security

guards is not always an adequate deterrent for theft. There must be some areas uncovered by security

presence or guards themselves are involved in robbery act.

Technology investment is always a valid option because it enhances the performance of how projects are

handled. As it has been noticed, AL RAWI property doesn’t have proper recording or inspection procedures.

The materials are stored in many projects sites which makes it more difficult to record materials separately;

especially when there is no actual or direct on site supervision and daily inspection.

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The company depends on manager manual records that is not shared between employees and considered

as confidential information. The company has the power to design its basic data entering system but it

needs financial support, however, data base development has been stopped because of budget restrictions

enforced by the management. The management have to be aware that database system is critical to

organize the information and grow the business, it eases the flow of materials, keeps record of cost,

inventory, orders, safety stock on the time it occur.

Al RAWI property mainly depends on imposing small margin of profitability (15% per project- which equals

an approximate three thousand five hundred dinars for small projects) to its final developed properties.

Any loss creates a noticeable impact on profitability especially for small to medium size construction

companies.

Al RAWI final projects are sold for Bahrainis of limited income whom get financial support by ESKAN bank.

ESKAN bank enforces funds not exceeding 130 thousand regardless the increased prices of lands and

properties. This should be enough initiative to make the company impose better management to eliminate

materials theft. Low investments, unshared information and lack of industry expertise could fail the

company and limit the growth of opportunities.

Mr. Wilson James, supply chain waste management consultant has mentioned, construction works

depends on logistics as a vital operation. Logistics management is able to guarantee materials presence on

sites at the right time (JIT theory) and that supports the construction companies in accomplishing their

tasks on timely manners and avoid schedules delays. Construction logistics is one kind of the dedicated

trades in the industry. It is specialized in planning and controlling inventory traffic, movements of vehicles,

access control and waste control for the purpose of creating productive construction performance (Young,

2004).

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Logistics is often seen as a storage and transport management tool, yet this is far from the whole picture.

Leading contractors invests in logistics research in order to decrease number of suppliers, reduces vehicle

movements, minimize the materials present on-site, track the materials, equipment and people, and also

to set proper plans on resources utilization and allocation. (Young, 2004)

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RESEARCH METHODOLOGIES

Sample: Participants of GULF PROPERTY EXHIBITION which was conducted in Bahrain exhibition hall, as

well as, AYKON CITY PROJECT of DAMAC PROPERTY which was conducted at Weston city center, had shown

a keen interest in the topic of construction theft and site security. The research has also targeted the

exhibition visitor of contraction backgrounds. The information offered by samples was valuable and it

shows a deep understanding of construction industry. Samples included wide range of expertise such as,

architecture, engineering, construction supervisors, inventory management, suppliers and logistics

managers. The exhibition was a good opportunity to meet with new groups of businesses of different

backgrounds. Those selections afforded the research by an opportunity to gain insight on construction theft

and vandalism from a diverse and representative pool of contractors.

(QUALITATIVE REASERCH ) Survey instrument : A self-administered questionnaire was designed using a

total of 2 sections and 19 questions. The survey purpose is to assess construction company’s security

procedures and efforts to reduce theft of on-site materials (Appendix.1.2). It surveyed several leading

construction companies operating their business on local, regional and global level. The first portion of the

questionnaire solicited general company information and basic problem identification.

The second part investigates theft reason and possible procedures to overcome challenges. It shows the

companies’ initiatives and opinions regard materials theft issue. The survey seeks for affordable solutions

which could be implemented at minimal investment and resources. It questionnaires the participants about

inventory systems and it asks for further applicable suggestions for small to medium size companies

investments. This enabled the research to contain valuable information about establishing integrated

technologies and system to enhance monitoring process, ordering system and materials security.

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The questionnaire was primarily structured with targeted questions of simple category permitting multi-

choice single response, multi-response options, and open ended questions. Data retrieving process was a

combination of survey and interviews in which it gave the surveyors the opportunity to talk more about

their business nature, their strategies and procedures. That technique was useful because it provided

valuable expertise opinions. GULF Construction magazine has suggested further investigation through their

website and provided valuable resources to help in finalizing this research.

FISHBONE Analytical Tool: Fishbone strategy has been implemented on the survey in order to analyze the

root causes of theft. This method is able to provide better understanding of common businesses mistakes

and the possible enhancements to security procedures. The evaluations will not be limited for ALRAWI

property benefits but it also can aware the industry of operations security risks and suggest applicable

solutions.

Survey Response: The survey gained 100% response targeting total of 21 participants. The responses were

fed into Microsoft Excel database in order to prepare the pie charts and histograms to analyze the results.

The responses submitted by the participants are assumed to be honest views and facts given by

representative of the companies.

(QUALITATIVE REASERCH) SEMINAR: Further research is retrieved from the seminar conducted by Chiel

Boonstra, Gudaibiya Building Construction on GULF PROPERTY exhibition. The seminar covered the benefits

of using pre-fabricated materials for construction in order to deduct time, prevent delays, eliminate lost of

materials. (Appendix.2)

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(QUANTITATIVE REASERCH) OBSERVATIONAL DATA COLLECTION: More information about AL RAWI is

going to be retrieved through observing orders, daily operations and developments. There will be weekly

personal inspection on sites showing updated data about operational flow. However, there must be some

confidential data that is restricted from publishing in the research. The observations will include project

sites related data such as orders price and materials lost for the period of three months (March to May).

Data analysis will show the company its loss percentage and highlight the need of management

development.

(QUALITATIVE REASERCH) JORNAL ARTICALS: Further discussion about theft problem in construction

industry is going to be researched online. The research is going to benefit from experiments conducted by

authors and the valuable information retrieved from experts’ experience. Journal articles creates strong

basis for the assignment which will enable better explanation of the actual problem.

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ANALYTICAL TOOLS:

This research identifies the company traffic, communication, regulation, Skills and infrastructure. Analysis is

not going to cover transportation neither auxiliary services because the research is dedicated for materials

stored on-sites. This will help the company analyze its weakness and strengths in each network, evaluate its

performance and support decision making process.

ALRAWI PROPERTY NETS ANALYSIS:

Traffic

Network

Extensive inventory storage disables the company from supervising site efficiently

and it causes loss of materials. Construction works depends on large quantities of raw

materials that have to be present on-sites daily. This drives the company to store

large inventory amounts on-sites in order to reduce transportation costs and prevent

delays.

Thieves take advantage of materials existence on-site especially when it’s not tracked

or secured. AlRAWI Property does not keep CCTV cameras, uses no fences, has no

access control procedures and it doesn’t hire security guards on each site. Not to

forget that inspection is handled with long time gab and often after finishing

construction works or operations. And that makes the discovery of theft too late.

Communication

Network

Construction works contains massive amount of information that have to be shared.

It include orders quantity, order price, purchasing time, suppliers alternatives,

deliveries schedules, contractors timetable and much more. Information is shared

between suppliers, site supervision, departments, management, contractors, workers

and customers. Those data have to be transmitted on daily basis especially when the

company invests in many projects and orders in bulk quantities.

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AlRAWI still operates its construction works based on traditional methods in

supervision and paper work. It has no actual data entrance or managing system that

enables the company to share complete and reliable information with stakeholders.

It has been noticed that the company faces many construction mistakes due work

load of several sites locations, increased number of site labor, short deadlines and

unreliable management system.

Regulatory

Network

Construction works are proceeding through large amounts of regulations to handle

operations such as registrations and municipally works. The regulations lack security

directions in relation to theft problem. Theft is considered as business challenge and

not a concern of construction related governmental institutions.

Unfortunately, theft problem is faced by low company investment and development

initiatives. And there is limited online researches providing guidance for security in

construction works. Security procedures followed by AlRAWI property is limited to

employing overnight security guards on some sites, providing them with facilities and

food.

Moreover, AlRAWI property hasn’t considered reporting to police an effective way to

restore what has been stolen. The General manager, Hammad (2016) mentions, time

and effort are going to be wasted because theft can’t be identified or proven.

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Skills

Network

Construction companies lack the expertise to handle inventory management and

construction logistics operations. ALRAWI proceed to lower the quantity of skilled

employees in order to reduce the salaries expenses. ALRAWI deals with building

contractor that is hiring expat construction workers of limited skills and educational

levels. This disables the company to handle highly specialized operations. This may be

considered as a method for capital saving, but it limits the company opportunity to

grow and affects the business reputation in future.

Infrastructure

Network

Inventory is stored on exposed areas that lack the security factors. Most of the

projects handles no lights at night hours, no CCTV, no fence or theft deterrents and is

limited to bodyguard presence. The capacity of ALRAWI material store is limited to

70sqm which makes it as a small option compared to the projects storage

requirement.

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Nets analysis giveS the research specific directions about the areas of BENCHMARK. The information has

been retrieved through the survey and interviews with companies’ managers participating in the Gulf

Property exhibition.

KMC TAIBA Al RAWI propertyMarket shares GCC Local Local

Materials records ERP solution Data entering systemmade by the programmer

No actual recording

Inspection Daily Annual Annual Labor Full time/Contracting

labors Full time/Contracting

laborsContracting labors

Eskan bank support No Yes YesManagement level High Mid lowFocused customers

groupsHigh end customer Mid/low end customer low end customer

Theft of materials % <1% 7-10% 14%Security guards

existence Yes Yes On some project sites

Fence and access deterrents

High Access control Some projects No

CCTV Yes No No Tags on materials Up to 98% Up to70% Up to 20%

The table compares Al RAWI Property with major local and global leading competitors showing areas of

weaknesses that should be developed. This comparison will play a vital role in decision making of which

procedures should be recommended for security improvements.

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LITERATURE REVIEW:

This research is based on number of theories which can be applicable on construction logistics:

Systems theory :

It means managing the enterprise as an integrated whole for total optimal performance “lowest total costs

and optimum service level”. Lowering cost is presented in better operations that cut costs; and not

lowering the inventory or service cost (Stank, 1980). Philip Evers (1980) mentions, lowering cost of one

operation is often cause an increase of cost somewhere else (tradeoff costs). Construction needs better

practices in order to develop its performance. Reliance on minimizing cost of materials is not always the

best option because current suppliers maybe more reliable and punctual. Some leading companies tend to

optimize the inventory stored on site through more frequent transportation. This is able to reduce storage

costs, damage and theft risks while it imposes more costs in transition. (Harrington, 2002)

JIT – ‘Just in time theory’. This can be applicable to plan more frequent replenishment in batches

according to task and location. It mainly depends on inventory forecasts and solid knowledge about

necessary materials in each stage of construction (demand management). Forecasts is an

integrated process composed of several stages which are financial planning, market planning,

operations planning, and supply planning. (Harrington, 2002) Those stages are designed to provide

accurate and efficient flow of inventory and services throughout the supply chain. Just in time and

forecasts together are able to reduce materials presence on sites, reduce the frequency and size of

theft.

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Getting lean ‘Eliminating waste’ and agility ‘Reducing lead times’. Lean and agility can be

managed thorough Manufacturing Flow Management. It is a process of using manufacturing

capabilities and capacities in order to obtain maximum flexibility of production planning. It

provides high response to change in demands, market conditions and customer requirements.

(Harrington, 2002)

Those can be accomplished through investing in prefabricated or sub assembled products materials

which reduces the time of assembly, cost of labor and construction schedules. This approach in

return is going to reduce unassembled materials present on sites, support mapping of activities for

better calculations of overheads.

Logistic Regression Theory:

It is a model used to predict the probability of occurrence of an event. It makes use of several predictor

variables that may be either numerical or categories (informatik, 2014). This model is going to be used

through investigating the areas of events occurrence, frequency of theft in construction works and the

probabilities of not discovering theft until finalizing operations.

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Academics and Experts Point Views and Researches

Many researches prove that construction materials theft has not been considered as a vital case to be

studied which makes it a unique problem that couldn’t be found on journals. This project was unable to

find online theft related statistics in Bahrain because Bahrain invests in small percentage of local researches

which makes data collection a hard process. Data was not found on any legal authority as well. Long time

and process was done and there were no results. These data is not actually under considerations of any of

the ministry of works municipalities affairs or the urban planning authority.

Construction logistics cooperates in large range of operations and it could be summarized in security,

materials handling, delivery, waste management, traffic management, temporary works, welfare,

emergency services liaison, catering and housekeeping. Those operations may not be seen as core

construction operations but it has big impacts on performance efficiency. (Sullivan, 2010) (Berawi, 2011)

Effective logistics management is vital to succeed the modern businesses and projects relying on extended

supplier networks and just in time deliveries (Berawi, 2011). The global sourcing of products and services

has introduced additional complications, exacerbating logistics challenges. Dedicated construction logistics

has developed into an essential support service and has led to the emergence of dedicated, specialist

logistics service providers. However, large percentage of construction companies is unaware of those

services benefits considering it as extra unnecessary costs of operations. (Sullivan, 2010) (Fadiya, 2012)

Construction industry main challenge is the high frequency of equipments, materials and tools theft, and

the low recovery rate of what has been stolen. Common construction sites lack security and workers are

not presented to inspection during or after operations. Not to forget that most of the construction sites are

located in remote and poorly lit areas which ease the process of theft especially off working hours.

Moreover, lack of inspection and un-reliable reporting causes late discovery of theft. (HARTFORD, 2011)

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The study suggests that theft size depends on the size of the rural district. Police are unable to provide

adequate coverage at high-risk periods, such as night hours and weekends, on largely rural districts. It also

highlight that thieves could blend to be employees of sub-contractors, casual laborers on site, and delivery

personnel. (Clarke, 2003)

Mr. Kasim (2012) also agrees that the complexity of materials and inventory management on-site depends

on the project size and operational complexity. Operations depends on materials existing on jobsites when

it is needed at the quantity needed (JIT Theory). (Kasim, 2012) (Fadiya, 2012)

Through the officers' analysis of crime reports and builders, the research notices that thefts were

concentrated on lumber, building materials, tools, and theft of appliances from houses under construction

while thefts of heavy equipment were rare. (Clarke, 2003)

The experiments have proven that large size of appliances carrying serial numbers afforded the possibility

of being retrieved. However, more Lumber and building supplies theft is harder to be noticed especially

when the company does not keep records for tools. (Clarke, 2003)

HARTFORD research has agreed as well that the identification of equipments is a reason. Most of off-road

vehicles and equipments don’t require titling and registration. Some equipment holds PIN codes (product

identification numbers) and not VIN (standard 17-digit vehicle identification). PIN formats are not standard

and their placement is not uniform which makes theft easier and not retrieved unlike VID codes.

(HARTFORD, 2011)

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Further investigation has shown that many mobile equipment manufacturers do use a common keying on

their equipments of same model. This enables easy equipments installation and theft process. Moreover,

there is no actual record to identify the authorized personnel whom uses those equipments. Records are

mainly not kept because most of the equipments are leased and not owned. Contractors may find

equipments ownership unproductive because construction is presented to seasonal demands. Also,

equipments selection and purchasing process requires long leading time. (HARTFORD, 2011)

Another research has suggested that theft percentage is related to time of installation. Where it has been

discovered that delaying installation of appliances until occupancy; has removed the opportunity for theft.

After implementing this practice many sites have faced lower appliance burglary. (Clarke, 2003) (Fadiya,

2012)

Mr. Clarke (2003) mentions, theft has two types of costs, break-ins cost and the costs of ordering appliance

replacement, transportation costs, scheduling repairs and police reporting. Those results in delaying house

closing which implies financial penalties. These indirect administrative costs could cooperate from two to

ten times more than the direct costs. (Clarke, 2003)

A research has been conducted by Dennis Lenard, Chief Executive officer of Constructing Excellence

showing that the industry is facing a major communication problem due to the low technological

investments which results in operations delay and materials lost. Sharing information is important in order

to keep records, conduct inspections and handle materials properly. (Young, 2004)

Mr. Young (2004) included, materials supply chain is a complicated process because it contains large

number of suppliers which disables shipment tracking by manual observational systems. The research has

mentioned companies’ initiative in coding materials in order to manage inventory handling; hence it is

difficult to reduce material waste because it cannot be tracked. (Young, 2004)

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Distribution of materials goes through several stages which imposes large need for proper systems.

Technology investment is able to eliminate waste and reduce the costs presented in transactions

duplication, exploiting economies of scale, minimizing congestion, saving resources from damage and theft.

(Young, 2004)

A research of University Tun Hussein Onn Malaysia has highlighted the importance of construction

materials in project cost efficiency. It mentioned that the cost of materials could contribute of more than

50% of the total project cost (Song, 2005 and Nasir, 2008). This fact makes materials management a vital

aspect to be focused on. Entities ignorance for tracking, locating of materials, handling and storage has

made it difficult to manage on time plans. However, the traditional ways for on-site materials tracking and

locating was not efficient because it brings labor intensive, error-prone, unreliability and increase in

construction costs. (Kasim, 2012)

Mr. Kasim (2012) included, construction industry received bulk shipments but it has no proper

identification or recording procedures. The traditional recording and management system provides

inadequate information to rely in for future development. The traditional tracking method used in

construction industry has clear limitations. (Kasim, 2012)

On-site materials tracking and inventory management are crucial because materials constitute a large

amount in construction costs (Lu et al., 2011). Poor materials management can affect not only to the

increase in costs, but also contribute to schedule and project delays. In contrast, management

enhancement could contribute in operating in a timely manner and obtaining reasonable cost of project

(Bell & Stukhart, 1987). (Kasim, 2012)

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Proper tracking and inventory management will require additional costs occurring in technologies

implementations and employing expertise, but this will bring benefits to the entity. Navon & Berkovich

(2006) have agreed that the difficulty in tracking over materials is presented though materials involvement

in the development process that is already bound with the traditional-manual method. Traditional tracking

mainly relies on the manual data collection process and it could be unreliable due to workers reluctance to

monitor and record the flow of large quantities of materials. Moreover, manual data collection are usually

kept and transferred in paper-based format, which makes it difficult to be traced and accessed in the

future. Thus, it’s improper method for decision makers and project development (Sardroud, 2010). (Kasim,

2012)

As described by Grau et al. (2009) about the traditional materials tracking process; the deliveries are

unloaded first; then items are hand-marked with delivery information for identification purpose. Item

codes are recorded manually identifying the stored yard grid. Materials are left to be scattered everywhere

at the construction site which makes it presentable to theft or loss, especially after positioning of materials

in construction installation. Those factors have contributed in material waste, poor site inventory

management, schedule delays and costs overrun. (Kasim, 2012)

Improving On-site Materials Tracking for Inventory Management require proper implementation of

information and communication technology (ICT) to monitor the processes. Technology involvement in

management coordination is going to expedite data transfer, provide better control systems over on-site

materials and efficient cost management. (Kasim, 2012)

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Molnar (2006) has added, ICT plays a vital role in construction because it can make it more efficient and

customer oriented industry. ICT practices will assure not only better materials management on-sites but it

will also create opportunity for the business to evaluate its performance, identify business challenges and

obstacle, plan for improvement, make decisions and implement remedial actions to overcome weakness.

(Kasim, 2012)

It’s vital to mention that the performance of inventory management can be affected by storage capacity,

facilities ownership or leasing prices in the area. (Sardroud, 2012) Additional need for storage space may

result in extra occurring costs that have not been calculated. Management helps the firm to ovoid over

ordering and doubles handling (Donyavi & Flanagan, 2009). Management of information helps to provide

completed up to date data regard on-site stock (Navon & Berkovich, 2006). (Kasim, 2012)

The evaluation of Mr. Clark experiments (2003) showed that the percentage of theft has declined after the

implementations of security practices for the participating groups. This project suggests that the preventive

measures were perceived as more widespread than they were in reality - a phenomenon known as

diffusion of benefits. (Clarke, 2003)

Usage of improved ICT applications in construction projects is able to enhance construction overall

activities and conduct better tracking management. Furthermore, it has potential to reduce construction

costs, reduce construction works delays, increase productivity, decrease labor working hours and promote

time saving. However, the industry suffers from lack of direction in terms of technologies implementation

processes in construction projects due to the few investments in construction commercial sector. (Kasim,

2012)

Mr. Sullivan (2010) suggests that construction efficiency can be increased through employing dedicated

logistics management approach. It could be through employing a specialist logistics contractor or by

utilizing a directly employed logistics team separated than actual contractors’ works. (Sullivan, 2010)

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FINDINGS:

A survey and interviews has been conducted with elite

leading local, regional and global construction

companies - 60% Regional (GCC), 20% Local, 20%

Global. Up to 80% of companies have agreed that

construction industry faces theft obstacles and

financial losses. Although there is high percentage of

theft, it is faced by low insurance initiatives

(Appendix1).

1. STORAGE AND THEFT

Up to 70% of companies have agreed that their

materials are stored on less than 10 km distance from

project sites in order to minimize the cost of

transportation. It is subdivided into 69% on sites and

23% in storage yards. In contrast, 10% of companies

depend on JIT supply through forecasts and ERP

systems to minimize storage. It has been noticed that

the first group faces larger theft percentage than the

second group whom have minimized on-site storage

(Appendix1).

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74% of companies agreed that project sites are the most common theft area and 26% occur on storage

yard. Projects sites has higher rate because it is exposed to the public while storage yard has higher

security procedure and access control. 32% agreed that lack of lighting at night hours, 32% un-presence of

CCTV cameras, 24% labor untrustworthiness, 12% un-presence of fence makes theft easier (Appendix1).

Fahad, Sultan (2016), technical manager of PLASTBAU ARABIA COMPANY mentioned in the interview that

materials theft is an increasing problem especially in GCC. Storage defaults can be one reason for theft, but

also inspection and tracking is another vital factor to keep materials secure. The company found many

materials stolen; workers ties copper wires into their bodies and cover it by clothing. Thieves always find

creative methods for stealing and can’t be stopped though site supervision alone (Appendix3). All

researches discussed previously agree that on-site storage is the most type of areas presented to theft risk

and it has the lowest recovery percentage.

Clarke (2003), Kasim (2012), (Sardroud, 2012) and Hartford (2011) journals have agreed that theft is

depending on the size of district size and operations. On-site security is hard to be accomplished where

there are complexities in handling inventory especially in large projects (Sardroud, 2012), (Clarke, 2003),

(Kasim, 2012), (HARTFORD, 2011).

Most of theft can’t be discovered because construction sites are located in remote and poorly lit areas, no

fences and no CCTVs. Also, some mobile equipment manufacturers do use a common keying on their

equipments of same model. This enables easy equipments installation and theft process. (HARTFORD,

2011)

Constructions companies follow two methods for inventory management, on-site storage VS JIT technique.

Theft percentage is related to time of installation and storage. Eliminating theft can be done through,

managing deliveries and transportation, implementing better security procedures, delaying installation of

appliances (Clarke, 2003) (Kasim, 2012).

29

2. INSPECTION AND TRACKING

Up to 75% of companies have mentioned that theft is discovered after finishing operations because there is

no actual reporting or inspection systems. 17% of companies kept records but it faces problems just after

shipment arrive which could be a planned theft by site security guard or labors. Small percentage of

companies (8%) holds weekly inspection. It is important to mention that the inspection sequence vary

between companies. 54% monthly, 31% weekly and only 15% does daily reports (through ERB solutions)

(Appendix1).

It has been noticed that the 11% of companies that kept tracking records and hold regular inspections

follows better stock management techniques to stop problem, such as on time shipment and high security

levels. On the other hand, 64% whom have kept no records straggle in management (Appendix.1).

Mr. Mezrawi, Mohammed (2016), the general manager of PLASTBAU ARABIA said, GCC governments do

not monitor projects or enforce a minimal security standards related to construction. There might be some

regulations in relation to security and safety but still it needs to be updated and enforced. Security

standards will decrease theft sequence and it will enhance GCC reputation which will at the end support

industry development. However, the final blame goes on the construction company which leaves it

materials exposed to the general public and it provides no security procedures off working hours. Thieves

acknowledge that rubbery would not be discovered so they will not hesitate to claim those acts. When the

company has investigated the reasons of theft, it mainly was a management corruption, against low

percentage of external factors (Appendix3).

Kasim (2012), Clarke (2003), Young (2014) agreed that leased equipments are not recorded on the

contractor reports which makes theft undiscoverable. Moreover, equipments, materials and tools usually

don’t carry identification VIN or PIN codes which makes identification process much harder. (HARTFORD,

2011) Large size of appliances carrying serial numbers is able to afford the possibility of retrieving lost

materials and tools. (Clarke, 2003) (Kasim, 2012)

30

Young (2014), Clark (2003), Hartford (2011), kasim (2012) have agreed, the increased number of suppliers

makes tracking and recording harder especially when using manual observational system. Construction

requires solid sharing of information, keeping records and more frequent inspections. Lack of inspection

and reporting un-liability causes late discovery of theft equipments. (HARTFORD, 2011) (Clarke, 2003)

(Young, 2004) (Kasim, 2012)

Kasim (2012) included, the cost of materials could contribute of more than 50% of the total project cost.

Kasim (2012), Young (2004), Clark (2003) have agreed, ICT applications can enhance construction overall

activities and conduct better tracking management. Furthermore, it has potential to reduce construction

costs, reduce construction works delays, increase productivity, decrease labor working hours and promote

time saving. In other words, technology investment is able to eliminate waste and reduce the costs

presented in transactions duplication, exploiting economies of scale, minimizing congestion, saving

resources from damage and theft. Management enhancement contributes in operating in a timely manner

and obtaining reasonable cost of project (Young, 2004) (Clarke, 2003) (Young, 2004) (Kasim, 2012).

3. THEFT ESTIMATED RATIO

Annual losses for theft might not be accurate, but in has been estimated as, 64% votes less than 10%

annual loss, 25% votes less than 15% annual loss, 7% votes less than 20% annual loss, 4% votes less than

25% annual loss(Appendix1). It has been noticed that the global companies had low theft percentage while

more localized companies had the highest percentage of theft.

Etijah trading and constructing (2016) said, low income groups may tend to steal to increase their income.

If it was caused by labors it might be for revenge, mistreatment and discrimination on workers.

Competitors also tend to steal materials from other projects in order to affect competitors’ market

standing. However, the company or management corruption can present higher risks of theft. Both logistics

and project manager can manage theft in legal procedures where theft can’t be found easily (Appendix3).

31

This complies with Mr. Clarke (2003) journal article where he mentions that thieves could blend to be

employees of sub-contractors, casual laborers on site, and delivery personnel which make theft process

easier. (Clarke, 2003)

4. SAFETY STOCK

Annual loss percentage has direct effect on safety stock. 64% of the companies forecast their safety stock

prior actual construction operations in order to save time and money through ordering bulk shipment. 36%

agreed that orders are better to be placed when a need occurs because it reduces risks, although it might

result in longer lead time (time between placing an order till it reaches its final destination (Appendix.1).

Theft has a direct impact on the safety stock amounts for sure and it imposes additional investments and

expenses requirements.

5. INSURANCE

In one hand, 80% of the companies have agreed that insurance in construction is going to result in money

waste (appendix.1). Fahad, Sultan (2016), has mentioned that materials theft is an increasing problem in

GCC because it is faced by limited insurance services. The insurance covers the equipments not including

raw materials.

In the other hand, 20% of large property developers were aware of insurance services and recommended it

because it can save considerable amounts of cost (appendix.1). Alzurba, Alaa (2016), assistant business

development manager of KMC constructing has mentioned that insurance rates are low if compared to the

cost of equipments loss in sites (Appendix1). However, construction insurance covers building equipments

and not the materials used on daily basis such as tools and purchases.

Insurance is a helping recovery method in case of theft because theft imposes high administrative costs.

Mr. Clarke (2003) has agreed in his research that theft indirect administrative costs could cooperate from

two to ten times more than the direct costs theft. (Clarke, 2003)

32

SOLUTIONS:

John Brooks, Project Manager mentions the experiment results into conducting a consolidation center for

construction materials. It has been mentioned that deliveries has been more controlled from the center to

the sites and the ability to avoid congested areas has been possible. It says that consolidation center

contributed in increasing the productivity of the project which is reflected to the business profitability. The

advantage of the consolidation center is the separate operation nature to the sites. This helps on-site

supervisors to focus on their construction works and not in inventory management, security checks,

unloading and materials transition. Wilson James says; consolidation centre ensures the safest and most

efficient method of mechanical handling of each product (James, 2004).

consilidation center Tracking System RFID, GPS

33

Bar-coding has resulted into 100% pick accuracy when operatives are preparing daypacks and, importantly,

simplify proof of delivery. RFID tags will eventually replace bar codes because they contain greater data

capacity and it will be more reliable for construction process and subsequent facilities management (James,

2004).

The consolidation centre concept needs large information technology investment but it can be adapted

from other industries, thereby avoiding hefty development costs. This can create safer and healthier

environment for workers. Improving distribution operations based on logistics thinking supports security

and workers’ facilities. Moreover, dedicated distribution teams decrease the need for construction

operatives to move supplies around the site, thus it reduce the risk presented in manual handling (James,

2004).

Consolidation centre (CC) has a unique nature because it’s unlike the warehouses that stores materials for

long periods, CCs intentionally provide short term materials storage to reduce congestion and eliminate

theft and damage potentials. (Sullivan, 2010)

The diagram basically shows how the consolidation center works. The most basic form of CC is usually

operated by the principal contractor managing the project and that is the most suitable type for small to

medium size companies. (Sullivan, 2010)

34

The second type is the Communal Consolidation Centre which serves surrounding clients or contractor

projects, typically no more than about 5 km from each other. The third type is the Collaborative

Consolidation Centre which serves large amounts of clients and contractors, serves multiple sites over a

wide geographical area and operated by specialist logistics contractors (Sullivan, 2010). However, the

consolidation center size mainly depends on business initiative for investments, availability of reliable

human resources and market demand.

In relation to construction, a research has been done by Moselhi and El-Omari (2006) studying the

integration of barcodes and Radio Frequency Identification (RFID) and their roles in automating data

collection process (Kasim, 2012). RFID integration in construction industry has been described as on-site

support system on (Yabuki et al., 2002). The study mentions that technology can contribute in complete

reliable data collection such as, tracking of pipe spools (Song, 2005), tracking location and movements of

materials stored and moved to sits (Song et al., 2006), tracking equipments and tools (Goodrum et al.,

2006), identify location of assets (Dziadak, 2006), real-time monitoring process (Kim et al., 2009) and

locating construction resources (Sardroud, 2010) (Kasim, 2012). RFID is suitable for small and large quantity

materials.

RFID methods utilize radio waves to transmit data. RFID systems are consisted of RFID tag or smart label,

RFID reader, and an antenna (interrogator or reader). It can locate the materials without the need of be

directly in sight of an RFID reader. RFID uses radio waves to communicate the tags or smart labels within

the read range of the reader.

35

In one hand, RFID has different types of tags; the most common are the passive tags because they are

smaller and less expensive to implement. It has to be “powered up” by the RFID reader before it can

transmit data. Active tags which have on-board power supply such as battery enabling it to transmit data at

all times. (ZEBRA, 2015)

On the other hand, Smart labels which are embedded with an RFID tags can be encoded and printed using

desktop label printers. Implementation of this technology requires human supervision to track the

inventory. It is suitable for consolidation center management and it can be used for materials on-sites but it

should be regularly checked. Materials lost or damaged are not going to be discovered unless RFID

scanning is made because it is untraceable from distance. (ZEBRA, 2015)

A research on technology applications in construction works also has been done using integrated RFID with

Global Positioning System (GPS). Grau (2009) used GPS in order to identify and localize the steel

components in construction project sites (Kasim, 2012). The study made by Sardroud (2010) has looked

into integrating those systems (GPS and RFID). It says the integration can accomplish accurate and reliable

tracking process for all on-site resources. (Kasim, 2012)

HARTFORD study a loss control consultants has suggested, GPS (global positioning system) integration with

a form of tracking system can help in retrieving stolen equipments and keep continuous monitoring on

equipments. It mentions that most of GPS systems have a “geofence” capability, for example, it generates

an alert if a vehicle leaves or access the area. (HARTFORD, 2011) Another capability of a GPS-based system

is the ability to electronically lockdown or disables a vehicle and stops it from moving. This technology

enables contractors to remotely disable or enable vehicles ignition, monitor site conditions, and generate

an alarm in case of theft. (HARTFORD, 2011)

36

The diagram clearly shows the nodes of GPS based system. It allows data transfer from vehicles or

equipments positioned on-site to the contractor through the automated vehicle locater (AVL) attached.

GPS Tracking is not limited to vehicles, for example, TRACK your TRUCK online websites alone provides

more than twelve types of tracking including equipments tracking and dedicated tracking services (By

Industry). (TYT, 2016)

This technology is essential for expensive equipments placed on-sites and they are not under supervision or

security. The cost of technology development varies according to the fleet size, server capacity, covered

distance, area facilities and number of users.

As it has been noticed that many studies has considered inventory management ICT integration in

consolidation center as a vital element to succeed construction projects. Technologies benefits are not

limited into improved storage capacity in Consolidation centers, RFID tracking for inventory, distance

tracking for equipments, but it also can help the company to collect reliable data to step toward improving

construction activities.

In addition to that, it is important to mentions that online researches still lack of direction in terms of

successful installing of technologies and procedures especially for RFID in relation to construction industry.

37

RECOMMENDATIONS:

There will be several recommended procedures that have to be implemented by the AlRAWI Property in

order to enhance its performance and prevent on-site theft. Those suggestions are not going to impose

high investment rate because the company can’t afford investing in large developments.

First of all, the survey has investigated experts point views about the major theft deterrents to be

implemented on-sites. The results suggest that lighting, inspection, security guards and CCTV cameras are

the major elementary procedures that have to be taken by every construction site (Appendex.1.Q15).

22%

22%

8%17%

5%

17%

7% 2%

Theft Deterrentslighting cctv camerasfence, doors or deterrent security guardslabor inspection materials inspectionon site supervision warehouse dogs Special tags

Those deterrents benefits has been proven through the research guide provided by both British Security

Industry Association (BSIA) and Zurich a leading company in construction insurance services. It says that

cost of investment is the main reason of site operator’s reluctance for security developments especially

when the contractors are operating in low margins. (Zurich, 2012) However, operators are not aware that

the uninsured costs following an incident are often costlier than site security improvement (BSIA, 2012).

38

JIT Logistics

AlRAWI Property tends to order in bulk quantities but the cost of theft is incomparable to storage cost.

Through three months observations on three sites, it has been noticed that ALRAWI property has lost

around four hundred dinars for damaged and lost aluminum doors and windows. The total order cost for

three sites is five thousand, two hundred and fifty Bahraini dinars. (Appendix.5) The major theft and

damage reason is that the orders have been placed at one unsecured site.

Reducing the amount of materials existence on-sites is able to reduce theft percentage. AlRAWI Property

has reliable suppliers for materials delivery and this is an advantage for the business. On time deliveries

should be implemented with employing trustworthy workers to receive and check deliveries.

CCTV and ALARM

Many research recommends metal paint to recognize stolen pieces (Zurich, 2012), but it is important to

mention that the theft acts has to be proven in law by finding witness or recorded proof. Some equipment

has unique codes so it can be retrieved but paints are not considered as one. Says ALRAWI Property

general manager this scenario has been repeated in several sites.

This makes CCTV camera an important procedure to be taken. It provides suitable prosecution evidence for

the police and it offers strong theft deterrent. CCTV must have night view and distance coverage. Thieves

tend to cover their faces so car numbers may be allocated. Some cameras have warning alarms and this will

be so effective for eliminating theft. Mobile CCTV is easy to be installed and relocated. It works on wireless

communications technology, minimizing disruptive cable runs and it most suitable for temporary

construction works (Zurich, 2012). Portable cameras can also be positioned in sites according to needs. It

transmits live or recorded images to phones and computers or to control center which enables 24 hours

monitoring capability (BSIA, 2012). For better performance for CCTV although it have night view, site

lightening should be considered to employ stronger deterrent factors.

39

LIGHTNING

External and internal lighting on the site especially next to the materials stored can deter potential

intruders and theft events. Lighting should be also protected through installing them as high as possible.

(Zurich, 2012) Cable shouldn’t be exposed and it should be accessible to authorized persons. Security

lighting systems have to be routinely inspected and maintained (BSIA, 2012). Some lights do work

according to motion sensor and that is adequate to give thieves enough scare.

The market includes verity of CCTV camera and lightning suppliers. The advantages are that the

competition is large and it can be found at cheaper price online. This allows the company to deal with

most suitable and most affordable prices offered by suppliers according to the budget limitations. The cost

will consist of camera price, system installing, users’ number, number of sites and maintenance package.

However, cameras’ has to be selected by experts and not depending on supplier’s advice only because

experts can judge each site requirements and will recommend the best option.

BOUNDRIES (fence, hoardings)

Security fences and hoarding have been considered as one of the best forms of perimeter protection

procedure. The fences should be high up to at least 2.4 meters to prevent thieves’ access. (Zurich, 2012)

The type chosen should not help climbers by offering hand and foot holds. (BSIA, 2012)

Fence is vulnerable to penetration by ramming with a vehicle. (BSIA, 2012) Placing high kerb outside the

fence can be considered; especially that it doesn’t contain large investment cost. Fences may not be

important to be implemented in all projects especially attached houses because it is hard to be placed and

positioned. Fences can be used for building construction works in isolated lands.

40

The research suggests that the positive side of open hoarding windows is that it allows curious people to

see the site. Also if the visible area doesn’t include attractive materials, thieves will not try to climb

hoarding (BSIA, 2012). However, it has been mentioned that sensor lightening is going to be placed when

someone access the area, this means that outsiders has limited view to the area because the lights will be

off. This viewed area should not contain unsecured expensive materials.

Power of suggestion (SINGS)

Two studies have been conducted in New Zealand by Garry and Kirsch about power of suggestion effects

on cognition and behavior. Kirsch has focused mostly on suggestion in clinical psychology, while Garry was

interested in the effects of suggestion on human memory. The results say that suggestion has surprising

effects on people performance and way of thinking. Studies have proven that it also can influence people

learning, memory tasks and responses to events, products and supplements (This is known as placebo

effect). (APS, 2012)

Power of suggestion gains it power through ‘response expectancies,’ which is the method people

anticipates response in various situations. Once a specific outcome is anticipated it will occur, the

subsequent thoughts and behaviors contribute to bring that outcome to fruition. (APS, 2012)

It is not just deliberate suggestion which influences the thoughts and behaviors; people observation can be

suggestive and influence others. (APS, 2012) Same phenomena and concept is going to be utilized as a theft

presentation process. A sign is going to be placed on the fence or the hoarding showing that accessing

premises is not allowed.

The signs have to written in Arabic, English and Urdu language (used by Pakistan and India) and Bengali

considering the multi nationalities of construction workforce.

41

SECURITY GUARDS

It is important to employ a responsible person for security. (Zurich, 2012) (BSIA, 2012) Security guards can

be hired off-working hours to reduce the cost of salary expense. Guards’ existence on-site can be an

additional investment for the business especially when it implements the previous security procedures.

There is already a solid security system to prevent premises access and theft, but guard presence can also

stop the unexpected planned theft.

FUTURE POTENTIALS

The previous recommendations are basic in order to cope up with current situation and budget limitations.

However, construction logistics plan (CLP) is a necessary procedure to be taken in future. There are many

valuable resources online providing Construction logistics plan guidance. Studying and implementing those

plans can contribute to solve theft problems majorly and secondly enhances operations management.

In relation to security, CLP highlights the importance of following security procedures in storage to keep

materials that are not in immediate use. While on-site materials have to be minimized in order to prevent

risks of damage and theft; despite the fact of it fasten construction operations.

A consolidation center is going to be considered for future demands when the company needs extensive

storage capacity. But the main focus is securing on site materials against vandalism and theft (MAYOR,

2013).

42

CONCLUSION:

The research has covered all related topics to theft of on construction sites materials. It has investigated

the problem in details showing the external and internal factors causing thefts. The results clearly show

that lack of security procedures are one of the main causes of theft. Technology investment is critical to

organize the operational flow of construction works. Complete information creates the base for decision

makers to evaluate the performance.

ICT cooperate in minimizing safety products. Safety stock increases when theft percentage increases.

Many companies lose more than 5% of their profitability as a result of default storage of materials. The

studies have proven that the administrative costs resulted from theft acts can contribute from 2 to 10

times of cost. Moreover, insurance companies have limited packages to cover equipments not including

building materials.

The solutions are summarized in utilizing a consolidation center to contain all building materials for short

term period, and distribute it to sites when it is needed. It will follow high security procedures such as, RFID

tracking, CCTV and access control. RFID will contribute to ease the calculations and tracking of large

shipment. A GPS based system is used to allocate vehicles and expensive equipments to make it retrievable

and also helps to identify thieves’ identities.

The recommendations have been listed to help ALRAWI Property to enhance their security procedures at

minimal investment requirements. The recommendations include CCTV cameras, JIT logistics, Lightening,

alarm, fence, signs and security guards. Further future plans have been suggested to cope up with the

regular developments of construction logistics and technologies. The research topic should be encouraged

to be researched by industry experts. Presence of local research enhances the country standing in

education and reflects its experience in construction industry.

WORD COUNT:

8828

43

REFERENCES:

APS. (2012, june). The Power of Suggestion: What We Expect Influences Our Behavior, for Better or Worse. Retrieved may 2016, from http://www.psychologicalscience.org/index.php/news/releases/the-power-of-suggestion-what-we-expect-influences-our-behavior-for-better-or-worse.htmlArunprakash. (2013, April). Study on Stock Management Practices in Construction Companies. (N. N. Arunprakash N., Editor) Retrieved march 2016, from http://www.isca.in/IJMS/Archive/v2i4/2.ISCA-RJMS-2013-022.pdfBEDB. (2015, March). Bahrain Economic Quarterly. (B. E. Board, Editor) Retrieved from http://www.bahrainedb.com/en/EDBDocuments/BEQ%2031%20March%202015.pdfBerawi, M. A. (2011, oct). Managing construction logistics management. Retrieved may 2016, from http://www.academicjournals.org/journal/AJBM/article-full-text-pdf/DEEEC1723562BRE. (2016). Our History. Retrieved March 2016, from https://www.bre.co.uk/historyBRE. (2008). sustainable construction. (I. B. Press, Editor) Retrieved March 2016, from https://www.bre.co.uk/filelibrary/rpts/sustainable_construction_simpleways_to_make_it_happen.pdfBSIA. (2012, january). construction site security-aguide. Retrieved may 2016, from http://www.thamesvalley.police.uk/form_123.pdfClarke, R. V. (2003, January 29). Reducing Theft at Construction Sites: Lessons From a Problem-Oriented Project. (H. Goldstein, Editor) Retrieved May 12, 2016, from http://www.popcenter.org/library/reading/pdfs/constructiontheft.pdfClemsonUniversity. (2009). Construction Site Security – The impact of company size and loss history on security measures. (A. Sharma, & D. Bausman, Editors) Retrieved march 28, 2016, from http://ascpro0.ascweb.org/archives/cd/2010/paper/CPRT119002010.pdfFadiya. (2012, march). DEVELOPMENT OF AN INTEGRATED DECISION ANALYSIS FRAMEWORK FOR SELECTING ICT-BASED LOGISTICS SYSTEMS IN THE CONSTRUCTION INDUSTRY. Retrieved may 2016, from https://www.google.com.bh/url?sa=t&rct=j&q=&esrc=s&source=web&cd=5&cad=rja&uact=8&ved=0ahUKEwjz67Wou-vMAhVIBsAKHQQEBrQQFghKMAQ&url=http%3A%2F%2Fwlv.openrepository.com%2Fwlv%2Fbitstream%2F2436%2F250494%2F1%2FFadiya_PhD%2520thesis.doc&usg=AFQjCNF8n2fQv1W47GHarrington, L. (2002, November ). Logistics 101: Back to Basics. Retrieved May 2016, from http://www.inboundlogistics.com/cms/article/logistics-101-back-to-basics/HARTFORD. (2011). Deterring Theft of Contractors’ Equipment. (H. L. Consultant, Editor) Retrieved march 2016, from http://www.thehartford.com/sites/thehartford/files/deterring-theft-of-contractors-equipment.pdfinformatik. (2014). Logistics. Theory and Practice . Retrieved May 2016, from http://wwwmayr.informatik.tu-muenchen.de/konferenzen/Jass08/courses/2/berseneva/paper_berseneva.pdf James, W. (2004, october). Construction logistics. (C. E. Chief Executive, Editor) Retrieved May 2016, from http://constructingexcellence.org.uk/wp-content/uploads/2015/04/construction_logistics_models.pdfKasim, N. (2012, dec). IMPROVING ON-SITE MATERIALS TRACKING FOR INVENTORY MANAGEMENT IN CONSTRUCTION PROJECTS. (,. S. Narimah Kasim, Editor) Retrieved march 2016, from http://eprints.uthm.edu.my/3435/1/MGT091.pdf

44

Lenard, D. (2004, OCTOBER). construction logistics. Retrieved MAY 2016, from Foreword: http://constructingexcellence.org.uk/wp-content/uploads/2015/04/construction_logistics_models.pdfMAYOR. (2013, April ). Construction Logistics plan guidance for dwevelopers. Retrieved may 2016, from http://content.tfl.gov.uk/construction-logistics-plan-guidance-for-developers.pdfSullivan, G. (2010). Managing Construction Logistics. (S. R. Stephen Barthorpe, Editor) Retrieved May 12, 2016Thomas. (2016). Cities & Towns. Retrieved May 2016, from http://www.citypopulation.de/Bahrain.htmlTYT. (2016, may). fleet tracking systems. Retrieved may 2016, from http://www.trackyourtruck.com/Young, A. (2004, october). Construction logistics. (C. E. Chief Executive, Editor) Retrieved May 2016, from http://constructingexcellence.org.uk/wp-content/uploads/2015/04/construction_logistics_models.pdfZEBRA. (2015, may). Tips for RFID Smart Label. Retrieved may 2016, from https://www.zebra.com/content/dam/zebra/white-papers/en-us/rfid-smart-label-en-us.pdfZurich. (2012, nov). Best practice guidance for construction companies. Retrieved may 2016, from http://www.building.co.uk/journals/2014/03/25/x/m/h/Construction-Site-Security.pdf

45

APPENDIX 1 (SURVEY)

Construction Companies in-sites security management

This survey is conducted to assess construction company’s safety procedures and efforts to reduce theft of materials when placed on construction sites.

Part one

Q1. Name of the company ‘Optional’:

Q2. Market shares in construction Industry

20%

60%

20%

Construction companies market shares

LocalGCCGlobal

Q3. Do you face material lost and theft problems when handling construction materials?

80%

20%

Material theft

yesno

46

Q4. Does the company insure the purchased construction materials? And Why?

20%

80%

Materials insurance

yesno

Yes: Insurance has low cost and it is effective for the company especially when it handles big projects.No:

There are limited options for materials insurance. It is applicable for the expensive materials only. There is no actual implementation of security rules and regulations in GCC which makes

insurance unfavorable option and waste of the company financials.

Part twoQ5. How far is the distance from project site to storage yard?

70%

20%

10%

distance from project site to storage yard

<10 km<50 km<100km

Q6. Where the stock is usually stored?

47

23%

69%

8%

stock storage

Storage yard project sites suppliers storage yards

Q7. Where theft is usually discovered?

26%

74%

Theft place

Storage yard project sites

Q8. When theft is usually discovered?

75%

8%

17%

Discovering Theft

After finishing operationsOne week afterJust after shipment ar-rive

Q9. Do you keep tracking records for lost stock and conduct daily inspection?

48

A

64%

25%

11%

tracking and inspection

no records only Tracking records and inspection

B

15%

31%54%

inspection sequence

dailyweeklymonthly

Q10. Construction materials vary in size and it may need dedicated vehicles for positioning. What are the ways thieves follow in order to move those materials?

Metal basically comes on standard length of 10 meters which is hard to be stolen, but it can be cut easily into smaller pieces and can be transported without needing a vehicle.

Using small truck to carry heavy materials at late night hours especially on less populated area. Some do pretend as being a worker when there is no actual supervision. Some labors tie copper wires to their bodies and cover it by clothing so it can’t be discovered. Both logistics and project manager can manage to cooperate in theft in a legal ordering system

where theft can’t be found easily.

Q11. What are the root causes of theft?

49

Bulk quantities are hard to be controlled especially when it contains small materials even if there is a management system.

Low income labors may tend to steal to increase their income Revenge could be a cause when Unfair treatment or discrimination acts occur in work environment Some companies tend to steal from competitors to effect their market standing Resell purpose

Q12. How much annual loss rate you estimate for lost materials compared to your business revenue?

64%

25%

7%

4%

annual loss

<10%<15%<%20 <25%

Q13. What are the factors supporting theft to make it invisible and not discovered?

32%

32%

12%

24%

Theft Supporting Factors

lack of lighting No cctv camerasNo fence or de-terrentLabor

Q14. The company loses its materials and cause financial loss. How does theft affect safety stock calculation?

50

64%

36%

safety stock order

priorduring

Theft has direct impacts on safety stock forecasting in which it specifies the actual needed percentage prior projects

Some companies tend to order when a need occur but it will result in longer lead time (time between placing an order till it reaches its final destination).

Q15. In your opinion, what could be a deterrent for material theft? Suggest a method to invest on security at lower costs.

22%

22%

8%

17%

5%

17%

7%

2%

Theft Deterrents

lighting cctv camerasfence, doors or deterrentsecurity guardslabor inspectionmaterials inspectionon site supervisionwarehouse dogs Special tags

Q16. What categories of professionals are needed for security and stock management?

51

24%

12%

30%

15%

18%

professionals needed for security and stock man-

agement

security guardswarehouse managementon site supervisorsinspectorsproject managers

Q17. Does the company aware or uses inventory management software?

32%

68%

inventory manage-ment software usage

yesno

Q18. If YES ‘Optional’: Mention the system name” and how much investment is needed for establishment?

ERP Solution SAP Developed for company purpose

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Q19. How can inventory management help to grow your company?

Eliminate materials loss and theft Awareness of existing stock to help in better forecasting and annual reporting Save labors working hours Time reduction less safety stock or in advance ordering system better management specially on seasonal demands help to evaluate operations performance and problem solving support further developments for the next projects

If you kindly accept to take photo for Research Purpose

Thank you

NOTE: some of the survey questions have been retrieved from an online research (Arunprakash, 2013)

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APPENDIX 2 (PROOF OF ATTENDANCE)

“Visitor card for GULF Property exhibition”

Luckily managed to get special invitation to AYKON CITY project of DAMAC PROPERTY sponsorship. The event was hosted by Weston Bahrain hotel city center, Friday from 10am to 10 pm.

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APPENDIX 3 (SEMINARS PROGRAMME ATTENDANCE AND INTERVIEWERS BUSINESS CARDS)

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APPENDIX 4 ( GDP GROWTH)

Bahrain market shares in construction industry in 2012, 2013 and 2014. The annual GDP of 2014 shows large growth on the third and fourth quarters. (BEDB, 2015)

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APPENDIX 5 (ORDERS DOCUMENTATION)

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