Materials should be procured quickly when the contract is executed, to ensure materials are available when and wherever needed at job site. Normally, the engineering department determines the materials and job requirements. The required materials quantity must be complete and contains the necessary information in order to estimate and procure the materials. Materials can be divided into two categories for the purpose of construction cost analysis.

a$)$ Explain the concept of direct and indirect materials in construction cost analysis.

b$)$ How does the careful management of direct and indirect materials contribute to effective budgeting and financial planning in the construction industry? Illustrate your answer