Materials management is an important element in project planning and control. Materials represent a major expense in construction projects. It is reported that materials and required equipments make 70% of the total project cost. Improper handling and management of material on the site adversely affects the cost of the project. Materials management is an important function in order to improve productivity in construction projects. This makes it necessary to implement material management practices on large projects. India is a developing country and bringing it in the line of developed countries, main focus is paid on infrastructure development. Numerous large projects such as metro rail, tunneling, construction of big malls are in progress. Hence it becomes necessary to study and implement material management practices. A properly implemented materials management program can achieve the timely flow of materials and equipment to the jobsite, and thus facilitate improved planning, increased labor productivity, better schedules, and lower project costs. This paper focuses on different material management practices adopted on sites and discusses their advantages and disadvantages affecting the economy of the project.