The advent of Radio Frequency Identification (RFID) technology has created new opportunities for improving the material management function in the construction industry and is starting to provide major improvements in the efficiency of the material management process. The objective of the research reported herein was to introduce the benefits of RFID technology on material management in the construction industry. RFID technology is discussed and various aspects of this technology are investigated. Potential RFID applications on material management proposed by Construction Industry Institute (CII) Breakthrough Strategy Committee (BTSC) and Fully Integrated and Automated Technology (FIATECH) are spelled out Finally, business analysis of RFID to estimate its impact is provided. It is concluded that there is a significant potential for improvement of material management function in the construction industry through the use of RFID.