Purpose Due to its longer length compared to other construction materials and distinctive stacking patterns, obtaining construction steel bars in congested construction sites with limited storage capacity becomes challenging. Lack of storage space in crowded places prompts the need for building steel bar storage choice optimization. Therefore, this study aims to optimize the construction steel bar procurement plan by providing when and how much rebar to order and how to stack different sizes of rebar considering limited storage capacity. Design/methodology/approach A novel approach has been presented in this paper by integrating 4D building information modelling (BIM) and mixed-integer linear programming (MILP). This technique uses BIM to retrieve material quantities, including rebar, during the design phase. Following that, activities are scheduled depending on the duration determined by crew productivity data and material quantity. Then, based on the prior price, the price of each unit of rebar is projected for the duration of construction using the exponential smoothing method. After that, the MILP approach is used to generate an optimal steel bar procurement plan for limited storage space following the scheduled rebar-related operations. Findings The developed strategy minimizes overall procurement costs and ensures the storage of rebar as per standard guidelines. An optimal rebar procurement and storage plan to construct a six-storied RC frame has been presented in this paper as a demonstrative example to show the effectiveness of the proposed method. Originality/value This work partially satisfies a long-sought research need for establishing a comprehensive construction steel bar procurement system, making it a very useful source of information for practitioners and researchers. The proposed method can be used to minimize a key performance limitation that the conventional rebar procurement practice for crowded building sites may experience.