High accuracy of construction materials tracking with radio frequency identification technology (RFID) is challenging to achieve. The microzoning method consists essentially of an absolute received signal strength indication (RSSI) positioning algorithm on the basis of measuring the distance of tag from antennas base. In this paper, we analyse and examine the effects of microzoning method on the performance of RFID tags. A system was set up whereby RFID tags and antennas with the microzoning method were developed and studied. The performance of the tag antennas was studied with the practical read-range measurements. The study results showed that this absolute algorithm worked reliably and was suitable for RFID applications requiring identification of positions of onsite materials and components. The results also showed that the algorithm achieved a large read range and high accuracy. The study investigates the RFID solutions for Australian LNG (liquefied natural gas) industry and was initiated by the collaboration between Woodside Energy, Curtin University, and Industrial Automation Group Pty Ltd.