Lecture 1 overview of the construction industry
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Dr. J. Berlin P. Juanzon CE, MBA,MSCM
CE142-Construction Methods & Project Management
LECTURE -1OVERVIEW OF THE CONSTRUCTION INDUSTRY
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Learning Outcomes Familiarize with the construction industry and its
environment. Identify and define construction management
goals. Understand the construction management
process. Determine the different participants in
implementing a construction project. Determine the different phases in implementing
construction project. Identify the major industry divisions in
construction
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CONSTRUCTION INDUSTRY SERVICES
Construction infrastructure projects are one of the most important factors in supporting the socio-economic development in the country. It could generate downstream economic activities and completely enhance productivity and competitiveness in the Construction industry.
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Overview of the Construction Industry
6% of GDP (Gross Domestic Product)
Employs over 2,000,000 workers Annual Volume exceeds Ph238
billion Vital to the Nation’s economic
health and quality of life
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CONSTRUCTION PROJECT ENVIRONMENT
Construction is the act, process, or manner of building, constructing, or forming something which requires the application of special engineering and/or architectural knowledge and skills and involving the use of specialized building trades or crafts.
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Overview of the Construction Industry
4 - Categories of construction
1. Residential Construction
2. (Institutional & Commercial) Building Construction
3. Infrastructure and Heavy Highway Construction
4. Industrial Construction
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Project Goal
The primary goal of the construction project management team is to complete the projects as specified according to plans, on schedule, within the budget and achieve the best quality level required by the contract
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Project Goal
In order to achieve this goal a construction management system will serve as a guide:
Construction Project
Management System
COST
QUALITY
TIME
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Overview of the Construction Industry
Residential Types
– Single family houses– Multi family dwellings– High-rise apartments &
condominiums
30-35 % of the industryLow capital and technology
requirements
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Overview of the Construction Industry
Residential (continued)
Largely private
Often speculative
Developers =
surrogate owners
Designed by architects, builders/developers
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Overview of the Construction Industry
Building Construction
Institutional and Commercial Construction
– Schools and universities– Medical clinics and hospitals– Recreational facilities and
sports stadiums
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Overview of the Construction Industry
Building Construction
– Retail stores and shopping centers
– Warehouses and light manufacturing
– Office buildings (single story to sky scrappers)
– Hotels, convention centers, and theaters
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Overview of the Construction Industry
Building ConstructionInstitutional and Commercial
Construction– Churches and Synagogues– Prisons– Courthouses and other
government buildings
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Overview of the Construction Industry
Building Construction
35-40 % of construction marketLarger and more complex than
residential Various owners (mostly private)Designed by architects and engineers
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Overview of the Construction Industry
Heavy Highway Construction
Horizontal Construction
20-25% of the construction industry
Mostly public financing or large consortium
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Overview of the Construction Industry
Heavy Construction
Highway & Bridges
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Overview of the Construction Industry
Heavy Construction
Railroads & Urban Transit Systems
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Overview of the Construction Industry
Heavy Construction
Tunnels
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Overview of the Construction Industry
Heavy Construction
Dams
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Overview of the Construction Industry
Heavy Construction
Airports
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Overview of the Construction Industry
Heavy Construction
Canals
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Overview of the Construction Industry
Heavy Construction
Ports and Harbors
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Overview of the Construction IndustryHeavy Construction
Pipelines and Sewer SystemsWater treatment & distribution
systems
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Overview of the Construction Industry
Heavy Construction
Power & communication networks
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Overview of the Construction Industry
Heavy Construction
Mass quantities of basic materials: earth, rock, steel, timber, and concrete
Constructors need knowledge of engineering and geology
Engineers and builders are often specialized
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Overview of the Construction Industry
Heavy Construction
Greatest impact on land and water
High degree of mechanization
Contracts awarded through
competitive bidding
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Overview of the Construction Industry
Industrial Construction
Very large scale projects
High degree of technological complexity
Designed and built by the largest firms with the highest level of technical sophistication
Represent 5-10% of the market
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Overview of the Construction Industry
Industrial Construction
Petroleum refineries
Steel mills & aluminum plants
Chemical processing plants
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Overview of the Construction Industry
Industrial Construction
Fossil fuel & nuclear power plants
Other heavy manufacturing facilities
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Overview of the Construction Industry
Industrial Construction
Complex mechanical systems, process piping, and instrumentation
Civil, but also mechanical, chemical, and electrical engineering disciplines involved
Mostly private ownership (in western countries)
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Overview of the Construction Industry
Industrial Construction
Negotiated contracts are typical
“Turnkey” contract arrangements are common
Design-constructor must be intimately familiar with the technology and operations of the facility