lecture 1- overview of the construction industry

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Dr. J. Berlin P. Juanzon CE, MBA,MSCMCE142-Construction Methods & Project Management

LECTURE -1OVERVIEW OF THE CONSTRUCTION INDUSTRYCONSTRUCTION INDUSTRY SERVICESConstruction 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. The construction of a building or infrastructure involves first an assembly of people, a definition of process, and creation of site specific work space.Overview of the Construction Industry6% of GDP (Gross Domestic Product)Employs over 2,000,000 workersAnnual Volume exceeds Ph238 billionVital to the Nations economic health and quality of life

Overview of the Construction Industry4 - Categories of constructionResidential Construction(Institutional & Commercial) Building ConstructionInfrastructure and Heavy Highway ConstructionIndustrial Construction

Overview of the Construction IndustryResidential (continued) Largely privateOften speculativeDevelopers = surrogate ownersDesigned by architects, builders/developers

Overview of the Construction IndustryBuilding ConstructionInstitutional and Commercial ConstructionSchools and universitiesMedical clinics and hospitalsRecreational facilities and sports stadiums

Overview of the Construction IndustryBuilding ConstructionRetail stores and shopping centersWarehouses and light manufacturingOffice buildings (single story to sky scrappers)Hotels, convention centers, and theaters

Overview of the Construction IndustryBuilding ConstructionInstitutional and Commercial ConstructionChurches and SynagoguesPrisonsCourthouses and other government buildings

Overview of the Construction IndustryBuilding Construction35-40 % of construction marketLarger and more complex than residential Various owners (mostly private)Designed by architects and engineers

Overview of the Construction IndustryHeavy Highway ConstructionHorizontal Construction20-25% of the construction industryMostly public financing or large consortium

Overview of the Construction IndustryHeavy ConstructionHighway & Bridges

Overview of the Construction IndustryHeavy ConstructionRailroads & Urban Transit Systems

Overview of the Construction IndustryHeavy ConstructionTunnels

Overview of the Construction IndustryHeavy ConstructionDams

Overview of the Construction IndustryHeavy ConstructionAirports

Overview of the Construction IndustryHeavy ConstructionCanals

Overview of the Construction IndustryHeavy ConstructionPorts and Harbors

Overview of the Construction IndustryHeavy ConstructionPipelines and Sewer SystemsWater treatment & distribution systems

Overview of the Construction IndustryHeavy ConstructionPower & communication networks

Overview of the Construction IndustryHeavy ConstructionMass quantities of basic materials: earth, rock, steel, timber, and concreteConstructors need knowledge of engineering and geologyEngineers and builders are often specialized

Overview of the Construction IndustryHeavy ConstructionGreatest impact on land and waterHigh degree of mechanizationContracts awarded through competitive bidding

Overview of the Construction IndustryIndustrial ConstructionVery large scale projectsHigh degree of technological complexityDesigned and built by the largest firms with the highest level of technical sophisticationRepresent 5-10% of the market

Overview of the Construction IndustryIndustrial ConstructionPetroleum refineriesSteel mills & aluminum plantsChemical processing plants

Overview of the Construction IndustryIndustrial ConstructionFossil fuel & nuclear power plantsOther heavy manufacturing facilities

Overview of the Construction IndustryIndustrial ConstructionComplex mechanical systems, process piping, and instrumentationCivil, but also mechanical, chemical, and electrical engineering disciplines involvedMostly private ownership (in western countries) Overview of the Construction IndustryIndustrial ConstructionNegotiated contracts are typicalTurnkey contract arrangements are commonDesign-constructor must be intimately familiar with the technology and operations of the facility