lecture 1 overview of the construction industry

Dr. J. Berlin P. Juanzon CE, MBA,MSCM

CE142-Construction Methods & Project Management

LECTURE -1OVERVIEW OF THE CONSTRUCTION INDUSTRY

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

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.

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

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.


4 - Categories of construction

1. Residential Construction

2. (Institutional & Commercial) Building Construction

3. Infrastructure and Heavy Highway Construction

4. Industrial Construction

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

Project Goal

In order to achieve this goal a construction management system will serve as a guide:

Construction Project

Management System

COST

QUALITY

TIME


Residential Types

– Single family houses– Multi family dwellings– High-rise apartments &

condominiums

30-35 % of the industryLow capital and technology

requirements


Residential (continued)

Largely private

Often speculative

Developers =

surrogate owners

Designed by architects, builders/developers


Building Construction

Institutional and Commercial Construction

– Schools and universities– Medical clinics and hospitals– Recreational facilities and

sports stadiums



– Retail stores and shopping centers

– Warehouses and light manufacturing

– Office buildings (single story to sky scrappers)

– Hotels, convention centers, and theaters


Building ConstructionInstitutional and Commercial

Construction– Churches and Synagogues– Prisons– Courthouses and other

government buildings



35-40 % of construction marketLarger and more complex than

residential Various owners (mostly private)Designed by architects and engineers


Heavy Highway Construction

Horizontal Construction

20-25% of the construction industry

Mostly public financing or large consortium


Heavy Construction

Highway & Bridges


Heavy Construction

Railroads & Urban Transit Systems


Heavy Construction

Tunnels


Heavy Construction

Dams


Heavy Construction

Airports


Heavy Construction

Canals


Heavy Construction

Ports and Harbors

Overview of the Construction IndustryHeavy Construction

Pipelines and Sewer SystemsWater treatment & distribution

systems


Heavy Construction

Power & communication networks


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


Heavy Construction

Greatest impact on land and water

High degree of mechanization

Contracts awarded through

competitive bidding


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



Petroleum refineries

Steel mills & aluminum plants

Chemical processing plants



Fossil fuel & nuclear power plants

Other heavy manufacturing facilities



Complex mechanical systems, process piping, and instrumentation

Civil, but also mechanical, chemical, and electrical engineering disciplines involved

Mostly private ownership (in western countries)



Negotiated contracts are typical

“Turnkey” contract arrangements are common

Design-constructor must be intimately familiar with the technology and operations of the facility

lecture 1 overview of the construction industry

Engineering