Professional Documents
Culture Documents
Unit 2
Unit 2
• Engineers are normally the lead designers for heavy civil/ and
infrastructure projects.
• They may subcontract part of the work such as train stations or
office buildings to an architect
Organization of Construction industry
• Construction Managers
• During the 1970s the term construction manager became
popular.
• But today "construction manager" has many different
meanings. Some contractors now call themselves construction
managers.
• Some engineering and architectural firms offer construction
management services, indicating usually that they represent
the owner during construction.
• To make the definition even more difficult, there are some
government agencies that have employees who are
construction managers.
Organization of Construction industry
• Trades, labor unions and labor force
• The trades consist of both union and open shop workers.
• The rules of employment vary by state and locality.
• The unions are organized by craft, with specific unions
representing workers within a certain trade.
• Labor Union’s initial purpose was to improve the lives of their
members.
• The unions are generally formed around crafts and trades, but
today many unions represent several trades, not only the one
trade that carries their name.
Organization of Construction industry
• Insurance Companies
• Contractors are required to provide bid bonds as a condition of
being allowed to bid, and then they must provide insurance,
performance bonds, and payment bonds prior to award of the
contract.
• Insurance companies provide all such bid bonds.
• They also provide insurance to any potential loss to the project.
Organization of Construction industry
• Banks
• Banks provide the working capital contractors need to build
the project.
• In some countries, a payment is made to the contractor at the
time of the contract award to provide working capital.
• Suppliers
• Everything from concrete to paint comes from suppliers.
• Many suppliers assist the contractors in preparing their bids,
preparing shop drawings, and fabricating items specifically for
individual projects.
• The quality of a construction project is very dependent on the
quality of the suppliers used by individual contractors.
Organization of Construction industry
• Permitting Agencies and Building Authorities
• These agencies represent the interests of public safety.
• Agencies in this group include federal agencies such as the National
Highway Authority, Water Supply, WAPDA
• Public
• The public is impacted by every construction contract.
Impacts are both good and bad.
• Voters approve bond issues for new schools and other public facilities.
• The public is inconvenienced while highways are widened or repaired.
• Individual members of the public wait while their homes are
constructed.
The End