Lecture 2 - Overview of The Construction Industry

CIV511-Construction Methods & Project Management
LECTURE -2
OVERVIEW OF THE
CONSTRUCTION INDUSTRY
Dr. J. Berlin P. Juanzon CE, MBA,MSCM

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 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.
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
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:
COST
Construction
Project
Management
System
QUALITY TIME
Residential
Types
– Single family houses
– Multi family dwellings
– High-rise apartments &
condominiums
30-35 % of the industry
Low 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
Institutional and Commercial
Construction
– Churches and Synagogues
– Prisons
– Courthouses and other
government buildings
35-40 % of construction market
Larger 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
Heavy Construction
Pipelines and Sewer Systems
Water 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
End of Lecture 2
Thank you for listening…

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CIV511-Construction Methods & Project Management

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

Construction is the act, process, or manner

Negotiated contracts are typical

Thank you for listening…

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