STATUS OF

INDIAN
CONSTRUCTION
By ADITYA
BT13CIV003
INDUSTRY
HISTORY
• 1950 to mid 60’s- govt. Play an important role in
development
• Construction activities carried by state owned enterprises
and supported by govt. Departments
• First professional consultancy company – NIDC (1953)
• Design engineering and construction companies were set up
in the public sector

• The Indian construction industry comprises 200 firms in the

corporate sector.
• In addition to these firms, there are about 120,000 class A
contractors registered with various government construction
bodies.
• There are thousands of small contractors, which compete
for small jobs or work as sub-contractors of prime or other
contractors.
CHARACTERISTICS

• Differentiated from other industries by its organization and

products, its stakeholders, its projects, its processes, and its
operating environment.
• National statistical data divide the construction industry into
three subsectors:
• construction of buildings
• heavy and civil engineering construction
• specialty trade contractors
GDP CONTRIBUTION

• In India Construction has accounted for around 40 per cent

of the development investment during the past 50 years.
• Around 16 per cent of the nation's working population
depends on construction for its livelihood.
• The Indian construction industry employs over 30 million
people and creates assets worth over 200 billion.
• It contributes more than 5 per cent to the nation's GDP and
78 per cent to the gross capital formation.
• In the 21st century, there has been an increase in the share of
the construction sector in GDP and capital formation.
• The main reason for this is the increasing emphasis on
involving the private sector infrastructure development
through
• public-private partnerships and mechanisms like build-
operate-transfer (BOT),
• private sector investment has not reached the expected
levels.
BREAK DOWN STRUCTURE
SOME INTERESTING FACTS ABOUT THE
INDUSTRY

• The share of construction sector in gross domestic product (GDP), which was 5.4% in
1970-71, came down to 4.4% 1990-91. Subsequently it picked up and stood at 5.1% in
1999-2000 and now stays at a staggering 8.1% for the year 2011-2012
• Construction industry roughly employees 33million people, more than any other sector
aside from agriculture.
• The industry contribution to GDP is down from 16 per cent in the boom period,
between 2004-08. But it’s still pretty substantial and in absolute terms, the industry has
grown. The sector is very fragmented. There are hundreds of mid-sized and small
unorganised players as well as a handful of really big players. The big ones (L&T, HCC,
GMR) have become developers rather than remaining contractors.
• For 2012, projects worth an estimated Rs 140 lakh crore are estimated to be in various
stages of the pipeline according to CMIE. The Twelfth Plan alone is supposed to
contribute Rs 41 lakh crore worth of infrastructure creation with about half coming from
the private sector. Urban development, private sector projects, and so on, make up the
rest.
DELAYS IN INDIAN CONSTRUCTION
INDUSTRY

Maybe divided into 9 different categories :-

● Delay at Project level.

● Delay due to Owner.
● Delay due to Contractor.
● Delay due to consultant.
● Delay due to Designer.
● Delay due to Material.
● Delay due to Equipment.
● Delay due to labors.
● Delay due to External factors
Results and Finding :-
Sr.
no
Causes of Delay Group

1 Original contract duration is too short Project Group

2 Ineffective delay penalties Project Group

3 Delay in progress payments by owner Owner Group

4 Delay to furnish and deliver the site to the contractor by the owner Owner Group

5 Change orders by owner during construction Owner Group

6 Poor communication and coordination by owner and other parties Owner Group

7 Late in revising and approving design documents by owner Owner Group

8 Difficulties in financing project by contractor Contractor Group

9 Poor site management and supervision by the contractor Contractor Group

10 Poor qualification of the contractor’s technical staff Contractor Group

Source:- International Journal of Innovative Research and development(www.ijird.com, vol 2, issue 3)

 Result and Findings continue…
Sr. Causes of Delay Group
no

11 Delay in performing inspection and testing by consultant Consultant Group

12 Delay in approving major changes in the scope of work by consultant Consultant Group

13 Late in reviewing and approving design documents by consultant Consultant Group

14 Mistakes and discrepancies in design documents Design Group

15 Un-use of advanced engineering design software Design Group

16 Unclear and inadequate details in drawings Design Group

17 Shortage of construction materials in market Material Group

18 Changes in material types and specifications during the construction Material Group

19 Delay in material delivery Material Group

20 Late in selection of finishing materials due to availability of many types in Material Group
market
 Result and Findings continue...

Sr. Causes of Delay Group

no

21 Equipment Breakdowns Equipment Group

22 Shortage of equipment Equipment Group

23 Lack of high technology mechanical equipment Equipment Group

24 Shortage of labor Labour Group

25 Unqualified workforce Labour Group

26 Low productivity level of labors Labour Group

27 Effects of subsurface conditions(eg. Soil,high water table) External Group

28 Delay in obtaining permits from municipality External Group

29 Different site(ground) conditions External Group

30 Accident during construction External Group

CONCLUSION

• The Indian economy has witnessed considerable progress in the

past few decades.
• Most of the infrastructure development sectors moved forward,
but not to the required extent of increasing growth rate up to the
tune of 8 to 10 per cent.
• With the present emphasis on creating physical infrastructure,
massive investment is planned in this sector.
• Public Private Partnerships (PPP) approach is best suited for
finding the resources.
• Better construction management is required for optimizing
resources and maximizing productivity and efficiency.