Dr. J. Berlin P.

Juanzon CE, MBA,MSCM

CE142-Construction Methods & Project Management
LECTURE -1
OVERVIEW OF THE CONSTRUCTION INDUSTRY
CONSTRUCTI ON I NDUSTRY
SERVI CES
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.
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 Industry
6% of GDP (Gross Domestic Product)
Employs over 2,000,000 workers
Annual Volume exceeds Ph238 billion
Vital to the Nations economic health
and quality of life
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

Overview of the Construction Industry
Residential
Types
Single family houses
Multi family dwellings
High-rise apartments &
condominiums
30-35 % of the industry
Low capital and technology
requirements


Overview of the Construction
Industry
Residential (continued)
Largely private
Often speculative
Developers =
surrogate owners
Designed by architects,
builders/developers

Overview of the Construction Industry
Building Construction
Institutional and Commercial
Construction
Schools and universities
Medical clinics and hospitals
Recreational facilities and sports
stadiums



Overview of the Construction Industry
Building Construction
Retail stores and shopping
centers
Warehouses and light
manufacturing
Office buildings (single story to
sky scrappers)
Hotels, convention centers, and
theaters



Overview of the Construction Industry
Building Construction
Institutional and Commercial
Construction
Churches and Synagogues
Prisons
Courthouses and other
government buildings





Overview of the Construction Industry
Building Construction
35-40 % of construction market
Larger and more complex than
residential
Various owners (mostly private)
Designed by architects and
engineers




Overview of the Construction Industry
Heavy Highway Construction
Horizontal Construction
20-25% of the construction industry
Mostly public financing or large
consortium





Overview of the Construction Industry
Heavy Construction
Highway & Bridges


Overview of the Construction Industry
Heavy Construction
Railroads & Urban Transit Systems





Overview of the Construction Industry
Heavy Construction
Tunnels


Overview of the Construction Industry
Heavy Construction
Dams




Overview of the Construction Industry
Heavy Construction
Airports




Overview of the Construction Industry
Heavy Construction
Canals




Overview of the Construction Industry
Heavy Construction
Ports and Harbors




Overview of the Construction Industry
Heavy Construction
Pipelines and Sewer Systems
Water treatment & distribution systems




Overview of the Construction Industry
Heavy Construction
Power & communication networks




Overview of the Construction Industry
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


Overview of the Construction Industry
Heavy Construction
Greatest impact on land and water
High degree of mechanization
Contracts awarded through
competitive bidding



Overview of the Construction Industry
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

Overview of the Construction Industry
Industrial Construction
Petroleum refineries
Steel mills & aluminum plants
Chemical processing plants


Overview of the Construction Industry
Industrial Construction
Fossil fuel & nuclear power plants
Other heavy manufacturing facilities

Overview of the Construction Industry
Industrial Construction
Complex mechanical systems, process piping,
and instrumentation
Civil, but also mechanical, chemical, and
electrical engineering disciplines involved
Mostly private ownership (in western
countries)
Overview of the Construction Industry
Industrial Construction
Negotiated contracts are typical
Turnkey contract arrangements are
common
Design-constructor must be intimately
familiar with the technology and
operations of the facility