OVERVIEW 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.
Overview of the Construction Industry

4 - Categories of construction
• Residential Construction
• Institutional & Commercial)
Building Construction
• Infrastructure and Heavy
Highway Construction
• 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 involve
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
 MANAGEMENT
• Management (or managing) is
the administration of an organization, whether it is
a business, a not-for-profit organization, or
government body.
• Management includes the activities of setting
the strategy of an organization and coordinating the
efforts of its employees (or of volunteers) to
accomplish its objectives through the application of
available resources, such
as financial, natural, technological, and human
resources.
• The term "management" may also refer to those
people who manage an organization.