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Chapter One Construction Industry

The document discusses the construction industry and construction management. It describes the construction industry as the activity of creating physical infrastructure and facilities. The construction industry is essential to economic growth and improves quality of life. Major sectors include transport/communication, water/energy, and buildings. Construction provides capital improvements and jobs. Typical project phases include pre-project planning, design, contractor selection, project mobilization, operations on site, and closeout. The construction process and stakeholders involved in projects are also outlined.

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Refisa Jiru
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191 views17 pages

Chapter One Construction Industry

The document discusses the construction industry and construction management. It describes the construction industry as the activity of creating physical infrastructure and facilities. The construction industry is essential to economic growth and improves quality of life. Major sectors include transport/communication, water/energy, and buildings. Construction provides capital improvements and jobs. Typical project phases include pre-project planning, design, contractor selection, project mobilization, operations on site, and closeout. The construction process and stakeholders involved in projects are also outlined.

Uploaded by

Refisa Jiru
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Jimma UNIVERSITY

JIMMA INSTITUTE OF TECHNOLOGY

SCHOOL OF CIVIL AND ENVIRONMENTAL ENGINEERING

CONSTRUCTION MANAGEMENT

CHAPTER ONE
Construction Industry

1 Lecture Notes By: Ahmed N.


Construction industry
 The term construction is generally used to describe:

 the activity of the creation of physical infrastructure,

superstructure & related facilities

 all types of activities associated with the erection and

repair of immobile structures & facilities

 Essential to the growth of a nation and a key sector in the nation’s

economy.

 The products of construction contribute extensively towards the

creation of wealth and the quality of life of the population


2 Lecture Notes By: Ahmed N.
 The Construction Industry can be categorized into three
major sectors:
 Transport & Communication (Road, Railway, Airway,

Telecommunication related physical works…)

 Water works & Energy ( Water works, Hydropower etc)

 Buildings & other physical infrastructure

 The construction business furnishes capital improvements to countries

 The construction industry often makes skills more immediately

rewarding and that is why mostly workers in this industry became


more prosperous professionals than in other industries.

3 Lecture Notes By: Ahmed N.


Some different characteristics from other industries
 Converging (many components and many flows going together
in to one object),

 Temporary (project being set up just for one object)

 Highly fragmented with significant negative impacts

 More complex & often related to changes & uncertainties.

 Amplified reaction in economic crisis

 Labor intensive

 Land dependence

4 Lecture Notes By: Ahmed N.


 Challenges of the industry
 Low productivity

 Cost and time target failure

 Quality failures

 Conflicts and disputes

 Waste during construction process

 Image (One of the worst public image among


industrial sectors, Dirty, dull, & environmentally
insensitive)
 have the highest incident rate of fatal accidents and
serious injuries of all industries.
5 Lecture Notes By: Ahmed N.
 Firms (stakeholders) under the construction
industries
 Client/Employer – Demand recognition, Project scope
definition, Project financing, Administration (limited),
Organization & risk allocations
 Constructors – Project construction, Works implementation,
Contract administration & Market promotion & study
 Consultants – Demand articulation, Project Reformulations,
Design Implementation and Contract Administration
 Suppliers / Sub contractors - Same as Consultants and
Constructors but for Outsourced activities and Input resources
sources
 Financers/Sponsors - Demand Articulations; Project Scope
Redefinitions; Project Financing and Monitoring
 Public works bodies - Regulatory services for overall
implementation of Policies, Standards, Codes, etc
 Beneficiaries / Users - Demand Emergence; Users
6 Lecture Notes By: Ahmed N.
Contribution of Construction Industry to National
Economy:
1. Most aids/grants and loans involves construction and
infrastructure of engineering nature
2. Infrastructure projects improves trade and business

3. Construction industry boost other industry such as; manufacturing


and service industry
4. It helps generate employment, both foreign and local jobs

5. It contributes to domestic employment and improves local


business
6. Most investments entail construction works.

7. Construction improves the life of ordinary people

7 Lecture Notes By: Ahmed N.


Phase of typical construction project
 A project passes through a number of distinct phases or

stages from project conception, through execution into


project completion.

 These phases although may overlap is known as the

"project life cycle".

8 Lecture Notes By: Ahmed N.


I. Pre-project phase
A construction project begins with:
 an idea,

 a perceived need,

 a desire to improve or add to productive capacity or

 the wish for more efficient provision of some public

service

9 Lecture Notes By: Ahmed N.


 Among the first things the owner must do is:

 To decide what sort of project delivery system will be used.

 How will the various parties be related?

 Will the owner engage a design professional to prepare

plans and specifications and then contract separately with a


construction contractor?
 Or, will a single entity be responsible for the entire project?

10 Lecture Notes By: Ahmed N.


II. Planning and design phase

 The project is fully defined and made ready for contractor

selection and deployment during the planning and design


phase.
 This phase can be divided into three stages.

In the first stage


 define the project’s objectives,
 consider alternative ways to attain those objectives and
 ascertain whether the project is financially feasible.

11 Lecture Notes By: Ahmed N.


In this process of planning and feasibility study ,

 a project brief will be developed,

 various sites may be investigated,

 public input may be sought,

 a preliminary cost estimate will be prepared,

 funding sources will be identified and

 a final decision on whether to proceed with the project

will be rendered.

12 Lecture Notes By: Ahmed N.


In the second stage,
 the design professional will use the results of the planning

efforts to develop schematic diagrams


 detailed design of the structural, electrical and other systems.

In the third stage,


 contract documents are prepared for use in contractor

selection and installation work at the construction site.

13 Lecture Notes By: Ahmed N.


III. Contractor selection phase
 In anticipation of selecting a contractor, the owner must
decide whether an open invitation will be issued to all
possible vendors or
 whether only certain contractors will be invited to submit
offers and
 whether any sort of pre-qualification process will be
invoked to limit the number of tenders.
 The last step in this phase is the submittal, opening and
evaluation of tenders, the selection of the successful
contractor and the finalization of the construction contract.

14 Lecture Notes By: Ahmed N.


IV. Project mobilization phase

After the contractor is selected, a number of activities must be


completed before installation work can begin at the project site.
 Various bonds, licenses and insurances must be secured.

 A detailed program for the construction activities must be

prepared.
 The worksite must be organized, with provisions for

temporary buildings and services, access and delivery,


storage areas and site security.

15 Lecture Notes By: Ahmed N.


V. Project operations phase

In presenting the contractor’s activities on the construction site the


responsibilities involve three basic areas
 monitoring and control,

 resource management and

 documentation and communication

16 Lecture Notes By: Ahmed N.


VI. Project closeout and termination phase

Activities must take place before the contractor’s responsibilities


can be considered complete are:
 testing and startup tasks, the final cleanup, various inspections
and remedial work that may result from them and
 the process of closing the construction office and terminating
the staff’s employment.
 approvals and certifications that allow the contractor to
receive final payment,
 the contractor will also be responsible for transferring and
archiving project records

17 Lecture Notes By: Ahmed N.

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