Construction Industry Essay

This document serves the purpose of critically analysing the differences that exist between managing construction projects and I.T Projects

Clough, Richard H, Glenn A. Sears, S K. Sears, Robert O. Segner, and Jerald L. Rounds. Construction Contracting: A Practical Guide to Company Management. , 2015. Print.

The construction sector drives a country’s economy. In Australia, the construction industry is a major role of economic growth and is the fourth largest contributor to Australia’s gross domestic product (GDP) (ABS 2010). By 2056, economy activity is estimated to increase five times, energy consumption and manufacturing activity to triple with the population growth increase by over 50% (Akadiri, Chinyio and Olomolaiye 2012). With construction industry affecting the economy, ultimately, it also affects the social, cultural and environmental aspects of the country.

In construction projects, mostly the firms (in this case the firms become client) do not have the skills or develop skills inside the firms to undertake the projects due to amount of the projects should be conducted or the complexity of the projects (Reve and Levitt, 1984). Therefore, the economic decision to conduct the projects is to procure them to third parties. However, more commonly the client agonize the final quality of the projects will meet standard requirements. Thus, impacts to involvement of complex contracts of construction procurement.

The construction industry is a major contributor to the world wide. The long term objectives of any

Construction projects are always unique and risks raise from a number of the different sources. Construction projects are inherently complex and dynamic, and involving multiple feedback processes. A lot of participants – individuals and organizations are actively involved in the construction project, and they interests may be positively or negatively affected as a result of the project execution or project completion. Different participants with different experience and skills usually have different expectations and interests. This naturally creates problems and confusion for even the most experienced project managers and contractors.

This case study of Material Management which focuses on Residential Project makes an attempt on studying and observing the principles of material management and the practices in given residential project. The objectives of this present study well has been to understand about the various problems that occur in the given organization as a result of improper application of the approach in material management. In operation of construction project, there is a variance project cost in terms of material, subcontractor, equipments, overhead cost, manpower, and general condition. Hence, if material management is not done properly it might create huge project cost variance.

This paper is motivated first, by the adverse effects of rework on construction projects. Rework has been acknowledged as being the primary factor contributing to cost overruns and schedule delays (Chan and Kumaraswamy, 1997 and Love, 2001, cited in Love, 2002a; Love, 2002b; Love and Edwards, 2004; CII, 2001b, cited in Palaneeswaran, 2006; Palaneeswaran, 2006; Hwang et al., 2009; Ye et al., 2014). These tangible costs have been found to be as high as 25% of contract value and 10% of project costs (Love and Li, 2000; Barber et al., 2000, cited in Love, 2002a and Simpeh et al., 2012). Other costs, such as additional manpower and resources for rework (Palaneeswaran, 2006; Tommelein

The construction industry is a dominant sector around the globe. It is a key sector that plays a significant role within any country’s’ economy, culture and social development. There are many contradictions in defining the construction industry (Barrie and Paulson, 1992). One of the clearest definitions was by the National Construction Council (NCC), which defined it as a “sector of the economy that transforms various resources into constructed physical economic and social infrastructure necessary for socio-economic development. It embraces the process by which the said physical infrastructure and planned, designed, procured, constructed or produced, altered, repaired, maintained and

There however are challenges in the industry occasioned by uncertainty on future spending on construction projects by the government. Moreover, the cost of doing business and the ability to increasingly make revenue have created a challenging environment for the construction firms. Therefore stakeholders in the construction industry are concerned with whether the government would increase its spending and whether the public construction projects will be available in the future since less than 10 percent are currently financing their clients.

The construction industry plays an integral role in the economies by providing infrastructure to all other industries. This report discusses the factors that are pertinent to establishing construction operations in the European market, with a main focus on Prime Constructions Company Ltd. The assessment of the markets is discussed with an entry mode proposed. Moreover, the supply chain the company would need to adopt as well as the innovation strategies and risks therein are also discussed.

IDENTIFY THE MAIN FACTORS WHICH DETERMINE THE DEMAND FOR THE CONSTRUCTION OF BUILT FACILITIES AND OUTLINE HOW THESE FACTORS HAVE OPERATED ON THIS DEMAND IN THE LAST TWO YEARS.

Construction labour productivity has become big problem in construction industry. In many countries, labour cost comprises 30 to 50% of the overall project’s cost (Yates and Guhathakurta, 1993), and thus is regarded as a true reflection of the economic success. Because construction is labour-intensive industry, significance of this effect not only justifies the concern over its labour productivity, but it can also be argued that labour power is the only productive resource.

Construction projects are complex and unique projects. Delays, wastages and cost overruns are among the challenges faced in the course of executing construction projects. According to Forbes et al. (2004), up to 30% of construction cost overrun are due low ef-ficiencies, time overrun and

The construction industry much like other industries is dependant with the distribution of “scarce resources” (Drake,1994). Many of its resources known as the factors or production i.e. labour, capital, land etc. are limited (Gregory-Mankiw, 2008), however, wants and desires within the industry are infinite (Myers, 2013). Kishtainy notes that this creates two problems; at any given time, there will be a fixed number of resource, against numerous wants. Sloman 2003 adds that in an effort to rectify this, he argues that we must make choices, in terms of choices within the construction industry Myers suggested that firms need to considered their investments made, how they construct and for whom they construct for.