The Nature Of The Construction Industry

1391 Words May 22nd, 2016 6 Pages
2.2 Nature of the Construction Sector
The Construction industry is the third largest industry in Australia with only behind mining and finance. Thus, it is safe to say construction industry is the one of the key components of the Australian economy. It comprises 8% of Gross Domestic Product (GDP) and employs more than one million people which is almost 9% of the total workforce (AI Group 2015). The construction industry operates in both the private and public sector (AI Group 2015) Furthermore, construction is mainly divided into three broad areas (AI Group 2015).Three broad areas of construction industry are:
• Engineering construction (infrastructures like road, highways, dams, mining projects etc.
• Non-residential building (shops, hotels, offices, etc.)
• Residential building (single/ double story houses, townhouses, etc.)

A diverse range of products and services are provided by the construction industry. It comprises of 330,000 businesses Australia wide but due to its nature of subcontracting and licenced trade specialisation, this industry is comprised of many small businesses. Almost 98% of construction businesses employees less than 20 people, while 82.2% of these businesses are trade based such as plumber, electrician, masonry, carpentry, etc. (AI Group 2015).

2.2.1 Residential Building Construction
The Australian Bureau of Statistics (ABS) cited in (BIS Shrapnel 2015) defines residential building as
“A dwelling or residential building as a rigid, fixed and…
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