HC-Lecture03-The-Construction-Industry

HC-Lecture03-The-Construction-Industry - Heavy Construction...

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Heavy Construction Heavy Construction Lecture #03 Lecture #03 The Construction Industry L Prieto-Portar, 2008
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New construction for the year 2006 is projected to be about $700 billion, as reported by McGraw-Hill Construction. This would make the construction industry the single largest business sector of the USA. Residential construction represents about $210 billion. Non-residential building (hotels and office buildings) is expected to be about $110 billion. Industrial and heavy construction combined is expected to be the remaining $380 billion, of which about $60 billion is for highways. Although construction is the largest industry in the nation and represents approximately 10% of the domestic gross product, the listings of the nation’s largest businesses (such as reported by Forbes or Fortune) rarely list construction firms among the top 500 national firms. The reason is that most construction firms are medium and small in size compared to say, steel, petroleum and other heavy industries. The latter are very capital intense. Construction is less capital intense but require higher quality people, endowed with great initiative. Construction people tend to be more independent and usually work as small subcontractors and independent businessmen.
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Modern management in construction. The construction industry is evolving into ever increasing levels of complex interdependencies between owners, design professionals, financial institutions, contractors, material and system providers and service organizations. The task of the project manager is to create a harmonious environment for all of these entities to work for a common goal: a successful project that is completed on time and within budget. At this time, China and India represent half of the world’s population. Their increasing demand for energy and materials (steel, cement, etc) has created an increasing shortage of resources in the rest of the world. Project managers can no longer expect to receive their materials and systems at the agreed price or on time. Skilled workers are becoming scarcer. Also, there are increasing discrepancies in available skills. For example, the design engineer may charge $60,000 to prepare a set of complex calculations and drawings for a forty story building. At the same time, the crane operators, electricians and plumbers on that job may earn in excess of $95,000. Government regulations become more complex with each passing year. Today, most
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This note was uploaded on 09/15/2011 for the course CCE 4001 taught by Professor Staff during the Fall '08 term at FIU.

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HC-Lecture03-The-Construction-Industry - Heavy Construction...

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