CONSTRUCTION PROJECT MANAGEMENT

OVERVIEW OF
CONSTRUCTION INDUSTRY
AND PROJECTS

Gülben ÇALIŞ, Associate Professor

Ege University, Faculty of Engineering,

Department of Civil Engineering
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CONTENTS
► THE CONSTRUCTION INDUSTRY
► PROJECT PARTICIPANTS
► PROJECT DELIVERY SYSTEMS
► SEQUENCE OF A CONSTRUCTION PROJECT

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THE CONSTRUCTION
INDUSTRY
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What is Construction?
► Massive, worldwide effort to build various
types of structures and facilities
► Accomplished by assembling materials,
parts, and systems into the major
subsections of the structure
► Finished structure becomes part of business
and life

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The Past
► Self-styled construction to provide shelter
for their families
► Master Builder system
 Architect / Engineer / Contractor combined
► Construction techniques evolved over the
centuries
 The need for community facilities
 Industrialization

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New View
► Money availability (financing) is a major
factor
► Balance of cost, scope, quality and time

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Construction Industry
► The overall maze of large organizations and
smaller companies that facilitate building
► Numerous persons, firms, organizations and
corporations perform a group of related, but
very different activities, in building.

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Service or Goods Producing

Industry?
► Designers who complete studies and designs for
clients provide a service
► Contractors who build facilities produce a product
► Contractors must service the needs of their customers,
but the product of construction is not a service, it is a
product built in accordance with the plans,
specifications, and expectations of the owner.
► Construction is described as a single industry, just as
the manufacture and sale of automobiles is described
as automobile industry.
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Size of Construction Industry

► Includes more than work of building structures on a
construction site
 Engineers and architects who design the project
 Manufacturers and distributors of materials and equipment that go into
structures
 Construction managers who manage site work
 Unions and tradespeople who do the work
 Municipal officials who review plans and enforce building codes
 Workers at concrete batch plants where concrete is proportioned for
delivery
 Workforces in manufacturing facilities assembling prefabricated
components.
► Worldwide, construction accounts for more than $4 trillion
of in-place work annually.
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Construction Industry Worldwide

(2016-2020)
► China, the largest construction market
► Based on the CIC's (Construction Intelligence Center) the
global construction industry is projected to grow from $7.4
trillion in 2010 to $10.3 trillion in 2020
► The Middle East and Africa region are predicted to be the
fastest growing in 2016-2020
► This reflects the huge investment in infrastructure
and buildings that is taking place in Qatar, Saudi
Arabia and the United Arab Emirates (UAE), while
the slowing rate of growth in China's construction
industry is a key factor driving the deceleration in
Asia-Pacific.
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Construction in Turkey
► The GDP of construction sector is over 6% and more than 1.5 million
people are currently employed by this sector. When the direct and indirect
impacts on other sectors are taken into account, the share of the
construction sector in the Turkish economy reaches 30% and the
employment rate reaches 10%.
► In 2015, Construction GDP was 31,6 billion $
► 185.000 construction companies, 1,8 million employees
► Turkish companies have been active particularly in Russia, Turkmenistan,
Libya, Iraq, Qatar, Suudi Arabia, Kazakhstan, Azerbeijan etc.
► Total international Project volume between 1972-2016 is 325,4 billion $

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Construction in Turkey

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Construction in Turkey

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Construction in Turkey
► “The World’s Top 250 International Contractors” announced by the leading
international industry magazine “ENR- Engineering News Record”

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Construction in Turkey
► 37 Turkish contracting companies were ranked among “The World’s Top
250 International Contractors” announced by the leading international
industry magazine “ENR- Engineering News Record” in 2016.

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Construction in Turkey

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The People of Construction Industry

► Construction industry involves a tremendous
number of skilled trades
► It includes an array of highly trained workers who
apply their training, knowledge and ability through
hands-on activities.
 Bricklayers, concrete finishers, ironworkers, painters,
carpenters, welders, etc.
► Unskilled workers such as laborers, carpenter
helpers, etc. provide direct aid and support to
those in the skilled trades.

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The People (Cont.)

► Behind and supporting actual construction work is
a massive collaboration of people from different
areas of expertise.
► Design professionals (designers) establish what is
to be constructed, and what materials, systems,
types of construction and ancillary features are to
be used or incorporated into the project.
► Other engineering professionals apply calculated
solutions for structural problems, and establish
systems capacities such as electrical, plumbing,
heating and cooling to be added to the basic
design.
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The People (Cont.)

► Design instructions must be broken down into minute
items, so they can be coordinated and incorporated
through proper and timely ordering and shipping.
► Each project must be managed to control cost, to provide
adequate staff, to schedule, to control and oversee, and to
coordinate in a manner profitable to all parties.
► Manufacturers produce systems, materials, modules,
devices, clothing, tools, equipment, and other items for
construction industry.
► A constant process of research and development to make
things better, faster, cheaper, more convenient, safer,
more widely available, and of more colors and finishes.

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INDUSTRY SECTORS

► Residential
► Commercial building
► Industrial
► Infrastructure and heavy/highway

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Residential Commercial Industrial Infrastructure
Single-family Offices Refineries Water treatment plants

Sewage treatment &

Educational (day care, Heavy industrial plants,
Multi-family drainage facilities and
schools, universities) mills
systems
Utility structures & pipe
Apartments Light manufacturing plants Chemical plants
lines
Power generation
Commercial
Condominiums plants & transmission Canals
establishments
lines

Elder care and Levees, dams,

Hotels, resorts Warehouse
retirement facilities navigational facilities

High-rises Religious structures Oil wells / rigs Reclamation projects

Townhouses Agricultural buildings Marine structures

Recreational facilities Tunnels & bridges

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Residential Housing Construction

► Designs are usually performed by architects and
engineers
► Construction is executed by builders who hire
subcontractors for the structural, mechanical,
electrical and other specialty work.
► Residential housing market is heavily affected by
general economic conditions, tax laws, and the
monetary and fiscal policies of the government.

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Commercial Building Construction

► Usually competent professional
consultants are selected for design
and construction
► This market segment is shared by
fewer competitors
► Demand is less sensitive to general
economic conditions than housing

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Industrial Construction
► Very large scale projects with a high
degree of technological complexity
► Owners prefer to work with designers-
builders such that the total time for the
completion of the project can be shortened
► Long range demand forecasting is the most
important factor since such projects are
capital intensive and require considerable
amount of planning and construction time.
► Governmental regulations can also
profoundly influence decisions on
environment related projects

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Infrastructure and Heavy/Highway

Construction
► Most of these projects are publicly owned
► Engineers and builders engaged in infrastructure
construction are usually highly specialized since
each segment of the market requires different
types of skills.
► Characterized by a high degree of
mechanization, which has gradually replaced
some labor intensive operations.

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