THE CONSTRUCTION INDUSTRY SECTORS

The facility needs of a society are vast and varied. People need places to live, worship, work,

receive medical care, shop, be educated, exercise, vacation, and generally engage life. From a

facilities standpoint, all of these needs taken together are often referred to as the built

environment. Although many other industries assist in creating the built environment,

construction ultimately delivers it. Each of these different facility needs is manifested as a

different market or sector of the construction industry.

There are five basic sectors of the construction industry:

i. Residential building

ii. Commercial building

iii. Heavy civil construction

iv. Industrial construction

v. Environmental construction

Each sector is characterized by different means, methods, and materials of construction. The

types of equipment, the type of structural framework, the manufacturers, the suppliers, the

specialty contractors, and even the sources of funding vary with each sector. For example,

structural steel frames, steel erection, and steel fabrication are all common components of the

commercial, but not residential, sector. On the other hand, wood frame structures, rough

carpentry, and lumber are common components of the residential, but not commercial, sector

of the industry. Each sector requires specific expertise and familiarity in order to optimize

the construction operations and management efforts. Therefore, the majority of builders focus

their attention on only one sector or market of the industry. Furthermore, each sector has a

particular “personality” or character. Everyone interested in pursuing a career in construction

management will ultimately have to choose which sector they are most attracted to.

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 i. RESIDENTIAL BUILDING

Residential construction addresses the housing needs of a society. Housing construction takes

many forms: individual homes, apartments, condominiums, townhouses, and prefabricated

units such as modular and manufactured homes.

Residential construction is typically funded by private individuals or developers for their own

use or for sale.

Means and Methods

Residential construction is relatively low-tech in terms of the means and methods needed to

produce its product. Hammers, nails, drills, and saws still make up the primary tools and

equipment needed to perform the construction tasks, although the hammers are now

pneumatic nailing guns

The residential construction market is relatively easy to get into; however, because so many

of the companies are very small, they are also at high risk for failure. One bad job can put the

contractor out of business in a hurry. However, the large production builders are big business,

generating annual revenues and profits surpassing those of many large commercial

construction companies. They are engaged in every aspect of home building, from land

acquisition to financing, and are often publicly owned and traded on the stock market.

Primary Materials

The building materials utilized in this sector are typically masonry blocks concrete, wood

products such as lumber and plywood.

Characteristics

whether the residential construction firm is a small or a huge publicly owned enterprise, there

are certain characteristics of this market that anyone contemplating a career in building

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should understand. Home building is personal. Your client is usually an individual family

with individual personalities. This is probably not the sector for you if you are not a people

person. Home buyers are spending their personal funds on these projects, and usually it is the

single largest amount of money they have ever spent. As a construction manager, you will be

directly involved with the owner on a regular basis. You will get to experience the full range

of emotions and temperaments associated with the home-buying public. There is a great deal

of personal service and hand-holding that will be required of you. Many construction

professionals delight in this aspect of the business, anxious to address every detail and

concern that an owner might have regarding the building process, while others

cringe at the thought of having to deal with someone at such an intimate level.

ii. COMMERCIAL BUILDING

This sector of the industry primarily addresses the needs of commerce, trade,

and government and makes up about a third of the total construction market.

This is the category that includes banks, schools, office buildings, hotels, shopping malls,

religious facilities, baseball stadiums, theatres, universities, amusement parks, hospitals,

courthouses, government buildings, and other facilities where people gather. These projects

may range in size from a small medical office to large high-rise office buildings. The building

costs are significantly higher than with residential construction, and the project duration is

much longer. It is not uncommon for a commercial project to last three years or more.

Funding for these types of building projects may be private, public, or combined

in a special private-public partnership.

Commercial projects are very wide-ranging in scope, and it’s difficult to develop expertise in

all areas. For example, hospitals and clean rooms, which have very specialized systems,

require contractors who possess the special knowledge needed to successfully perform the

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construction. Therefore, it is not unusual for a commercial contractor to focus their attention

on only a few building types. Commercial projects are typically designed by architects. The

building systems can be complex, and various specialty engineers are engaged to support

the architect with the electrical, mechanical, and structural design. Additional

consultants may also be brought in for unique requirements of the project.

Means and Methods

Commercial construction tends to be far more technically complex than residential

construction. Special construction processes are utilized in the building of

commercial buildings, and specially trained technicians are required. The use

of concrete casting beds, cofferdams, and slip forms are common techniques in

commercial construction but would seldom ever be utilized in residential construction.

Although plumbers, electricians, and painters are some of the trades

required in both the commercial and residential sectors, ironworkers, pipe fitters,

and glaziers are more likely to be exclusive to the commercial (and industrial)

sectors. The equipment needs in commercial construction are much more extensive as well.

Cranes are a common sight on most commercial projects, as well as

pile drivers, welding machines, and concrete pumps.

As a construction manager involved in commercial building, you will be required

to work with numerous specialty contractors and union workers employed in various trades.

The labour management aspect of commercial construction can be complex and requires

special knowledge of labour laws and collective bargaining.

Primary Materials

Steel, concrete, and glass are the basic primary materials utilized in commercial construction.

Commercial buildings consist of some type of building frame or structure and an exterior

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cladding to cover the frame. The cladding material is usually applied as a curtain wall of

brick, stone, concrete, aluminium, steel, or glass or as an exterior insulation panel. In some

cases, reinforced concrete masonry (RCM) is the material of choice for commercial buildings

of limited height.

The frame of a commercial building is designed to withstand certain loads

and conditions. Architects and engineers will determine whether a steel frame

or reinforced concrete frame is best suited for the building. Glass is a common

cladding material for commercial buildings, although other materials are available for this

purpose. In some cases, the entire building frame and cladding are

concrete. There is very little wood used in commercial buildings because of the

higher fre-resistive design standards required by building code

Characteristics

Unlike the residential sector, commercial buildings are typically funded by corporations,

agencies, or the government. Personal funds are not involved, and the owners are typically

not as concerned with the day-to-day operations of construction. However, they are

concerned with meeting the schedule and getting their operations up and running as quickly

as possible. This need for speed to market has prompted many changes in project delivery

The primary focus in commercial building is actually the construction itself. Whereas

residential construction requires an across-the-board understanding of

the home building business, commercial construction requires a deep understanding

of construction processes and techniques. Commercial contractors are rarely involved

in the sales or marketing or land acquisition components of the project.

iii. HEAVY CIVIL CONSTRUCTION

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This sector of the industry impacts all of society in a very big way. Often referred

to as horizontal construction, the heavy civil sector includes roadways, bridges,

tunnels, dams, airports, and railways. Basically, any work that is associated with

infrastructure, transportation, and how we move about involves the heavy civil

construction market. Similar to the industrial sector, heavy civil projects are

complex, usually high-capital endeavours that take special engineering know-how.

This market is huge and growing larger every day.

These projects are typically designed by civil engineers, and often the construction

management team has a strong background in civil engineering as well.

Heavy civil construction firms are generally very large operations that can offer

opportunities nationally and internationally. However, the heavy civil sector of

the industry is difficult to enter because of the huge capital outlay required for

entry, not to mention the specialized knowledge required to be successful.

Means and Methods

Only a few trades are engaged in heavy civil construction compared to the other

three sectors. There is no need for carpet layers or drywall finishers in this sector of the

market. On the other hand, equipment and equipment operators play a huge role in the work

of a heavy civil project. Heavy civil contractors make huge investments in equipment.

Keeping the earth movers, excavators, scrappers, and trucks rolling is the name of the game

for this sector of the industry.

Primary Materials

Asphalt, gravel, concrete, steel, and dirt make up the primary materials used in

heavy civil construction. Most of us have witnessed highway road crews as they lay

down new asphalt on our highways and streets. We watch as they bring in loads of

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gravel and rock dust before they place the hot asphalt and roll out the roadway.

Other heavy civil projects such as bridges and dams make use of large amounts

of concrete and steel. For example, a dam project may require that a concretebatching plant

be constructed right on the building site in order to accommodate the quantities of concrete

needed

Characteristics

These projects are usually publicly funded and tend to last for a long time. Building

miles of roads can take many years. It is not unusual for individuals involved in this

sector of the market to move temporarily to where the project is located. There are

also occasions when your work might require that you be located in isolated areas

for long stretches of time. However, anyone intrigued by big machines, tractors,

and excavators will be attracted to this sector. This sector of the market is the least

affected by economic fluctuations and, therefore, can offer a reasonable measure of

job stability.

iv. INDUSTRIAL CONSTRUCTION

This sector of the industry is highly specialized and requires firms with vast resources

and significant construction and engineering expertise. The number of contractors

qualified to work within the industrial sector is limited. The project types included in

this category are defined primarily by the production activities that occur within the

facility. Manufacturing plants, electrical generating facilities, oil refineries, pipelines,

steel mills, and chemical processing plants are all examples of industrial construction

projects.

Means and Methods

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Industrial buildings are often very basic in their exterior design. The building

shell does not need to be very fancy for its intended purpose. The success of an

industrial project is usually determined by how well the facility is able to perform

relative to its production goals. In industrial construction, the processes that go

on inside the shell constitute the real construction challenge. Unlike residential

or commercial construction, the installation of equipment makes up a big piece

of the industrial construction process. Massive boilers, reactors, and processors

that need to be installed under strict quality standards and regulatory guidelines

are what really count here.

Because of the complex process considerations, engineers are typically the lead

designers on these types of projects. The means and methods associated with the

construction of the building shell are quite simplistic; however, the installation

of the equipment and process systems require technological savvy, sophisticated

knowledge, and great attention to detail.

Primary Materials

The building materials utilized in industrial construction are very similar to

those used in commercial construction. Steel, concrete, and reinforced concrete

masonry make up the primary components. These buildings often house specialized

equipment, machinery, or process piping, and the interior finishes are usually

quite stark for ease of maintenance. Often the concrete or block walls are simply

painted, concrete floors are left unfinished, and no ceiling finish is applied, thus

leaving exposed piping and ductwork in full view. In some cases, special materials, such as

glass piping or heat-sensitive tiles, may be utilized in the construction

of industrial buildings.

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Characteristics

This sector of the industry deals with building huge facilities that take many years

to complete. In some cases, a project may be under construction for as long as

5 to 10 years, and the possibility of the construction management team having

to relocate is quite high. The funding for these projects is usually provided by private sources,

and the contract amounts are generally large. There are many international opportunities in

industrial construction, and anyone seeking a chance to travel abroad will most likely find it

within this sector. Having an interest in international business, international law, or even

world politics could be an asset for anyone considering this sector. And, of course, fluency in

a foreign language is always a plus. It is very important that the engineers and construction

managers on these projects work closely together because the consequences of poor

communication can

be serious.

v. ENVIRONMENTAL CONSTRUCTION

Although some people may lump environmental construction under the heavy civil

category, it is unique enough to have its own classification, especially considering

the increase in market share that this sector is currently experiencing and probably

will for some time to come. Generally, this sector of the industry is comprised of

projects that improve the environment, maintain public health, and contribute to a

community’s quality of life. Think clean water, sanitary sewers, and waste management. And

although these projects may not seem very glamorous at first glance,

in reality they represent one of the most vital sectors of the industry and one that

demands a significant investment in order to sustain our communities.

Means and Methods

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There is a great deal of earth moving and site work that usually takes place with

any environmental project along with trenching and pipe laying, asphalt removal

and installation, tunnelling, blasting, and other means of excavation. However,

many environmental projects still require a building or structure to house the

specialized instrumentation, monitoring equipment, incinerators, and process

piping to operate the system. Therefore, the same means and methods associated

with typical industrial or commercial construction also come into play in this

sector. These facilities still need foundations, exterior cladding, windows, doors,

roofing, and finishes, as well as mechanical and electrical systems. These support

buildings may not be as fancy as a bank or a museum, but they still need to provide a proper

work environment for the people who operate the facilities.

Primary Materials

Environmental projects are often comprised of a combination of commercial,

industrial, and heavy civil building materials. However, in addition to dirt, gravel,

asphalt, concrete, rebar, steel, and piping, we also need specialized materials such

as pumps, valves, filters, membranes, and aerators, just to name a few. Special

brownfield sites

A property that is abandoned or underused because of historic environmental contamination.

Special electronic equipment and controls are also part of the mix on these projects, and a

vital one at that. Because the facility isn’t really of much use unless it can operate

and perform as designed, these elements become a critical part of the equation.

The construction manager, who often has an engineering background, must be

familiar with these items and their operation so they can manage their procurement, delivery,

installation, and sometimes even performance after installation.

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 THE PROJECT PLAYERS

Primary players

Today’s master builder is a collaborative team with diverse skills and expertise. Many, many

players are involved, and they all make a valuable contribution to the effort while at the same

time adding to the complexity of the process. It is very important to understand

the various roles and responsibilities of these many players as they influence the

construction management process.

In addition to getting to know the primary players in the game, you need to

know the secondary players involved and the various layers of influence and risks

associated with their involvement. Understanding the intricacy of these relationships will help

you appreciate the management function in construction.

The three principal primary players in any construction project are the owner, the designers

(architects and engineers), and the contractor. Although these three parties are

always involved in a project, the alignment and contractual relationships among

them will vary depending upon the project delivery system utilized to deliver the

project.

Each of these parties provides distinct services and has specific accountabilities necessary to

fulfil the building objectives.

1) Owners/Clients

they are the initiators of the project. No construction would ever be accomplished

without owners. They are the driving force behind the construction industry. Their

demands for housing, commercial facilities, industrial products, and infrastructure are

the chief motivation to build.

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After determining need and deciding to build, the owner is accountable for four

primary duties:

i. Developing the program and outlining the needs and requirements of the

end users

ii. Determining the quantity, extent, and character of the project by defining the scope of

work

iii. Creating the overall budget for the project, including land acquisition (if necessary),

development, design, and construction costs

iv. Providing the funding for the project and making periodic payments to the

designers and the contractor

2) Design Professionals

Two types of professional designers are engaged in the construction process,

and each deals with different parts of the project design. Architects deal with

the function, life safety issues, and aesthetics of the building, and engineers deal

with the systems. They typically work together to complete the design function

with one or the other taking the lead, depending on the type of facility being

constructed. The construction manager works with both the architect and the engineer on

a regular basis throughout the construction process.

a. Architects

Architects are licensed professionals trained in the art and science of building

design. They transform the owner’s program into concepts and then develop the

concepts into building images and plans that can be constructed by others. In

addition to completing a four- or five-year college program, architects are also

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 required to have a number of years of experience and pass an exam before they

can become licensed.

Architects design the overall aesthetic and functional look of buildings and

other structures. The design of a building involves far more than its appearance.

Buildings also must be functional, safe, and economical, and they must suit the

needs of the people who use them. Architects also specify the building materials and, in some

cases, the interior furnishings. In developing designs, architects

follow building codes, zoning laws, fre regulations, and other ordinances, such

as those requiring easy access by people who are disabled.

b. Engineers

Engineers are usually the lead designers for heavy civil and industrial projects.

Engineers are regulated by professional licensing requirements that include a

four- or five-year college program, a specific number of years of experience, and

the passing of a professional licensing exam. However, in building design, they

are most often hired as consultants by the architects.

There are many different engineering specialties; the most common ones associated with

construction activities are

i. Structural engineers Structural engineers design the timber, concrete, or

steel structural systems that support a building and basically hold it up to

withstand the forces of wind, gravity, and seismic activity. They design the

foundations, beams, girders, and columns that make up the skeleton of the

structure.

ii. Mechanical engineers Mechanical engineers design the heating, cooling,

ventilating, plumbing, and fire suppression systems within a building. They

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 coordinate their efforts with the architectural design, the structural design,

and the electrical design.

iii. Electrical engineers Electrical engineers design and calculate electrical loads

and determine the circuitry, lighting, motors, transformers, and telecommunications

needed for a building. They typically work closely with the architect to ensure that the

owner’s expectations are met and often coordinate their efforts with the mechanical

engineer.

iv. Civil engineers Civil engineers design roads, bridges, tunnels, dams, site

drainage, parking lots, runways, and water supply and sewage systems. Civil

engineering, considered one of the oldest engineering disciplines, encompasses many

specialties. Civil engineers are the ones who take the bare land and

excavate it, move it, drill it, and shape it to meet the needs of the architectural

design and the construction. Site work is one of the most unpredictable and

expensive aspects of any construction project, and good design makes all the

difference in the world.

The following are the primary responsibilities of the designers:

i. Assisting the owner in developing the facility program and determining

end user needs and requirements

ii. Advising the owner regarding the image and character of the facility and

establishing broad design goals

iii. Assisting the owner in selecting products to fit the program and the budget

iv. Advising the owner on special and aesthetic issues and generating graphic

solutions to problems

v. Developing the final building plans, construction details, and specifications

3) Construction Professionals

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According to the American Institute of Constructors, the term constructor is

generally used to define the professional responsible for all construction activities

whether they work as a general contractor, a construction manager, or a specialty

contractor. The profession of constructor includes job titles such as, but not limited to, project

manager, general superintendent, project executive, operations manager, construction

manager, and chief executive officer.

The constructor’s job is to do the following:

i. Interpret the plans and specifications and prepare cost estimates and time

schedules to meet the requirements of the owner.

ii. Determine and implement the best construction practices, means, and

methods to satisfy the owner’s requirements for time, cost, and quality.

iii. Oversee and manage all of the construction operations into a single, safe

coordinated effort.

a) General Contractors

The general contractor, also known as the prime contractor, enters into a contract with the

owner to deliver the construction project in accordance with the

plans and specifications that have been prepared by the architects and engineers.

They may or may not actually perform any of the actual construction work with

their own forces. When they do, they are said to be doing self-performed work.

When they don’t, they arrange for subcontractors or trade contractors to perform the

specialized craftwork such as excavation, concrete placement, painting,

or plumbing. Today, more often than not, the general contractor maintains only

a management staff and a field staff as permanent employees. The construction

management staff includes estimators, schedulers, and purchasing agents, while

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the field management staff consists of superintendents, foremen, field engineers,

and lead workers. The work of the trades is performed under separate subcontracts with

various specialty contractors.

b) Construction Managers

Construction managers may be employed by construction management firms,

general contractors, architects, engineers, owners, or specialty contractors. The

primary responsibility of the construction manager is to organize the project

team to perform the construction management function

c) Specialty Contractors

Specialty contractors are often referred to as subcontractors because they perform

their work under a contract with another contractor (typically the general contractor) to do a

portion of the contractor’s work, as opposed to contracting directly

with an owner. These subcontractors, in turn, may engage other subcontractors.

Thus, there can be several levels of subcontracting to a general contractor.

d) The Building Trades

It is important to include the trade workers as part of the construction professionals’

discussion because, without them, there would be no construction at all. These are the men

and women (plumbers, electricians, ironworkers, and so on) who actually perform the work.

These skilled and semi-skilled workers are the construction industry’s most valuable asset,

although they are rarely recognized for their immense contribution.

SECONDARY PLAYERS

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Construction is second only to the restaurant business when it comes to high-risk business

endeavours. Four out of five construction companies will go out of

business during their first year. There are many factors for this. One of them is

the power that outside parties have over the entire construction process and outcome. These

secondary players, are beyond the immediate control of any of the primary players.

The secondary players are divided into three levels

First level

Subcontractors

Suppliers

Vendors

second level

Building inspectors

Utility companies

Insurance companies

Labour unions

Third level

Government

Financial institutions

Trade associations

Educational institutions

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