Construction Industry Overview

The Construction Industry

• The construction industry includes design, new and renovation construction, and the manufacture and supply of building materials and equipment.
• Accounts for about 10% of the nation's gross national product (GNP).
• Employs approximately 10 million workers.
• U.S. new construction volume has exceeded $800 billion annually in recent years.

Career Opportunities and Income

• Construction is dynamic and often provides high income for workers and contractors.
• Seasonal and sporadic nature of work can reduce annual income for many workers.
• Construction contracting is competitive with a high bankruptcy rate.

Nature of Construction

• Combination of art and science.
• Technical understanding is crucial.
• Business and management knowledge are essential.

Importance of Practical Experience

• Close observation and participation in construction projects are valuable.
• Encouragement for students to observe and participate in construction activities.

Need for Innovation and Professional Competence

• Construction has traditionally been conservative.
• Technological development and international competition are accelerating changes.
• Growing need for innovative and professionally competent construction professionals.

Construction Contractors

• Companies and individuals engaged in the business of construction are commonly referred to as construction contractors (or simply contractors).
• Types of contractors include general contractors and specialty contractors.

General Contractors

• Engage in a wide range of construction activities.
• Execute most major construction projects.
• Called prime contractors when they provide complete construction services under a contract with an owner.

Specialty Contractors

• Limit their activities to specific construction specialties (e.g., electrical work, plumbing, heating and ventilating, earthmoving).
• Often employed by a prime contractor to accomplish specific phases of a project.
• Referred to as subcontractors when operating under a subcontract with a prime contractor.

Contractual Relationships

• Subcontractor and prime contractor definitions are defined by their contract arrangement, not by their work classification.
• A specialty contractor can be a prime contractor if they contract directly with the owner.
• A general contractor can be a subcontractor if employed by a specialty contractor for specific tasks.

Construction Industry Divisions

Building Construction

• Involves the construction of buildings: This division focuses on the creation of structures where people live, work, or gather.
• Subdivided into public and private, residential and non-residential building construction.

Public Building Construction

• Government-funded projects such as schools, hospitals, and government buildings.

Private Building Construction

• Projects funded by private entities, including commercial buildings and private residences.

Residential Building Construction

• Includes single-family homes, apartments, and condos.

Non-Residential Building Construction

• Encompasses commercial buildings, office spaces, and industrial facilities.