Module 1 Introduction

Construction Industry Overview

• The construction industry is the second largest industry in the United States, behind health services, and the largest product-producing industry.
• The industry is comprised of four sectors: residential, heavy/civil engineering, industrial, and institutional and commercial.

Residential Construction

• Residential construction includes single-family homes, condominiums, townhouses, and multi-family homes.

Heavy/Civil Engineering

• Heavy/civil engineering includes the construction of public and private works, such as roads, aqueducts, sewers, bridges, dams, power lines, and natural gas pipelines.

Industrial Construction

• Industrial construction includes facilities used for mineral resource exploitation, raw materials transformation, and goods production.
• Examples include manufacturing facilities, warehouses, construction equipment storage, and machinery storage.

Institutional and Commercial Construction

• Institutional and commercial construction includes structures used for institutional and commercial purposes.
• Examples include educational centers, entertainment facilities, financial institutions, hotels, libraries, religious centers, restaurants, and tenant improvements.

Construction Industry Importance

• The construction industry generates over $1 trillion in annual volume.
• The top 40 companies perform between 25-35% of the construction work.
• It contributes between 8-13% of the national GDP.
• The industry employs over 10 million people.
• The construction industry has a low investment in research and development (R&D), at approximately 0.4% of sales.
• It is considered an "easy entry" industry, with businesses failing at a rate of 20%, with an average company size of less than 10 employees.

Construction Projects

• Projects are resource driven, requiring manpower, machines, materials, and money.
• Management concerns include time, cost, quality, safety, and environmental impact.

Project Development

• The project life cycle follows a linear process, starting with the owner's need and ending with the disposal process.
• Key stages include feasibility assessment, preliminary and final engineering and design, bidding and contract award, construction activities and management, facility use and management.
• Success requires effective collaboration and good relations between the owner, engineer, and contractor.

Management in Construction

• Construction management is divided into organizational, project, operational (and process), and task levels.
• Organizational level - focuses on project attributes and physical components.
• Project level - focuses on project activities and management.
• Operational and process level - focuses on field actions and technological processes.
• Task Level - focuses on individual work tasks.

Construction Industry Differences

• The modern construction industry differs from ancient construction in several ways:
  • Increased mechanization
  • Specialized management compared to master builders
  • Use of steel and concrete frames, compared to wood and stone.
  • Larger project scales
  • Use of improved and new building materials.

This quiz explores the key sectors of the construction industry, including residential, heavy/civil engineering, industrial, and institutional and commercial construction. Understanding these areas is essential for anyone interested in the dynamics of the largest product-producing industry in the U.S.