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Questions and Answers
What is the defining factor in determining whether a contractor is a subcontractor or a prime contractor?
What is the defining factor in determining whether a contractor is a subcontractor or a prime contractor?
What percentage of construction firms in the United States employ three or fewer workers?
What percentage of construction firms in the United States employ three or fewer workers?
What is the primary focus of the building construction division?
What is the primary focus of the building construction division?
What is the market share of construction firms with 100 or more workers?
What is the market share of construction firms with 100 or more workers?
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What is the trend observed in the construction industry?
What is the trend observed in the construction industry?
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What type of project is funded by private entities, including commercial buildings and private residences?
What type of project is funded by private entities, including commercial buildings and private residences?
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What is the largest segment of the total U.S. new construction market?
What is the largest segment of the total U.S. new construction market?
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Can a specialty contractor be a prime contractor?
Can a specialty contractor be a prime contractor?
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What percentage of the nation's gross national product (GNP) has the construction industry historically accounted for?
What percentage of the nation's gross national product (GNP) has the construction industry historically accounted for?
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What is the approximate number of workers employed in the construction industry?
What is the approximate number of workers employed in the construction industry?
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What is the primary difference between a general contractor and a specialty contractor?
What is the primary difference between a general contractor and a specialty contractor?
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What is a characteristic of the construction industry?
What is a characteristic of the construction industry?
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Why is practical experience important in the construction industry?
Why is practical experience important in the construction industry?
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What is driving the need for innovative and professionally competent construction professionals?
What is driving the need for innovative and professionally competent construction professionals?
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What is the annual construction volume in the U.S.?
What is the annual construction volume in the U.S.?
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What is a characteristic of construction contracting?
What is a characteristic of construction contracting?
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Study Notes
The Construction Industry
- The construction industry involves design, new and renovation construction, and the manufacture and supply of building materials and equipment.
- It is one of the largest industries in the U.S., historically accounting for about 10% of the nation's gross national product (GNP).
- The industry employs approximately 10 million workers.
- The annual construction volume in the U.S. has exceeded $800 billion in recent years.
Career Opportunities and Income
- Construction is a dynamic industry that often provides high income for workers and contractors.
- However, the 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
- Construction combines art and science, requiring technical understanding, business, and management knowledge.
- Practical experience is essential in construction, and students are encouraged to observe and participate in construction activities.
- The industry requires innovation and professional competence, with technological development and international competition driving changes.
Construction Contractors
- Construction contractors engage in the business of construction and can be general contractors or specialty contractors.
- General contractors engage in a wide range of construction activities and execute most major construction projects.
- Specialty contractors limit their activities to specific construction specialties and are often employed by prime contractors.
Contractual Relationships
- The terms "subcontractor" and "prime contractor" 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.
Industry Statistics
- There are over 800,000 construction contractors in the United States, with 60% of these firms employing three or fewer workers.
- Contractors with 100 or more workers make up less than 1% of construction firms, but account for about 30% of the value of work performed.
- There is a trend towards large construction firms capturing an increasing share of the total U.S. construction market.
Construction Industry Divisions
- The construction industry is divided into major segments, including building construction (vertical construction).
- Building construction involves the construction of buildings, including public and private, residential and non-residential building construction.
- Public building construction includes government-funded projects, while private building construction includes projects funded by private entities.
- Residential building construction includes single-family homes, apartments, and condos, while non-residential building construction includes commercial buildings, office spaces, and industrial facilities.
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Description
Learn about the construction industry, its economic impact, and career opportunities. Explore the industry's size, annual construction volume, and employment statistics.
