HANDOUT NO.

1
1.INTRODUCTION
The construction industry is the "production" end of virtually all civil enginee
ring work. The construction industry is the second largest industry in the world
.
An understanding of the technical aspects of construction is extremely important
in identifying the right methods, resources and specifications for various kind
s of works. Close observation and participation in actual construction project
s is very valuable in obtaining an understanding of the construction process as
well. Thus, it is highly encouraged that you take every opportunity to observe a
nd participate in actual construction activities. An understanding of the topics
presented in the course will provide a foundation in the methods of constructio
n.
While construction has traditionally been a very conservative industry,
the increasing rate of technological development and growing inte
rnational competition in the industry are serving to accelerate the development
of new construction methods, equipment, materials, and techniques. As a result,
coming years will see an increasing need for innovative and professionally compe
tent construction professionals.
2.CONSTRUCTION PROJECTS
A project is a temporary endeavor consisting of a sequence of connected activiti
es undertaken by limited resources to create a unique product or service that mu
st be completed within specified time, within budget, and according to specifica
tion.
Temporary Endeavor
Temporary means that every project has a definite beginning and a definite end.
The end is reached when the project’s objectives have been achieved, or when it
becomes clear that the project objectives will not or cannot be met and the proj
ect is terminated. Temporary does not necessarily mean short in duration (many p
rojects last for years), nor it applies to the product or service created (many
projects are undertaken to create lasting results - for example, a project to er
ect a national monument will create a result expected to last for centuries).
Sequence of Connected Activities
A project comprises of a number of activities that must be completed in some spe
cified order, or sequence. An activity is a defined chunk of work. The sequence
of the activities is based on technical requirements. Activities within a projec
t are interconnected. To determine the connectedness, it is helpful to think in
terms of inputs and outputs. The output of one activity or set of activities bec
omes the input to another activity or set of activities.
Undertaken by limited resources
Projects have resource limits, such as a limited amount of people, materials or
equipment that are dedicated to the project.
Unique Product or Service
Unique means that the product or service is different in some distinguishing way
from all similar products or services. A product or service may be unique even
if the category it belongs to is large. For example, many thousands o
f office
buildings have been developed but each individual facility is unique - different
location, different owner, different design, different contractor, and so on.
The presence of repetitive elements does not change the fundamental uniqueness
of the project. For example, a real estate development project may inc
lude hundreds of individual units.
Within Specified Time
Projects have a specified completion date. This date can be self-impos
ed by management or externally specified by a client or government agency.
Within Budget
Projects have cash inflow constraints. The source of finance may be public funds
, bank loans or private investments.
According to Specification
The client expects a certain level of functionality and quality from the project
. These expectations can be self-imposed, such as the specification of the proje
ct completion date, or client-specified, such as use of wall paper for wall fini
shing in a bungalow, or law imposed, such as environmental considerations.
Hence the term construction project refers to a high-value, time bound, specia
l construction mission with predetermined performance objectives.
3. CONSTRUCTION PROJECT DEVELOPMENT PROCESS
For major projects, steps in the project development process include:
• Need Identification: Recognition of the need for the project.
• Feasibility Analysis: Determination of the technical and financial feasibili
ty of the project.
• Engineering and Design: Preparation of detailed plans, specifications, and c
ost estimates for the project.
• Approvals: Approval by regulatory agencies. This involves ascertainin
g compliance with zoning regulations, building codes, and environmental and othe
r regulations.
• Bid Procurement: Selection of contractor(s) and award of contract.
• Construction: Execution.
• Start-Up: Guarantee Period
• Operation: Service Life
4.CONSTRUCTION CONTRACTORS
Companies and individuals with the execution of construction works are
commonly referred to as construction contractors (or simply contractors) because
they operate under a contract arrangement with the owner. Construction
contractors form the backbone of the construction business. Constructio
n contractors may be classified as general contractors or specialty contractors.

General Contractors and Specialty Contractors

In the competitive construction business, which requires special resources for d
ifferent types of construction work, the contractors generally tend to specializ
e in a particular area of construction. From this functional angle, the contract
ors can be classified into the following categories:
General contractors engage in a wide range of construction activities and execut
e most major construction projects.
Specialty contractors limit their activities to one or more construction special
ties. Examples of specialty contractors may be:
• Specialist contractors for various types of heavy infrastructu
re
construction work such as highways, bridges, dams, marine works etc.
• Specialist contractors for various categories of industrial works like power
plants, process industries, and so on.
• Specialist utility services contractors. These include electrical contractor
s, plumbing contractors, water supply and sewage disposal
contractors, HVAC contractors, and so on.
• Other Specialty contractors. Example, earthmoving, piling works, etc.
Prime Contractors and Subcontractors
When contractors enter into a contract with an owner to provide compl
ete construction services, they are called prime contractors. The prime contract
ors would be contractually responsible for delivering a completed projec
t in accordance with the contract documents.
Specialty contractors are often employed by a prime contractor to accomplish som
e specific phase of a construction project. Since the specialty contractors are
operating under subcontracts between themselves and the prime contractor, the
specialty contractors are referred to as subcontractors. On a large project thes
e subcontractors may also divide up the work into even