BCN 4708 Fall 2008 Chapter 1 The Construction Industry.

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Presentation transcript:

BCN 4708 Fall 2008 Chapter 1 The Construction Industry

The construction Project Construction Project Function Function Drawings Drawings Standards /Codes Standards /Codes Schedule ScheduleUniquenessEnvironment Highly Variable

The construction Project Complexities Subsoil conditions, topography, weather, transportation, material supply, utilities/services, local Subs, and labor conditions Subsoil conditions, topography, weather, transportation, material supply, utilities/services, local Subs, and labor conditions The Team Contractors, owners, architects, engineers, workers, sureties, lending agencies, governmental bodies, insurance companies, material dealers, and others Contractors, owners, architects, engineers, workers, sureties, lending agencies, governmental bodies, insurance companies, material dealers, and others

Economic Importance Size of Industry Workers Workers New construction = Jobs New construction = Jobs Total New Construction in US Total New Construction in US 8% of GNP 80% from Private 20% from public agencies $1-$ % employment in US

The owner Proposes the Construction Public Project Regulations Private Regulations Involvement in process

Firms in Construction Architect / Engineer Separate Separate Design / Build Design / Build Prime Contractor GC GC Sub Contractor Relationship RelationshipWhy? Responsibility Responsibility Public projects Public projects

Construction Categories Residential 40-45% 40-45%Building 25-30% 25-30%Engineering 20-25% 20-25%Industrial 5-10% 5-10%

Financing SourceTermsBuilder-VendorDeveloper

Construction Process The Contract Bidding Open Open Closed Closed Negotiated Contract Competitive proposals Act of 1984 Act of 1984

Construction Process Linear Construction Phased Construction Team Approach

Contracts Services Only Single Prime Contract Separate Prime Contracts Design/Build Pre-engineered Metal Buildings Construction Management Design-Manage Construction by Force Account