1. BCN 4708 Fall 2008 Chapter 1 The Construction Industry

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

3. 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

4. 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-$3.60 12% employment in US

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

6. 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

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

8. Financing SourceTermsBuilder-VendorDeveloper

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

10. Construction Process Linear Construction Phased Construction Team Approach

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