2. The construction industry is a conglomeration of diverse fields
and participants.
The construction industry plays a central role in national
welfare, including the development of residential housing,
office buildings and industrial plants, and the restoration of the
nation's infrastructure and other public facilities
Too Many Participants
Construction Industry involves many people, organization,
agencies, ministries, designers, contractors, project managers,
equipment suppliers, material suppliers, testing Laboratories.)
2. Construction Industry: Nature & Characteristics
5. What differentiates the construction industry from other
industries is that its projects are large, built on- site (the factory
is brought to the job site), and generally unique.
Organizations change from Project to Project
On-site work stations are not permanent
Operations are conducted outside and thus subject to weather
Construction can involve large-scale heavy assemblies that can be
difficult to handle and fasten
The owner is usually highly involved in the construction process
while the purchaser of manufactured goods is not
2.2 Construction Industry Versus Manufacturing Industry
6. Construction covers a wide range of products, services and
activities.
The Construction industry is an important part of the nation’s
economy.
• In many countries the industry contributes more than 10 of
the GDP,
•In Ethiopia the contribution of the industry to the national
economy for some years is as follows;
2.3 Construction In the nation Economy
7. 1995 1996 1997 1998 1999 2000
Industry/Year 2002/0
3
2003/0
4
2004/0
5
2005/0
6
2006/0
7
2007/0
8
Agriculture, Hunting and
Forestry
44.9 47.0 47.4 47.1 46.3 44.6
Animal Farming and Hunting 14.8 14.3 13.5 12.7 12.3 11.8
Manufacturing 5.5 5.2 5.2 5.2 5.0 4.8
Electricity and Water 2.4 2.3 2.2 2.1 2.2 2.2
Construction 5.7 6.1 5.8 5.7 5.7 5.7
Whole Sale and Retail Trade 12.5 11.8 11.8 12.5 13.1 13.4
Hotels and Restaurants 2.4 2.3 2.3 2.4 2.7 3.0
Transport and Communications 5.9 5.7 6.1 5.8 5.6 5.8
Public Administration and
Defense
4.8 4.3 4.2 4.0 3.7 4.2
Education 2.8 2.8 2.8 2.8 3.0 3.1
Health and Social Work 0.9 0.9 1.0 1.0 0.9 1.0
8. 2.4 Construction Industry in Ethiopia Past
and Present
The role the construction industry plays in socio-economic
development is significant.
The industry is a distinct sector of the economy, which
makes its direct contributions to economic growth.
It provides the basis upon which other sectors can grow by
constructing the physical facilities required for the
production and distribution of goods and services.
It is a major source of employment, directly and indirectly
9.
10. 2.5 Parties In The Construction Industry
The principal participants/key players in any construction
project include:
The Owner
The Design Professional (Architect & Engineers)
The Contractor
14. Main Parties in the Construction Industry
The main players in the construction industry are:
1.The Client: The client is the initiator and owner of the project.
2.TheConsultant: The consultant transfers the wish of the owner
into realizable form and makes the study, design and possibly the
supervision.
3.The Contractor: The contractor is the one who performs the
work.
4.Insurance Companies: provide bid bonds, performance and
payment bonds, and they also service the liability and property
insurance needs of contractors.
5. Permitting Agencies: These agencies represent the interests of
public safety. They administer publicly funded construction
projects, and they ensure private construction projects comply
with zoning laws and building codes.
15. 1. The Owner
The owner, (also called the client)
The owner is responsible for:
Funding and paying bills for the construction of project.
Determining what the project will include (also called
the scope of the project), when the project can begin
and must end (the schedule),
Receive the ultimate benefits of the finished project.
16. Contd..
Owner organizations can be broken into two major
categories, public and private.
A public agency exists for the ultimate benefit of the
citizens, the general public. Examples of public
projects:, an highway, or an University.
A private organization can be described as any
individual, partnership, corporation, or institution that
builds a project for its own use or for resale.
The owner enters into separate contract with Architect and
contractor.
17. 2.The Consultant
The main role of the consultant is to interpret the client’s project
requirements into a specific design.
The consultants’ team shall:
Ascertain, interpret and formulate the client’s requirement
into an understandable project.
Design the project to much requirements and constraints
(imposed by statutory obligations, technical feasibility,
environmental factors, site conditions, cost, etc)
Assess client’s cost limit to decide on materials & the like.
Prepare contract documents.
Supervise the project and constantly inform the client on the
progress
Approve payments
Resolve contractual disputes
Issue provisional and final acceptance certification
18. 3.The Contractor
The contractor is entity that enters into a contract with the owner
to construct the project
The Contractor is responsible :
Carry out a full site investigation prior to submission of tender.
This helps to know the costs of contractual risks and problems,
Submit tender,
Plan & program works and even re-program, whenever
unforeseen situation occur,
Control directly employed works, sub contractors, suppliers,
materials and plant,
Control project program & cost,
See to it that completed works comply with the specification
and are to the satisfaction of the
19. Cont.…
Control directly employed works, sub contractors,
suppliers, materials and plant,
Control project program & cost,
See to it that completed works comply with the
specification and are to the satisfaction of the
consultant,
Notify the consultant about delays, discrepancies,
Effect all payments to his employees, suppliers,
subcontractors, etc.
Rectify all defects on completion of works,
Provide post occupancy repair & maintenance if
required,
20. 4.Public Sector Agencies
These are organization set with the authority to sum public utilities or
provide local service.
They are:
A.Statutory Authorities: These bodies offer technical advice during
design and construction in their respective areas.
B.Municipalities & Government Authorities
These bodies offer the basic Land permit and building permit. The
responsibilities of these authorities are:
prepare development plans (site etc.) to benefit the public
ensure that all plots and likes are put to the intended use
approve and control standards
provide land and building permits
Check on material quality and safety
