This document provides an overview of the construction industry. It discusses the key sectors of the industry, including residential, commercial/institutional buildings, heavy/infrastructure projects, and industrial construction. It notes that construction accounts for 6% of a country's GDP and employs millions of workers. The goals of construction project management are outlined as completing projects on schedule, within budget, and to a high quality standard.

1. Dr. J. Berlin P. Juanzon CE, MBA,MSCM
CE142-Construction Methods & Project Management
LECTURE -1
OVERVIEW OF THE CONSTRUCTION INDUSTRY

2. Learning Outcomes
 Familiarize with the construction industry and its
environment.
 Identify and define construction management
goals.
 Understand the construction management
process.
 Determine the different participants in
implementing a construction project.
 Determine the different phases in implementing
construction project.
 Identify the major industry divisions in
construction

3. CONSTRUCTION INDUSTRY
SERVICES
Construction infrastructure projects are one of
the most important factors in supporting the socio-
economic development in the country. It could generate
downstream economic activities and completely
enhance productivity and competitiveness in the
Construction industry.

4. Overview of the Construction Industry
 6% of GDP (Gross Domestic Product)
 Employs over 2,000,000 workers
 Annual Volume exceeds Ph238 billion
 Vital to the Nation’s economic health
and quality of life

5. CONSTRUCTION PROJECT ENVIRONMENT
Construction is the act, process, or manner
of building, constructing, or forming something
which requires the application of special
engineering and/or architectural knowledge and
skills and involving the use of specialized
building trades or crafts.

6. Overview of the Construction Industry
4 - Categories of construction
1. Residential Construction
2. (Institutional & Commercial) Building
Construction
3. Infrastructure and Heavy Highway
Construction
4. Industrial Construction

7. Project Goal
The primary goal of the construction
project management team is to complete
the projects as specified according to
plans, on schedule, within the budget
and achieve the best quality level
required by the contract

8. Project Goal
In order to achieve this goal a construction
management system will serve as a guide:
Construction
Project
Management
System
COST
QUALITY TIME

9. Overview of the Construction Industry
Residential
Types
– Single family houses
– Multi family dwellings
– High-rise apartments &
condominiums
30-35 % of the industry
Low capital and technology
requirements

10. Overview of the Construction Industry
Residential (continued)
Largely private
Often speculative
Developers =
surrogate owners
Designed by architects,
builders/developers

11. Overview of the Construction Industry
Building Construction
Institutional and Commercial
Construction
– Schools and universities
– Medical clinics and hospitals
– Recreational facilities and sports
stadiums

12. Overview of the Construction Industry
Building Construction
– Retail stores and shopping
centers
– Warehouses and light
manufacturing
– Office buildings (single story to
sky scrappers)
– Hotels, convention centers, and
theaters

13. Overview of the Construction Industry
Building Construction
Institutional and Commercial
Construction
– Churches and Synagogues
– Prisons
– Courthouses and other
government buildings

14. Overview of the Construction Industry
Building Construction
35-40 % of construction market
Larger and more complex than
residential
Various owners (mostly private)
Designed by architects and
engineers

15. Overview of the Construction Industry
Heavy Highway Construction
Horizontal Construction
20-25% of the construction industry
Mostly public financing or large
consortium

16. Overview of the Construction Industry
Heavy Construction
Highway & Bridges

17. Overview of the Construction Industry
Heavy Construction
Railroads & Urban Transit Systems

18. Overview of the Construction Industry
Heavy Construction
Tunnels

19. Overview of the Construction Industry
Heavy Construction
Dams

20. Overview of the Construction Industry
Heavy Construction
Airports

21. Overview of the Construction Industry
Heavy Construction
Canals

22. Overview of the Construction Industry
Heavy Construction
Ports and Harbors

23. Overview of the Construction Industry
Heavy Construction
Pipelines and Sewer Systems
Water treatment & distribution systems

24. Overview of the Construction Industry
Heavy Construction
Power & communication networks

25. Overview of the Construction Industry
Heavy Construction
Mass quantities of basic materials:
earth, rock, steel, timber, and
concrete
Constructors need knowledge of
engineering and geology
Engineers and builders are often
specialized

26. Overview of the Construction Industry
Heavy Construction
Greatest impact on land and water
High degree of mechanization
Contracts awarded through
competitive bidding

27. Overview of the Construction Industry
Industrial Construction
Very large scale projects
High degree of technological
complexity
Designed and built by the largest
firms with the highest level of
technical sophistication
Represent 5-10% of the market

28. Overview of the Construction Industry
Industrial Construction
Petroleum refineries
Steel mills & aluminum plants
Chemical processing plants

29. Overview of the Construction Industry
Industrial Construction
Fossil fuel & nuclear power plants
Other heavy manufacturing facilities

30. Overview of the Construction Industry
Industrial Construction
Complex mechanical systems, process piping,
and instrumentation
Civil, but also mechanical, chemical, and
electrical engineering disciplines involved
Mostly private ownership (in western
countries)

31. Overview of the Construction Industry
Industrial Construction
Negotiated contracts are typical
“Turnkey” contract arrangements are
common
Design-constructor must be intimately
familiar with the technology and
operations of the facility