2. Classification of Construction Industry
1. Building Construction Industry
All general and operative contractors primarily
engaged in the construction of residential,
industrial, commercial, or other buildings
* Definition Source: Standard Industrial Classification, US
2
3. 2. Heavy Construction Industry
All general contractors primarily engaged in heavy
construction other than building, such as highways and
streets, bridges, sewers, railroads, irrigation projects, and
flood control projects and marine construction
This includes special trade contractors primarily engaged in
activities not normally performed on buildings, such as
highway grading or underwater rock removal (does not
include special trade contractors primarily engaged
activities performed on buildings)
* Definition Source: Standard Industrial Classification
3
4. 3. Special Trade Construction Industry
All special trade contractors who undertake
activities of a type that are specialized either to
building construction, including work on mobile
homes, or to both building and non-building
projects
e.g. painting, electrical work, plumbing, etc. (not include
activities for heavy construction)
* Definition Source: Standard Industrial Classification
4
5. 1. The Physical and Nature of the Product
2. The Structure of the Industry
3. Nature of DD for the Construction Industry
(determinant of demand)
4. Method of Price Determination
5
6. 6
i. Large in size: required a wide geographical area;
enormous inputs ; many activities; expensive.
ii. Involvement of many expertise: professional; specialist;
trades
iii. Government as a primary client
vi. Landed properties and tailor- made product
v. Long life span of 60-100 years
7. 7
i. Fragmented and segmented in nature (design itself, many parties
involve)
ii. The CI has a large diversities of products
iii. Demand or product originates from the owner (complex
procurement for services rather than a simple sale of goods)
vi. Adversarial and conflict during project implementation (many
phases of works; complex)
v. High risk sector (subject to changes)
vi. Lack of health and safety (dangerous sector)
vii. Construction Industry as an “Engine of Growth”
8. i. Unique, unable to stock its product
ii. An investment product:
-direct enjoyment (house)
-mean for further production
-services to public (infrastructure)
-social investment (school, mosque etc.)
iii. Government is the major client
8
9. i. The price can only be determined when
construction completed (final account)
ii. The Prices influenced by the location of the site
iii. The prices influenced by the type of building
vi. The prices influenced by the economic situation
9
10. Consideration of the broad categories of clients
of the industry, their individual needs and
factors influencing them, and the best ways in
which these requirements may be met
Evaluation of the total (life cycle) costs of
alternative solutions to the problems of
meeting the requirements of a particular client
and choice of the best solution
11. Study of the nature of the construction process,
the roles of the participants on construction
projects, and ways and means of planning,
monitoring and controlling costs and ensuring
efficiency throughout the construction process
Assessment of the determinants of demand for
construction activity and study of the effect on
the industry of different volumes and mixes of
total demand
12. Consideration of the nature of the construction
industry and its needs, strengths and problems
Examination of the relationship between
construction and other sectors in economy, the
contribution the industry makes to the national
product and implications to the construction, of
changes in government policies related to the
management of the economy
13. Examination of the government policies and
roles to the construction sector.
The construction economics should extent to
sustainable development and environmental
economics taking care of the environmental
issues
20. 20
WHY
UNIQUE
1. Product of the
future
2. Time related
* Have economic
implications on the
project and its costs
3. Uncertainties
• production or
construction process
takes time
•output virtually
materialises only in
future (1,2,5,etc yrs)
• long life span
(sometimes exceed
60 – 100 yrs)
• process of
procurement is
time consuming
• affected and
influenced by time
• future is never
100% certain
• > future, > uncertainties
•rates, interest rates, weather, labour
requirements, material life span, maintenance
21. REGATTA HOTEL IN JAKARTA
FIVE STAR HOTEL SPREAD OVER AN
AREA OF 11 HECTARES. THE HOTEL,
WHICH BOASTS OF AN AQUA PARK
ARK HOTEL IN CHINA DESIGNED BY
RUSSIAN FIRM REMISTUDIO!
21
22. PIANO HOUSE IS
SITUATED AT AN HUI
PROVINCE, CHINA.
UNDER WATER
BEDROOM : POSEIDON
UNDERSEA RESORT, FIJI!
22
25. AMAZING PEDESTRIAN BRIDGE: MOUNT MAT
CINCANG IN MALAYSIA
THIS CURVED PEDESTRIAN BRIDGE IS 2000 FEET
ABOVE SEA LEVEL AT THE TOP OF MOUNT MAT
CINCANG IN MALAYSIA. SET ABOVE THE TREETOPS,
400-FOOT LONG LANGKAWI SKY BRIDGE IS ONE OF
THE HIGHEST ELEVATED SINGLE-STAY BRIDGES IN
THE WORLD. THE DECK IS LESS THAN 6 FEET WIDE
AND ITS CURVED SHAPE GIVES TRAVELERS A
PANORAMIC VIEW OF LANGKAWI, AN
ARCHIPELAGO OF 99 ISLANDS.
SHARP TURNS AND WILD NATURE HAVE PUT
THE ATLANTIC ROAD : THE WORLD'S BEST
ROAD TRIPS. ATLANTIC OCEAN ROAD TAKES
YOU OVER 8 BRIGDES FROM ISLET TO ISLET OUT
TO THE VERY POINT WHERE THE LAND ENDS
AND THE OCEAN BEGINS. IT IS A 8.3-KILOMETER
(5.2 MI) LONG SECTION OF COUNTY ROAD 64
WHICH RUNS THROUGH AN ARCHIPELAGO IN
EIDE AND AVERØY IN MØRE OG ROMSDAL,
NORWAY.
25
26. SPECTACULAR OPERA ON LAKE STAGE AT BREGENZ:
CRESCENT MOON
TOWER, DUBAI
PARK ZAABIL.
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