Construction
Construction is a general term meaning the art and science to form
objects, systems, or organizations,[1] and comes from Latin constructio
(from com- "together" and struere "to pile up") and Old French
construction.[2] To construct is the verb: the act of building, and the noun
is construction: how something is built, the nature of its structure.
In its most widely used context, construction covers the processes
involved in delivering buildings, infrastructure and industrial facilities, and
associated activities through to the end of their life. It typically starts with
planning, financing, and design, and continues until the asset is built and
ready for use; construction also covers repairs and maintenance work, any
works to expand, extend and improve the asset, and its eventual
demolition, dismantling or decommissioning.
As an industry sector, construction accounts for more than 10% of global
GDP (6-9% in developed countries) and employs around 7% of the global
workforce - over 273m people. The output of the global construction
industry was worth an estimated $10.8 trillion in 2017.
Contents
History
Construction industry sectors
Building construction In large construction projects, such
Residential construction as this skyscraper in Melbourne,
Australia, cranes are essential.
Non-residential construction
Infrastructure construction
Industrial construction
Construction processes
Planning
Finance
Legal
Procurement
Traditional or Design-bid-build
Design-build
Construction management Construction site and equipment
prepared for start of work in Cologne,
Design Germany (2017)
On-site construction
Commissioning and handover
Maintenance, repair and improvement
Demolition
Industry scale and characteristics
Economic activity
Construction GVA by country
Careers
Unskilled and semi-skilled workers
Skilled tradespeople
Professional, technical or managerial personnel
Safety
Sustainability
See also
References and notes
History
The first huts and shelters were constructed by hand or with simple tools. As cities grew during the Bronze Age, a
class of professional craftsmen, like bricklayers and carpenters, appeared. Occasionally, slaves were used for
construction work. In the Middle Ages, the artisan craftsmen were organized into guilds. In the 19th century,
steam-powered machinery appeared, and, later, diesel- and electric-powered vehicles such as cranes, excavators
and bulldozers.
Fast-track construction has been increasingly popular in the 21st century. Some estimates suggest that 40% of
construction projects are now fast-track construction.[3]
Construction industry sectors
In general, there are three sectors of construction: buildings, infrastructure
and industrial.[4] Building construction is usually further divided into
residential and non-residential. Infrastructure, also called heavy civil or
heavy engineering, includes large public works, dams, bridges, highways,
railways, water or wastewater and utility distribution. Industrial
construction includes offshore construction (mainly of energy
installations), mining and quarrying, refineries, chemical processing,
power generation, mills and manufacturing plants. Industrial assemblage of a thermal
oxidizer in the United States of
There are also other ways to break the industry into sectors or markets.[5] America
For example, Engineering News-Record (ENR), a US-based construction
trade magazine, has compiled and reported data about the size of design
and construction contractors. In 2014, it split the data into nine market segments: transportation, petroleum,
buildings, power, industrial, water, manufacturing, sewer/waste, telecom, hazardous waste, and a tenth category for
other projects.[6] ENR used data on transportation, sewer, hazardous waste and water to rank firms as heavy
contractors.[7]
The Standard Industrial Classification and the newer North American Industry Classification System classify
companies that perform or engage in construction into three subsectors: building construction, heavy and civil
engineering construction, and specialty trade contractors. There are also categories for professional services firms
(e.g., engineering, architecture, surveying, project management).[8][9]
Building construction
Building construction is the process of adding structures to areas of land, also known as real property sites.
Typically, a project is instigated by or with the owner of the property (who may be an individual or an
organisation); occasionally, land may be compulsorily purchased from the owner for public use.
Residential construction
Residential construction may be undertaken by individual land-owners (self-
build), by specialist house-builders, by property developers, by general
contractors, or by providers of public or social housing (eg: local authorities,
housing associations). Where local zoning or planning policies allow, mixed-use
developments may comprise both residential and non-residential construction (eg:
retail, leisure, offices, public buildings, etc).
Residential construction practices, technologies, and resources must conform to
local building authority regulations and codes of practice. Materials readily
available in the area generally dictate the construction materials used (eg: brick
versus stone versus timber). Costs of construction on a per square meter (or per
square foot) basis for houses can vary dramatically based on site conditions,
access routes, local regulations, economies of scale (custom-designed homes are
Military residential unit
often more expensive to build) and the availability of skilled tradespeople. construction by U.S. Navy
personnel in Afghanistan
Non-residential construction
Depending upon the type of building, non-residential building
construction can be procured by a wide range of private and public
organisations, including local authorities, educational and religious bodies,
transport undertakings, retailers, hoteliers, property developers, financial
institutions and other private companies. Most construction in these
sectors is undertaken by general contractors.
Infrastructure construction
Construction of the Federal Reserve
Civil engineering covers the design, construction, and maintenance of the building in Kansas City, Missouri
physical and naturally built environment, including public works such as
roads, bridges, canals, dams, tunnels, airports, water and sewerage
systems, pipelines, and railways.[10][11] Some general contractors have
expertise in civil engineering; civil engineering contractors are firms
dedicated to work in this sector, and may specialise in particular types of
infrastructure.
Industrial construction
Industrial construction includes offshore construction (mainly of energy
installations: oil and gas platforms, wind power), mining and quarrying, Shasta Dam under construction in
refineries, breweries, distilleries and other processing plants, power June 1942
stations, steel mills, warehouses and factories.
Construction processes
Some construction projects are small renovations or repair jobs, where the owner may act as designer, paymaster
and laborer for the entire project. However, more complex or ambitious projects usually require additional multi-
disciplinary expertise and manpower, so the owner may commission one or more specialist businesses to undertake
detailed planning, design, construction and handover of the work. Often the owner will appoint one business to
oversee the project (this may be a designer, a contractor, a construction manager, or other advisor); such specialists
are normally appointed for their expertise in project delivery, and will help the owner define the project brief, agree
a budget and schedule, liaise with relevant public authorities, and procure the services of other specialists (the
supply chain, comprising subcontractors). Contracts are agreed for the
delivery of services by all businesses, alongside other detailed plans aimed
at ensuring legal, timely, on-budget and safe delivery of the specified
works.
Design, finance, and legal aspects overlap and interrelate. The design
must be not only structurally sound and appropriate for the use and
location, but must also be financially possible to build, and legal to use.
The financial structure must be adequate to build the design provided, and
The National Cement Share
must pay amounts that are legally owed. Legal structures integrate design
Company of Ethiopia's new plant in
with other activities, and enforce financial and other construction
Dire Dawa
processes.
These processes also affect procurement strategies. Clients may, for
example, appoint a business to design the project after which a competitive process is undertaken to appoint a lead
contractor to construct the asset (design–bid–build); they may appoint a business to lead both design and
construction (design-build); or they may directly appoint a designer, contractor and specialist subcontractors
(construction management).[12] Some forms of procurement emphasise collaborative relationships (partnering,
alliancing) between the client, the contractor, and other stakeholders within a construction project, seeking to
ameliorate often highly competitive and adversarial industry practices.
Planning
When applicable, a proposed construction project must comply with local
land-use planning policies including zoning and building code
requirements. A project will normally be assessed (by the 'authority
having jurisdiction', AHJ, typically the municipality where the project will
be located) for its potential impacts on neighbouring properties, and upon
existing infrastructure (transportation, social infrastructure, and utilities
including water supply, sewerage, electricity, telecommunications, etc).
Data may be gathered through site analysis, site surveys and geotechnical
investigations. Construction normally cannot start until planning
Digging the foundation for a building
permission has been granted, and may require preparatory work to ensure
construction in Jakarta, Indonesia
relevant infrastructure has been upgraded before building work can
commence. Preparatory works will also include surveys of existing utility
lines to avoid damage causing outages and other hazardous situations.
Some legal requirements come from malum in se considerations, or the desire to prevent indisputably bad
phenomena, e.g. explosions or bridge collapses. Other legal requirements come from malum prohibitum
considerations, or factors that are a matter of custom or expectation, such as isolating businesses from a business
district or residences from a residential district. An attorney may seek changes or exemptions in the law that
governs the land where the building will be built, either by arguing that a rule is inapplicable (the bridge design
will not cause a collapse), or that the custom is no longer needed (acceptance of live-work spaces has grown in the
community).[13]
During construction of a building, a municipal building inspector usually inspects the ongoing work periodically to
ensure that construction adheres to the approved plans and the local building code. Once construction is complete,
any later changes made to a building or other asset that affect safety, including its use, expansion, structural
integrity, and fire protection, usually require municipality approval.
Finance
Depending on the type of project, mortgage bankers, accountants, and cost engineers may participe in creating an
overall plan for the financial management of a construction project. The presence of the mortgage banker is highly
likely, even in relatively small projects since the owner's equity in the property is the most obvious source of
funding for a building project. Accountants act to study the expected monetary flow over the life of the project and
to monitor the payouts throughout the process. Professionals including cost engineers, estimators and quantity
surveyors apply expertise to relate the work and materials involved to a proper valuation.
Financial planning ensures adequate safeguards and contingency plans are in place before the project is started,
and ensures that the plan is properly executed over the life of the project. Construction projects can suffer from
preventable financial problems. Underbids happen when builders ask for too little money to complete the project.
Cash flow problems exist when the present amount of funding cannot cover the current costs for labour and
materials; such problems may arise even when the overall budget is adequate, presenting a temporary issue. Cost
overruns with government projects have occurred when the contractor identified change orders or project changes
that increased costs, which are not subject to competition from other firms as they have already been eliminated
from consideration after the initial bid.[14] Fraud is also an occasional construction issue.[15]
Large projects can involve highly complex financial plans and often start with a conceptual estimate performed by
a building estimator. As portions of a project are completed, they may be sold, supplanting one lender or owner for
another, while the logistical requirements of having the right trades and materials available for each stage of the
building construction project carries forward. Public–private partnerships (PPPs) or private finance initiatives
(PFIs) may also be used to help delivery major projects. According to McKinsey in 2019, the "vast majority of
large construction projects go over budget and take 20% longer than expected".[16]
Legal
A construction project is a complex net of construction contracts and other
legal obligations, each of which all parties must carefully consider. A
contract is the exchange of a set of obligations between two or more
parties, and provides structures to manage issues. For example,
construction delays can be costly, so construction contracts set out clear
expectations and clear paths to manage delays. Poorly drafted contracts
can lead to confusion and costly disputes.
At the start of a project, legal advisors seek to identify ambiguities and
Construction along Ontario Highway
other potential sources of trouble in the contract structures, and to present
401, widening the road from six to
options for preventing problems. During projects, they work to avoid and
twelve travel lanes
resolve conflicts that arise. In each case, the lawyer facilitates an exchange
of obligations that matches the reality of the project.
Procurement
Traditional or Design-bid-build
Design-bid-build is the most common and well-established method of
construction procurement. In this arrangement, the architect, engineer or
builder acts for the client as the project coordinator. They design the
works, prepare specifications and design deliverables (models, drawings,
etc), administer the contract, tender the works, and manage the works Apartment complex under
from inception to completion. In parallel, there are direct contractual links construction in Daegu, South Korea
between the client and the main contractor, who, in turn, has direct
contractual relationships with subcontractors. The arrangement continues
until the project is ready for handover.
Design-build
Design-build became more common from the late 20th century, and involves the client contracting a single entity
to provide design and construction. In some cases, the design-build package can also include finding the site,
arranging funding and applying for all necessary statutory consents. Typically, the client invites several D&B
contractors to submit proposals to meet the project brief and then selects a preferred supplier. Often this will be a
consortium involving a design firm and a contractor (sometimes more than one of each). In the United States,
departments of transportation usually use design-build contracts as a way of progressing projects where states lack
the skills or resources, particularly for very large projects.[17]
Construction management
In a construction management arrangement, the client enters into separate contracts with the designer (architect or
engineer), a construction manager, and individual trade contractors. The client takes on the contractual role, while
the construction or project manager provides the active role of managing the separate trade contracts, and ensuring
that they complete all work smoothly and effectively together. This approach is often used to speed up
procurement processes, to allow the client greater flexibility in design variation throughout the contract, to enable
the appointment of individual work contractors, to separate contractual responsibility on each individual
throughout the contract, and to provide greater client control.
Design
In the industrialized world, construction usually involves the translation of designs into reality. Most commonly (ie:
in a design-bid-build project), the design team is employed by (i.e. in contract with) the property owner.
Depending upon the type of project, a design team may include architects, civil engineers, mechanical engineers,
electrical engineers, structural engineers, fire protection engineers, planning consultants, architectural consultants,
and archaeological consultants. A 'lead designer' will normally be identified to help coordinate different
disciplinary inputs to the overall design. This may be aided by integration of previously separate disciplines (often
undertaken by separate firms) into multi-disciplinary firms with experts from all related fields,[18] or by firms
establishing relationships to support design-build processes.
The increasing complexity of construction projects creates the need for design professionals trained in all phases of
a project's life-cycle and develop an appreciation of the asset as an advanced technological system requiring close
integration of many sub-systems and their individual components, including sustainability. For buildings, building
engineering is an emerging discipline that attempts to meet this new challenge.
Traditionally, design has involved the production of sketches, architectural and engineering drawings, and
specifications. Until the late 20th century, drawings were largely hand-drafted; adoption of computer-aided design
(CAD) technologies then improved design productivity, while the 21st century introduction of building
information modeling (BIM) processes has involved use of computer-generated models that can be used in their
own right or to generate drawings and other visualisations as well as capturing non-geometric data about building
components and systems.
On some projects, work on site will not start until design work is largely complete; on others, some design work
may be undertaken concurrently with the early stages of on-site activity (for example, work on a building's
foundations may commence while designers are still working on the detailed designs of the building's internal
spaces). Some projects may include elements that are designed for off-site construction (see also prefabrication and
modular building) and are then delivered to site ready for erection, installation or assembly.
On-site construction
Once contractors and other relevant professionals have been appointed
and designs are sufficiently advanced, work may commence on the
project site. Typically, a construction site will include a secure perimeter to
restrict unauthorised access, site access control points, office and welfare
accommodation for personnel from the main contractor and other firms
involved in the project team, and storage areas for materials, machinery
and equipment. According to the McGraw-Hill Dictionary of Architecture
and Construction's definition, construction may be said to have started
when the first feature of the permanent structure has been put in place,
such as pile driving, or the pouring of slabs or footings.[19]
On-site foundation construction.
Commissioning and handover
Commissioning is the process of verifying that all subsystems of a new building (or other asset) work as intended
to achieve the owner's project requirements and as designed by the project's architects and engineers.
Maintenance, repair and improvement
Maintenance involves functional checks, servicing, repairing or replacing of necessary devices, equipment,
machinery, building infrastructure, and supporting utilities in industrial, business, governmental, and residential
installations.[20][21]
Demolition
Demolition is the discipline of safely and efficiently tearing down buildings and other artificial structures.
Demolition contrasts with deconstruction, which involves taking a building apart while carefully preserving
valuable elements for reuse purposes (recycling - see also circular economy).
Industry scale and characteristics
Economic activity
The output of the global construction industry was worth an estimated
$10.8 trillion in 2017, and in 2018 was forecast to rise to $12.9 trillion by
2022.[22] As a sector, construction accounts for more than 10% of global
GDP (in developed countries, construction comprises 6-9% of GDP),[23]
and employs around 7% of the total employed workforce around the
globe[24] (accounting for over 273 million full- and part-time jobs in
2014).[25] Since 2010,[26] China has been the world's largest single
construction market.[27] The United States is the second largest Helicopter view of the Atacama
construction market with a 2018 output of $1.581 trillion.[28] Large Millimeter/submillimeter Array
(ALMA) Operations Support Facility
In the United States in February 2020, around $1.4 trillion worth of (OSF) construction site
construction work was in progress, according to the Census Bureau, of
which just over $1.0 trillion was for the private sector (split roughly
55:45% between residential and nonresidential); the remainder was public sector, predominantly for state and local
government.[29]
Construction is a major source of employment in most countries; high reliance on small businesses, and under-
representation of women are common traits. For example:
In the US, construction employed around 11.4m people in 2020, with a further 1.8m employed in
architectural, engineering, and related professional services - equivalent to just over 8% of the total
US workforce.[30] The construction workers were employed in over 843,000 organisations, of
which 838,000 were privately held businesses.[31] In March 2016, 60.4% of construction workers
were employed by businesses with fewer than 50 staff.[32] Women are substantially
underrepresented (relative to their share of total employment), comprising 10.3% of the US
construction workforce, and 25.9% of professional services workers, in 2019.[30]
In the United Kingdom, construction contributed £117 billion (6%) to UK GDP in 2018, and in 2019
employed 2.4m workers (6.6% of all jobs). These worked either for 343,000 'registered'
construction businesses, or for 'unregistered' businesses, typically self-employed contractors;[33]
just over one million small/medium-sized businesses, mainly self-employed individuals, worked in
the sector in 2019, comprising about 18% of all UK businesses.[34] Women comprised 12.5% of the
UK construction workforce.[35]
According to McKinsey research, productivity growth per worker in construction has lagged behind many other
industries across different countries including in the United States and in European countries. In the United States,
construction productivity per worker has declined by half since the 1960s.[36]
Construction GVA by country
List of countries with the largest construction Gross Value Added in 2018
Economy Construction GVA in 2018 (billions in USD)
(01) China 934.2
(02) United States 839.1
(03) Japan 275.5
(04) India 201.2
(05) Germany 180.5
(06) United Kingdom 154.7
(07) France 138.7
(08) Canada 125.4
(09) Russia 121.2
(10) Australia 111.8
(11) Indonesia 109.7
(12) South Korea 93.0
(13) Brazil 92.6
(14) Mexico 89.0
(15) Spain 80.0
(16) Italy 78.9
(17) Turkey 55.3
(18) Saudi Arabia 40.2
(19) Netherlands 39.5
(20) Poland 39.4
(21) Switzerland 36.3
(22) United Arab Emirates 34.5
(23) Sweden 33.3
(24) Austria 27.2
(25) Qatar 27.0
The twenty-five largest countries in the world by construction GVA (2018)[37]
Careers
Large-scale construction requires collaboration across multiple disciplines. A project manager normally manages
the budget on the job, and a construction manager, design engineer, construction engineer or architect supervises it.
Those involved with the design and execution must consider zoning requirements and legal issues, environmental
impact of the project, scheduling, budgeting and bidding, construction site safety, availability and transportation of
building materials, logistics, and inconvenience to the public, including those caused by construction delays.
There are many routes to the different careers within the construction
industry. There are three main tiers based on educational background and
training, which vary by country:
Unskilled and semi-skilled workers
Unskilled and semi-skilled workers provide general site labor, often have
few or no construction qualifications, and may receive basic site training.
Skilled tradespeople
Skilled tradespeople have typically served apprenticeships (sometimes in
labor unions) or received technical training; this group also includes on-
site managers who possess extensive knowledge and experience in their
craft or profession. Skilled manual occupations include carpenters, Ironworkers erecting the steel frame
electricians, plumbers, ironworkers, heavy equipment operators and of a new building at Massachusetts
masons, as well as those involved in project management. In the UK these General Hospital in Boston
require further education qualifications, often in vocational subject areas,
undertaken either directly after completing compulsory education or
through "on the job" apprenticeships.[38]
Professional, technical or managerial personnel
Professional, technical and managerial personnel often have higher
education qualifications, usually graduate degrees, and are trained to
design and manage construction processes. These roles require more
training as they demand greater technical knowledge, and involve more
A truck operator at Al Gamil, the
legal responsibility. Example roles (and qualification routes) include: largest construction company in
Djibouti
Architect – Will usually have studied architecture to degree
level, and then undertaken further study and gained
professional experience. In many countries, the title of
"architect" is protected by law, strictly limiting its use to qualified people.
Civil engineer – Typically holds a degree in a related subject and may only be eligible for
membership of a professional institution (such as the UK's ICE) following completion of additional
training and experience. In some jurisdictions, a new university graduate must hold a master's
degree to become chartered,[a] and persons with bachelor's degrees may become Incorporated
Engineers.
Building services engineer – May also be referred to as an "M&E" or "MEP engineer" and typically
holds a degree in mechanical or electrical engineering.[a]
Project manager – Typically holds a 4-year or greater higher education qualification, but are often
also qualified in another field such as architecture, civil engineering or quantity surveying.
Structural engineer – Typically holds a bachelor's or master's degree in structural engineering.[a]
Quantity surveyor – Typically holds a bachelor's degree in quantity surveying. UK chartered status
is gained from the Royal Institution of Chartered Surveyors.
Safety
Construction is one of the most dangerous occupations in the world,
incurring more occupational fatalities than any other sector in both the
United States and in the European Union.[39][40] In 2009, the fatal
occupational injury rate among construction workers in the United States
was nearly three times that for all workers, with falls being one of the
most common causes of fatal and non-fatal injuries among construction
workers.[39] Proper safety equipment such as harnesses, hard hats and
guardrails and procedures such as securing ladders and inspecting
scaffolding can curtail the risk of occupational injuries in the construction
At-risk workers without appropriate
industry.[41] Other major causes of fatalities in the construction industry safety equipment
include electrocution, transportation accidents, and trench cave-ins.[42]
Other safety risks for workers in construction include hearing loss due to
high noise exposure, musculoskeletal injury, chemical exposure, and high
levels of stress.[43] Besides that, the high turnover of workers in
construction industry imposes a huge challenge of accomplishing the
restructuring of work practices in individual workplaces or with individual
workers. Construction has been identified by the National Institute for
Occupational Safety and Health (NIOSH) as a priority industry sector in
the National Occupational Research Agenda (NORA) to identify and
provide intervention strategies regarding occupational health and safety
issues.[44][45] Roofing requires appropriate personal
protective equipment.
Sustainability
Sustainability during the construction phase is an aspect of “green building," defined by the United States
Environmental Protection Agency (EPA) as "the practice of creating structures and using processes that are
environmentally responsible and resource-efficient throughout a building's life-cycle from siting to design,
construction, operation, maintenance, renovation and deconstruction."[46]
See also
Agile construction
Index of construction articles
Outline of construction
Real estate development
Structural robustness
Umarell
References and notes
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census.gov/cgi-bin/sssd/naics/naicsrch?code=23&search=2012)
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splay?id=3&tab=division)
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a. In the UK, the Chartered Engineer qualification is controlled by the Engineering Council, and is
often achieved through membership of the relevant professional institution (ICE, CIBSE, IStructE,
etc).
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