1. UNIVERSITY COLLEGE OF ENGINEERING AND
TECHNOLOGY, SARGODHA
CONSTRUCTION MANGEMENT
SUBMITTED TO: Engr. Asad Sultan
SUBMITTED BY: Shahrukh Niaz
ROLL NUMBERS: BCEF16M017
(Assignment)
DEPARTMENT OF CIVIL ENGINEERING

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Construction Industry
Construction Industry is one of the most booming industries in the whole world. This
industry is mainly an urban based one which is concerned with preparation as well as
construction of real estate properties. The repairing of any existing building or making certain
alterations in the same also comes under construction Industry. This industry can be
categorized into three basic categories namely :-
 Heavy Construction: The construction of large projects such as bridge, road, etc
comes under this category.
 General construction: The construction works that involve building of real estate
ones such as residential or commercial real estate assets, etc.
 Construction projects involving specialty trades: Construction works that involve
building up of specialized items namely, electric related works, works on woods, etc.
 Types:
o Industry sectors
o Building construction
o Residential construction
 Pakistan ranked as number 43-44 among the countries of the world in nominal GDP,
26th in GDP with purchasing power parity and number 55 in the world in factory.
 Pakistan's industrial sector accounts for about 24% of GDP. Cotton textile production
and apparel manufacturing are Pakistan's largest industries, accounting for about 66%
of the merchandise exports and almost 40% of the employed labour force. Cotton and
cotton-based products account for 61% of export earnings of Pakistan. The
consumption of cotton increased by 5.7% over the past five years while the economic
growth rate was 7%. By 2010 the spinning capacity increased to 15 million spindles
and textile exports hit $15.5 .billion. Other major industries include cement, fertilizer,
edible oil, sugar, steel, tobacco, chemicals, machinery and food processing.

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 Challenges:
1. Skilled Labour Shortage:
The construction industry is on a
steady rise and remains heavily
dependent on manual labour, even with
the uptake of construction technology.
However, Australia has an ageing
workforce, and as the construction
industry continues to grow, the industry
is having a hard time recruiting skilled
workers to satisfy the rising
demand.Many young Australians today
do not find construction jobs lucrative
and are opting for other careers. Hence
there is need to improve training
programs and increase construction
apprenticeship opportunities.
2. Rising Cost of Raw Materials:
Contractors bear the risk of cost changes due to fixed
price contracts and speculative home construction. The
cost of land and raw materials can change rapidly. With
rapid change in prices, small construction companies
have less leverage, and are greatly affected by cost
variations between the time the project commences and
when it ends.
3. Slow Invoicing and Payments:
Small construction businesses often have a problem regulating
cash flow because they don’t employ suitable invoicing
systems. A progress payment schedule can help outline what is
expected at different phases of the project and determine when
each phase of the project is considered complete. Without
regular progress payments you can have too many resources
tied up in one job, which can significantly affect cash flow.

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4. Inadequate Planning:
It is critical that you lay out a comprehensive business plan. It should cover finances,
operations, and marketing your construction business, among other aspects. This will give
you a clear perspective of your cash and manpower and help you not to overestimate or
underestimate your capabilities. You should map out the details of all your project stages to
stay on track.
5. Lack of Safety Training:
Poor safety training is a recurring problem
in the Australian construction industry. As
demand grows in the industry, companies
can cut corners as they try to maximize
profitability. They can reduce their spend on
safety and training which puts them at a risk
of incurring heavy losses due to increased
insurance and litigation costs caused
by building non-compliance.

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6. Technology Adoption:
Technology has transformed the construction industry and companies that are unable to keep
up risk extinction. It plays a key role not only in the day-to-day operations, but also when
competing for projects. Construction technology includes cloud-based software, mobile,
wearable, IoT technology and estimating technology. Acquiring capital to invest in
technology can be a challenge to small construction companies.
Projectplayers of constructionindustry :
 Owner or client.
 Construction manager.
 General contractor.
 Sub contractor or specially contractors.
 Designer or Architect engineer.
 Insurance companies.
 Banks.
 Suppliers.
 Public.
 Construction labor force.
Owner:
Owner is also called client. Owner is the person who actually arranges money for particular
project. Owner is a real instinct who has to launch idea. Owner may be a person or
Government. He provides funds. He is a funding agency for the project. Scope definition is
also provided by the owner.

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Constructionmanager(CM):
Construction manager is the person who actually coordinates the construction process on
behalf of the owner. Construction manager is not common in some countries. Usually in other
countries, client assigns construction work to a CM who deals and manages all the things
related to construction.
Generalcontractor(GC):
GC is the person who actually execute the contract. He actually negotiate the contract with
client. He is the key person who is responsible to change dream of owner into physical shape.
Contractor is assigned the whole job. He needs directions from engineers and clients. This
makes a triangle of owner, contractor and engineer. In this triangle, there is a two way traffic.
For example owner can question contractor and engineer and so is contractor and engineer.
Contractor signs an agreement with the owner and holds his position. Following are some
tasks performed by General Contractor.
 Assure the work to be completed on time he specified.
 He must use Tool and plant at the site, which he has specified at the time of contract.
 He must arrange labor force.
Sub contractor:
It is also a project player. It is also known as special contractor. They actually provide
facilities to the General contractor for the sub projects. There is an agreement between these
GC and and subcontractor.Tasks which are performed by Sub contractor are :
 Electric wiring.
 Plumbing.
 Air condition supply.
 Wood work.
 Paint.
 Providing soil for project.
 Steel fixing.
Architect or Engineer:
Architect or engineer is a consultant. On behalf of the owner, engineer will take the
responsibilities of the owner to undertake the smooth execution of the project. He also co
ordinates with contractor.
Designer:
Designer may be an Architect or an Engineer. He design the project on the basis of his
previous experience. Designer must have prequalification. Owner will select a designer
which is expert in his work.

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Insurance Companies:
 Bid bond facility.
 Performance bond.
 Payment bond.
 By the contractor to the owner.
Bank:
The bank will allow funding on behalf of client. The client uses his bank account to provide
money for the project.
Suppliers:
These are actually the people who provide construction material such as bricks, concrete,
cement, etc.
Public:
Public is also a project player. During making of a project public face difficulty but when it
completes, then we enjoy facilities.
Constructionlabor Force:
 Masons.
 Brick Masons
 Brick Stone Masons.
 Block Masons.
 Cement Masons.
 Carpenters.
 Construction equipment operator.
 Electricians.
 Fixers or Steel fabricator.
 Glazers.
 Painters.
 Plumbers.

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Global setting:
 A detailed analysis of the prospects for the global construction industry up to 2021,
The pace of expansion in the global construction industry steadied in 2016, standing
at 2.4 percent, but there will be an improvement in the next five years, with growth
averaging 2.8 percent. The pick-up will reflect trends in the wider economy; in 2017-
2021, the world economy is set to expand by close to 3 percent per year on average.
 Despite the uptick, there are a number of key risks on the horizon as well. The most
notable is how Chinese authorities will rein in credit growth and manage the ensuing
economic slowdown, and how investors in advanced economies will respond to the
shift towards monetary policy normalization, particularly in view of the likely pick-up
in inflation, as commodity prices bounce back.
 In real value terms, global construction output reached $8.8 trillion in 2016, up from
$7.9 trillion in 2012. It will stand at $10.1 trillion in 2021. The value of construction
activity in the emerging world surpassed that of advanced economies in 2014, and this
difference will continue to widen. Emerging markets will account for 52.8 percent of
global output by 2021. Asia-Pacific will continue to account for the largest share of
the global construction industry.
 The pace of growth will slow, given the relative sluggishness in China's construction
industry. The emerging markets of Southeast Asia will invest heavily in new
infrastructure projects, supported by private investment.
 The overall outlook of the industry shows that contractors will be busy and those that
understand the shifts will have the best advantage in the market.
LocalSetting:
 The construction industry in Pakistan witnessed 11.31% y/y growth in the current
fiscal year on the back of increased government spending, while the country’s GDP
surpassed projected estimates, rising by approximately 4.14%. Ishaq Dar, Finance
Minister, told local news sources that the country was on track in terms of achieving
its GDP growth targets. Officials had hoped for 4%+ growth in the first fiscal year
(FY14) and are forecasting 5% growth in FY15 and 6% growth in FY16.
 The contribution of individual sectors to overall GDP growth rate was estimated at a
recent National Accounts Committee (NAC) meeting, chaired by Asif Bajwa, Chief
Statistician. The agriculture sector witnessed 2.12% growth (against a projected target
of 3.8%); the industrial sector saw 5.84% growth (against a projected target of 4.8%);
and the service sector grew by 4.29% (against a projected target of 4.26%) for the
current fiscal year (FY14). The construction sector grew by 11.31% in FY14 due to
increased government investments (50% increase), surpassing revised estimates of -
1.68% growth in the previous fiscal year.