Characteristics oI construction industry can divide by its Ieatures oI output, its size, government

as a main client, nature oI demand Ior construction output, nature oI construction work, variety
oI construction technology, and structure oI industry.
Feature oI construction output are durable or long lasting output such as house, building, road,
etc large and heavy units, unique, immobile, complex process, and expensive. Construction
industry is capital goods industry. It also requires other industries to support them and
contributes gross domestic product oI the country. Many worker are required by construction
industry. The main client oI construction industry is a government regarding to their policy in
inIrastructure development. Demand oI construction is in various types and sizes. There will be
diIIerent locations, diIIerent resources, diIIerent inputs and diIIerent stages oI their process.
There are discontinuities and uncertainties in demand pattern.
Construction industry needs a lot oI worker with many level such as skilled labor or unskilled
labor. People imagine construction industry as dirty job as well as dangerous jobs. Even some
said the construction industry is unatrractive job, but i would say this is the attractive job and lot
oI money especially in oII shore construction industry such as drilling, piping, and dredging. The
development oI construction industry grows rapidly as well as triangle connection between cost,
quality, and time to improve beneIits. There are a lot oI Iirm in small scale to big scale in
construction industry and it is ease to enter in construction industry






As already indicated, construction is a large industry oI small Iirmss

The i ndust r y i s a pr o j ect - bas ed i ndust r y. Fi r ms under t ake a r a nge
oId i s cr et e pr o ject s o I r e l at i ve l y lo ng dur at io n, const r uct ed out si de
a ndgeographically dispersed and Iixed. The majority oI such projects are still custom
designed to a client ' s requirements, and designed and built Ior price established
through the compet it ive tendering system, which st ill o p e r a t e s e x t e n s i v e l y i n
t h e i n d u s t r y . Individually, projects re-qua i nt l y const it ut e a s i gni I i c a nt
pr opor t io n oI a I i r m' s wor klo ad wit h s e r i o u s c o n s e q u e n c e s i I t h i n g s
g o wr o n g . P r o j e c t d e c i s i o n s b e c o me strategic decisions, an issue we shall
discuss in the next two chapters




1he demand for consLrucLl on pro[ecLs l s essenLl al l y whaL economl sLs cal l `derl vedƌ
demandŦ lL l s derl ved from Lhe need for bul l dl ngs l n whl ch Lo l l veţ Lo manufacLure or
sLore goodsţ or l n whl ch Lo operaLe varl ous serŴvlcesŦ 8ulldlng ls Lhus sLrongly relaLed Lo Lhe
sLaLe of healLh of Lhe general economy and Lo Lhe l evel of l nLeresL raLes and busl ness acLl vl Ly
l n parLl cularŦ 1he facL LhaL bulldlngs are caplLal lLems makes Lhem naLural LargeLs for expendlLure cuLs
by boLh governmenL and Lhe prlvaLe secLorŦ 1hls hasl e d L o L he cha r ac L er l s L l c f l ucL uaL l ons l n
demandţ whl ch ar e f aml l l ar L o consLrucLlon flrmsţ and Lo Lhe more permanenL downLurn whlch
occurred l n Lhe 1980s and earl y 1990s


here are a number of oLher characLerlsLlcs of Lhe consLrucLlon lndusLry lnL he uk whl c h hav e
emer ged l n L he l as L L we nL y year s Ŧ 1he r l s e of pa r L Ŵ nerl ngţ l ncreasl ng gl obal l saLl on
of consLrucLl on acLl vl Ll esţ [ol nL venLuresand sLraLegl c al l l ancesţ mergers and Lakeovers of
househol d namesţ anaLLack on cosL and wasLe l n Lhe l ndusLry usl ng Lechnl ques such as
val uemanagemenLţ buslness process reŴenglneerlng and lean consLrucLlon andL h e l n e v l L a b l e
l n c r e a s e l n L h e u s e o f l 1 a n d L h e l n L e r n e L a r e s l o w l y changl ng Lhe naLure of
Lhe l ndusLryŦ

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