Unit 1

Role of Construction Industry

By
Prof. G G Wankhede
Lecturer in Civil Engineering
Government Polytechnic Nashik
Topics and Subtopics from curriculum
⚫Importance of Construction Industry in National
development

⚫Resources of construction industry: Material,

Manpower, Money, Machinery, Space
Let’s understand the
Construction Industry First
Construction Industry
⚫Construction Scope
⚫Construction Participants
⚫Construction Projects
Construction Scope
⚫Ever since the dawn of civilization, humans have
indulged in some form of construction activity.

⚫In ancient times and medieval times many

marvelous structures are built such as Pyramids of
Egypt, the Great wall of China, the Taj Mahal, etc.
⚫Some of the recent Civil Engineering marvels are

Lotus Temple, New

Delhi

Statue of Unity

Palm Island,
Dubai
Construction Scope in India in Current situation

⚫Infrastructure plays a huge role in propelling other

industries and India’s overall development. The
government achieves the development of
infrastructure and construction services through
focused policies such as
⚫ open FDI norms,
⚫ large budget allocation to infrastructure sector,
⚫ smart cities mission, etc.
Construction Scope…. Current situation in India
⚫Housing for All by 2022, the government’s flagship
scheme PMAY (Pradhan Mantri Awas Yojana) launched
in June 2015 aims to build 20 million urban homes
and 30 million rural houses by 2022.
⚫Indian Real Estate sector is expected to reach a market
size of USD 100000,00,00,000 (i.e. 1 trillion) by 2030. It’s
contribution to the country’s GDP is expected to be
approximately 13% by 2025.
 Construction Participants
⚫ Construction business promoters like government bodies, public and
private enterprises for real estate and industrial development, and other
agencies.
⚫ Construction management consultant firms.
⚫ Project feasibility, including cost estimates.
⚫ Site survey and soil investigations
⚫ Scrutiny and coordination of designs and drawing work
⚫ Estimating, initial planning, and budgeting costs.
⚫ Processing prequalification of construction agencies, tendering, and
awarding contracts to the successful bidder
⚫ Designing project organization for executing works und developing
standard operating procedures and systems.
⚫ Developing detailed construction plan, project schedules and
performance measuring standards.
⚫ Supervising works, administration of time, cost and quality objectives.
⚫ Architect-engineering associates.
Construction Participants
⚫Construction manpower recruitment and training
agencies.
⚫Construction materials developing, manufacturing,
stocking, transportation trading firms.
⚫Construction plant and machinery manufacturing,
distributing, and repair and maintenance
organizations.
⚫Banking and finance institutions.
⚫Risk insurance and legal services companies.
⚫Construction quality assurance, and research and
development establishment
Challenges in Construction Industry
⚫ Details of work are not precisely defined.
⚫ Scope of work gets modified during execution.
⚫ Site of works are located in remote areas.
⚫ Places of works are spread out.
⚫ Resource requirements and organization of works differ
with each task.
⚫ Investment involved are large & the decisions include risks.
⚫ Performance is sensitive to the unexplored site geology,
uncertain weather and unforeseen natural calamities.
Construction Projects
⚫Various Civil Engineering
Projects are undertaken in
Construction Industry
⚫Building Project
1. Residential Buildings
2. Other buildings –
⚫ Academic building such as
institutes, university and schools,
hospitals, temples, government
and private offices, commercial
complexes, recreational building
such as auditorium, cinema hall,
theatres, stores, warehouse, light
manufacturing plants.
Construction Industry (continued)
⚫ Transportation systems
⚫ Bridges and flyover, roads, railways,
airport, urban mass transit system such as
mono railway and ropeways, port, tunnel.
⚫ These are basic infrastructural projects.
Developing countries are spending major
of its budget on these projects.
⚫ Hydraulic structures
⚫ Dam, barrage, canal, hydroelectric power
plant, tunnel, embankment, flood control
system.
⚫ For a country like India, whose economy is
dependent on agriculture, these are major
infrastructural projects.
Construction Industry (continued)
⚫Fossil fuel and Nuclear power
plants
⚫Energy is vital for survival. The
generation of electricity is
carried out from coal,
petroleum, nuclear fuel and
Solar.
⚫Offshore structures
⚫These are huge steel and
concrete structure in sea, used
usually for petroleum
extraction.
Construction Industry (continued)
⚫Industrial Structures
⚫Petrochemical refineries, small
and large scale manufacturing
plants, mine developments.
⚫These are the backbone of modern
growth of a country.
⚫Communication System
⚫Transmission line tower,
communication network, TV
Tower.
⚫These structures are lifeline for
present activities.
Construction Industry (continued)
⚫Water and waste project
⚫Water treatment plant
⚫Water distribution system - pipe,
water tanks
⚫Sewage and storm water collection
system
⚫Sewage treatment plants
⚫Sewage disposal system
⚫These structures are important for
environment friendly living and
healthy life.
Importance of Construction Industry in
National development
⚫ Construction is the second largest economic activity in
India, next only to agriculture. 
⚫ The amount of money invested in and the jobs
provided by construction industry are much larger than
any other industry in India
⚫ About 50% of all expenditure incurred in five year Plans
can be directly traced to construction.
⚫ Almost all the sectors have huge construction components
in them
⚫ Housing 100%
⚫ Irrigation and Flood control 80%
⚫ Power 75%
⚫ Transportation and Communication 40%
Importance of Construction Industry in National
development (continued)
⚫Construction plays a critical role in all development
sectors like agriculture, irrigation, energy,
Transportation, communication, manufacturing, civil
infrastructure and social services.
⚫The scope and volume of construction industry linked
with the size and population of the country.
⚫Ever-increasing population results in increase in
construction.
⚫Construction is recognized as the basic input for
socio-economic development as it generates
substantial employment.
Importance of Construction Industry in National
development (continued)
⚫It employs engineers, managers, skilled workers,
unskilled male and female workers from rural and
urban areas.
⚫Growth of Construction industry propels growth in
other industries as well. The Construction industry
contributes
⚫55% share in the Steel industry,
⚫15% in the Paint industry and
⚫30% in the Glass industry.
⚫The demands the construction industry provide
positive impetus to the growth of these industries.
Importance of Construction Industry in
National development (continued)
⚫From all this, we can safely conclude that
national development is inseparably
linked to development in the
construction activities
Resources of construction industry
⚫ Definition of Resource
A stock or supply of money, materials, staff, and other
assets that can be drawn on by a person or organization in
order to function effectively.
⚫ Resources of construction industry: Any construction work
either major or minor needs following resources for
efficient and smooth execution of construction work
⚫ Material,
⚫ Manpower,
⚫ Money,
⚫ Machinery
Material
⚫Construction materials planning involves identifying
materials, estimating quantities, defining
specifications, forecasting requirements, locating
sources for procurement, getting the materials
approved, designing materials inventory, developing
procurement plans, and monitoring flow of materials
till the connected construction works are completed.
⚫Materials required are cement, steel, bricks, timber,
aluminium, aggregate, fittings, fixtures, scaffolding
etc.
Manpower
⚫ Determining expected labour productivity. Estimating
workers requirement for each work package. Scheduling
date wise, category wise, project wise labour. Allocating
labour during execution stage. Monitoring workers
productivity. Controlling manpower cost. Controlling
manpower mobilization, distribution and demobilisation.
Establishing construction teams. Organising task force.
Defining job requirement for key executive and all
appointments Assist recruitment of personnel. Assist in
designing incentive system. Assist in training and induction
of manpower.
⚫ Skilled and unskilled, supervising staff, specialist personnels
Machineries
⚫Construction equipment planning aims at identifying
the construction equipment for executing project
teaks, assessing equipment performance capability,
forecasting the date wise requirement of numbers and
types of equipment, and finally participating in the
selection of the equipment to be acquired.
⚫Trucks, dumpers, concrete mixers, road rollers, pile
driving machines, earth moving machines etc.
Money
⚫For almost all the above items need financial resources
without which nothing can be executed.
⚫Construction cost planning encompasses planning
judgement, costing techniques and accounting
discipline for developing standard costs, financial
forecasts, project budget, and cost control measures
with the ultimate goal of achieving project profit/cost
objectives
Thank you