Introduction
The Construction industry creates a very important part in the development of the economy of a country. This offers good job opportunities especially to the professional field and experienced workers with very attractive earning scales ( Bureau of Labor Statistics, 2008). Since the industry is very broad, there is need for proper organization which justifies its division into three organizations as explained below.
Types of Organization in The Construction Industry
The organization of the Construction Industry can be described in a number of ways depending on the types of work and activities that are carried out. According to the United States Department of Labor, the Construction Industry is divided into three main segments. These segments are classified depending on the type of work executed and include the Construction of Building segment, Heavy Civil Engineering Construction, and lastly, Specialty Trade Construction (Bureau of Labor Statistics US D.O.L, 2008-9).
These types of organizations combined will provide very important goods and services such as schools, houses, warehouses, factories and many more thus making construction very beneficial. Below are the descriptions of these types of organizations:
The Building Construction Organization – General Contractors
In this category the contractors are referred to as general contractors and these will generally build residential, industrial, commercial, and other related buildings in the industry (Bureau of Labor Statistics US D.O.L, 2008 – 9). According to Schexnayder J. Clifford and Richard Mayo, there are three sub-divisions under this type of organization. Below are the comprehensive descriptions of the sub-divisions under this category:
General Contractors (Residential) – This is where contractors and developers involved are concerned with building homes, apartments and other important living facilities (Schexnayder J. Clifford and Richard Mayo, pg. 37). Construction of these individual homes is grouped into custom homes that match buyers’ needs and standard designs and floor plans that are offered with limited options and upgrades. Generally, there is no bidding for tenders in this category. For that reason, therefore, negotiation with owner is done in case of the execution of custom designs. On the other hand, for the case of provision of standard designs and floor plans, announcement of price is the condition. The process is therefore quick and cheap than all the other ones.
Operative Builders – This category involves the construction of facilities such as stores, schools, office buildings and many other but related built structures. The projects in this category range from small units to multi-million dollar projects such as minor single unit stores to tall office buildings and casinos (Schexnayder J. Clifford and Richard Mayo, pg. 37 – 38). For this category, both government and private owners can undertake such contracts where bidding is used for government agencies and negotiation of the prices of proposed buildings is done in the case of private owners.
General Building Contractors (non – residential) – In this type of organization, the contractors’ work mainly involves the construction of large buildings and warehouses such as electricity generating facilities, automobile assembly plants, hospitals and clean rooms just to mention among much other construction. According to the classification at the United States Department of Labor, this category generally falls into two groups dealing with the construction of industrial buildings and non-residential buildings other than industrial buildings and warehouses (SIC Division Structure US D.O.L, 2008 – 9).
Heavy Civil Engineering Construction
Under this category, the main works carried out include the construction of roads, sewers, bridges, highways, tunnels, and other existing projects (Schexnayder J. Clifford and Richard Mayo, pg. 38 – 39). According to Schexnayder J. Clifford and Richard Mayo, such contracts are generally awarded in a low bid and the government is the usual owner but not individuals as the projects are of expensive nature. This is divided into two groups namely: Highway and Street Construction and secondly, Heavy Construction except for highway and street construction (SIC Division Structure US D.O.L, 2008-9).
Specialty Trade Construction
This is a special type of construction that involves the performance of specialized activities that are related to the construction industry example being electrical, painting, plumbing, roofing, and painting work (Bureau of Labor Statistics US D.O.L, 2008). Contractors in this category can work on a subcontract awarded by the general contractor or work directly under the owner performing only a portion of the whole contract. Due to the specialty of this category of organization, the contractors are therefore specialists in the specific areas they work and this improves on quality of services that are provided. This can also make management of site works efficient.
The Organization in Building Construction
This generally includes general contractors and operative builders who engage in construction of residential, industrial and commercial structures and their roles are as explained below according to each respective group and their sub-divisions as possible:
General Building Contractors-Residential Building
This category deals with the pure construction of residential buildings. The types of construction are classified into the following two divisions as already pointed above:
General contractors (single-family houses) – Here, the building contractors generally deal with the construction of single-family houses as shown. These are usually small construction activities that can be undertaken by any small size contractor and these can deliver in all areas such as totally new work, repair, remodeling and any alterations as per the specified contract (SIC Division Structure US D.O.L, 2008). Generally with this kind of construction, there is no bidding for tenders and instead, negotiation with owner is a common phenomenon in the executions of most projects.
General contractors (Residential buildings other than single-family houses) – The general contractors in this class deal with the construction of residential buildings other than single-family houses and are responsible for all the services that could be offered including repair, alterations, additions and remodeling. Just like in single-family house construction, there is no bidding for tenders and negotiations with the client are done to ensure profit maximization by the general contractors and operative builders taking projects (Schexnayder J. Clifford and Richard Mayo, pg. 37).
In this sub-division general contractors have licensed professionals and they will take a project as per some specific agreement involving plans, specifications, and the documents required for the project in question (Answers.com, 2005). The specific documents are usually documented by a written contract where the responsibility of the contractor is limited by the items that are designated in the contract documents. The contractor, as well as the owner or developer, is usually referred to as a builder and the general contractor is one that enters into contract with the owner so that he constructs the owner’s projects as per the terms and conditions of the contract (Answers.com, 2005).
Operative Builders
These builders are also referred to as speculative or merchant builders since their main purpose is to produce buildings for their own for-profit purposes as opposed to general contractors who bid for projects. In this type of classification, the operative builders enter into the construction of single to multi-family houses and other buildings specifically on their own account rather than as contractors. On the other hand, their engagements in the construction of buildings specifically for lease on their own accounts are classified under Real Estate (SIC Division Structure US D.O.L, 2008). Some of the builders that undertake this type of construction include: The Condominium developers on their own account, Cooperative apartment developers on their own account, Operative builders on their own account and speculative builders on their own account (US Census Bureau, 2003).
General Building Contractors – (non – residential)
This building organization is classified into two categories as described below:
General contractors – (Industrial buildings and warehouses)
General contractors in this case deal with the construction of warehouses and buildings such as automobile assembly plants, commercial warehouses and clean rooms. For this type of construction, the contractors undertaking the works are usually specialized in the specific kind of work they do. They deal in repair work, remodeling, and alteration. As a way of pricing such contract, the contractors are empowered to negotiate the price of the relevant work (SIC Division Structure US D.O.L, 2008).
General contractors (Other than Industrial buildings and warehouses)
This type involves the construction of non-residential buildings except cases of industrial buildings and warehouses by general contractors Examples of built facilities that are a product of this category include buildings such as religious, recreational and institutional buildings. Therefore, this category covers general contractors that undertake projects in construction, repair, new works remodeling and renovation of non-residential buildings other than industrial buildings and warehouses (High Beam, 2009).
Heavy Civil Engineering Construction Organization
According to the United States Department of Labor, this major division includes general contractors who engage in heavy construction apart from other buildings for example construction of flood control projects, highways and streets, marine construction, bridges, and irrigation projects just list (SIC Division Structure US D.O.L, 2008). Heavy civil engineering construction is divided into two sub-categories which are very important and provide the following services in the construction industry:
Highway and Street Construction except for Elevated Highways
Under this subdivision, special trade and general contractors are responsible for the construction of roads, public sidewalks, airports and related constructions apart from the construction of elevated highways (US Census Bureau, 2003). The provision of this built structure eases the development and smooth operation of the general construction industry. For instance construction of high-class-highways, bridges and roads improve the movement of construction materials to building sites therefore providing a perfect solution to efficient management of activities leading to entire growth of the industry.
Heavy Construction except for Highway and Street
This sub-group is divided into three parts or sub-types depending on the type of construction activity that is undertaken and their functions are as described below:
Bridge, Tunnel and Elevated Highway Construction – the general contractors are experienced and undertake all these construction activities depending on their areas of specialization. There are more of these construction activities including the construction of railway tunnels, pedestrian tunnels and highways (US Census Bureau, 2003).
Water, Sewer, Pipeline, and Communications and Power Line Construction – According to the United States SIC structure, general and special trade contractors carry out this construction works so as to provide perfect functional sewer service as an example, to service the existing population (SIC Division Structure US D.O.L, 2008).
Heavy Construction, Not Elsewhere Classified – These may be very large and unique projects that do not fall under any of the described classifications. General and special trade contractors provide this important solution in the construction industry.
Specialty Trade Construction Organization
According to United States Department of labor and Census Bureau in this category, the special trade contractors are specialized in the activity they undertake either to building or non-building products or both of these. Some of these activities may include paintwork, plumbing works, and electrical works just to mention some of them.
Mostly these special trade contractors work under the general contractor so as to deliver a specific service such as installation of electrical works or may also work directly for the employer. These contractors usually do their work at the construction site but they also could have areas where they can do works that relate to the current work. Below are the various sub-divisions that make up the specialty trade contractors:
Plumbing, Heating and Air Conditioning services in Built Facilities
Plumbing, heating, air-conditioning and other related works are done by the specialist contractors in this category and this ensures that quality work is done. These are very important services to any building and are of great importance to the construction industry. These services are usually provided in the final stages of a building so as to provide the required operation of the built facility. Air-conditioning is usually provided to large commercial buildings, warehouses, control, and clean rooms and more depending on the tastes and preferences of the owner of the particular structure or built facility. Delivered works are of high standard due to specialization.
Electrical Work services in Built Facilities. – The provision of secure electrical system is a major concern in ensuring the future safety of the built facilities. Generally industrial and commercial buildings will have higher energy requirements than residential buildings (Hometime.com, © 2009). In this particular category, the special trade contractors engage in all electrical works and installations at the site of consideration to ensure safety standards are considered (SIC Division Structure US D.O.L, 2008).
Painting and Paper Hanging works – Since painting is what gives a structure aesthetic value and resistance from adverse weather conditions, it is therefore justified to give it adequate concern. The special trade contractors therefore mainly engage in painting of finished structures and paper hanging. Those trade contractors involved in roof painting however are classified under a separate industry type. Some of the activities carried out by trade contractors in this category include: Painting of buildings and other structures – except roofs-contractors, Electrostatic painting on-site – (including lockers and fixtures), and Ship painting-contractors services among other services that are offered by the trade contractors (SIC Division Structure US D.O.L, 2008).
Roofing, Siding, And Sheet Metal Work construction
In this type, the special trade contractors are concerned with the installation of roofing, siding and sheet metal work respectively. This is a very important trade and the sub-categories that are generally dealt with include: Architectural sheet metal work-contractors, Ceilings, metal, erection, repair, construction and Coppersmithing, all in connection with the construction contractor (SIC Division Structure US D.O.L, 2008).
Conclusion
As a conclusion to the above discussion on the organization of the Construction Industry, we can summarize that the efficient organization of the Industry explains the proper planning and operations in the actual field. This, therefore, lead to the growth of the Industry from one level to another.
Works Cited
Answers.com, The Worlds leading Q & A Site. General Contractors- residential buildings, other than Single Family (SIC 5522), 2005. Web.
High Beam, Business. General Contractors for Non-residential Buildings other than Industrial Buildings and Warehouses, 2009. Web.
HOMETIME.COM: Electrical. 2009. Web.
Schexnayder J. Clifford and Richard Mayo. Construction Management Fundamentals: 1st edition. New York: McGraw-Hill Companies Inc., 2004.
UNITED STATES DEPARTMENT OF LABOR. Career Guide to Industries, 2008. Web.
UNITED STATES DEPARTMENT OF LABOR: SIC Division Structure. 2008. Web.
U.S. Census Bureau: Specialty Trade Contractors. 2003. Web.
U.S. Census Bureau: 237 Heavy and Civil Engineering Construction. 2003. Web.