Construction Industry: Development, Structure, and Contracts

This document provides an overview of the construction industry, including its development, structure, and types of contractual work. It discusses the relationship between companies working on construction projects and the impact of health and safety legislation. The document also explores modern construction processes, contract planning techniques, and the role of Building Information Modelling (BIM) in operations. Additionally, it highlights the benefits and limitations of health and safety legislation in the construction industry.

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CIVIL ENGINEERING
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TASK 1
a) How the construction industry has developed and encompassed professionalism within its
structures
For a long time, the construction industry has been perceived as part of life. Initially, human
beings used to construct huts and shelters by the use of simple tools. As cities came into
existence during the Bronze Age, a class of professionals such as carpenters, bricklayers, and
other artisans appeared. Currently, the construction industry requires many professionals for the
construction projects to be completed on time, and within the specified budget, some of the
professionals who are required in the modern construction industry include; technical people
such as engineers, technicians, architects and interior designers. Other professionals include
construction managers and quantity surveyors. 1
b) Scope and linkage between all parties within a construction organization
In any construction organization, many parties are involved in the overall delivery of
construction projects. The parties can be from the public or the private sector. The scope to
which the various parties in the construction organization link to each other depending on the
relationship of their responsibilities, for instance, the project manager is directly linked to the
general manager who is directly linked to the directors.
c) Types of contractual work tendered by contractors
The type of contracts which are tendered by the contractors include;
i) Lump sum and the scheduled contract
ii) Item rate contract or unit rice contract
iii) Percentage rate contract
1 A. Retik, the Organization, and Management of Construction: Managing the construction
enterprise, Routledge, Sydney, 2017, p.162.

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iv) Lump sum contract
v) Special contracts
For this given scenario the best tender is the special contract a phenomenon which will lead to
the use of package contract whereby the contractor will undertake the full responsibility to
finance, design, specify and construct the entire project.2
d) Developments of the construction companies structures, employees and the contracted works
The organization structure of a construction company refers to the arrangement of job roles,
reporting and the operational relationships between and within these roles. The construction
industry involves many employees such as; architects who are involved in the design of the
building and the overall project., engineers, contractors, subcontractors who work together to
achieve the need of the client. Usually, the employees are brought together for a specific
construction project, and they are later disbanded once the projects are completed.
e) How construction companies have developed their structure and business ethos.
The broadband, web and the software-as-a-service (SaaS) have greatly assisted in changing the
perception regarding technology and information management. The mobility of technology has
been a great factor since the advent of smartphones. The Building Information Modelling has, of
course, been an increasingly dominant theme over the past decades and the same is set to
continue. The social media has in a way started to challenge the existing models of
communication, and due to that, the various construction companies have to become aware of the
owner of data.
2 C. Preece, Construction Business Development, Routledge, London, 2016, P. 238.

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The future shape of the construction companies is likely to be affected by social, political and
economic factors.3 Globalization, population growth, carbon and the scarcity of resources will
have an increasingly significant and direct impact on the industry structure. For the scenario
given the various professionals who will be involved in the delivery of the project will be able to
work as a team under one platform of Building Information Modeling (BIM).
TASK 2
a) Different types of construction companies in the market and the key features
There are different types of construction companies which exist in the current market. Their
classification depends on the job which they perform.
i) General contractors
These construction companies are usually experts in new buildings or the renovation of the
existing projects.
i) Real Estate Developers
This is a type of the owner-builder construction company whereby they construct buildings and
other projects to sell on completion.
ii) Owner-Builder
These kind of construction companies are companies which are involved in the construction of
their projects. The projects can be for their use or sell once completed.
iii) Small renovation contractors
This type of construction companies usually involved in the alterations of holes or small
commercial and office projects. Majority of the small renovation contractors have their offices
within their homes.
3 H. Aoyama, Design of Modern Highrise Reinforced Concrete Structures, World Scientific,
Chicago, 2012, P.946.

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iv) Professional construction manager companies
This type of Construction Company refers to the company of an individual or a group of
individuals who usually perform the functions required. This companies usually supply all the
personnel required for the project to be executed.4
v) Package Builders
These companies are known to make contacts for both the design and construction of a
project.
vi) Sponsor-builder construction company
This company usually carries out its activities in the government or the subsidized buildings
mostly in the field of the housing whereby, a sponsor-builder may be given the role of
planning, designing, building, management, and maintenance.
For the scenario provided the best construction company is the sponsor-builder construction
company since the magnitude of the project required to be carried out.
b) The relationship that may exist between the companies working on the construction project.
Some of the relationships that will exist within those companies include;
i) Contractor- client relationship]
ii) Supplier – client relationship
iii) Contractor-supplier relationship
iv) Main contractor-subcontractor relationship
c) the link which connects construction companies
Construction companies involved in the execution of the projects are usually connected by the
deliverables which need to be delivered before the entire project is completed. The construction
4 C. Gerwick, Construction of Marine and Offshore Structures, CRC Press, Los Angles, 2011, P.53.

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manager is the main link for all the construction companies since he controls all the sections
within the site of the project.
d) Factors which differentiate between construction company contracts and tenders
Tender means an invitation to trade under the terms on offer. The contract refers to any
agreement entered into between the contractor and another party either the client or the
subcontractors
TASK 3
a) modern construction processes and sequences used within today’s industry
The process which is followed in the construction of any project is as follows;
1. The selection of the construction site
For the current scenario, this has responded to sustainability since the site selected is away from
the river and other natural resources.
2. Designing the project
In the given scenario the project will be designed in a way which will in cooperate with various
measures which will ensure that the project will not lead to the pollution of the environment.
3. Expertise and project approval
4. Construction process
5. The commissioning of the project5
b) contract planning techniques used within micro and macro projects
Planning Techniques Available
1. Gantt or bar charts
5 E. Gould, Managing the construction process, Pearson/Prentice Hall Auckland, 2010, P.224.

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This refers to the horizontal bar chart which is created as a production control. The Gantt chart
gives a graphical illustration of the schedule which assists in planning, coordinating and tracking
of specific tasks.
2. The line of balance charts6
This refers to a technique of showing the repetitive work which may be available in a project as a
single line on a graph. This usually creates easier cost and time optimization analysis because all
the information is available for all the activities of the project.
3. Critical path techniques
This technique is used to determine the duration of the project. Through the use of the
sequence of scheduled activities
4. network analysis Precedence diagrams
For the given scenario the most appropriate technique is the Line of balance charts since it
creates easier cost and time optimization analysis because all the information is available for
all the activities of the project.
c) BIM impacts upon operations and construction companies in the current scenario
In the current scenario, Building Information Modelling (BIM) will be having a great impact on
the design of the project since the project is very massive. The design team will have an
opportunity to design as a team on the BIM platform.7
d) how construction has developed in terms of innovation, designs, and within contracts for
micro and macro projects
The construction industry has developed in terms of innovation and design in that there are latest
developments in the construction materials used, the use of modern construction techniques;
6 M. Schneier, Legal Aspects of Architecture, Engineering and the Construction Process, Cengage
Learning, London, 2016, P.65.
7 J. Borgbrant, Construction Process Improvement, John Wiley & Sons, 2018, P.186.

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there has been a lot of improvements in the design procedures, structural analysis. BIM has
played a very great role in facility management, service management and management studies on
overall.8 For the current scenario, BIM will be of great help as the project management is
concerned.
TASK 4
a) Health & safety has now become an integrated part of the construction process
Majority of the workers who take part in the construction process are exposed to various hazards
such as the occupational diseases and injuries resulting from the accidents which occur. The
machines and other complex construction machinery pose a danger to the operators. Due to that
various health and safety measures have been integrated into the construction process such as
carrying out site layout and planning to ensure that all the hazards in the site are identified and
carefully taken care of. The workers and professionals who are engaged in the construction
industry are encouraged to wear personal protective clothing such as helmets, goggles, gumboots
to protect them from physical injuries. First aid kits and accident reporting mechanisms have
been put in place in the construction process, Safety and health warning signs also are put in
place to warn the workers on site. Finally, Health and safety risk assessment is always carried out
to assess the dangers likely to be encountered on site.
b) Government legislation which has benchmarked health & safety within construction
The principal piece of legislation affecting construction is also one which applies to the industry
as a whole. The Health and Safety at Work, Act 1974 (HSWA) came into force in 1974 and
8 W. Thwala, Contractor Health and Safety Compliance for Small to Medium-Sized Construction
Companies, CRC Press, Sydney, 2017, P.842.

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placed a duty on all employers "to ensure, as far as is reasonably practicable, the health, safety,
and welfare at work" of all their employees, and persons working on their premises.9
c) The role of collaboration and communication in ensuring safe working practices
Through the collaboration and communication in the construction industry, various parties who
are involved in the construction process can be able to highlight the risks and the hazards either
verbally or through writing to remind and warn each other. For the provided scenario
collaboration and communication will be of great importance if the risks and hazards associated
with the given site can be included in the design documents, tender documents and drawings in
order which will be passed down to the construction team to alert and war5n them of the existing
risks and hazards.
d) How the construction industry has benefited through changes in health & safety legislation
The construction industry has greatly benefited from the health & safety legislation in that it has
been able to have;
i) Safer job sites
With the existence of health and safety legislation, many accidents are prevented. Through the
commitment to the safety and health culture which in most cases starts from the top management
and flows to the frontline workers, these usually include the safety training and the mandate of
the use of personal protective equipment.
ii) Little or no project disruption
With the existence of the health and safety legislation, many construction companies can
complete the projects within the given time frame since there is no any form of disruption to the
projects. Most workers and other professional in the project delivery team feel motivated where
their health and safety have been taken into consideration.
9 K. Bentil, Fundamentals of the Construction Process, Wiley, London, 2013, P.341.

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iii) Retain their staffs
The health and safety legislation has made the majority of the staff who are working in different
construction companies to remain there since their safety and health is catered for.
iv) Great reputation
The reputation of the construction industry as a whole has improved in the recent past since the
introduction of the health and safety legislation
e) impact of health & safety legislation in construction
The concept of health and safety in construction is being driven with the main aim of achieving a
construction environment in which all the involved parties enjoy protection from diseases or any
form of injuries.
Advantages of health and safety legislation within the construction industry
i. Low costs of insurance
ii. Less cost of production
iii. Low staff turnover
iv. Improved staff morale
v. Compliance with the law
vi. Greater efficiency
Limitation of health and safety legislation within the construction industry
i. Lack of safety awareness and concern is also a problem affecting the overall
performance.

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References
A. Retik, Organization, and Management of Construction: Managing the construction enterprise,
Routledge, Sydney, 2017, p.162.
C. Gerwick, Construction of Marine and Offshore Structures, CRC Press, Los Angles, 2011,
P.53.
C. Preece, Construction Business Development, Routledge, London, 2016, P. 238.
University of Michigan, Texas, 2017, P.476.
H. Aoyama, Design of Modern Highrise Reinforced Concrete Structures, World Scientific,
Chicago, 2012, P.946.

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J. Borgbrant, Construction Process Improvement, John Wiley & Sons, 2018, P.186.
K. Bentil, Fundamentals of the Construction Process, Wiley, London, 2013, P.341.
M. Schneier, Legal Aspects of Architecture, Engineering and the Construction Process, Cengage
Learning, London, 2016, P.65.
W. Thwala, Contractor Health and Safety Compliance for Small to Medium-Sized Construction
Companies, CRC Press, Sydney, 2017, P.842.