Construction Test 1 - Lecture 1 Flashcards
What role does the construction industry play in economic growth?
It drives economic growth by being the largest production activity, contributing significantly to GDP, and providing employment.
What are the main characteristics of the construction industry?
Dynamic, fragmented, unique, and involves time pressure, cost overruns, complexity, risk, safety concerns, turnover, and litigation.
What skills and knowledge are essential for the construction industry?
Project management, engineering principles, financial management, risk assessment, safety regulations, and communication.
What is construction engineering and management?
A discipline focusing on the planning, design, and oversight of construction projects, ensuring efficient use of resources.
What are the key phases of a construction project?
Planning, Design, Procurement, Construction, Operation & Maintenance, Salvage.
What factors drive the initiation of a project?
Economic demand, infrastructure needs, business expansion, government policies, and feasibility studies.
What percentage of GDP does new construction contribute in the U.S.?
4%
What percentage of GDP do retrofit projects contribute?
6.5%
How many workers are directly involved in construction?
Over 4 million
How many construction companies exist in the U.S.?
Approximately 2 million
Why is research and development (R&D) investment low in construction?
Only 0.4% of sales go to R&D, leading to slower innovation compared to other industries.
Why is construction considered an “easy entry” industry?
It requires low-skill labor and has low startup costs.
What percentage of new businesses are in construction?
1 in 8
What percentage of construction businesses fail?
20%
How fragmented is the industry?
The top 40 companies perform only 25-35% of the work.
How does construction reflect economic trends?
Housing and infrastructure projects indicate economic health.
How does construction differ from manufacturing?
Construction is dynamic, fragmented, and non-standardized, while manufacturing is repetitive and standardized.
What is a key difference in production between construction and manufacturing?
Construction is customized for each project, while manufacturing produces goods before sale
What are the four essential resources in construction management?
Manpower, Machines, Material, Money (4Ms).
What is the main concern of construction management?
The timely and efficient use of resources.
What are the six phases of a construction project?
Front-End Planning, Design, Procurement, Construction, Operation & Maintenance, Salvage
What happens during Front-End Planning?
Business planning, scope definition, feasibility study.
What occurs in the Design phase?
Architectural and engineering design, cost estimates, and bid preparation
What is the Procurement phase?
Selection of general contractors, subcontractors, and suppliers.
