Introduction-
The strength of an economy is often judged by the infrastructure of the country. Hence, the construction industry forms a very critical aspect for an economy. Along with investment opportunities it is one of the major sources of employment across various levels.
It contributes to more than 10% to annual GDP of India. The 12th Five Year plan has proposed an investment of US $ 1 trillion. It is the 2nd largest industry in India after agriculture. Growth in the construction industry, leads to growth in other linked industries like cement, iron, steel, brick, paints. Construction Industry is the 2nd largest source of FDI in the country.
Construction Industry in India is segmented into 2 parts
1. Real Estate: Corporate, Industrial,
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With huge opportunities in this industry due to the overall growth of the economy and government initiatives, by 2025 India will become world’s 3rd largest construction market.
Gammon India founded in 1922 is one of the oldest Civil Engineering Company in the world, which laid the foundations of Gateway of India along with India’s 1st cable-stayed bridge at Akkar, Sikkim. It was founded by Mr J.C Gammon came to be known as the “Sculptor of Concrete”. It also has in its name the longest railway tunnel in the Asia for Konkan Railway in Maharashtra. It did a lot of construction work for the Commonwealth games held in India in India.
Mission of the Company- “to design, build and service physical infrastructure for improved living, enhanced work environment and swift transportation.”
Its major projects are in the areas of transportation, power, transmission, distribution, pipelines, ground engineering and water supply.
The average market Price of the share is 25.15 with a market share being 5.3%. The average share price of the company is 25.15. The total assets are worth 5,389.29 crores and a book value of
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Hence, the supplier margin in the construction material Industry is low. The subcontractors who provide constructional services are in a weak position due to the existence of many small operators. Overall, supplier power in this industry is moderate.
2) Bargaining Power of Buyer -
The presence of many contractors, sub-contractors in both the material and service industry provides the buyer power to choose among the various available options. The price sensitivity of demand is also high, which means that the prices in the Industry drops whenever there is a decline in demand.
But the consumers are incapable of integrating backwards and also lack the understanding of the practicalities of the project.
So, the overall buyer power in the construction Industry is moderate.
3) Threat of Substitution- The threat of substitute is very low in the construction Industry as there is no alternative for construction of a new project when there is a requirement for the same. Infrastructure and real estate are one of the most critical aspects of the economy and the growth in each is required for any country to develop, hence the products cannot be
When we see an economic downturn many of the different industries are affected in different ways depending upon their demand. The industry which always seems to be affected first and the last to recover is the construction industry. The construction industry is one of the largest sectors of the UK’s economy. It contributes around £90billion which is 6.7% of the total and 2.9 million people are employed within the construction sector. (HM Government, 2013) (Barawas and Fleetwood et al., 2013) This contribution is measured by the Gross Value Added (GVA), here below is a table to represent the contribution the construction industries GVA (for 2012 prices) and its % of economy.
...ground. There were many stone pillars in the temple and every pillar was crafted with amazing design. As I noticed, every design was representation of Indian culture. The design of different gods and all the famous characters from India was beautiful. The ceiling, every corner, and every part inside the temple was crafted. There was detail written about the craftwork of the temple. The stones were hand carved by more than 2000 craftsman over a period of 22 months. The lord Swaminarayan statue was in middle of the temple. The statue was so alive felt like Lord Swaminarayan is actually there in the temple. The ornaments and cloths of god were beautiful. There were lots of Indian food were offered to the god. The whole temple decorated with flowers and different color lights. The place was truly devoted to the god and best place to go find peace and worship the god.
This project took me through the history, training, and a day on the job. It could not have been a better experience, and this project proved that a career in construction management is a real possibility in the future. The history of construction management was not a shock, but it was a little bit of a reality check. It is common knowledge that the human race has been building things since the beginning of time, but what is extraordinary is to think about how far the world has come over the thousands of years. Men and women started living in small huts.
Construction Management is the overall planning, outlook, coordination, budget and control of a construction project from start to finish. Without them, construction projects would be very unorganized and chaotic. They make sure projects run smoothly and efficiently. They work with electricians, plumbers, carpenters and general contractors to produce the safest and best way to complete the project for the customer. Being a construction manager is a good job because they help many people build what they need.
German construction industry had an extremely succesful period form 1988-1995 increasing elevator sales from 8000 units per year to 15500 units. This growth has to come to stagnancy and even decline as the elevator market is projected to contract by about 15% in 2000. The market can be broadly divided into 2 segments: new equipment and service with new equipment provider garnering upto 80% of the service contracts. Competion was intense in new equipment with intense price wars leading to negative margins. Profitability came from the servicing business. Servicing also saw steady demand.
Vrijhoef, R. and Koskela, L. (2004) ‘The four roles of supply chain management in construction’, European Journal of Purchasing & Supply Management, 6(3-4), pp. 169-178 ScienceDirect [Online]. Available at: http://www.sciencedirect.com/ (Accessed: 6 February 2010).
The real estate sector in India is one of the sectors recognized worldwide. In the country, it is the second largest employer after agriculture and is expected to grow by 30 percent over the next decade. It consists of four sub-sectors - residential, retail, catering and advertising. The growth of this sector is well complemented by the growth of corporate environment and demand for office space, as well as the urban and semi-urban housing. According to a study by ICRA, construction third ranked among the 14 most important sectors in terms of direct, indirect and induced in all areas of business purposes. It is also expected to emerge from this more non-resident sectors (NRI) Indian investments in the near future, according to a
Mission- to provide values to the lives of customers, to make the lives of partners worthy, concern about environment and community
The fourth largest sector in the Indian economy is all set for 16% growth during 2008-09, from a base of Rs. 85470 crores, as predicted by FICCI. Going forward, as anticipated by CRISIL, FMCG sector will touch around Rs. 140000 crores by 2015 (33.4B$).
According to the bureau of labor (2016)” employment in construction management is suppose to grow five percent from 2014 to 2024, about as fast as an average
In general, there are different types of procurement type for various situations due to no one method can be suitable under the all different construction project. In this case, there are four procurement paths, which are traditional, design and build, management and design and manage, will be advised to use. However, each method has different aspects of advantages and disadvantages.
Owner, renter and user are on demand side of the market, that is they are consumers. Developers, financiers and renovators are suppliers (Acton et al. 1999). Unlike commodities, market demand and supply forces do not float easily. This is because of the uniqueness of this market. Real market industry has these unique characteristics, durability of products as buildings can last for decades or centuries.
Infrastructure Management and Construction deals with project management, construction materials, construction engineering and building engineering.
Corruption is one of the major issues nowadays and is a clear example and consequence of the actual society and culture. A manifestation of this global phenomenon is the construction industry where corruption is really widespread and interconnected with other industries.