contractor should know

A contractor should be well-concerned about these :

Nature of the Construction Industry:

The construction industry is often considered to be complex and unique:


for contractors information,
o The construction process is complex and involves many different functions from concept to commissioning.


for contractors information,
o The products (outputs) of the construction industry are unique; there are no two similar products.



The construction industry differs from other industries in the following ways:


for contractors information,
o work is carried out in the open and is subjected to interference from the weather;


for contractors information,
o the plan of work on a building site varies and changes from day to day


for contractors information,
o the labour force within the construction industry is often considered as nomadic in nature, employees not only moving from site to site, but from employer to employer



for contractors information,
o sites are often situated away from the main/head offices


for contractors information,
o construction involves a high volume of specialist work and wide range of trades and activities


for contractors information,
o construction suffers from a lack of repetition and standardisation of designs and components


for contractors information,
o design is separated from production, design being the responsibility of the architect/engineer, whereas production is the responsibility of the construction firm


for contractors information,
o the industry has a very poor safety record - accident and injury rate in construction is still significantly higher than most other industries


for contractors information,
o the industry is deemed to be labour intensive, the cost of labour often representing over 50% of the total cost of a building



Many other industries (manufacturing, airline, publishing etc.) generally exhibit high-quality products, timeliness of service delivery, reasonable cost of service and low failure rates. The construction industry is generally the opposite. The main reasons for this include:


for contractors information,
o the unique and highly uncertain nature of construction projects


for contractors information,
o the fragmented and highly competitive nature of the construction industry


for contractors information,
o the ever-increasing challenges facing the industry as a whole


Thus..when someone opted to involve himself in construction or become a contractor..

he should be able to take the risk ..