Construction Industry Overview

Construction industry is an important industry worldwide. The construction industry generally defined as a sector of the economy. The Industry is playing an important role in economic growth of the country, but it faces many challenges currently that lead to affect project goal and steady growth of the economy.

Construction is a high hazard industry which comprises a wide range of activities involving plans, design, constructs, alteration, maintains, repairs and eventually demolishes of buildings, civil engineering works, mechanical and electrical engineering and other similar works.

Construction is always complex that make industry susceptible to disputes, delays and cost exceeding. The construction industry has characteristics that separately are share by other industries but in combination appear in construction alone (Hillebrandt, 1984)

Parties and Stakeholders includes in the Construction Sector

  • Client
  • Professional Advisers
  • Professional bodies
  • Contractors
  • Suppliers
  • Manufacturers
  • Financial Institutions
  • Research and Development Bodies
  • Public Authorities

Construction Industry Categories

The industry divided into three categories terms of works.

  1. Building Construction – Including construction of residential, farm, industrial, commercial, or other buildings.
  2. Infrastructure Construction – Heavy construction such as highways and roads, bridges, sewers, railways, irrigation projects, flood control projects and marine construction.
  3. Special Trade Construction – This includes projects such as electrical work, plumbing, fittings, paintings etc.

Importance of the Construction Industry

The importance of the construction industry in the economy of any country derives from the following factors.

  • Scale of the construction industry
  • Sectors
  • Employment
  • Investment
  • Government
  • Private Finance Initiative
  • Health and safety

Construction Industry Overview

SWOT Analysis on Construction Industry


  • Employment and training opportunities
  • Demands of construction – Private sector housing and commercial buildings
  • Transportation advantages in the country
  • Skilled Labour availability
  • Sufficient availability of raw materials


  • High cost
  • Management difficulties
  • Distance between projects and business
  • Investment


  • Private sector building continually increase will create construction opportunities
  • Public sector Projects will bring further opportunities
  • Financial supports (loan, insurance)
  • Government policies


  • Long-term market instability
  • Current economic situation
  • Lack of political willingness
  • Health and safety
  • Environmental regulation
  • Competitors
  • Government policies

Construction Disputes – Causes of Disputes in the Construction Industry

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