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Construction are processes involved in delivering
building
A building or edifice is an enclosed Structure#Load-bearing, structure with a roof, walls and window, windows, usually standing permanently in one place, such as a house or factory. Buildings come in a variety of sizes, shapes, and functions, a ...
s,
infrastructure
Infrastructure is the set of facilities and systems that serve a country, city, or other area, and encompasses the services and facilities necessary for its economy, households and firms to function. Infrastructure is composed of public and pri ...
, industrial facilities, and associated activities through to the end of their life. It typically starts with
planning,
financing, and
design
A design is the concept or proposal for an object, process, or system. The word ''design'' refers to something that is or has been intentionally created by a thinking agent, and is sometimes used to refer to the inherent nature of something ...
that continues until the asset is built and ready for use. Construction also covers repairs and maintenance work, any works to expand, extend and improve the asset, and its eventual
demolition
Demolition (also known as razing and wrecking) is the science and engineering in safely and efficiently tearing down buildings and other artificial structures. Demolition contrasts with deconstruction (building), deconstruction, which inv ...
, dismantling or
decommissioning.
The construction industry contributes significantly to many countries' gross domestic products (
GDP). Global expenditure on construction activities was about $4 trillion in 2012. In 2022, expenditure on the construction industry exceeded $11 trillion a year, equivalent to about 13 percent of global
GDP. This spending was forecasted to rise to around $14.8 trillion in 2030.
The construction industry promotes economic development and brings many non-monetary benefits to many countries, but it is one of the most hazardous industries. For example, about 20% (1,061) of US industry fatalities in 2019 happened in construction.
Etymology
"Construction" stems from the
Latin
Latin ( or ) is a classical language belonging to the Italic languages, Italic branch of the Indo-European languages. Latin was originally spoken by the Latins (Italic tribe), Latins in Latium (now known as Lazio), the lower Tiber area aroun ...
word ''constructio'' (which comes from ''com-'' "together" and ''struere'' "to pile up") as well as
Old French
Old French (, , ; ) was the language spoken in most of the northern half of France approximately between the late 8th ''construction''. "To construct" is a verb">-4; we might wonder whether there's a point at which it's appropriate to talk of the beginnings of French, that is, when it wa ...
''construction''. "To construct" is a verb: the act of building. The noun is "construction": how something is built or the nature of its structure.
History
The first hut (dwelling), huts and shelters were constructed by hand or with simple tools. As
cities grew during the
Bronze Age
The Bronze Age () was a historical period characterised principally by the use of bronze tools and the development of complex urban societies, as well as the adoption of writing in some areas. The Bronze Age is the middle principal period of ...
, a class of professional
craftsmen, like
bricklayers and
carpenters, appeared. Occasionally,
slaves
Slavery is the ownership of a person as property, especially in regards to their labour. Slavery typically involves compulsory work, with the slave's location of work and residence dictated by the party that holds them in bondage. Enslavemen ...
were used for construction work. In the
Middle Ages
In the history of Europe, the Middle Ages or medieval period lasted approximately from the 5th to the late 15th centuries, similarly to the post-classical period of global history. It began with the fall of the Western Roman Empire and ...
, the artisan craftsmen were organized into
guild
A guild ( ) is an association of artisans and merchants who oversee the practice of their craft/trade in a particular territory. The earliest types of guild formed as organizations of tradespeople belonging to a professional association. They so ...
s. In the 19th century, steam-powered machinery appeared, and later, diesel- and electric-powered vehicles such as
cranes,
excavator
Excavators are heavy equipment (construction), heavy construction equipment primarily consisting of a backhoe, boom, dipper (or stick), Bucket (machine part), bucket, and cab on a rotating platform known as the "house".
The modern excavator's ...
s and
bulldozers.
Fast-track construction has been increasingly popular in the 21st century. Some estimates suggest that 40% of construction projects are now fast-track construction.
Construction industry sectors

Broadly, there are three sectors of construction: buildings, infrastructure and industrial:
* Building construction is usually further divided into residential and non-residential.
* Infrastructure, also called '
heavy civil' or 'heavy engineering', includes large public works, dams, bridges, highways, railways, water or wastewater and utility distribution.
* Industrial construction includes
offshore construction (mainly of energy installations), mining and quarrying,
refineries, chemical processing, mills and
manufacturing plants.
The industry can also be classified into sectors or markets. For example, ''
Engineering News-Record'' (''ENR''), a US-based construction trade magazine, has compiled and reported data about the size of design and construction contractors. In 2014, it split the data into nine market segments: transportation,
petroleum
Petroleum, also known as crude oil or simply oil, is a naturally occurring, yellowish-black liquid chemical mixture found in geological formations, consisting mainly of hydrocarbons. The term ''petroleum'' refers both to naturally occurring un ...
, buildings, power, industrial, water, manufacturing, sewage/waste,
telecom,
hazardous waste
Hazardous waste is waste that must be handled properly to avoid damaging human health or the environment. Waste can be hazardous because it is Toxicity, toxic, Chemical reaction, reacts violently with other chemicals, or is Corrosion, corrosive, ...
, and a tenth category for other projects. ''ENR'' used data on transportation, sewage, hazardous waste and water to rank firms as heavy contractors.
The
Standard Industrial Classification and the newer
North American Industry Classification System classify companies that perform or engage in construction into three subsectors: building construction, heavy and civil engineering construction, and specialty trade contractors. There are also categories for professional services firms (e.g.,
engineering
Engineering is the practice of using natural science, mathematics, and the engineering design process to Problem solving#Engineering, solve problems within technology, increase efficiency and productivity, and improve Systems engineering, s ...
,
architecture
Architecture is the art and technique of designing and building, as distinguished from the skills associated with construction. It is both the process and the product of sketching, conceiving, planning, designing, and construction, constructi ...
,
surveying
Surveying or land surveying is the technique, profession, art, and science of determining the land, terrestrial Plane (mathematics), two-dimensional or Three-dimensional space#In Euclidean geometry, three-dimensional positions of Point (geom ...
,
project management
Project management is the process of supervising the work of a Project team, team to achieve all project goals within the given constraints. This information is usually described in project initiation documentation, project documentation, crea ...
).
Building construction
Building construction is the process of adding structures to areas of land, also known as
real property
In English common law, real property, real estate, immovable property or, solely in the US and Canada, realty, refers to parcels of land and any associated structures which are the property of a person. For a structure (also called an Land i ...
sites. Typically, a project is instigated by or with the owner of the property (who may be an individual or an organisation); occasionally, land may be
compulsorily purchased from the owner for public use.
Residential construction

Residential construction may be undertaken by individual land-owners (
self-built), by specialist
housebuilders, by
property developers, by
general contractors, or by providers of
public or social housing (e.g.: local authorities,
housing associations). Where local
zoning
In urban planning, zoning is a method in which a municipality or other tier of government divides land into land-use "zones", each of which has a set of regulations for new development that differs from other zones. Zones may be defined for ...
or
planning policies allow,
mixed-use development
Mixed use is a type of urban development, urban design, urban planning and/or a zoning classification that blends multiple uses, such as residential, commercial, cultural, institutional, or entertainment, into one space, where those functions ...
s may comprise both residential and non-residential construction (e.g.: retail, leisure, offices, public buildings, etc.).
Residential construction practices,
technologies
Technology is the application of Conceptual model, conceptual knowledge to achieve practical goals, especially in a reproducible way. The word ''technology'' can also mean the products resulting from such efforts, including both tangible too ...
, and resources must conform to local building
authority's regulations and
codes of practice. Materials readily available in the area generally dictate the construction materials used (e.g.:
brick
A brick is a type of construction material used to build walls, pavements and other elements in masonry construction. Properly, the term ''brick'' denotes a unit primarily composed of clay. But is now also used informally to denote building un ...
versus stone versus
timber
Lumber is wood that has been processed into uniform and useful sizes (dimensional lumber), including beams and planks or boards. Lumber is mainly used for construction framing, as well as finishing (floors, wall panels, window frames). ...
). Costs of construction on a per square meter (or per square foot) basis for
house
A house is a single-unit residential building. It may range in complexity from a rudimentary hut to a complex structure of wood, masonry, concrete or other material, outfitted with plumbing, electrical, and heating, ventilation, and air c ...
s can vary dramatically based on site conditions, access routes, local regulations,
economies of scale
In microeconomics, economies of scale are the cost advantages that enterprises obtain due to their scale of operation, and are typically measured by the amount of Productivity, output produced per unit of cost (production cost). A decrease in ...
(custom-designed homes are often more expensive to build) and the availability of skilled tradespeople.
Non-residential construction

Depending upon the
type of building, non-residential building construction can be procured by a wide range of private and public organisations, including local authorities, educational and religious bodies, transport undertakings, retailers, hoteliers, property developers, financial institutions and other private companies. Most construction in these sectors is undertaken by general
contractors.
Infrastructure construction

Civil engineering covers the design, construction, and maintenance of the physical and naturally
built environment
The term built environment refers to human-made conditions and is often used in architecture, landscape architecture, urban planning, public health, sociology, and anthropology, among others. These curated spaces provide the setting for human ac ...
, including public works such as roads, bridges, canals, dams, tunnels, airports, water and sewerage systems, pipelines, and railways. Some general contractors have expertise in civil engineering; civil engineering contractors are firms dedicated to work in this sector, and may specialise in particular types of infrastructure.
Industrial construction
Industrial construction includes offshore construction (mainly of energy installations:
oil and gas platforms,
wind power
Wind power is the use of wind energy to generate useful work. Historically, wind power was used by sails, windmills and windpumps, but today it is mostly used to generate electricity. This article deals only with wind power for electricity ge ...
),
mining
Mining is the Resource extraction, extraction of valuable geological materials and minerals from the surface of the Earth. Mining is required to obtain most materials that cannot be grown through agriculture, agricultural processes, or feasib ...
and
quarry
A quarry is a type of open-pit mining, open-pit mine in which dimension stone, rock (geology), rock, construction aggregate, riprap, sand, gravel, or slate is excavated from the ground. The operation of quarries is regulated in some juri ...
ing,
refineries,
breweries,
distilleries and other processing plants,
power station
A power station, also referred to as a power plant and sometimes generating station or generating plant, is an industrial facility for the electricity generation, generation of electric power. Power stations are generally connected to an electr ...
s,
steel mills,
warehouse
A warehouse is a building for storing goods. Warehouses are used by manufacturers, importers, exporters, wholesalers, transport businesses, customs, etc. They are usually large plain buildings in industrial parks on the rural–urban fringe, out ...
s and
factories.
Construction processes
Some construction projects are small
renovations or repair jobs, like repainting or fixing leaks, where the owner may act as designer, paymaster and laborer for the entire project. However, more complex or ambitious projects usually require additional multi-disciplinary expertise and manpower, so the owner may commission one or more specialist businesses to undertake detailed planning, design, construction and handover of the work. Often the owner will appoint one business to oversee the project (this may be a
designer, a
contractor, a
construction manager, or other advisors); such specialists are normally appointed for their expertise in
project delivery and construction management and will help the owner define the project
brief, agree on a
budget
A budget is a calculation plan, usually but not always financial plan, financial, for a defined accounting period, period, often one year or a month. A budget may include anticipated sales volumes and revenues, resource quantities including tim ...
and
schedule
A schedule (, ) or a timetable, as a basic time-management tool, consists of a list of times at which possible tasks, events, or actions are intended to take place, or of a sequence of events in the chronological order in which such thing ...
, liaise with relevant public authorities, and procure materials and the services of other specialists (the
supply chain
A supply chain is a complex logistics system that consists of facilities that convert raw materials into finished products and distribute them to end consumers or end customers, while supply chain management deals with the flow of goods in distri ...
, comprising
subcontractors and materials suppliers).
Contracts
A contract is an agreement that specifies certain legally enforceable rights and obligations pertaining to two or more parties. A contract typically involves consent to transfer of goods, services, money, or promise to transfer any of thos ...
are agreed for the delivery of services by all businesses, alongside other detailed plans aimed at ensuring legal, timely, on-budget and safe delivery of the specified works.
Design, finance, and legal aspects overlap and interrelate. The design must be not only structurally sound and appropriate for the use and location, but must also be financially possible to build, and legal to use. The financial structure must be adequate to build the design provided and must pay amounts that are legally owed. Legal structures integrate design with other activities and enforce financial and other construction processes.
These processes also affect procurement strategies.
Clients may, for example, appoint a
business
Business is the practice of making one's living or making money by producing or Trade, buying and selling Product (business), products (such as goods and Service (economics), services). It is also "any activity or enterprise entered into for ...
to design the project, after which a competitive process is undertaken to appoint a lead contractor to construct the asset (
design–bid–build); they may appoint a business to lead both design and construction (
design-build); or they may directly appoint a designer, contractor and specialist subcontractors (
construction management). Some forms of procurement emphasize collaborative relationships (
partnering, alliancing) between the client, the contractor, and other stakeholders within a construction project, seeking to ameliorate often highly competitive and adversarial industry practices.
DfMA (design for manufacture and assembly) approaches also emphasize early collaboration with manufacturers and suppliers regarding products and components.
Construction or refurbishment work in a "live" environment (where residents or businesses remain living in or operating on the site) requires particular care, planning and communication.
Planning

When applicable, a proposed construction project must comply with local
land-use planning
Land use planning or ''Land-use regulation'' is the process of regulating the use of land by a central authority. Usually, this is done to promote more desirable social and environmental outcomes as well as a more efficient use of resources. ...
policies including
zoning
In urban planning, zoning is a method in which a municipality or other tier of government divides land into land-use "zones", each of which has a set of regulations for new development that differs from other zones. Zones may be defined for ...
and
building code requirements. A project will normally be assessed (by the 'authority having jurisdiction', AHJ, typically the
municipality
A municipality is usually a single administrative division having municipal corporation, corporate status and powers of self-government or jurisdiction as granted by national and regional laws to which it is subordinate.
The term ''municipality' ...
where the project will be located) for its potential impacts on neighbouring properties, and upon existing infrastructure (transportation, social infrastructure, and utilities including water supply, sewerage, electricity, telecommunications, etc.). Data may be gathered through
site analysis,
site survey
Site surveys are inspections is an area where work is proposed, to gather information for a design or an estimate to complete the initial tasks required for an outdoor activity. It can determine a precise location, access, best orientation for the ...
s and
geotechnical investigations. Construction normally cannot start until
planning permission has been granted, and may require preparatory work to ensure relevant infrastructure has been upgraded before building work can commence. Preparatory works will also include surveys of existing utility lines to avoid damage-causing outages and other hazardous situations.
Some legal requirements come from ''
malum in se'' considerations, or the desire to prevent indisputably bad phenomena, e.g. explosions or bridge collapses. Other legal requirements come from ''
malum prohibitum'' considerations, or factors that are a matter of custom or expectation, such as isolating businesses from a business district or residences from a residential district. An attorney may seek changes or exemptions in the law that governs the land where the building will be built, either by arguing that a rule is inapplicable (the bridge design will not cause a collapse), or that the custom is no longer needed (acceptance of live-work spaces has grown in the community).
During the construction of a building, a municipal building inspector usually inspects the ongoing work periodically to ensure that construction adheres to the approved plans and the local building code. Once construction is complete, any later changes made to a building or other asset that affect safety, including its use, expansion, structural integrity, and
fire protection
Fire protection is the study and practice of mitigating the unwanted effects of potentially Conflagration, destructive fires. It involves the study of the behaviour, Compartmentalization (fire protection), compartmentalisation, suppression and inve ...
, usually require municipality approval.
Finance
Depending on the type of project,
mortgage bankers,
accountants, and
cost engineers may participate in creating an overall plan for the financial management of a construction project. The presence of the mortgage banker is highly likely, even in relatively small projects since the owner's equity in the property is the most obvious source of funding for a building project. Accountants act to study the expected monetary flow over the life of the project and to monitor the payouts throughout the process. Professionals including cost engineers,
estimators and
quantity surveyors apply expertise to relate the work and materials involved to a proper valuation.
Financial planning ensures adequate safeguards and contingency plans are in place before the project is started, and ensures that the plan is properly executed over the life of the project. Construction projects can suffer from preventable financial problems. Underbids happen when builders ask for too little money to complete the project.
Cash flow
Cash flow, in general, refers to payments made into or out of a business, project, or financial product. It can also refer more specifically to a real or virtual movement of money.
*Cash flow, in its narrow sense, is a payment (in a currency), es ...
problems exist when the present amount of funding cannot cover the current costs for labour and materials; such problems may arise even when the overall budget is adequate, presenting a temporary issue. Cost overruns with government projects have occurred when the contractor identified change orders or project changes that increased costs, which are not subject to competition from other firms as they have already been eliminated from consideration after the initial bid.
Fraud
In law, fraud is intent (law), intentional deception to deprive a victim of a legal right or to gain from a victim unlawfully or unfairly. Fraud can violate Civil law (common law), civil law (e.g., a fraud victim may sue the fraud perpetrato ...
is also an issue of growing significance within construction.
Large projects can involve highly complex financial plans and often start with a conceptual
cost estimate performed by a
building estimator. As portions of a project are completed, they may be sold, supplanting one lender or owner for another, while the logistical requirements of having the right trades and materials available for each stage of the building construction project carry forward.
Public–private partnerships (PPPs) or
private finance initiatives (PFIs) may also be used to help deliver major projects. According to
McKinsey in 2019, the "vast majority of large construction projects go over budget and take 20% longer than expected".
Legal

A construction project is a complex net of
construction contracts and other legal obligations, each of which all parties must carefully consider. A contract is the exchange of a set of obligations between two or more parties, and provides structures to manage issues. For example, construction delays can be costly, so construction contracts set out clear expectations and clear paths to manage delays. Poorly drafted contracts can lead to confusion and costly disputes.
At the start of a project, legal advisors seek to identify ambiguities and other potential sources of trouble in the contract structures, and to present options for preventing problems. During projects, they work to avoid and resolve conflicts that arise. In each case, the lawyer facilitates an exchange of obligations that matches the reality of the project.
Procurement
Traditional or design-bid-build
Design-bid-build is the most common and well-established method of construction procurement. In this arrangement, the
architect
An architect is a person who plans, designs, and oversees the construction of buildings. To practice architecture means to provide services in connection with the design of buildings and the space within the site surrounding the buildings that h ...
,
engineer
Engineers, as practitioners of engineering, are professionals who Invention, invent, design, build, maintain and test machines, complex systems, structures, gadgets and materials. They aim to fulfill functional objectives and requirements while ...
or builder acts for the client as the project coordinator. They design the works, prepare specifications and design deliverables (models, drawings, etc.), administer the contract,
tender the works, and manage the works from inception to completion. In parallel, there are direct contractual links between the client and the main contractor, who, in turn, has direct contractual relationships with subcontractors. The arrangement continues until the project is ready for handover.
Design-build
Design-build became more common from the late 20th century, and involves the client contracting a single entity to provide design and construction. In some cases, the design-build package can also include finding the site, arranging funding and applying for all necessary statutory consents. Typically, the client invites several Design & Build (D&B) contractors to submit proposals to meet the project brief and then selects a preferred supplier. Often this will be a
consortium
A consortium () is an association of two or more individuals, companies, organizations, or governments (or any combination of these entities) with the objective of participating in a common activity or pooling their resources for achieving a ...
involving a design firm and a contractor (sometimes more than one of each). In the United States,
departments of transportation usually use design-build contracts as a way of progressing projects where states lack the skills or resources, particularly for very large projects.
Construction management
In a construction management arrangement, the client enters into separate contracts with the designer (architect or engineer), a
construction manager, and individual
trade contractors. The client takes on the contractual role, while the construction or project manager provides the active role of managing the separate trade contracts, and ensuring that they complete all work smoothly and effectively together. This approach is often used to speed up
procurement
Procurement is the process of locating and agreeing to terms and purchasing goods, services, or other works from an external source, often with the use of a tendering or competitive bidding process. The term may also refer to a contractual ...
processes, to allow the client greater flexibility in design variation throughout the contract, to enable the appointment of individual work contractors, to separate contractual responsibility on each individual throughout the contract, and to provide greater client control.
Design
In the industrialized world, construction usually involves the translation of designs into reality. Most commonly (i.e.: in a design-bid-build project), the design team is employed by (i.e. in contract with) the property owner. Depending upon the type of project, a design team may include
architect
An architect is a person who plans, designs, and oversees the construction of buildings. To practice architecture means to provide services in connection with the design of buildings and the space within the site surrounding the buildings that h ...
s,
civil engineers,
mechanical engineers,
electrical engineers
Electrical engineering is an engineering discipline concerned with the study, design, and application of equipment, devices, and systems that use electricity, electronics, and electromagnetism. It emerged as an identifiable occupation in th ...
,
structural engineer
Structural engineers analyze, design, plan, and research List of structural elements, structural components and structural systems to achieve design goals and ensure the safety and comfort of users or occupants. Their work takes account mainly of ...
s,
fire protection engineers, planning
consultants, architectural consultants, and archaeological consultants. A 'lead designer' will normally be identified to help coordinate different disciplinary inputs to the overall design. This may be aided by integration of previously separate disciplines (often undertaken by separate firms) into multi-disciplinary firms with experts from all related fields, or by firms establishing relationships to support design-build processes.
The increasing complexity of construction projects creates the need for design professionals trained in all phases of a project's life-cycle and develop an appreciation of the asset as an advanced technological system requiring close integration of many sub-systems and their individual components, including sustainability. For buildings,
building engineering is an emerging discipline that attempts to meet this new challenge.
Traditionally, design has involved the production of
sketches,
architectural and
engineering drawing
An engineering drawing is a type of technical drawing that is used to convey information about an object. A common use is to specify the geometry necessary for the construction of a component and is called a detail drawing. Usually, a number of ...
s, and
specifications
A specification often refers to a set of documented requirements to be satisfied by a material, design, product, or service. A specification is often a type of technical standard.
There are different types of technical or engineering specificati ...
. Until the late 20th century, drawings were largely hand-
drafted; adoption of
computer-aided design (CAD) technologies then improved design productivity, while the 21st-century introduction of
building information modeling
Building information modeling (BIM) is an approach involving the generation and management of digital representations of the physical and functional characteristics of buildings or other physical assets and facilities. BIM is supported by vario ...
(BIM) processes has involved the use of computer-generated models that can be used in their own right or to generate drawings and other
visualisations as well as capturing non-geometric data about building components and systems.
On some projects, work on-site will not start until design work is largely complete; on others, some design work may be undertaken concurrently with the early stages of on-site activity (for example, work on a building's foundations may commence while designers are still working on the detailed designs of the building's internal spaces). Some projects may include elements that are designed for
off-site construction (see also
prefabrication and
modular building) and are then delivered to the site ready for erection, installation or assembly.
On-site construction

Once contractors and other relevant professionals have been appointed and designs are sufficiently advanced, work may commence on the project site. Some projects require preliminary works, such as land preparation and levelling, demolition of existing structures (see
below), or laying foundations, and there are circumstances where this work may be contracted for in advance of finalising the contract and costs for the whole project.
Typically, a construction site will include a secure perimeter to restrict unauthorised access, site access control points, office and welfare accommodation for personnel from the main contractor and other firms involved in the project team, and storage areas for materials, machinery and equipment. According to the ''McGraw-Hill Dictionary of Architecture and Construction's'' definition, construction may be said to have ''started'' when the first feature of the permanent structure has been put in place, such as pile driving, or the pouring of slabs or footings.
Commissioning and handover
Commissioning is the process of verifying that all subsystems of a new building (or other assets) work as intended to achieve the owner's project requirements and as designed by the project's architects and engineers.
Defects liability period
A period after handover (or practical completion) during which the owner may identify any shortcomings in relation to the building specification ('defects'), with a view to the contractor correcting the defect.
Maintenance, repair and improvement
Maintenance involves functional checks, servicing, repairing or replacing of necessary devices, equipment,
machine
A machine is a physical system that uses power to apply forces and control movement to perform an action. The term is commonly applied to artificial devices, such as those employing engines or motors, but also to natural biological macromol ...
ry, building infrastructure, and supporting utilities in industrial, business, governmental, and residential installations.
Demolition
Demolition is the discipline of safely and efficiently tearing down
building
A building or edifice is an enclosed Structure#Load-bearing, structure with a roof, walls and window, windows, usually standing permanently in one place, such as a house or factory. Buildings come in a variety of sizes, shapes, and functions, a ...
s and other artificial
structure
A structure is an arrangement and organization of interrelated elements in a material object or system, or the object or system so organized. Material structures include man-made objects such as buildings and machines and natural objects such as ...
s.
Demolition
Demolition (also known as razing and wrecking) is the science and engineering in safely and efficiently tearing down buildings and other artificial structures. Demolition contrasts with deconstruction (building), deconstruction, which inv ...
contrasts with
deconstruction, which involves taking a building apart while carefully preserving valuable elements for reuse purposes (
recycling – see also
circular economy).
Industry scale and characteristics
Economic activity

The output of the global construction industry was worth an estimated $10.8 trillion in 2017, and in 2018 was forecast to rise to $12.9 trillion by 2022,
and to around $14.8 trillion in 2030.
As a sector, construction accounts for more than 10% of global GDP (in
developed countries, construction comprises 6–9% of GDP), and employs around 7% of the total employed workforce around the globe
(accounting for over 273 million full- and part-time jobs in 2014).
Since 2010,
China has been the world's largest single construction market.
The United States is the second largest construction market with a 2018 output of $1.581 trillion.
* In the United States in February 2020, around $1.4 trillion worth of construction work was in progress, according to the
Census Bureau, of which just over $1.0 trillion was for the
private sector
The private sector is the part of the economy which is owned by private groups, usually as a means of establishment for profit or non profit, rather than being owned by the government.
Employment
The private sector employs most of the workfo ...
(split roughly 55:45% between residential and nonresidential); the remainder was
public sector
The public sector, also called the state sector, is the part of the economy composed of both public services and public enterprises. Public sectors include the public goods and governmental services such as the military, law enforcement, pu ...
, predominantly for state and local government.
* In
Armenia
Armenia, officially the Republic of Armenia, is a landlocked country in the Armenian Highlands of West Asia. It is a part of the Caucasus region and is bordered by Turkey to the west, Georgia (country), Georgia to the north and Azerbaijan to ...
, the construction sector experienced growth during the latter part of 2000s. Based on National Statistical Service, Armenia's construction sector generated approximately 20% of Armenia's GDP during the first and second quarters of 2007. In 2009, according to the World Bank, 30% of Armenia's economy was from construction sector.
["Armenian Growth Still In Double Digits"](_blank)
Armenia Liberty ( RFE/RL), September 20, 2007.
* In
Vietnam
Vietnam, officially the Socialist Republic of Vietnam (SRV), is a country at the eastern edge of mainland Southeast Asia, with an area of about and a population of over 100 million, making it the world's List of countries and depende ...
, the construction industry plays an important role in the
national economy. The Vietnamese construction industry has been one of the fastest growing in the
Asia-Pacific region in recent years. The market was valued at nearly $60 billion in 2021.
In the first half of 2022, Vietnam's construction industry growth rate reached 5.59%.
In 2022, Vietnam's construction industry accounted for more than 6% of the country's GDP, equivalent to over 589.7 billion
Vietnamese dong. The industry of industry and construction accounts for 38.26% of Vietnam's GDP. At the same time, the industry is one of the most attractive industries for foreign direct investment (FDI) in recent years.
Construction is a major source of employment in most countries; high reliance on small businesses, and under-representation of women are common traits. For example:
* In the US, construction employed around 11.4m people in 2020, with a further 1.8m employed in architectural, engineering, and related professional services – equivalent to just over 8% of the total US workforce.
The construction workers were employed in over 843,000 organisations, of which 838,000 were privately held businesses.
In March 2016, 60.4% of construction workers were employed by businesses with fewer than 50 staff.
Women are substantially underrepresented (relative to their share of total employment), comprising 10.3% of the US construction workforce, and 25.9% of professional services workers, in 2019.
* The
United Kingdom construction sector contributed £117 billion (6%) to UK GDP in 2018, and in 2019 employed 2.4m workers (6.6% of all jobs). These worked either for 343,000 'registered' construction businesses, or for 'unregistered' businesses, typically self-employed contractors;
just over one million small/medium-sized businesses, mainly self-employed individuals, worked in the sector in 2019, comprising about 18% of all UK businesses.
Women comprised 12.5% of the UK construction workforce.
According to
McKinsey research,
productivity
Productivity is the efficiency of production of goods or services expressed by some measure. Measurements of productivity are often expressed as a ratio of an aggregate output to a single input or an aggregate input used in a production proce ...
growth per worker in construction has lagged behind many other industries across different countries including in the
United States
The United States of America (USA), also known as the United States (U.S.) or America, is a country primarily located in North America. It is a federal republic of 50 U.S. state, states and a federal capital district, Washington, D.C. The 48 ...
and in European countries. In the United States, construction productivity per worker has declined by half since the 1960s.
Construction GVA by country
Employment

Some workers may be engaged in
manual labour as unskilled or semi-skilled workers; they may be skilled tradespeople; or they may be supervisory or managerial personnel. Under safety legislation in the United Kingdom, for example, construction workers are defined as people "who work for or under the control of a contractor on a construction site";
in Canada, this can include people whose work includes ensuring conformance with building codes and regulations, and those who supervise other workers.
Laborers comprise a large grouping in most national construction industries. In the United States, for example, in May 2023, the construction sector employed just over 7.9 million people, of whom 859,000 were laborers, while 3.7 million were construction trades workers (including 603,000
carpenters, 559,000
electricians, 385,000
plumber
A plumber is a tradesperson who specializes in installing and maintaining systems used for potable (drinking) water, hot-water production, sewage and drainage in plumbing systems. s, and 321,000 equipment operators).
Like most business sectors, there is also substantial
white-collar employment in construction - out of 7.9 million US construction sector workers, 681,000 were recorded by the
United States Department of Labor in May 2023 as in 'office and administrative support occupations', 620,000 in 'management occupations' and 480,000 in 'business and financial operations occupations'.
Large-scale construction requires
collaboration across multiple disciplines. A
project manager
A project manager is a professional in the field of project management. Project managers have the responsibility of the Project planning, planning, procurement and execution of a project, in any undertaking that has a defined scope, defined star ...
normally manages the budget on the job, and a
construction manager,
design engineer,
construction engineer or
architect
An architect is a person who plans, designs, and oversees the construction of buildings. To practice architecture means to provide services in connection with the design of buildings and the space within the site surrounding the buildings that h ...
supervises it. Those involved with the design and execution must consider zoning requirements and legal issues,
environmental impact of the project,
scheduling,
budget
A budget is a calculation plan, usually but not always financial plan, financial, for a defined accounting period, period, often one year or a month. A budget may include anticipated sales volumes and revenues, resource quantities including tim ...
ing and
bidding,
construction site safety, availability and transportation of
building materials, logistics, and inconvenience to the public, including those caused by
construction delays.
Some models and policy-making organisations promote the engagement of
local labour in construction projects as a means of tackling
social exclusion and addressing skill shortages. In the UK, the
Joseph Rowntree Foundation reported in 2000 on 25 projects which had aimed to offer training and employment opportunities for locally based school leavers and unemployed people. The Foundation published "a good practice resource book" in this regard at the same time. Use of local labour and local materials were specified for the construction of the Danish
Storebaelt bridge, but there were legal issues which were challenged in court and addressed by the
European Court of Justice
The European Court of Justice (ECJ), officially the Court of Justice (), is the supreme court of the European Union in matters of European Union law. As a part of the Court of Justice of the European Union, it is tasked with interpreting ...
in 1993. The court held that a
contract
A contract is an agreement that specifies certain legally enforceable rights and obligations pertaining to two or more parties. A contract typically involves consent to transfer of goods, services, money, or promise to transfer any of thos ...
condition requiring use of local labour and local materials was incompatible with
EU treaty principles. Later UK guidance noted that social and employment clauses, where used, must be compatible with relevant EU regulation. Employment of local labour was identified as one of several social issues which could potentially be incorporated in a sustainable procurement approach, although the interdepartmental ''Sustainable Procurement Group'' recognised that "there is far less scope to incorporate
uchsocial issues in public procurement than is the case with environmental issues".
There are many routes to the different
career
A career is an individual's metaphorical "journey" through learning, work (human activity), work and other aspects of personal life, life. There are a number of ways to define career and the term is used in a variety of ways.
Definitions
The ...
s within the construction industry. There are three main tiers of
construction workers based on educational background and training, which vary by country:
Unskilled and semi-skilled workers
Unskilled and semi-skilled workers provide general site labor, often have few or no construction qualifications, and may receive basic site training.
Skilled tradespeople
Skilled
tradespeople have typically served
apprenticeship
Apprenticeship is a system for training a potential new practitioners of a trade or profession with on-the-job training and often some accompanying study. Apprenticeships may also enable practitioners to gain a license to practice in a regulat ...
s (sometimes in
labor union
A trade union (British English) or labor union (American English), often simply referred to as a union, is an organization of workers whose purpose is to maintain or improve the conditions of their employment, such as attaining better wages ...
s) or received technical training; this group also includes on-site managers who possess extensive knowledge and experience in their
craft or
profession
A profession is a field of Work (human activity), work that has been successfully professionalized. It can be defined as a disciplined group of individuals, professionals, who adhere to ethical standards and who hold themselves out as, and are ...
. Skilled manual occupations include
carpenter
Carpentry is a skilled trade and a craft in which the primary work performed is the cutting, shaping and installation of building materials during the construction of buildings, ships, timber bridges, concrete formwork, etc. Carpenter ...
s,
electricians,
plumber
A plumber is a tradesperson who specializes in installing and maintaining systems used for potable (drinking) water, hot-water production, sewage and drainage in plumbing systems. s,
ironworkers,
heavy equipment operators and
masons, as well as those involved in project management. In the UK these require
further education qualifications, often in
vocation
A vocation () is an Work (human activity), occupation to which a person is especially drawn or for which they are suited, trained or qualified. Though now often used in non-religious contexts, the meanings of the term originated in Christianity.
...
al subject areas, undertaken either directly after completing
compulsory education
Compulsory education refers to a period of education that is required of all people and is imposed by the government. This education may take place at a registered school or at home or other places.
Compulsory school attendance or compulsory sc ...
or through "on the job" apprenticeships.
Professional, technical or managerial personnel
Professional, technical and managerial personnel often have
higher education
Tertiary education (higher education, or post-secondary education) is the educational level following the completion of secondary education.
The World Bank defines tertiary education as including universities, colleges, and vocational schools ...
qualifications, usually
graduate degrees, and are trained to design and manage construction processes. These roles require more training as they demand greater technical knowledge, and involve more legal responsibility. Example roles (and qualification routes) include:
*
Architect
An architect is a person who plans, designs, and oversees the construction of buildings. To practice architecture means to provide services in connection with the design of buildings and the space within the site surrounding the buildings that h ...
– Will usually have studied
architecture
Architecture is the art and technique of designing and building, as distinguished from the skills associated with construction. It is both the process and the product of sketching, conceiving, planning, designing, and construction, constructi ...
to degree level, and then undertaken further study and gained professional experience. In many countries, the title of "architect" is protected by law, strictly limiting its use to qualified people.
*
Civil engineer – Typically holds a degree in a related subject and may only be eligible for membership of a professional institution (such as the UK's
ICE
Ice is water that is frozen into a solid state, typically forming at or below temperatures of 0 ° C, 32 ° F, or 273.15 K. It occurs naturally on Earth, on other planets, in Oort cloud objects, and as interstellar ice. As a naturally oc ...
) following completion of additional training and experience. In some jurisdictions, a new university graduate must hold a
master's degree
A master's degree (from Latin ) is a postgraduate academic degree awarded by universities or colleges upon completion of a course of study demonstrating mastery or a high-order overview of a specific field of study or area of professional prac ...
to become chartered, and persons with
bachelor's degree
A bachelor's degree (from Medieval Latin ''baccalaureus'') or baccalaureate (from Modern Latin ''baccalaureatus'') is an undergraduate degree awarded by colleges and universities upon completion of a course of study lasting three to six years ...
s may become
Incorporated Engineers.
*
Building services engineer – May also be referred to as an "M&E" or "
mechanical, electrical, and plumbing (MEP) engineer" and typically holds a degree in mechanical or electrical engineering.
*
Project manager
A project manager is a professional in the field of project management. Project managers have the responsibility of the Project planning, planning, procurement and execution of a project, in any undertaking that has a defined scope, defined star ...
– Typically holds a 4-year or greater
higher education
Tertiary education (higher education, or post-secondary education) is the educational level following the completion of secondary education.
The World Bank defines tertiary education as including universities, colleges, and vocational schools ...
qualification, but are often also qualified in another field such as architecture, civil engineering or quantity surveying.
*
Structural engineer
Structural engineers analyze, design, plan, and research List of structural elements, structural components and structural systems to achieve design goals and ensure the safety and comfort of users or occupants. Their work takes account mainly of ...
– Typically holds a bachelor's or master's degree in structural engineering.
*
Quantity surveyor – Typically holds a bachelor's degree in quantity surveying. UK chartered status is gained from the
Royal Institution of Chartered Surveyors
The Royal Institution of Chartered Surveyors (RICS) is a global professional body for those working in the Built Environment, Construction, Land, Property and Real Estate. The RICS was founded in London in 1868. It works at a cross-governmental ...
.
Safety

Construction is one of the most dangerous occupations in the world, incurring more occupational fatalities than any other sector in both the United States and in the
European Union
The European Union (EU) is a supranational union, supranational political union, political and economic union of Member state of the European Union, member states that are Geography of the European Union, located primarily in Europe. The u ...
.
In the US in 2019, 1,061, or about 20%, of worker fatalities in private industry occurred in construction.
In 2017, more than a third of US construction fatalities (366 out of 971 total fatalities) were the result of falls;
in the UK, half of the average 36 fatalities per annum over a five-year period to 2021 were attributed to falls from height.
Proper safety equipment such as harnesses, hard hats and guardrails and procedures such as securing ladders and inspecting
scaffolding can curtail the risk of occupational injuries in the construction industry.
Other major causes of fatalities in the construction industry include electrocution, transportation accidents, and trench cave-ins.
Other safety risks for workers in construction include
hearing loss due to high noise exposure,
musculoskeletal injury, chemical exposure, and high levels of stress.
Besides that, the high turnover of workers in construction industry imposes a huge challenge of accomplishing the restructuring of work practices in individual workplaces or with individual workers. Construction has been identified by the
National Institute for Occupational Safety and Health (NIOSH) as a priority industry sector in the
National Occupational Research Agenda (NORA) to identify and provide intervention strategies regarding occupational health and safety issues. A study conducted in 2022 found “significant effect of air pollution exposure on construction-related injuries and fatalities”, especially with the exposure of
nitrogen dioxide.
Sustainability
Sustainability is an aspect of "green building", defined by the United States
Environmental Protection Agency (EPA) as "the practice of creating structures and using processes that are environmentally responsible and resource-efficient throughout a building's life-cycle from siting to design, construction, operation, maintenance, renovation and deconstruction."
Decarbonising construction
The construction industry may require transformation at pace and at scale if it is to successfully contribute to achieving the target set out in
The Paris Agreement of limiting global temperature rise to 1.5C above industrial levels. The
World Green Building Council has stated the buildings and infrastructure around the world can reach 40% less embodied carbon emissions but that this can only be achieved through urgent transformation.
Conclusions from industry leaders have suggested that the
net zero transformation is likely to be challenging for the construction industry, but it does present an opportunity. Action is demanded from
government
A government is the system or group of people governing an organized community, generally a State (polity), state.
In the case of its broad associative definition, government normally consists of legislature, executive (government), execu ...
s, standards bodies, the construction sector, and the
engineering
Engineering is the practice of using natural science, mathematics, and the engineering design process to Problem solving#Engineering, solve problems within technology, increase efficiency and productivity, and improve Systems engineering, s ...
profession to meet the decarbonising targets.
In 2021, the
National Engineering Policy Centre published its report ''Decarbonising Construction: Building a new net zero industry,''
which outlined key areas to decarbonise the construction sector and the wider
built environment
The term built environment refers to human-made conditions and is often used in architecture, landscape architecture, urban planning, public health, sociology, and anthropology, among others. These curated spaces provide the setting for human ac ...
. This report set out around 20 different recommendations to transform and decarbonise the construction sector, including recommendations for
engineer
Engineers, as practitioners of engineering, are professionals who Invention, invent, design, build, maintain and test machines, complex systems, structures, gadgets and materials. They aim to fulfill functional objectives and requirements while ...
s, the construction industry and decision makers, plus outlined six-overarching ‘system levers’ where action taken now will result in rapid decarbonisation of the construction sector.
These levels are:
* Setting and stipulating progressive targets for carbon reduction
* Embedding quantitative whole-life carbon assessment into public procurement
* Increasing design efficiency, materials reuse and retrofit of buildings
* Improving whole-life carbon performance
* Improving skills for net zero
* Adopting a joined up, systems approach to decarbonisation across the construction sector and with other sectors
Progress is being made internationally to decarbonise the sector including improvements to sustainable procurement practice such as the CO2 performance ladder in the
Netherlands
, Terminology of the Low Countries, informally Holland, is a country in Northwestern Europe, with Caribbean Netherlands, overseas territories in the Caribbean. It is the largest of the four constituent countries of the Kingdom of the Nether ...
and the Danish Partnership for Green Public Procurement. There are also now demonstrations of applying the principles of circular economy practices in practice such as Circl,
ABN AMRO's sustainable pavilion and the
Brighton Waste House.
See also
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Notes
References
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