Construction Industry Overview

Anyone new to the construction industry must find it extremely complicated – PFI, RMI, QS, BREEAM, MMC, PPS, NHBC and that’s the easy ones!

Construction as we know it today has a heritage from the industrial revolution in the 1700s. Building canals, then railways and the cities they helped to create all contributed to the background of our industry. Companies like Tarmac, Laing and Costain can trace their founders back to this time. Practices from that period also explain some of the relationships that still exist today.

A major driver of today’ built environment is legislation, this determines how and where buildings are constructed and is responsible for the majority of new product development. Initiated by the British Government or European Union it has a major impact on our industry. To understand how this works and the way it can impact on your business needs a basic understanding of the structure of legislation, implementation and control.

The way that companies organise themselves to build projects is also important. Up until the middle of the 20^th Century the “Traditional” contract was the most common approach. Then with new types of buildings and client demands came first the Design & Build Contract, then Management and most recently PFI. All of these have their role in today’s environment, with contract type decided by the Client’s needs. But the implications for the designer, supplier, sub-contractor and main contractor are significant.

So if you or your colleagues are new to the industry, take some time to gain an understanding of the industry you work in. Once you understand the background everything else will start to make sense.

Chris Ashworth specialises in sales and marketing training for the construction industry. He is managing director of Competitive Advantage and presents a series of training courses in collaboration with the Building Centre including “Construction Industry Overview”.   First published: 6th August 2009, London Construction Now View original article   See also: Open Training Courses Construction Industry Overview Return to Articles