MODULE ONE
QTS315/305
CONSTRUCTION, CONSTRUCTION INDUSTRY AND CONSTRUCTION
ECONOMICS
Construction is the art and science of forming objects or systems. It is the act of building
something or how something is built. Also, construction and the ability to build things is one
of the most ancient of human skills. It usually covers the processes involved in assembling or
delivering buildings, infrastructure and industrial facilities, and associated facilities.
Construction is the activity of putting together different element using detailed design and
plan to create a structure in a location (i.e. it is location specific). It usually starts with or
involves planning, financing and design and it continues until it is built. Construction could
be new works or works related to repairs, additions or alterations, maintenance, demolitions,
dismantling or decommissioning.
Construction industry (CI) is a construction sector of any economy that deals with erection
of buildings, public and industrial infrastructures that are needed for running, growth and
survival of a particular economy. It is described as an engine that drives the overall economy
of a nation. Construction industry accounts for more than 10% of global gross domestic
products (GDP). In developed countries, it contributes 6-9% of the GDP and may be lower in
other economies. The global construction is forecasted at $12.7 trillion in 2020. It employs
7% of the global workforce. In Nigeria, construction industry employs people either directly
as operatives on construction sites or in an administrative, professional, technical or clerical
capacity within construction firms. The industry is also indirectly responsible for the
employment in the manufacture, assembly and distribution of materials and components and
for independent professional and associated staffs such as quantity surveyors, engineers
(civil, structural, services and environmental) and architects in both private practice and
public sector departments.
Construction Economics is the application of the techniques and expertise of economics to
construction projects. Generally, economics is the study of how scarce resources are (ought to
be) allocated between all their possible uses. Resources such as labour, land, buildings,
machinery and raw materials among others are limited, hence, they are of prime concerns to
the economists i.e. scarce resources are the concerns of the economist. Construction
economics is concerned with the study of man’s needs in connection with shelter and suitable
conditions in which to live. It seeks to ensure the efficient use of resources available to the
industry, and to increase the rate of growth of construction work in the most efficient manner.
Further Reading
Myers, D. (2008). Construction Economics, Taylor & Francis Group, 2 Park Square, Milton
Park, Abingdon, Oxon OX14 4RN
Halpin, D.A. and Senior, B.A. (2012). Construction Management. Wiley.
Oladapo, A. and Milne, J.A. (1987). Builders’ Pricing and Tendering Procedures in Nigeria.
Julab Publishers Limited, Ibadan, Nigeria.
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