Importance Of Construction Industry

INTRODUCTION

BACKGROUND

People serve as the most vital resource for many industries, and the construction industry is no exception. The construction industry relies on individuals from the bottom up but none are more important than the executives that establish and guide their companies. The construction industry is one of the key contributors to most economies. The importance of the construction industry to the economy can be measured by its contribution to the gross domestic product (GDP), its contribution to investment, and the volume of labor employed. Internationally, the construction industry contribution to GDP is from 3% to 10% typically lower in developing countries and higher in developed countries.

The construction industry has played an important role in terms of economic, social and cultural development of Nepal. Nepalese Construction Industry contributed around 10 percentages to GDP and it uses around 35 percent of government budget. It is estimated that this sector is creating employment opportunities to about one million people so it generate employment next to agricultural sector in the country. Similarly about 60 percentages of the nation’s development budget is spent through the use of contractors. From this, it is clearly seen that construction is a major sector and any productivity enhancement activity in this sector

It is a registered member of Federation of Contractors Association of Nepal (FCAN). At present by law, the company can complete for as many public construction project as possible where the worth of single project should not exceed more than 6 million NPR. The foreign exchange rate issued by Nepal Rastra Bank state, 1 Euro is equivalent to 114.27 NRP as on 8th November