1.1Background
In India, Construction Industry plays a vital key role in both economic growth and poverty reduction. The industry consumes about 45 to 55% of the national five year plan outlay and contributes to nearly 30% of GDP. A construction industry is the second largest industry next only to agriculture in terms of providing employment in India. Indian Government is targeting an economic growth of around eight per cent during the Eleventh five year Plan (2008-12). Construction projects entire high risk, long construction span, high costs and budget changes. India it is the second most populous country in the world with over one billion people accounting for around 19% of the world’s population. It is estimated that the population living
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Therefore the cost overruns demand requires adequate building infrastructure facilities at optimum cost (The India Infrastructure Report 1998). Indian government has attached high priority to the building sector (UK Trade and Investment). Rapid growth in the construction industry in india over the past few years has considerably strained its infrastructure. India needs significant investment in the infrastructure sector as many corporate leaders feel that the current infrastructure is inadequate to support their business needs and long term growth in india . India has been a little slow in creating building infrastructure ahead of demand, and it has typically turned into action when bottlenecks become apparent (Survey report of KPMG International and Economist Intelligence Unit). Investment requirement for housing in urban areas has been estimated at Rs.556000 million (US$ 13.4 billion) in the9th five year plan (1997-2002). The Market size, material market potential, labour required skills are the most important factors for considering Foreign Direct Investment in Construction and Engineering in India. Foreign investors in India expect high rates of return on their investments (FDI Confidence …show more content…
With forecasting software, many complex statistical forecasting techniques can now be used to forecast construction cost escalation. Univariate time series method, cannot predict turning points. It follows the existing pattern of the data. Multivariate forecast methods are dependent on the accuracy of the explanatory variables used in the forecasts. One of the main difficulties in using the multivariate forecast method is the identification of statistically significant explanatory variables. The accuracy of the multivariate forecasts depend on the accuracy of the explanatory variables used to make the forecasts. The analytical forecasting techniques are only valid for short-term forecasting in stable condition, generally less than one year. No analytical forecasting technique is capable of long-term forecasting of cost escalation. Hastak et al (1996) have carried out a study on cost management planning support system for project cost control strategy and planning (COMPASS). It was presented as a new paradigm and a management tool for formulating effective strategies for project cost control. The study found that through the life cycle of a project COMPASS methodology assists management in evaluating the potential degree of cost escalation. The study identified attributes such as management errors, regulatory
When we see an economic downturn many of the different industries are affected in different ways depending upon their demand. The industry which always seems to be affected first and the last to recover is the construction industry. The construction industry is one of the largest sectors of the UK’s economy. It contributes around £90billion which is 6.7% of the total and 2.9 million people are employed within the construction sector. (HM Government, 2013) (Barawas and Fleetwood et al., 2013) This contribution is measured by the Gross Value Added (GVA), here below is a table to represent the contribution the construction industries GVA (for 2012 prices) and its % of economy.
...S$1 billion from private equity funds in the year to March 2012. In a market as large as India, that is still far from impressive, but incoming capital is expected to rise in the following year. If it does, it will represent a significant turnaround for a market that foreign private equity investors have largely shunned since the onset of the global financial crisis. Risks associated with Indian real estate investment are considerable, however. As one interviewee puts it, “It’s like China, but more complex in every possible way, without the infrastructure.” Bureaucracy, ubiquitous delays, land acquisition scandals, and an ongoing national protest movement targeting corruption have all contributed to waning foreign interest in Indian markets, with foreign direct investment and portfolio investment dropping markedly despite economic growth of about 8 percent in 2011.
Kim, B. &. (2011). Combination of project cost forecasts in earned value management. Journal Of Construction Engineering & Management, 958-966.
Asmar et al. (2013) found that IPD has been gaining recognition due to the various benefits it offers to the architecture/engineering/construction (AEC) industry and that much research has not been done to gauge the performance of IPD projects in contrast with other project delivery systems such as design-bid-build, design-build and construction management at risk systems. The metrics that are used to analyze the performance of IPD according to Mollaoglu-Korkmaz, Swarup and Riley (2011) are cost, quality, schedule performance, and owners perception of post-occupancy performance)
In the architecture, engineering and construction (AEC) industry, the general held belief is that the construction sector has not be willing to adapt to changes that comes with information technology. Nevertheless, the AEC industry has several practical applications that facilitate the technology, outsourcing and exchange of information within the industry, the roles of technology adopted are important to sustain the quality of life (QOL) to mankind [1].
The real estate sector in India is one of the sectors recognized worldwide. In the country, it is the second largest employer after agriculture and is expected to grow by 30 percent over the next decade. It consists of four sub-sectors - residential, retail, catering and advertising. The growth of this sector is well complemented by the growth of corporate environment and demand for office space, as well as the urban and semi-urban housing. According to a study by ICRA, construction third ranked among the 14 most important sectors in terms of direct, indirect and induced in all areas of business purposes. It is also expected to emerge from this more non-resident sectors (NRI) Indian investments in the near future, according to a
ACC Limited is India’s foremost manufacturer of cement and ready mixed concrete with a countrywide network of factories and sales offices. It is amongst the first companies in India to include environmental protection as a corporate commitment. It has been considered as a pioneer and leader in cement and concrete know-how, winning awards for best practices in environment management and for demonstrating good corporate citizenship. The quality of ACC’s products and customer centric services make it the most preferred cement brand in the industry and enjoys a high degree of brand equity in the Indian market. The Indian cement industry is the 2nd largest market after China accounting for about 8% of the total global production. The Indian housing
This paper explores what it takes to be a construction manager and the responsibilities of being a construction manager and the skills that a construction manager should have. It also explores what good construction managers do to have success on their construction projects and the steps that a construction manager must follow to end a project and meet their deadlines at the same
...I inflows. India received projects from other nations based on Greenfield, acquisitions and mergers projects. An example of a city that received the largest Greenfield projects in India was Mumbai ( ).
The pyramids in Africa, to huts in South America, all the way to mansions in North America, all of these structures have one thing in common. They all need someone to make them, and that person is a construction worker. A construction worker is a person that everyone relies on; they play a little part in everyone’s lives. Many children find interest at a young age after building their first tower out of blocks, and then that tower 20 years later turns into one of the largest towers in the world. Construction is an opportunity for people to use their skills; it is best suited for people who understand all the aspects of the "big picture" as well as all of the little details in everything, from small houses to the Eiffel Tower.
Accurately forecasting the cost of projects is vital to the survival of any business or organization. Cost estimators develop the cost information that business owners or managers, professional design team members, and construction contractors need to make budgetary and feasibility determinations. From an Owner's perspective the cost estimate may be used to determine the project scope or whether the project should proceed. According to the U.S. Department of Labor there were about 198,000 cost estimators in 1994. That of which 58% work in the construction industry, 17% employed in manufacturing industries, and the remaining 25% elsewhere. From this we could conclude that a great deal of cost estimation lies in the construction industry, where multi-million dollar contracts are formed after a thorough cost estimation.
The investment pressure from infrastructure being a major source of the investment demand, in the Indian context, at the stage of development the country is in, productive or input type infrastructure power, irrigation, transport, telecommunication, banks will have to expand at a rate at least corresponding to the growth rate of the economy (Morris,
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
Brooke (1997), explains Estimation as the technical procedure of anticipating the value of the project. Building construction estimation is the process of acquiring the construction value for the whole project before the project starts. Thus, construction attaining process depends hugely on financial management to sustain workability and smooth operations. The delay in construction is a global issue which is due to improper preparation of estimates and lack of drawings (Ajanlekoko, 1987). In accordance to Gkritza (2008), the source of delay in a project are identified to be in the initial stages, like bad quantification, errors in design and ground conditions. Thus, the purpose of a proper estimate is to foretell the cost needed to finish the
This report concerns about the supply and demand of local manpower in construction industry of our country, Malaysia. The increment in development of country has increased the number of construction projects proposed. This bring a rise to the demand of manpower in this industry. The increased demand causes shortage in manpower and subsequently lead to delay of construction projects. This is due to the nature of construction industry, which is labour intensive. Hence, supply of local manpower resources must be adequate and stable in order to nurture a higher quality of construction workforce.