What is Construction?

Construction is a term almost everyone is aware of. But, what exactly is the construction? It is the process of building or forming the structure of a building or any other component. So, here, we are going to discuss the construction industry. The construction industry is a field with huge requirements worldwide. From the houses we live in our workplaces, important buildings, roads even belong to the construction industry.

The economy of a country is dependent on the construction processes too. So, this is a really important subject and a very vast one. And, when we discuss this large area of study, we can understand several criteria that we can talk upon. Those are, the types of the construction industry, types of construction methods are few examples. Interested in learning more about these areas? Then you are at the right place.

Types of Construction Industry

Now let’s see what the types of construction industry are. Primarily, we can divide this into two sections as residential and non-residential. These residential constructions are generally houses and apartments. And then, the non-residential category can be further divided into industrial, engineering, and commercial, and institutional. On the other hand, there are several other such categorizing processes too. For instance, there is another classification as, industrial, infrastructure, and buildings. And in this classification, buildings categorized as residential and non-residential.

Diving more into the above-mentioned categories, infrastructure is a sector that deals with railways, bridges, dams, and such heavy engineering constructions. Industrial constructions are for refineries, power plants, manufacturing plants kind of constructions. So, let’s move on to types of construction methods.

Types of Construction Methods

When talking about construction methods, there is a wide array of such methods. The new technology results in new trends in construction. These make amazing and stunning trends in the field. For example, there is…

  • Pre Cast Flat Panel System
  • Twin wall technology
  • Pre-cast concrete foundation
  • Flat slab constructions
  • 3D volumetric models
  • and many more.

These methods vary depending on their technology, material, and such criteria.

So, that is a basic overview and a categorization of several types of construction methods. But don’t forget, there are many more out there.

Types of Construction Companies

So, what are the types of construction companies? Just as the above methods, there is a huge variation in construction companies too. Firstly, these divide into different categories as for the jobs those companies perform. Their scopes vary from handling the land, designing the project, constructing, to handling paper work generally. And there are many more intermediate levels in a construction process. So, there are multiple types of companies that perform such tasks. For instance, there are heavy engineering companies, civil engineering companies, allied services, MEP contractors, general contractors.

The above-mentioned categories perform different operations of varying scope. They select their projects according to the requirements of the client. Large scale companies mostly involve with the government for infrastructural purposes where general contractors involve mostly in small residential projects. So, there are even more than mentioned.

Types of Construction Contracts

Just like the above categories, there are many types of construction contracts too. These contracts basically form according to the way the employer pays the contractors. So, primarily, there are three such contract types. They are lump-sum contracts, cost-reimbursable contracts, and re-measurement contracts. These usually depend on the financial aspect of the construction project.

In addition, there are several other contract types too. For example, there are cost plus fixed fee contract, percentage rate contract, lump sum, and scheduled contract, domestic building contract, item rate contract too.

What is a Construction Agreement?

So, what are construction agreements? We discussed the construction contracts above. So, the legal documentation that binds all the involved parties in the project is the construction agreement. All the parties should respect the conditions and terms laid out on this document and abide by them.

The construction agreement details how the construction should be done, when are the deadlines and start dates, the cost of material and payment of the workers, and such related conditions. A construction agreement is a must in a construction. This agreement stands a proof in case anything goes wrong.

Types of Construction Agreements

And then, we move on to the types of construction agreements. The types of construction agreements vary depending on the time schedule, cost, and also the type of construction. The large scale constructions and small scale constructions have their own types of agreement.

The agreement type varies based on the nature of the project. Generally, we can identify three types of construction agreements. The first type is express. And then we have the executed contract agreements and finally, there is a conditional contract agreement. The first agreement generally defines the functions and purposes of the project and the involved parties agree upon this to carry out the project. Then the second type, executed contract agreement has content related to the warranty in case something goes wrong. Here, the contract agreement is to aid only one party on the failure of the project. The last agreement is for future projects. The project is not carried out until the required conditions are fulfilled.

That pretty much sums up a brief summary of the construction industry and related aspects.

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