Monday, November 11, 2013

WHAT IS A CONSTRUCTION COMPANY

With rapid urbanisation of the villages, there arises a need for new houses and new offices in order to cater to the rapid pace of development, both for residential and commercial use. Apart from that there is also a need for new infrastructure to serve the people of the area. Infrastructure like water supply pipelines, telecom fibre optic cables, power lines, etc. The development of all this and more is in the offing in many developing areas. All this can be done by the construction industry. A company that carries out construction of the nature mentioned above is called as a construction company. It can be a builder, contractor, or consultant. .
Depending upon the type of ownership, a construction company can be distinguished as a proprietorship, partnership, a private limited company or a limited company. By its very nature, construction is a feat that has to be accomplished by a team of individuals. Therefore the organization structure of construction companies handling large projects is huge, an example of this being Shapoorji Pallonjee Construction Ltd, a widely respected contracting company worldwide. The more complex, the nature of the projects handled by the construction company, the more will be the personnel requirement.  Companies handling large projects have large resource requirements.
Depending upon the mode of procurement followed by the developer/client, either the material will be in the scope of the builder or the contractor. In the former case, the contractor works on “labour basis” that is to say he decides a labour rate with the builder and provides his labour at that rate for executing the project and the material is provided by the builder/client. In the latter case, the builder/client signs a “composite contract” with the contractor based on which both the material and labour is provided by the contractor and the builder merely acts as a supervisor overlooking the work. Some builder companies take technical staff on their own rolls in order to perform this function or some companies offload it out to a project management consultant or construction consultant.
Contracting companies are those companies which actually implement the work laid down in the contract document floated by the builder/client. They use their material, manpower, money, machines, etc in order to accomplish the project laid down in the contract document at a pre-decided rate between the builder/client and the contractor. Contracting companies have a large requirement of staff as they are implementing projects. They turn the dreams of the architect into reality. These dreams are laid down in the form of drawings in the contract document. These drawings and the tender document together contain all the specifications of the project to be accomplished.

Finally, we have the consultants. These companies perform the function of providing technical know-how along with their manpower for construction supervision. Consultants can be either project management companies or PMCs or architectural firms. The former give construction supervision and consultation to builders/clients, whereas the latter provide the drawings based on which the project is carried out. They just restrict their working to the preparation of drawings and obtaining of statutory permissions. Then there are the third party auditors or consultants who provide proof checking services or auditing services. In all this we also have the structural consultant who is responsible for designing the skeleton on which the dream of the architect will stand. 

No comments:

Post a Comment