Financial Management

Managing Cash Flow and Working Capital in Construction Projects

Managing cash flow and working capital effectively is arguably the most critical aspect of financial management in construction projects. Think of it like this: a beautifully designed blueprint is useless without the materials and labor to bring it to life. Similarly, a profitable project on paper can quickly crumble if you run out of cash to pay your subcontractors, buy materials, or cover overhead.


Construction projects, by their very nature, are complex beasts. They involve a multitude of moving parts, from fluctuating material costs and unpredictable weather delays to complex payment schedules and retainage. These factors can create significant strain on cash flow, especially for smaller companies with limited reserves.


So, how do you keep the money flowing smoothly? It starts with meticulous planning. A detailed cash flow forecast, anticipating both income and expenses, is essential. This forecast should consider the project timeline, payment milestones, and potential risks. Its not a "set it and forget it" document, though. Regular monitoring and adjustments are crucial as the project progresses and unforeseen circumstances arise.


Working capital, the difference between current assets and current liabilities, also plays a vital role. Its the financial fuel that keeps the project engine running. Maintaining adequate working capital requires careful management of receivables, payables, and inventory. Negotiating favorable payment terms with clients and suppliers can significantly impact working capital. Prompt invoicing and efficient collection procedures are vital to minimizing the time it takes to get paid. On the flip side, negotiating longer payment terms with suppliers can help conserve cash.


Inventory management is another key piece of the puzzle. Ordering materials too early ties up cash, while ordering too late can lead to costly delays. Finding the right balance, through techniques like Just-In-Time delivery, is essential for optimizing working capital.


Finally, dont underestimate the importance of having contingency plans. Unexpected cost overruns or payment delays can quickly drain your cash reserves. Having a line of credit or other financial backstop in place can provide a safety net and prevent the project from grinding to a halt.


In the construction world, managing cash flow and working capital isnt just about numbers on a spreadsheet. Its about ensuring the projects success, maintaining strong relationships with stakeholders, and ultimately, keeping the business afloat. It requires proactive planning, diligent monitoring, and a healthy dose of adaptability to navigate the inherent uncertainties of the industry.

Managing Cash Flow and Working Capital in Construction Projects

Risk Management and Insurance for General Contractors

Financial management for general contractors is a high-wire act, balancing the need to secure profitable projects with the constant awareness that things can, and often do, go wrong. Thats where risk management and insurance step in, acting as a crucial safety net. Think of it like this: you wouldnt climb a skyscraper under construction without a harness, and you shouldnt take on a major construction project without a robust risk management plan and comprehensive insurance coverage.


Risk management isnt just about buying insurance; its a proactive process of identifying, analyzing, and mitigating potential problems before they become costly realities. For a general contractor, these risks are numerous and varied. A sudden spike in material prices, a subcontractor failing to meet deadlines, an unexpected geological issue unearthed during excavation – these are just a few examples of the everyday challenges that can quickly derail a projects budget and timeline.


A solid risk management plan begins with careful pre-bid analysis. Contractors need to thoroughly review project specifications, assess site conditions, and evaluate the financial stability of potential subcontractors. This upfront due diligence can help avoid bidding on projects with excessive inherent risks or inadequate profit margins. Once a project is underway, regular monitoring and communication are essential. Regular site inspections, progress meetings with subcontractors, and clear documentation of any changes or issues can help identify and address potential problems early on, before they escalate into major setbacks.


Insurance, of course, plays a vital role in any contractors risk management strategy. General liability insurance protects against claims of property damage or bodily injury caused by the contractors operations. Workers compensation insurance covers medical expenses and lost wages for employees injured on the job. Professional liability insurance, also known as errors and omissions insurance, protects against claims of negligence or faulty workmanship. Depending on the projects specifics, other types of coverage, such as builders risk insurance or surety bonds, might also be necessary.


Choosing the right insurance coverage requires careful consideration of the specific risks associated with each project. A contractor working on a high-rise building in a densely populated area will have different insurance needs than one building a single-family home in a rural setting. Working with a knowledgeable insurance broker is essential to ensure adequate coverage without unnecessary expense.


In the construction industry, where unforeseen challenges are commonplace, a proactive approach to risk management and insurance is not just a good idea – its a necessity. Its the financial equivalent of wearing a hard hat and safety goggles, protecting the contractors bottom line and allowing them to focus on what they do best: building.

Surety Bonding and its Importance in Contracting

Surety bonding plays a crucial role in the world of contracting, offering a vital layer of protection for all parties involved. Think of it as a safety net in the often risky business of construction and other contract work. Essentially, a surety bond is a three-party agreement involving the principal (the contractor), the obligee (the project owner), and the surety (the bonding company). The bond guarantees that the principal will fulfill their contractual obligations to the obligee.


Why is this so important in financial management, particularly in contracting? For the project owner, a surety bond provides financial security. If the contractor defaults on the project – say, they go bankrupt mid-stream or fail to meet quality standards – the surety company steps in to ensure the project is completed. This could involve hiring a replacement contractor or covering the costs of correcting faulty work. This protection minimizes the owners financial risk and ensures the project doesnt become a costly nightmare.


From the contractors perspective, obtaining a surety bond demonstrates financial stability and trustworthiness. It signals to potential clients that they are capable of handling the project and managing their finances responsibly. This can be a significant advantage when bidding on competitive projects. The bonding process itself involves a thorough pre-qualification assessment by the surety company, examining the contractors financial history, experience, and capacity. This process can help contractors identify and address potential weaknesses in their own financial management.


Finally, surety bonding contributes to the overall stability of the construction industry. By mitigating the risk of project failures and ensuring payments to subcontractors and suppliers, it fosters a more predictable and reliable environment for everyone involved. This, in turn, encourages investment and growth within the industry.


In conclusion, surety bonding is much more than just a contractual requirement. It's a vital financial tool that protects project owners, enhances contractor credibility, and promotes stability within the contracting industry. Its a key element of sound financial management in any project, offering a valuable layer of security and peace of mind.

Surety Bonding and its Importance in Contracting
Financial Reporting and Analysis for Construction Businesses

Financial Reporting and Analysis for Construction Businesses

Financial reporting and analysis are absolutely crucial for any business, but in the construction industry, they take on a special significance. Construction projects are complex beasts, often involving multiple phases, subcontractors, and fluctuating material costs. Without a firm grasp on the financial pulse of a project, things can go south very quickly. Profit margins are notoriously tight in construction, so even small deviations from the budget can have a big impact on the bottom line.


Imagine this: youre building a new apartment complex. Youve got your initial budget set, contracts signed, and everything seems to be on track. But then lumber prices spike unexpectedly, a subcontractor runs into delays, and suddenly youre bleeding money. Without robust financial reporting, you might not even realize the extent of the problem until its too late. Thats why accurate and timely financial reports are so vital. They act as an early warning system, alerting you to potential problems before they become major crises.


These reports arent just about tracking expenses though. Theyre also critical for analyzing performance. Are your projects coming in on budget? Are you effectively managing your cash flow? Which projects are most profitable? These are the kinds of questions that financial analysis helps answer. By digging into the numbers, you can identify areas where youre excelling and areas where you need to improve. Maybe youre consistently underestimating labor costs, or perhaps youre not billing clients efficiently. These insights can lead to better decision-making, improved project management, and ultimately, increased profitability.


Beyond internal use, financial reports are also essential for external stakeholders. Banks and investors want to see that you have a handle on your finances before they lend you money or invest in your projects. Accurate and transparent financial reporting builds trust and credibility, making it easier to secure funding and attract investment. In the construction industry, where reputation is everything, solid financial management is a key differentiator. It shows that youre not just building structures, youre building a sustainable and successful business.

 

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The art déco interior of the grand concourse at the 30th Street Station in Philadelphia
The lobby of Hotel Bristol, Warsaw
A historical example: Balliol College Dining Hall, Oxford

Interior design is the art and science of enhancing the interior of a building to achieve a healthier and more aesthetically pleasing environment for the people using the space. With a keen eye for detail and a creative flair, an interior designer is someone who plans, researches, coordinates, and manages such enhancement projects. Interior design is a multifaceted profession that includes conceptual development, space planning, site inspections, programming, research, communicating with the stakeholders of a project, construction management, and execution of the design.

History and current terms

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Typical interior of one of the houses in the Folk Architecture Reservation in Vlkolínec (Slovakia)

In the past, interiors were put together instinctively as a part of the process of building.[1]

The profession of interior design has been a consequence of the development of society and the complex architecture that has resulted from the development of industrial processes.

The pursuit of effective use of space, user well-being and functional design has contributed to the development of the contemporary interior design profession. The profession of interior design is separate and distinct from the role of interior decorator, a term commonly used in the US; the term is less common in the UK, where the profession of interior design is still unregulated and therefore, strictly speaking, not yet officially a profession.

In ancient India, architects would also function as interior designers. This can be seen from the references of Vishwakarma the architect—one of the gods in Indian mythology. In these architects' design of 17th-century Indian homes, sculptures depicting ancient texts and events are seen inside the palaces, while during the medieval times wall art paintings were a common feature of palace-like mansions in India commonly known as havelis. While most traditional homes have been demolished to make way to modern buildings, there are still around 2000 havelis[2] in the Shekhawati region of Rajasthan that display wall art paintings.

In ancient Egypt, "soul houses" (or models of houses) were placed in tombs as receptacles for food offerings. From these, it is possible to discern details about the interior design of different residences throughout the different Egyptian dynasties, such as changes in ventilation, porticoes, columns, loggias, windows, and doors.[3]

Reconstructed Roman triclinium or dining room, with three klinai or couches

Painting interior walls has existed for at least 5,000 years, with examples found as far north as the Ness of Brodgar,[4] as have templated interiors, as seen in the associated Skara Brae settlement.[5] It was the Greeks, and later Romans who added co-ordinated, decorative mosaics floors,[6] and templated bath houses, shops, civil offices, Castra (forts) and temple, interiors, in the first millennia BC. With specialised guilds dedicated to producing interior decoration, and formulaic furniture, in buildings constructed to forms defined by Roman architects, such as Vitruvius: De architectura, libri decem (The Ten Books on Architecture).[7][8]

Throughout the 17th and 18th century and into the early 19th century, interior decoration was the concern of the homemaker, or an employed upholsterer or craftsman who would advise on the artistic style for an interior space. Architects would also employ craftsmen or artisans to complete interior design for their buildings.

Commercial interior design and management

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In the mid-to-late 19th century, interior design services expanded greatly, as the middle class in industrial countries grew in size and prosperity and began to desire the domestic trappings of wealth to cement their new status. Large furniture firms began to branch out into general interior design and management, offering full house furnishings in a variety of styles. This business model flourished from the mid-century to 1914, when this role was increasingly usurped by independent, often amateur, designers. This paved the way for the emergence of the professional interior design in the mid-20th century.[9]

Illustrated catalog of the James Shoolbred Company, published in 1876

In the 1950s and 1960s, upholsterers began to expand their business remits. They framed their business more broadly and in artistic terms and began to advertise their furnishings to the public. To meet the growing demand for contract interior work on projects such as offices, hotels, and public buildings, these businesses became much larger and more complex, employing builders, joiners, plasterers, textile designers, artists, and furniture designers, as well as engineers and technicians to fulfil the job. Firms began to publish and circulate catalogs with prints for different lavish styles to attract the attention of expanding middle classes.[9]

As department stores increased in number and size, retail spaces within shops were furnished in different styles as examples for customers. One particularly effective advertising tool was to set up model rooms at national and international exhibitions in showrooms for the public to see. Some of the pioneering firms in this regard were Waring & Gillow, James Shoolbred, Mintons, and Holland & Sons. These traditional high-quality furniture making firms began to play an important role as advisers to unsure middle class customers on taste and style, and began taking out contracts to design and furnish the interiors of many important buildings in Britain.[10]

This type of firm emerged in America after the Civil War. The Herter Brothers, founded by two German émigré brothers, began as an upholstery warehouse and became one of the first firms of furniture makers and interior decorators. With their own design office and cabinet-making and upholstery workshops, Herter Brothers were prepared to accomplish every aspect of interior furnishing including decorative paneling and mantels, wall and ceiling decoration, patterned floors, and carpets and draperies.[11]

Illustration from The Grammar of Ornament (1856), by interior designer Owen Jones

A pivotal figure in popularizing theories of interior design to the middle class was the architect Owen Jones, one of the most influential design theorists of the nineteenth century.[12] Jones' first project was his most important—in 1851, he was responsible for not only the decoration of Joseph Paxton's gigantic Crystal Palace for the Great Exhibition but also the arrangement of the exhibits within. He chose a controversial palette of red, yellow, and blue for the interior ironwork and, despite initial negative publicity in the newspapers, was eventually unveiled by Queen Victoria to much critical acclaim. His most significant publication was The Grammar of Ornament (1856),[13] in which Jones formulated 37 key principles of interior design and decoration.

Jones was employed by some of the leading interior design firms of the day; in the 1860s, he worked in collaboration with the London firm Jackson & Graham to produce furniture and other fittings for high-profile clients including art collector Alfred Morrison as well as Ismail Pasha, Khedive of Egypt.

In 1882, the London Directory of the Post Office listed 80 interior decorators. Some of the most distinguished companies of the period were Crace, Waring & Gillowm and Holland & Sons; famous decorators employed by these firms included Thomas Edward Collcutt, Edward William Godwin, Charles Barry, Gottfried Semper, and George Edmund Street.[14]

Transition to professional interior design

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This interior was designed by John Dibblee Crace, President of the Institute of British Decorators, established in 1899.

By the turn of the 20th century, amateur advisors and publications were increasingly challenging the monopoly that the large retail companies had on interior design. English feminist author Mary Haweis wrote a series of widely read essays in the 1880s in which she derided the eagerness with which aspiring middle-class people furnished their houses according to the rigid models offered to them by the retailers.[15] She advocated the individual adoption of a particular style, tailor-made to the individual needs and preferences of the customer:

One of my strongest convictions, and one of the first canons of good taste, is that our houses, like the fish's shell and the bird's nest, ought to represent our individual taste and habits.

 

The move toward decoration as a separate artistic profession, unrelated to the manufacturers and retailers, received an impetus with the 1899 formation of the Institute of British Decorators; with John Dibblee Crace as its president, it represented almost 200 decorators around the country.[16] By 1915, the London Directory listed 127 individuals trading as interior decorators, of which 10 were women. Rhoda Garrett and Agnes Garrett were the first women to train professionally as home decorators in 1874. The importance of their work on design was regarded at the time as on a par with that of William Morris. In 1876, their work – Suggestions for House Decoration in Painting, Woodwork and Furniture – spread their ideas on artistic interior design to a wide middle-class audience.[17]

By 1900, the situation was described by The Illustrated Carpenter and Builder:[18]

Until recently when a man wanted to furnish he would visit all the dealers and select piece by piece of furniture ....Today he sends for a dealer in art furnishings and fittings who surveys all the rooms in the house and he brings his artistic mind to bear on the subject.

In America, Candace Wheeler was one of the first woman interior designers and helped encourage a new style of American design. She was instrumental in the development of art courses for women in a number of major American cities and was considered a national authority on home design. An important influence on the new profession was The Decoration of Houses, a manual of interior design written by Edith Wharton with architect Ogden Codman in 1897 in America. In the book, the authors denounced Victorian-style interior decoration and interior design, especially those rooms that were decorated with heavy window curtains, Victorian bric-a-brac, and overstuffed furniture. They argued that such rooms emphasized upholstery at the expense of proper space planning and architectural design and were, therefore, uncomfortable and rarely used. The book is considered a seminal work, and its success led to the emergence of professional decorators working in the manner advocated by its authors, most notably Elsie de Wolfe.[19]

Elsie de Wolfe, taken from The House in Good Taste, 1913

Elsie De Wolfe was one of the first interior designers. Rejecting the Victorian style she grew up with, she chose a more vibrant scheme, along with more comfortable furniture in the home. Her designs were light, with fresh colors and delicate Chinoiserie furnishings, as opposed to the Victorian preference of heavy, red drapes and upholstery, dark wood and intensely patterned wallpapers. Her designs were also more practical;[20] she eliminated the clutter that occupied the Victorian home, enabling people to entertain more guests comfortably. In 1905, de Wolfe was commissioned for the interior design of the Colony Club on Madison Avenue; its interiors garnered her recognition almost over night.[21][22] She compiled her ideas into her widely read 1913 book, The House in Good Taste.[23]

In England, Syrie Maugham became a legendary interior designer credited with designing the first all-white room. Starting her career in the early 1910s, her international reputation soon grew; she later expanded her business to New York City and Chicago.[24] Born during the Victorian Era, a time characterized by dark colors and small spaces, she instead designed rooms filled with light and furnished in multiple shades of white and mirrored screens. In addition to mirrored screens, her trademark pieces included: books covered in white vellum, cutlery with white porcelain handles, console tables with plaster palm-frond, shell, or dolphin bases, upholstered and fringed sleigh beds, fur carpets, dining chairs covered in white leather, and lamps of graduated glass balls, and wreaths.[25]

Expansion

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The interior design profession became more established after World War II. From the 1950s onwards, spending on the home increased. Interior design courses were established, requiring the publication of textbooks and reference sources. Historical accounts of interior designers and firms distinct from the decorative arts specialists were made available. Organisations to regulate education, qualifications, standards and practices, etc. were established for the profession.[23]

Interior design was previously seen as playing a secondary role to architecture. It also has many connections to other design disciplines, involving the work of architects, industrial designers, engineers, builders, craftsmen, etc. For these reasons, the government of interior design standards and qualifications was often incorporated into other professional organisations that involved design.[23] Organisations such as the Chartered Society of Designers, established in the UK in 1986, and the American Designers Institute, founded in 1938,[26] governed various areas of design.

It was not until later that specific representation for the interior design profession was developed. The US National Society of Interior Designers was established in 1957, while in the UK the Interior Decorators and Designers Association was established in 1966. Across Europe, other organisations such as The Finnish Association of Interior Architects (1949) were being established and in 1994 the International Interior Design Association was founded.[23]

Ellen Mazur Thomson, author of Origins of Graphic Design in America (1997), determined that professional status is achieved through education, self-imposed standards and professional gate-keeping organizations.[23] Having achieved this, interior design became an accepted profession.

Interior decorators and interior designers

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Interior design in a restaurant

Interior design is the art and science of understanding people's behavior to create functional spaces, that are aesthetically pleasing, within a building. Decoration is the furnishing or adorning of a space with decorative elements, sometimes complemented by advice and practical assistance. In short, interior designers may decorate, but decorators do not design.

Interior designer

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Interior designer implies that there is more of an emphasis on planning, functional design and the effective use of space, as compared to interior decorating. An interior designer in fine line design can undertake projects that include arranging the basic layout of spaces within a building as well as projects that require an understanding of technical issues such as window and door positioning, acoustics, and lighting.[1] Although an interior designer may create the layout of a space, they may not alter load-bearing walls without having their designs stamped for approval by a structural engineer. Interior designers often work directly with architects, engineers and contractors.

Interior designers must be highly skilled in order to create interior environments that are functional, safe, and adhere to building codes, regulations and ADA requirements. They go beyond the selection of color palettes and furnishings and apply their knowledge to the development of construction documents, occupancy loads, healthcare regulations and sustainable design principles, as well as the management and coordination of professional services including mechanical, electrical, plumbing, and life safety—all to ensure that people can live, learn or work in an innocuous environment that is also aesthetically pleasing.

Someone may wish to specialize and develop technical knowledge specific to one area or type of interior design, such as residential design, commercial design, hospitality design, healthcare design, universal design, exhibition design, furniture design, and spatial branding. Interior design is a creative profession that is relatively new, constantly evolving, and often confusing to the public. It is not always an artistic pursuit and can rely on research from many fields to provide a well-trained understanding of how people are often influenced by their environments.

Color in interior design

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Color is a powerful design tool in decoration, as well as in interior design, which is the art of composing and coordinating colors together to create a stylish scheme on the interior architecture of the space.[27][28]

It can be important to interior designers to acquire a deep experience with colors, understand their psychological effects, and understand the meaning of each color in different locations and situations in order to create suitable combinations for each place.[29] Color is something that an interior design needs to understand. Color can affect the way that humans think, feel, or look at space. Color can have a major effect on human behavior through all ages. An interior designer must understand that different colors can easily overstimulate people depending on the environment. Color can also have effects on a room. For example, if someone is claustrophobic then painting a room in darker colors could make the room feel smaller therefore the person could feel trapped.

Combining colors together could result in creating a state of mind as seen by the observer, and could eventually result in positive or negative effects on them. Colors can make the room feel either more calm, cheerful, comfortable, stressful, or dramatic. Color combinations can make a tiny room seem larger or smaller.[30] So it is for the Interior designer to choose appropriate colors for a place towards achieving how clients would want to look at, and feel in, that space.[29]

In 2024, red-colored home accessories were popularized on social media and in several design magazines for claiming to enhance interior design. This was coined the Unexpected Red Theory.

Lighting

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Lighting is very important when designing a space. Lighting in a room can affect the way that a room is shown. By adding natural and artificial lighting a designer can enhance the features in space and make it more pleasing. When an interior designer places lighting in a home it is important to know what lighting to put where and how to use lighting to highlight important places in the room. Lighting can enhance the aesthetic appeal of a place, setting the mood for the room. For example, when putting lighting into an office you want tp make sure there is overhead lighting, task/ desk lighting and natural lighting. Making sure there is enough lighting in a workspace is important so the person using the place does not strain their eyesight.

Specialties

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An electric wire reel reused as a center table at a Rio de Janeiro decoration fair

Residential

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Residential design is the design of the interior of private residences. As this type of design is specific for individual situations, the needs and wants of the individual are paramount in this area of interior design. The interior designer may work on the project from the initial planning stage or may work on the remodeling of an existing structure. It is often a process that takes months to fine-tune and create a space with the vision of the client.[31]

Commercial

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Commercial design encompasses a wide range of subspecialties.

  • Retail: includes malls and shopping centers, department stores, specialty stores, visual merchandising, and showrooms.
  • Visual and spatial branding: The use of space as a medium to express a corporate brand.
  • Corporate: office design for any kind of business such as banks.
  • Healthcare: the design of hospitals, assisted living facilities, medical offices, dentist offices, psychiatric facilities, laboratories, medical specialist facilities.
  • Hospitality and recreation: includes hotels, motels, resorts, cruise ships, cafes, bars, casinos, nightclubs, theaters, music and concert halls, opera houses, sports venues, restaurants, gyms, health clubs and spas, etc.
  • Institutional: government offices, financial institutions (banks and credit unions), schools and universities, religious facilities, etc.
  • Industrial facilities: manufacturing and training facilities as well as import and export facilities.[31]
  • Exhibition: includes museums, gallery, exhibition hall, specially the design for showroom and exhibition gallery.
  • Traffic building: includes bus station, subway station, airports, pier, etc.
  • Sports: includes gyms, stadiums, swimming rooms, basketball halls, etc.
  • Teaching in a private institute that offer classes of interior design.
  • Self-employment.
  • Employment in private sector firms.

Other

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Other areas of specialization include amusement and theme park design, museum and exhibition design, exhibit design, event design (including ceremonies, weddings, baby and bridal showers, parties, conventions, and concerts), interior and prop styling, craft styling, food styling, product styling, tablescape design, theatre and performance design, stage and set design, scenic design, and production design for film and television. Beyond those, interior designers, particularly those with graduate education, can specialize in healthcare design, gerontological design, educational facility design, and other areas that require specialized knowledge. Some university programs offer graduate studies in theses and other areas. For example, both Cornell University and the University of Florida offer interior design graduate programs in environment and behavior studies.

Profession

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Installment by L. Gargantini for the Bolzano fair, 1957. Photo by Paolo Monti (Fondo Paolo Monti, BEIC).

Education

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There are various paths that one can take to become a professional interior designer. All of these paths involve some form of training. Working with a successful professional designer is an informal method of training and has previously been the most common method of education. In many states, however, this path alone cannot lead to licensing as a professional interior designer. Training through an institution such as a college, art or design school or university is a more formal route to professional practice.

In many countries, several university degree courses are now available, including those on interior architecture, taking three or four years to complete.

A formal education program, particularly one accredited by or developed with a professional organization of interior designers, can provide training that meets a minimum standard of excellence and therefore gives a student an education of a high standard. There are also university graduate and Ph.D. programs available for those seeking further training in a specific design specialization (i.e. gerontological or healthcare design) or those wishing to teach interior design at the university level.

Working conditions

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There are a wide range of working conditions and employment opportunities within interior design. Large and tiny corporations often hire interior designers as employees on regular working hours. Designers for smaller firms and online renovation platforms usually work on a contract or per-job basis. Self-employed designers, who made up 32% of interior designers in 2020,[32] usually work the most hours. Interior designers often work under stress to meet deadlines, stay on budget, and meet clients' needs and wishes.

In some cases, licensed professionals review the work and sign it before submitting the design for approval by clients or construction permitting. The need for licensed review and signature varies by locality, relevant legislation, and scope of work. Their work can involve significant travel to visit different locations. However, with technology development, the process of contacting clients and communicating design alternatives has become easier and requires less travel.[33]

Styles

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Art Deco

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Terracotta Art Deco sunburst design above front doors of the Eastern Columbia Building in Los Angeles; built 1930

The Art Deco style began in Europe in the early years of the 20th century, with the waning of Art Nouveau. The term "Art Deco" was taken from the Exposition Internationale des Arts Decoratifs et Industriels Modernes, a world's fair held in Paris in 1925.[34] Art Deco rejected many traditional classical influences in favour of more streamlined geometric forms and metallic color. The Art Deco style influenced all areas of design, especially interior design, because it was the first style of interior decoration to spotlight new technologies and materials.[35]

Art Deco style is mainly based on geometric shapes, streamlining, and clean lines.[36][37] The style offered a sharp, cool look of mechanized living utterly at odds with anything that came before.[38]

Art Deco rejected traditional materials of decoration and interior design, opting instead to use more unusual materials such as chrome, glass, stainless steel, shiny fabrics, mirrors, aluminium, lacquer, inlaid wood, sharkskin, and zebra skin.[35] The use of harder, metallic materials was chosen to celebrate the machine age. These materials reflected the dawning modern age that was ushered in after the end of the First World War. The innovative combinations of these materials created contrasts that were very popular at the time – for example the mixing together of highly polished wood and black lacquer with satin and furs.[39] The barber shop in the Austin Reed store in London was designed by P. J. Westwood. It was soon regarded as the trendiest barber shop in Britain due to its use of metallic materials.[38]

The color themes of Art Deco consisted of metallic color, neutral color, bright color, and black and white. In interior design, cool metallic colors including silver, gold, metallic blue, charcoal grey, and platinum tended to predominate.[36][40] Serge Chermayeff, a Russian-born British designer made extensive use of cool metallic colors and luxurious surfaces in his room schemes. His 1930 showroom design for a British dressmaking firm had a silver-grey background and black mirrored-glass wall panels.[38][41]

Black and white was also a very popular color scheme during the 1920s and 1930s. Black and white checkerboard tiles, floors and wallpapers were very trendy at the time.[42] As the style developed, bright vibrant colors became popular as well.[43]

Art Deco furnishings and lighting fixtures had a glossy, luxurious appearance with the use of inlaid wood and reflective finishes. The furniture pieces often had curved edges, geometric shapes, and clean lines.[34][38] Art Deco lighting fixtures tended to make use of stacked geometric patterns.[44]

Modern art

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Modern design grew out of the decorative arts, mostly from the Art Deco, in the early 20th century.[45] One of the first to introduce this modernist style was Frank Lloyd Wright, who had not become hugely popularized until completing the house called Fallingwater in the 1930s. Modern art reached its peak during the 1950s and '60s, which is why designers and decorators today may refer to modern design as being "mid-century".[45] Modern art does not refer to the era or age of design and is not the same as contemporary design, a term used by interior designers for a shifting group of recent styles and trends.[45]

Arab materials

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"Majlis painting", also called nagash painting, is the decoration of the majlis, or front parlor of traditional Arabic homes, in the Asir province of Saudi Arabia and adjoining parts of Yemen. These wall paintings, an arabesque form of mural or fresco, show various geometric designs in bright colors: "Called 'nagash' in Arabic, the wall paintings were a mark of pride for a woman in her house."[46]

The geometric designs and heavy lines seem to be adapted from the area's textile and weaving patterns. "In contrast with the sobriety of architecture and decoration in the rest of Arabia, exuberant color and ornamentation characterize those of Asir. The painting extends into the house over the walls and doors, up the staircases, and onto the furniture itself. When a house is being painted, women from the community help each other finish the job. The building then displays their shared taste and knowledge. Mothers pass these on to their daughters. This artwork is based on a geometry of straight lines and suggests the patterns common to textile weaving, with solid bands of different colors. Certain motifs reappear, such as the triangular mihrab or 'niche' and the palmette. In the past, paint was produced from mineral and vegetable pigments. Cloves and alfalfa yielded green. Blue came from the indigo plant. Red came from pomegranates and a certain mud. Paintbrushes were created from the tough hair found in a goat's tail. Today, however, women use modern manufactured paint to create new looks, which have become an indicator of social and economic change."[47]

Women in the Asir province often complete the decoration and painting of the house interior. "You could tell a family's wealth by the paintings," Um Abdullah says: "If they didn't have much money, the wife could only paint the motholath, the basic straight, simple lines, in patterns of three to six repetitions in red, green, yellow and brown." When women did not want to paint the walls themselves, they could barter with other women who would do the work. Several Saudi women have become famous as majlis painters, such as Fatima Abou Gahas.[46]

The interior walls of the home are brightly painted by the women, who work in defined patterns with lines, triangles, squares, diagonals and tree-like patterns. "Some of the large triangles represent mountains. Zigzag lines stand for water and also for lightning. Small triangles, especially when the widest area is at the top, are found in pre-Islamic representations of female figures. That the small triangles found in the wall paintings in 'Asir are called banat may be a cultural remnant of a long-forgotten past."[46]

"Courtyards and upper pillared porticoes are principal features of the best Nadjdi architecture, in addition to the fine incised plaster wood (jiss) and painted window shutters, which decorate the reception rooms. Good examples of plasterwork can often be seen in the gaping ruins of torn-down buildings- the effect is light, delicate and airy. It is usually around the majlis, around the coffee hearth and along the walls above where guests sat on rugs, against cushions. Doughty wondered if this "parquetting of jis", this "gypsum fretwork... all adorning and unenclosed" originated from India. However, the Najd fretwork seems very different from that seen in the Eastern Province and Oman, which are linked to Indian traditions, and rather resembles the motifs and patterns found in ancient Mesopotamia. The rosette, the star, the triangle and the stepped pinnacle pattern of dadoes are all ancient patterns, and can be found all over the Middle East of antiquity. Al-Qassim Province seems to be the home of this art, and there it is normally worked in hard white plaster (though what you see is usually begrimed by the smoke of the coffee hearth). In Riyadh, examples can be seen in unadorned clay.[48]

Sustainable Design

[edit]

Sustainable Design is becoming more important today. This type of style includes eco-friendly, energy efficient, and sustainable design while keeping the space functional. Modern design prioritizes energy efficient design styles and eco-friendly design styles.

Media popularization

[edit]

Interior design has become the subject of television shows. In the United Kingdom, popular interior design and decorating programs include 60 Minute Makeover (ITV), Changing Rooms (BBC), and Selling Houses (Channel 4). Famous interior designers whose work is featured in these programs include Linda Barker and Laurence Llewelyn-Bowen. In the United States, the TLC Network aired a popular program called Trading Spaces, a show based on the UK program Changing Rooms. In addition, both HGTV and the DIY Network also televise many programs about interior design and decorating, featuring the works of a variety of interior designers, decorators, and home improvement experts in a myriad of projects.

Fictional interior decorators include the Sugarbaker sisters on Designing Women and Grace Adler on Will & Grace. There is also another show called Home MADE. There are two teams and two houses and whoever has the designed and made the worst room, according to the judges, is eliminated. Another show on the Style Network, hosted by Niecy Nash, is Clean House where they re-do messy homes into themed rooms that the clients would like. Other shows include Design on a Dime, Designed to Sell, and The Decorating Adventures of Ambrose Price. The show called Design Star has become more popular through the five seasons that have already aired. The winners of this show end up getting their own TV shows, of which are Color Splash hosted by David Bromstad, Myles of Style hosted by Kim Myles, Paint-Over! hosted by Jennifer Bertrand, The Antonio Treatment hosted by Antonio Ballatore, and finally Secrets from a Stylist hosted by Emily Henderson. Bravo also has a variety of shows that explore the lives of interior designers. These include Flipping Out, which explores the life of Jeff Lewis and his team of designers; Million Dollar Decorators explores the lives of interior designers Nathan Turner, Jeffrey Alan Marks, Mary McDonald, Kathryn Ireland, and Martyn Lawrence Bullard.

Interior design has also become the subject of radio shows. In the U.S., popular interior design & lifestyle shows include Martha Stewart Living and Living Large featuring Karen Mills. Famous interior designers whose work is featured on these programs include Bunny Williams, Barbara Barry, and Kathy Ireland, among others.

Many interior design magazines exist to offer advice regarding color palette, furniture, art, and other elements that fall under the umbrella of interior design. These magazine often focus on related subjects to draw a more specific audience. For instance, architecture as a primary aspect of Dwell, while Veranda is well known as a luxury living magazine. Lonny Magazine and the newly relaunched, Domino Magazine, cater to a young, hip, metropolitan audience, and emphasize accessibility and a do-it-yourself (DIY) approach to interior design.

[edit]

Notable interior decorators

[edit]

Other early interior decorators:

Many of the most famous designers and decorators during the 20th century had no formal training. Some examples include Sister Parish, Robert Denning and Vincent Fourcade, Kerry Joyce, Kelly Wearstler, Stéphane Boudin, Georges Geffroy, Emilio Terry, Carlos de Beistegui, Nina Petronzio, Lorenzo Mongiardino, Mary Jean Thompson and David Nightingale Hicks.

Notable interior designers in the world today include Scott Salvator, Troy Adams, Jonathan Adler, Michael S. Smith, Martin Brudnizki, Mary Douglas Drysdale, Kelly Hoppen, Kelly Wearstler, Nina Campbell, David Collins, Nate Berkus, Sandra Espinet, Jo Hamilton and Nicky Haslam.

See also

[edit]

References

[edit]
  1. ^ a b Pile, J., 2003, Interior Design, 3rd edn, Pearson, New Jersey, USA
  2. ^ Dugar, Divya (2015-12-22). "Wonder walls: Inside India's exquisitely decorated haveli mansions". CNN Travel. CNN. Retrieved 2019-02-08.
  3. ^ Blakemore, R.G. History of Interior Design Furniture: From Ancient Egypt to Nineteenth-Century Europe. J. Wiley, 2006, p. 4.
  4. ^ "Painted walls". The Ness of Brodgar Excavation. 2011-08-05. Retrieved 2021-03-10.
  5. ^ "The Ancient Buildings of Skara Brae". www.orkneyjar.com. Archived from the original on 2023-03-05. Retrieved 2021-03-10.
  6. ^ "Resources: Mosaics in history | BAMM". bamm.org.uk. Retrieved 2021-03-10.
  7. ^ "Roman domestic architecture (domus) (article)". Khan Academy. Retrieved 2021-03-10.
  8. ^ "Space and Ritual in Domus, Villa, and Insula, 100 B.C.A.D. 250" (PDF). Canvas.Brown.Edu. 1991. Retrieved 10 March 2021. [dead link]
  9. ^ a b Edwards, Clive (4 February 2013). "Complete House Furnishers: The Retailer as Interior Designer in Nineteenth-Century London" (PDF). Journal of Interior Design. 38: 1–17. doi:10.1111/joid.12000. S2CID 106815508.
  10. ^ "Amanda Girling-Budd's Statement". Archived from the original on 2012-08-29. Retrieved 2012-12-17.
  11. ^ Howe, Katherine S. Herter Brothers: Furniture and Interiors for a Gilded Age. Harry N. Abrams: Metropolitan Museum of Art in association with the Museum of Fine Arts, Houston, 1994. ISBN 0-8109-3426-4.1994
  12. ^ Clouse, Doug. "The Handy Book of Artistic Printing: Collection of Letterpress Examples with Specimens of Type, Ornament, Corner Fills, Borders, Twisters, Wrinklers, and other Freaks of Fancy". Princeton Architectural Press, 2009. p. 179.
  13. ^ Clouse, Doug. "The Handy Book of Artistic Printing: Collection of Letterpress Examples with Specimens of Type, Ornament, Corner Fills, Borders, Twisters, Wrinklers, and other Freaks of Fancy". Princeton Architectural Press, 2009. p. 66
  14. ^ Clive Edwards (2005). Turning Houses Into Homes: A History of the Retailing and Consumption of Domestic Furnishings. Ashgate Publishing, Ltd. ISBN 9780754609063. Retrieved 2013-02-07.
  15. ^ Gillian Perry (1999). Gender and Art. Yale University Press. ISBN 978-0300077605. Retrieved 2013-02-07.
  16. ^ "History". Archived from the original on 2013-09-08. Retrieved 2012-12-17.
  17. ^ "Garrett sisters". DNB.
  18. ^ The Illustrated Carpenter and Builder, December 7 (1900): Suppl. 2
  19. ^ "Edith Wharton's World" Archived 2012-04-15 at the Wayback Machine National Portrait Gallery
  20. ^ Flanner, J. (2009). "Archive, Handsprings Across the Sea". The New Yorker. Retrieved August 10, 2011.
  21. ^ Munhall, Edward (January 2000). "Elsie de Wolf: The American pioneer who vanquished Victorian gloom". Architectural Digest. Archived from the original on 15 September 2015. Retrieved 27 October 2011.
  22. ^ Gray, Christopher (2003), "Streetscapes/Former Colony Club at 120 Madison Avenue; Stanford White Design, Elsie de Wolfe Interior," The New York Times, 28 September 2003 [1] Archived 2022-12-30 at the Wayback Machine
  23. ^ a b c d e Lees-Maffei, G, 2008, Introduction: Professionalization as a focus in Interior Design History, Journal of Design History, Vol. 21, No. 1, Spring.
  24. ^ Plunket, Robert. "Syrie's Turn: Once, everyone read W. Somerset Maugham. But now his late ex-wife is the one selling books", Sarasota Magazine, 2006, v. 10.
  25. ^ Pauline C. Metcalf (2010). Syrie Maugham: Staging the Glamorous Interiors. Acanthus PressLlc. ISBN 9780926494077. Retrieved 2013-02-07.
  26. ^ "History of IDSA and its predecessors". Industrial Designers Society of America – IDSA. 2014-12-03. Archived from the original on 2021-09-11. Retrieved 2021-09-11.
  27. ^ "Color Wheel, Color Schemes, Color Therapy, Colors by Interiordezine". Interiordezine.com. Retrieved 2016-10-19.
  28. ^ Devin (2024-08-16). "Interior Color Schemes for Houses: Add Color, Avoid Clashes". George Solution. Retrieved 2025-05-22.
  29. ^ a b "The Psychology of Color for Interior Design – Interior Design, Design News and Architecture Trends". designlike.com. 5 October 2011. Retrieved 2016-10-19.
  30. ^ "The Psychology of Color". HGTV. Retrieved 2016-10-19.
  31. ^ a b Piotrowski, C, 2004, Becoming an Interior Designer, John Wiley & Sons, New Jersey, USA
  32. ^ "Work Environment". Occupational Outlook Handbook. US Department of Labor. 2020. Retrieved 17 November 2021.
  33. ^ "Industrial Design Industry Report". ibisworld.com. July 17, 2008.
  34. ^ a b Tinniswood, Adrian. The Art Deco House: Avant-Garde House of the 1920s and 1930s. Watsonguptill publishing company. New York. 2002
  35. ^ a b Striner, Richard. "Art Deco: Polemics and Synthesis". WInterthur portfolio, Vol 25. No. 1 spring, 1990. PP. 26–34.
  36. ^ a b Beusterien, John. Rodriguez, EduardoLuis. Narciso G. The Architectural Avant-Garde: From Art Deco to Modern Regionalism. The Journal of Decorative and Propaganda Arts, Vol. 22, Cuba Theme Issue (1996), PP. 254–277
  37. ^ Stanley, Meisler. ’Art Deco: High Style. Smithsonian’, Nov 2004, Vol. 35 Issue 8, PP 57–60
  38. ^ a b c d Bayer, Patricia, Art Deco Interiors: Decoration and Design Classics of the 1920s and 1930s, Thames & Hudson, London 1990
  39. ^ Yang, Jian. "Art Deco 1910–39". Craft Arts International, 2003, Issue 59, PP. 84–87.
  40. ^ Tinniswood, Adrian. ‘The Art Deco House: Avant-Garde House of the 1920s and 1930s’. Watsonguptill publishing company. New York. 2002
  41. ^ Striner, Richard. ‘Art Deco: Polemics and Synthesis’. WInterthur portfolio, Vol 25. No. 1 ( spring, 1990). PP. 26–34.
  42. ^ Yang, Jian. ‘Art Deco 1910–39’. Craft Arts International, 2003, Issue 59, PP. 84–87.
  43. ^ Rossi, David. ‘Art Deco Renaissance’. Silvester-Carr, Denise. History Today, Jul, Vol. 49. Issue 7. PP.4–6
  44. ^ Duncan, Alastair. "Art Deco Lighting". The Journal of Decorative and Propaganda Arts. Vol. 1 (spring. 1986). PP. 20–31
  45. ^ a b c "About Modern Interior Design". Home Guides | SF Gate. 2010-08-08. Retrieved 2015-12-10.
  46. ^ a b c Yunis, Alia (2013). "The Majlis Painters". Saudi Aramco World Magazine. Archived from the original on 2013-08-30.
  47. ^ Maha Al Faisal and Khalid Azzam. 1999. "Doors of the Kingdom" Saudi Aramco World. This article appeared on pages 68–77 of the January/February 1999 print edition of Saudi Aramco World# http://www.saudiaramcoworld.com/issue/199901/doors.of.the.kingdom.htm Archived 2014-01-02 at the Wayback Machine
  48. ^ Mostyn, Trevor. 1983. Saudi Arabia. London: Middle East Economic Digest. Pages 257–258.
[edit]

 

 

Construction site and equipment prepared for start of work in Cologne, Germany (2017)

Construction is the process involved in delivering buildings, infrastructure, industrial facilities, and associated activities through to the end of their life. It typically starts with planning, financing, and design that continues until the asset is built and ready for use. Construction also covers repairs and maintenance work, any works to expand, extend and improve the asset, and its eventual demolition, dismantling or decommissioning.

The construction industry contributes significantly to many countries' gross domestic products (GDP). Global expenditure on construction activities was about $4 trillion in 2012. In 2022, expenditure on the construction industry exceeded $11 trillion a year, equivalent to about 13 percent of global GDP. This spending was forecasted to rise to around $14.8 trillion in 2030.[1]

The construction industry promotes economic development and brings many non-monetary benefits to many countries, but it is one of the most hazardous industries. For example, about 20% (1,061) of US industry fatalities in 2019 happened in construction.[2]

Etymology

[edit]

"Construction" stems from the Latin word constructio (which comes from com- "together" and struere "to pile up") as well as Old French construction.[3] "To construct" is a verb: the act of building. The noun is "construction": how something is built or the nature of its structure.

History

[edit]

The first huts and shelters were constructed by hand or with simple tools. As cities grew during the Bronze Age, a class of professional craftsmen, like bricklayers and carpenters, appeared. Occasionally, slaves were used for construction work. In the Middle Ages, the artisan craftsmen were organized into guilds. In the 19th century, steam-powered machinery appeared, and later, diesel- and electric-powered vehicles such as cranes, excavators and bulldozers.

Fast-track construction has been increasingly popular in the 21st century. Some estimates suggest that 40% of construction projects are now fast-track construction.[4]

Construction industry sectors

[edit]
Industrial assemblage of a thermal oxidizer in the United States

Broadly, there are three sectors of construction: buildings, infrastructure and industrial:[5]

  • Building construction is usually further divided into residential and non-residential.
  • Infrastructure, also called 'heavy civil' or 'heavy engineering', includes large public works, dams, bridges, highways, railways, water or wastewater and utility distribution.
  • Industrial construction includes offshore construction (mainly of energy installations), mining and quarrying, refineries, chemical processing, mills and manufacturing plants.

The industry can also be classified into sectors or markets.[6] For example, Engineering News-Record (ENR), a US-based construction trade magazine, has compiled and reported data about the size of design and construction contractors. In 2014, it split the data into nine market segments: transportation, petroleum, buildings, power, industrial, water, manufacturing, sewage/waste, telecom, hazardous waste, and a tenth category for other projects.[7] ENR used data on transportation, sewage, hazardous waste and water to rank firms as heavy contractors.[8]

The Standard Industrial Classification and the newer North American Industry Classification System classify companies that perform or engage in construction into three subsectors: building construction, heavy and civil engineering construction, and specialty trade contractors. There are also categories for professional services firms (e.g., engineering, architecture, surveying, project management).[9][10]

Building construction

[edit]
Military residential unit construction by U.S. Navy personnel in Afghanistan

Building construction is the process of adding structures to areas of land, also known as real property sites. Typically, a project is instigated by or with the owner of the property (who may be an individual or an organisation); occasionally, land may be compulsorily purchased from the owner for public use.[11]

Residential construction

[edit]
Units under construction in Brighton, Victoria, Australia

Residential construction may be undertaken by individual land-owners (self-built), by specialist housebuilders, by property developers, by general contractors, or by providers of public or social housing (e.g.: local authorities, housing associations). Where local zoning or planning policies allow, mixed-use developments may comprise both residential and non-residential construction (e.g.: retail, leisure, offices, public buildings, etc.).

Residential construction practices, technologies, and resources must conform to local building authority's regulations and codes of practice. Materials readily available in the area generally dictate the construction materials used (e.g.: brick versus stone versus timber). Costs of construction on a per square meter (or per square foot) basis for houses can vary dramatically based on site conditions, access routes, local regulations, economies of scale (custom-designed homes are often more expensive to build) and the availability of skilled tradespeople.[12]

Non-residential construction

[edit]
Construction of the Federal Reserve building in Kansas City, Missouri

Depending upon the type of building, non-residential building construction can be procured by a wide range of private and public organisations, including local authorities, educational and religious bodies, transport undertakings, retailers, hoteliers, property developers, financial institutions and other private companies. Most construction in these sectors is undertaken by general contractors.

Infrastructure construction

[edit]
Shasta Dam under construction in June 1942

Civil engineering covers the design, construction, and maintenance of the physical and naturally built environment, including public works such as roads, bridges, canals, dams, tunnels, airports, water and sewerage systems, pipelines, and railways.[13][14] Some general contractors have expertise in civil engineering; civil engineering contractors are firms dedicated to work in this sector, and may specialise in particular types of infrastructure.

Industrial construction

[edit]
The National Cement Share Company of Ethiopia's new plant in Dire Dawa

Industrial construction includes offshore construction (mainly of energy installations: oil and gas platforms, wind power), mining and quarrying, refineries, breweries, distilleries and other processing plants, power stations, steel mills, warehouses and factories.

Construction processes

[edit]

Some construction projects are small renovations or repair jobs, like repainting or fixing leaks, where the owner may act as designer, paymaster and laborer for the entire project. However, more complex or ambitious projects usually require additional multi-disciplinary expertise and manpower, so the owner may commission one or more specialist businesses to undertake detailed planning, design, construction and handover of the work. Often the owner will appoint one business to oversee the project (this may be a designer, a contractor, a construction manager, or other advisors); such specialists are normally appointed for their expertise in project delivery and construction management and will help the owner define the project brief, agree on a budget and schedule, liaise with relevant public authorities, and procure materials and the services of other specialists (the supply chain, comprising subcontractors and materials suppliers). Contracts are agreed for the delivery of services by all businesses, alongside other detailed plans aimed at ensuring legal, timely, on-budget and safe delivery of the specified works.

Design, finance, and legal aspects overlap and interrelate. The design must be not only structurally sound and appropriate for the use and location, but must also be financially possible to build, and legal to use. The financial structure must be adequate to build the design provided and must pay amounts that are legally owed. Legal structures integrate design with other activities and enforce financial and other construction processes.

These processes also affect procurement strategies. Clients may, for example, appoint a business to design the project, after which a competitive process is undertaken to appoint a lead contractor to construct the asset (design–bid–build); they may appoint a business to lead both design and construction (design-build); or they may directly appoint a designer, contractor and specialist subcontractors (construction management).[15] Some forms of procurement emphasize collaborative relationships (partnering, alliancing) between the client, the contractor, and other stakeholders within a construction project, seeking to ameliorate often highly competitive and adversarial industry practices. DfMA (design for manufacture and assembly) approaches also emphasize early collaboration with manufacturers and suppliers regarding products and components.

Construction or refurbishment work in a "live" environment (where residents or businesses remain living in or operating on the site) requires particular care, planning and communication.[16]

Planning

[edit]
Digging the foundation for a building construction in Jakarta, Indonesia

When applicable, a proposed construction project must comply with local land-use planning policies including zoning and building code requirements. A project will normally be assessed (by the 'authority having jurisdiction', AHJ, typically the municipality where the project will be located) for its potential impacts on neighbouring properties, and upon existing infrastructure (transportation, social infrastructure, and utilities including water supply, sewerage, electricity, telecommunications, etc.). Data may be gathered through site analysis, site surveys and geotechnical investigations. Construction normally cannot start until planning permission has been granted, and may require preparatory work to ensure relevant infrastructure has been upgraded before building work can commence. Preparatory works will also include surveys of existing utility lines to avoid damage-causing outages and other hazardous situations.

Some legal requirements come from malum in se considerations, or the desire to prevent indisputably bad phenomena, e.g. explosions or bridge collapses. Other legal requirements come from malum prohibitum considerations, or factors that are a matter of custom or expectation, such as isolating businesses from a business district or residences from a residential district. An attorney may seek changes or exemptions in the law that governs the land where the building will be built, either by arguing that a rule is inapplicable (the bridge design will not cause a collapse), or that the custom is no longer needed (acceptance of live-work spaces has grown in the community).[17]

During the construction of a building, a municipal building inspector usually inspects the ongoing work periodically to ensure that construction adheres to the approved plans and the local building code. Once construction is complete, any later changes made to a building or other asset that affect safety, including its use, expansion, structural integrity, and fire protection, usually require municipality approval.

Finance

[edit]

Depending on the type of project, mortgage bankers, accountants, and cost engineers may participate in creating an overall plan for the financial management of a construction project. The presence of the mortgage banker is highly likely, even in relatively small projects since the owner's equity in the property is the most obvious source of funding for a building project. Accountants act to study the expected monetary flow over the life of the project and to monitor the payouts throughout the process. Professionals including cost engineers, estimators and quantity surveyors apply expertise to relate the work and materials involved to a proper valuation.

Financial planning ensures adequate safeguards and contingency plans are in place before the project is started, and ensures that the plan is properly executed over the life of the project. Construction projects can suffer from preventable financial problems.[18] Underbids happen when builders ask for too little money to complete the project. Cash flow problems exist when the present amount of funding cannot cover the current costs for labour and materials; such problems may arise even when the overall budget is adequate, presenting a temporary issue. Cost overruns with government projects have occurred when the contractor identified change orders or project changes that increased costs, which are not subject to competition from other firms as they have already been eliminated from consideration after the initial bid.[19] Fraud is also an issue of growing significance within construction.[20]

Large projects can involve highly complex financial plans and often start with a conceptual cost estimate performed by a building estimator. As portions of a project are completed, they may be sold, supplanting one lender or owner for another, while the logistical requirements of having the right trades and materials available for each stage of the building construction project carry forward. Public–private partnerships (PPPs) or private finance initiatives (PFIs) may also be used to help deliver major projects. According to McKinsey in 2019, the "vast majority of large construction projects go over budget and take 20% longer than expected".[21]

[edit]
Construction along Ontario Highway 401, widening the road from six to twelve travel lanes

A construction project is a complex net of construction contracts and other legal obligations, each of which all parties must carefully consider. A contract is the exchange of a set of obligations between two or more parties, and provides structures to manage issues. For example, construction delays can be costly, so construction contracts set out clear expectations and clear paths to manage delays. Poorly drafted contracts can lead to confusion and costly disputes.

At the start of a project, legal advisors seek to identify ambiguities and other potential sources of trouble in the contract structures, and to present options for preventing problems. During projects, they work to avoid and resolve conflicts that arise. In each case, the lawyer facilitates an exchange of obligations that matches the reality of the project.

Apartment complex under construction in Daegu, South Korea

Procurement

[edit]

Traditional or design-bid-build

[edit]

Design-bid-build is the most common and well-established method of construction procurement. In this arrangement, the architect, engineer or builder acts for the client as the project coordinator. They design the works, prepare specifications and design deliverables (models, drawings, etc.), administer the contract, tender the works, and manage the works from inception to completion. In parallel, there are direct contractual links between the client and the main contractor, who, in turn, has direct contractual relationships with subcontractors. The arrangement continues until the project is ready for handover.

Design-build

[edit]

Design-build became more common from the late 20th century, and involves the client contracting a single entity to provide design and construction. In some cases, the design-build package can also include finding the site, arranging funding and applying for all necessary statutory consents. Typically, the client invites several Design & Build (D&B) contractors to submit proposals to meet the project brief and then selects a preferred supplier. Often this will be a consortium involving a design firm and a contractor (sometimes more than one of each). In the United States, departments of transportation usually use design-build contracts as a way of progressing projects where states lack the skills or resources, particularly for very large projects.[22]

Construction management

[edit]

In a construction management arrangement, the client enters into separate contracts with the designer (architect or engineer), a construction manager, and individual trade contractors. The client takes on the contractual role, while the construction or project manager provides the active role of managing the separate trade contracts, and ensuring that they complete all work smoothly and effectively together. This approach is often used to speed up procurement processes, to allow the client greater flexibility in design variation throughout the contract, to enable the appointment of individual work contractors, to separate contractual responsibility on each individual throughout the contract, and to provide greater client control.

Design

[edit]

In the industrialized world, construction usually involves the translation of designs into reality. Most commonly (i.e.: in a design-bid-build project), the design team is employed by (i.e. in contract with) the property owner. Depending upon the type of project, a design team may include architects, civil engineers, mechanical engineers, electrical engineers, structural engineers, fire protection engineers, planning consultants, architectural consultants, and archaeological consultants. A 'lead designer' will normally be identified to help coordinate different disciplinary inputs to the overall design. This may be aided by integration of previously separate disciplines (often undertaken by separate firms) into multi-disciplinary firms with experts from all related fields,[23] or by firms establishing relationships to support design-build processes.

The increasing complexity of construction projects creates the need for design professionals trained in all phases of a project's life-cycle and develop an appreciation of the asset as an advanced technological system requiring close integration of many sub-systems and their individual components, including sustainability. For buildings, building engineering is an emerging discipline that attempts to meet this new challenge.

Traditionally, design has involved the production of sketches, architectural and engineering drawings, and specifications. Until the late 20th century, drawings were largely hand-drafted; adoption of computer-aided design (CAD) technologies then improved design productivity, while the 21st-century introduction of building information modeling (BIM) processes has involved the use of computer-generated models that can be used in their own right or to generate drawings and other visualisations as well as capturing non-geometric data about building components and systems.

On some projects, work on-site will not start until design work is largely complete; on others, some design work may be undertaken concurrently with the early stages of on-site activity (for example, work on a building's foundations may commence while designers are still working on the detailed designs of the building's internal spaces). Some projects may include elements that are designed for off-site construction (see also prefabrication and modular building) and are then delivered to the site ready for erection, installation or assembly.

On-site construction

[edit]
On-site foundation construction

Once contractors and other relevant professionals have been appointed and designs are sufficiently advanced, work may commence on the project site. Some projects require preliminary works, such as land preparation and levelling, demolition of existing structures (see below), or laying foundations, and there are circumstances where this work may be contracted for in advance of finalising the contract and costs for the whole project.

Typically, a construction site will include a secure perimeter to restrict unauthorised access, site access control points, office and welfare accommodation for personnel from the main contractor and other firms involved in the project team, and storage areas for materials, machinery and equipment. According to the McGraw-Hill Dictionary of Architecture and Construction's definition, construction may be said to have started when the first feature of the permanent structure has been put in place, such as pile driving, or the pouring of slabs or footings.[24]

Commissioning and handover

[edit]

Commissioning is the process of verifying that all subsystems of a new building (or other assets) work as intended to achieve the owner's project requirements and as designed by the project's architects and engineers.

Defects liability period

[edit]

A period after handover (or practical completion) during which the owner may identify any shortcomings in relation to the building specification ('defects'), with a view to the contractor correcting the defect.[25]

Maintenance, repair and improvement

[edit]

Maintenance involves functional checks, servicing, repairing or replacing of necessary devices, equipment, machinery, building infrastructure, and supporting utilities in industrial, business, governmental, and residential installations.[26][27]

Demolition

[edit]

Demolition is the discipline of safely and efficiently tearing down buildings and other artificial structures. Demolition contrasts with deconstruction, which involves taking a building apart while carefully preserving valuable elements for reuse purposes (recycling – see also circular economy).

Industry scale and characteristics

[edit]

Economic activity

[edit]
Helicopter view of the Atacama Large Millimeter/submillimeter Array (ALMA) Operations Support Facility (OSF) construction site

The output of the global construction industry was worth an estimated $10.8 trillion in 2017, and in 2018 was forecast to rise to $12.9 trillion by 2022,[28] and to around $14.8 trillion in 2030.[1] As a sector, construction accounts for more than 10% of global GDP (in developed countries, construction comprises 6–9% of GDP),[29] and employs around 7% of the total employed workforce around the globe[30] (accounting for over 273 million full- and part-time jobs in 2014).[31] Since 2010,[32] China has been the world's largest single construction market.[33] The United States is the second largest construction market with a 2018 output of $1.581 trillion.[34]

  • In the United States in February 2020, around $1.4 trillion worth of construction work was in progress, according to the Census Bureau, of which just over $1.0 trillion was for the private sector (split roughly 55:45% between residential and nonresidential); the remainder was public sector, predominantly for state and local government.[35]
  • In Armenia, the construction sector experienced growth during the latter part of 2000s. Based on National Statistical Service, Armenia's construction sector generated approximately 20% of Armenia's GDP during the first and second quarters of 2007. In 2009, according to the World Bank, 30% of Armenia's economy was from construction sector.[36]
  • In Vietnam, the construction industry plays an important role in the national economy.[37][38][39] The Vietnamese construction industry has been one of the fastest growing in the Asia-Pacific region in recent years.[40][41] The market was valued at nearly $60 billion in 2021.[42] In the first half of 2022, Vietnam's construction industry growth rate reached 5.59%.[42][43][44] In 2022, Vietnam's construction industry accounted for more than 6% of the country's GDP, equivalent to over 589.7 billion Vietnamese dong.[45][46] The industry of industry and construction accounts for 38.26% of Vietnam's GDP.[47][48][49] At the same time, the industry is one of the most attractive industries for foreign direct investment (FDI) in recent years.[50][51][52]

Construction is a major source of employment in most countries; high reliance on small businesses, and under-representation of women are common traits. For example:

  • In the US, construction employed around 11.4m people in 2020, with a further 1.8m employed in architectural, engineering, and related professional services – equivalent to just over 8% of the total US workforce.[53] The construction workers were employed in over 843,000 organisations, of which 838,000 were privately held businesses.[54] In March 2016, 60.4% of construction workers were employed by businesses with fewer than 50 staff.[55] Women are substantially underrepresented (relative to their share of total employment), comprising 10.3% of the US construction workforce, and 25.9% of professional services workers, in 2019.[53]
  • The United Kingdom construction sector contributed £117 billion (6%) to UK GDP in 2018, and in 2019 employed 2.4m workers (6.6% of all jobs). These worked either for 343,000 'registered' construction businesses, or for 'unregistered' businesses, typically self-employed contractors;[56] just over one million small/medium-sized businesses, mainly self-employed individuals, worked in the sector in 2019, comprising about 18% of all UK businesses.[57] Women comprised 12.5% of the UK construction workforce.[58]

According to McKinsey research, productivity growth per worker in construction has lagged behind many other industries across different countries including in the United States and in European countries. In the United States, construction productivity per worker has declined by half since the 1960s.[59]

Construction GVA by country

[edit]
List of countries with the largest construction gross value added in 2018
Economy
Construction GVA in 2018 (billions in USD)
(01)  China
 
934.2
(02)  United States
 
839.1
(03)  Japan
 
275.5
(04)  India
 
201.2
(05)  Germany
 
180.5
(06)  United Kingdom
 
154.7
(07)  France
 
138.7
(08)  Canada
 
125.4
(09)  Russia
 
121.2
(10)  Australia
 
111.8
(11)  Indonesia
 
109.7
(12)  South Korea
 
93.0
(13)  Brazil
 
92.6
(14)  Mexico
 
89.0
(15)  Spain
 
80.0
(16)  Italy
 
78.9
(17)  Turkey
 
55.3
(18)  Saudi Arabia
 
40.2
(19)  Netherlands
 
39.5
(20)  Poland
 
39.4
(21)  Switzerland
 
36.3
(22)  United Arab Emirates
 
34.5
(23)  Sweden
 
33.3
(24)  Austria
 
27.2
(25)  Qatar
 
27.0

The twenty-five largest countries in the world by construction GVA (2018)[60]

Employment

[edit]
Ironworkers erecting the steel frame of a new building at Massachusetts General Hospital in Boston
A truck operator at Al Gamil, the largest construction company in Djibouti

Some workers may be engaged in manual labour[61] as unskilled or semi-skilled workers; they may be skilled tradespeople; or they may be supervisory or managerial personnel. Under safety legislation in the United Kingdom, for example, construction workers are defined as people "who work for or under the control of a contractor on a construction site";[62] in Canada, this can include people whose work includes ensuring conformance with building codes and regulations, and those who supervise other workers.[63]

Laborers comprise a large grouping in most national construction industries. In the United States, for example, in May 2023, the construction sector employed just over 7.9 million people, of whom 859,000 were laborers, while 3.7 million were construction trades workers (including 603,000 carpenters, 559,000 electricians, 385,000 plumbers, and 321,000 equipment operators).[64] Like most business sectors, there is also substantial white-collar employment in construction - out of 7.9 million US construction sector workers, 681,000 were recorded by the United States Department of Labor in May 2023 as in 'office and administrative support occupations', 620,000 in 'management occupations' and 480,000 in 'business and financial operations occupations'.[64]

Large-scale construction requires collaboration across multiple disciplines. A project manager normally manages the budget on the job, and a construction manager, design engineer, construction engineer or architect supervises it. Those involved with the design and execution must consider zoning requirements and legal issues, environmental impact of the project, scheduling, budgeting and bidding, construction site safety, availability and transportation of building materials, logistics, and inconvenience to the public, including those caused by construction delays.

Some models and policy-making organisations promote the engagement of local labour in construction projects as a means of tackling social exclusion and addressing skill shortages. In the UK, the Joseph Rowntree Foundation reported in 2000 on 25 projects which had aimed to offer training and employment opportunities for locally based school leavers and unemployed people.[65] The Foundation published "a good practice resource book" in this regard at the same time.[66] Use of local labour and local materials were specified for the construction of the Danish Storebaelt bridge, but there were legal issues which were challenged in court and addressed by the European Court of Justice in 1993. The court held that a contract condition requiring use of local labour and local materials was incompatible with EU treaty principles.[67] Later UK guidance noted that social and employment clauses, where used, must be compatible with relevant EU regulation.[68] Employment of local labour was identified as one of several social issues which could potentially be incorporated in a sustainable procurement approach, although the interdepartmental Sustainable Procurement Group recognised that "there is far less scope to incorporate [such] social issues in public procurement than is the case with environmental issues".[69]

There are many routes to the different careers within the construction industry. There are three main tiers of construction workers based on educational background and training, which vary by country:

Unskilled and semi-skilled workers

[edit]

Unskilled and semi-skilled workers provide general site labor, often have few or no construction qualifications, and may receive basic site training.

Skilled tradespeople

[edit]

Skilled tradespeople have typically served apprenticeships (sometimes in labor unions) or received technical training; this group also includes on-site managers who possess extensive knowledge and experience in their craft or profession. Skilled manual occupations include carpenters, electricians, plumbers, ironworkers, heavy equipment operators and masons, as well as those involved in project management. In the UK these require further education qualifications, often in vocational subject areas, undertaken either directly after completing compulsory education or through "on the job" apprenticeships.[70]

Professional, technical or managerial personnel

[edit]

Professional, technical and managerial personnel often have higher education qualifications, usually graduate degrees, and are trained to design and manage construction processes. These roles require more training as they demand greater technical knowledge, and involve more legal responsibility. Example roles (and qualification routes) include:

Safety

[edit]
At-risk workers without appropriate safety equipment

Construction is one of the most dangerous occupations in the world, incurring more occupational fatalities than any other sector in both the United States and in the European Union.[2][71] In the US in 2019, 1,061, or about 20%, of worker fatalities in private industry occurred in construction.[2] In 2017, more than a third of US construction fatalities (366 out of 971 total fatalities) were the result of falls;[72] in the UK, half of the average 36 fatalities per annum over a five-year period to 2021 were attributed to falls from height.[73] Proper safety equipment such as harnesses, hard hats and guardrails and procedures such as securing ladders and inspecting scaffolding can curtail the risk of occupational injuries in the construction industry.[74] Other major causes of fatalities in the construction industry include electrocution, transportation accidents, and trench cave-ins.[75]

Other safety risks for workers in construction include hearing loss due to high noise exposure, musculoskeletal injury, chemical exposure, and high levels of stress.[76] Besides that, the high turnover of workers in construction industry imposes a huge challenge of accomplishing the restructuring of work practices in individual workplaces or with individual workers.[citation needed] Construction has been identified by the National Institute for Occupational Safety and Health (NIOSH) as a priority industry sector in the National Occupational Research Agenda (NORA) to identify and provide intervention strategies regarding occupational health and safety issues.[77][78] A study conducted in 2022 found “significant effect of air pollution exposure on construction-related injuries and fatalities”, especially with the exposure of nitrogen dioxide.[79]

Sustainability

[edit]

Sustainability is an aspect of "green building", defined by the United States Environmental Protection Agency (EPA) as "the practice of creating structures and using processes that are environmentally responsible and resource-efficient throughout a building's life-cycle from siting to design, construction, operation, maintenance, renovation and deconstruction."[80]

Decarbonising construction

[edit]

The construction industry may require transformation at pace and at scale if it is to successfully contribute to achieving the target set out in The Paris Agreement of limiting global temperature rise to 1.5C above industrial levels.[81][82] The World Green Building Council has stated the buildings and infrastructure around the world can reach 40% less embodied carbon emissions but that this can only be achieved through urgent transformation.[83][84]

Conclusions from industry leaders have suggested that the net zero transformation is likely to be challenging for the construction industry, but it does present an opportunity. Action is demanded from governments, standards bodies, the construction sector, and the engineering profession to meet the decarbonising targets.[85]

In 2021, the National Engineering Policy Centre published its report Decarbonising Construction: Building a new net zero industry,[85] which outlined key areas to decarbonise the construction sector and the wider built environment. This report set out around 20 different recommendations to transform and decarbonise the construction sector, including recommendations for engineers, the construction industry and decision makers, plus outlined six-overarching ‘system levers’ where action taken now will result in rapid decarbonisation of the construction sector.[85] These levels are:

  • Setting and stipulating progressive targets for carbon reduction
  • Embedding quantitative whole-life carbon assessment into public procurement
  • Increasing design efficiency, materials reuse and retrofit of buildings
  • Improving whole-life carbon performance
  • Improving skills for net zero
  • Adopting a joined up, systems approach to decarbonisation across the construction sector and with other sectors

Progress is being made internationally to decarbonise the sector including improvements to sustainable procurement practice such as the CO2 performance ladder in the Netherlands and the Danish Partnership for Green Public Procurement.[86][87] There are also now demonstrations of applying the principles of circular economy practices in practice such as Circl, ABN AMRO's sustainable pavilion and the Brighton Waste House.[88][89][90]

See also

[edit]

icon Architecture portal icon Engineering portal

Notes

[edit]
  1. ^ a b c In the UK, the Chartered Engineer qualification is controlled by the Engineering Council, and is often achieved through membership of the relevant professional institution (ICE, CIBSE, IStructE, etc).

References

[edit]
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A contractor[1][2] (North American English) or builder (British English),[3][4] is responsible for the day-to-day oversight of a construction site, management of vendors and trades, and the communication of information to all involved parties throughout the course of a building project.[5]

In the United States, a contractor may be a sole proprietor managing a project and performing labor or carpentry work, have a small staff, or may be a very large company managing billion dollar projects. Some builders build new homes, some are remodelers, some are developers.[6]

Description

[edit]

A general contractor is a construction manager employed by a client, usually upon the advice of the project's architect or engineer.[7] General Contractors are mainly responsible for the overall coordination of a project and may also act as building designer and construction foreman (a tradesman in charge of a crew).

A general contractor must first assess the project-specific documents (referred to as a bid, proposal, or tender documents). In the case of renovations, a site visit is required to get a better understanding of the project. Depending on the project delivery method, the general contractor will submit a fixed price proposal or bid, cost-plus price or an estimate. The general contractor considers the cost of home office overhead, general conditions, materials, and equipment, as well as the cost of labor, to provide the owner with a price for the project.

Contract documents may include drawings, project manuals (including general, supplementary, or special conditions and specifications), and addendum or modifications issued prior to proposal/bidding and prepared by a design professional, such as an architect.The general contractor may also assume the role of construction manager, responsible for overseeing the project while assuming financial and legal risks.There are several types of risks can occur include cost overruns, delays, and liabilities related to safety or contract breaches.

Prior to formal appointment, the selected general contractor to whom a client proposes to award a contract is often referred to as a "preferred contractor".[8]

Responsibilities

[edit]

A general contractor is responsible for providing all of the material, labor, equipment (such as heavy equipment and tools) and services necessary for the construction of the project. A general contractor often hires specialized subcontractors to perform all or portions of the construction work. When using subcontractors, the general contractor is responsible for overseeing the quality of all work performed by any and all of the workers and subcontractors.

It is a best practice for general contractors to prioritize safety on the job site, and they are generally responsible for ensuring that work takes place following safe practices.

A general contractor's responsibilities may include applying for building permits, advising the person they are hired by, securing the property, providing temporary utilities on site, managing personnel on site, providing site surveying and engineering, disposing or recycling of construction waste, monitoring schedules and cash flows, and maintaining accurate records.[9]

The general contractor may be responsible for some part of the design, referred to as the "contractor's design portion" (JCT terminology).[10]

United Kingdom, Commonwealth and Australia usage

[edit]

In the United Kingdom, Australia and some British Commonwealth countries, the term 'general contractor' was gradually superseded by builders during the early twentieth century.[citation needed] This was the term used by major professional, trade, and consumer organizations when issuing contracts for construction work, and thus the term 'general contractor' fell out of use except in large organizations where the main contractor is the top manager and a general contractor shares responsibilities with professional contractors.

General contractors who conduct work for government agencies are often referred to as "builders". This term is also used in contexts where the customer's immediate general contractor is permitted to sub-contract or circumstances are likely to involve sub-contracting to specialist operators e.g. in various public services.

United States and Asia usage

[edit]

In the United States and Asia, the terms general contractor (or simply "contractor"), prime contractor and main contractor are often interchangeable when referring to small local companies that perform residential work. These companies are represented by trade organizations such as the NAHB.[11]

Licensing requirements

[edit]

Licensing requirements to work legally on construction projects vary from locale to locale. In the United States, there are no federal licensing requirements to become a general contractor, but most US states require general contractors to obtain a local license to operate. It is the states' responsibility to define these requirements: for example, in the state of California, the requirements are stated as follows:

With a few exceptions, all businesses or individuals who work on any building, highway, road, parking facility, railroad, excavation, or other structure in California must be licensed by the California Contractors State License Board (CSLB) if the total cost of one or more contracts on the project is $500 or more.

In every state that requires a license, a surety bond is required as part of the licensing process, with the exception of Louisiana, where bonding requirements may vary in different parishes. Not all states require General Contractor licenses - these include Vermont, New Hampshire and Maine, among others.

Licensing qualifications

[edit]

Some general contractors obtain bachelor's degrees in construction science, building science, surveying, construction safety, or other disciplines.

General Contractors often learn about different aspects of construction, including masonry, carpentry, framing, and plumbing. Aspiring general contractors communicate with subcontractors and may learn the management skills they need to run their own company.

Experience in the construction industry as well as references from customers, business partners, or former employers are demanded. Some jurisdictions require candidates to provide proof of financing to own their own general contracting firm.

General Contractors often run their own business. They hire subcontractors to complete specialized construction work and may manage a team of plumbers, electricians, bricklayers, carpenters, iron workers, technicians, handymans, architects and roofers. General Contractors build their business by networking with potential clients, buying basic construction tools, and ensuring that their subcontractors complete high-quality work. General Contractors do not usually complete much construction work themselves, but they need to be familiar with construction techniques so they can manage workers effectively. Other reasons include access to specialist skills, flexible hiring and firing, and lower costs.

General contractor example

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A property owner or real estate developer develops a program of their needs and selects a site (often with an architect). The architect assembles a design team of consulting engineers and other experts to design the building and specify the building systems. Today contractors frequently participate on the design team by providing pre-design services such as providing estimations of the budget and scheduling requirements to improve the economy of the project. In other cases, the general contractor is hired at the close of the design phase. The owner, architect, and general contractor work closely together to meet deadlines and budget. The general contractor works with subcontractors to ensure quality standards; subcontractors specialise in areas such as electrical wiring, plumbing, masonry, etc.

See also

[edit]

References

[edit]
  1. ^ Davies, Nikolas, and Erkki Jokiniemi. Architect's illustrated pocket dictionary. Oxford: Architectural Press, 2011. 289. Print.
  2. ^ "Collins Dictionary".
  3. ^ "Merriam-Webster".
  4. ^ "Builder vs. Construction Manager". 10 April 2023.
  5. ^ Hendrickson, Chris. & Au, Tung (2000), The Design and Construction Process. Project Management for Construction: Fundamental Concepts for Owners, Engineers, Architects and Builders, chapter 3
  6. ^ "What's the difference between a developer and a builder?". Chicago Tribune. 2005-01-23. Retrieved 2023-07-18.
  7. ^ Shekhar, R. K. (2005), Academic Dictionary of Architecture, Delhi: Isha Books, 69
  8. ^ Department of Defense Appropriations Part 3: Procurement. Washington DC: U.S. Government Printing Office. 1968. p. 224.
  9. ^ Allen, Edward, & Iano Joseph (2009). Fundamentals of Building Construction Materials and Methods. 5th ed. Hoboken, N.J.: John Wiley & Sons.
  10. ^ Joint Contracts Tribunal, Intermediate Building Contract with contractor’s design (ICD), current edition 2019, accessed 7 July 2021
  11. ^ "About NAHB". www.nahb.org. Retrieved 2023-07-18.

Sources

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Thoroughly estimate all direct and indirect costs (materials, labor, permits, insurance, etc.), build in contingency for unexpected expenses, track actual spending against the budget meticulously, and adjust as needed throughout the project.
Create a detailed cash flow projection, secure timely payments from clients through clear invoicing and payment schedules, negotiate favorable payment terms with subcontractors and suppliers, and explore financing options like lines of credit if needed.
Secure appropriate insurance coverage (liability, builders risk, etc.), carefully review contracts and include provisions for change orders and dispute resolution, prequalify subcontractors and suppliers, and conduct regular risk assessments.
Focus on profitability (gross & net profit margins), liquidity (working capital, quick ratio), solvency (debt-to-equity ratio), and project performance (cost variance, schedule variance).