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| Frequently Asked Questions |
| The Building
Construction Industry 1. What is the nature of the building construction industry in the United States? The industry is divided into four main classifications: . RESIDENTIAL: Construction of single family housing, apartment buildings, townhomes and condominiums. . COMMERCIAL: Construction of office buildings, store fronts, shopping centers, restaurants, malls, motels and hotels. . INSTITUTIONAL: Construction of schools, hospitals, prisons, federal, state & local government office buildings & facilities. . INDUSTRIAL: Construction of factories, power plants, warehouses, refineries and research & development facilities. Building trades construction projects are classified as: . NEW CONSTRUCTION: When a new structure is built from the ground up. . TENANT IMPROVEMENT: When an existing structure is modified and or upgraded. Construction projects are financed by either: The Private Sector or Public Funds or A Combination of Both Public & Private Funds PUBLIC WORKS projects are funded with tax dollars and usually entail certain bureaucratic stipulations, such as: A certain percentage of the project's contracts shall be awarded to minority owned businesses. A certain quota of minorities on the work force shall be maintained for the duration of the project. Workers shall be paid no less than the local prevailing wage for their occupations. 2. What is a contractor? A contractor is an individual or a corporation that is licensed by the state in which it operates, to perform work in its particular field of expertise. A building construction project is awarded to a GENERAL CONTRACTOR who oversees and is responsible for the entire project. Most of the work involved in building contstruction is subcontracted out to SPECIALTY CONTRACTORS. Many specialty contractors are small businesses which specialize in one or more trades. They keep operating costs down by hiring workers and purchasing materials on an as-needed basis. Once a job nears completion, the work force may be reduced. The subcontracting system remains prevalent in the industry for many reasons; The most important of which concern: FINANCING: Much of the burden of financing is deferred to the many subcontractors doing the work. |
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