BUILDING INDUSTRY PARTICIPANTS

BUILDING INDUSTRY, the economic sector comprising all companies involved in

construction. It is the industry of CONSTRUCTING, RECONSTRUCTING, RENOVATING, ALTERING,
DEMOLISHING, RELOCATING, MAINTAINING or REPAIRING construction projects.
PROJECT, used for the total activity from inception to commissioning and occupation,
involving an agreed and planned objective and total input of specialist participants and their
interrelationships. It is an activity undertaken in response to a demand.
CONSTRUCTION PROJECT, the production of capital goods and involves careful planning
and decision making.

BUILDING INDUSTRY PARTICIPANTS, group of participants that manages and takes on

sequence of distinct but unrelated activities of the construction process from beginning to the
end.
PROPERTY OWNER, the individual in possession of title for land, building, or other item.
The owner may be responsible for paying taxes in relation to the property.
The client is the key to the whole construction production process from inception to
completion and at times to post - occupancy maintenance.
CONSTRUCTION INDUSTRY CLIENTS, Identifies user potential or create the need for the
facilities and raise the necessary financial resources for their creation. Initiate the construction
process by commissioning various construction professional to build to specific requirement.
They directly or indirectly monitors : PROGRESS, TIME, COST, QUALITY OBJECTIVES; and
sanctions any variations to the design.
PUBLIC SECTOR CLIENTS: Central Government Department, Local Authorities, Health
Authorities, Public Corporations.
PRIVATE SECTOR CLIENTS: Multi- National Companies, National Companies, Local Property
Development Companies, Private Clients.
BUILDING USER, the end user of the intended project. The person who will actually work
with the good or service from individuals who are involved in the other stages of development,
production and distribution.

ARCHITECT, professionally qualified person whose role is to interpret the clients project
requirements into a specific design or scheme. Responsible for design integration and plays
the leading role in the construction process. Coordinates, controls and disseminates project
information to all project participants.
As a project team leader, the architect performs various functions in all stages of
construction process, which includes:
-Ascertaining, interpreting and formulating the clients requirement into an understandable
project brief.
-Designing a building to meet the clients requirement and constraints imposed by such
factors as statutory obligations, technical feasibility, environmental standards, site conditions
and cost.
-Bringing together a team of construction professionals such as the quantity surveyor,
structural engineer and service engineer to give expert guidance on specific points of the
clients construction project.
-Assessing clients cost limit and timescale, and specifying the type and grade of
materials/components for use on the construction project.
-Preparing production information for pricing and construction and inviting tenders from
building contractors.
-Supervising the construction on sire, constantly keeping client informed of the projects
progress and issuing production instructions as and when required.
-Keeping the client informed of the status of the projects cost and advising ion when payment
should be made or withheld.
-Advising on the conduct of the project generally and resolving all contractual disputes
between client and the building contractor.
-Issuing the certificate of completion, the certificate of making good defects and the final
certificate for payment.
GENERALLY : The architect acts as an agent for all purposes relating to designing, obtaining
tenders for and superintending the construction work for which he or she has been
commissioned. To be able to perform above function efficiently, the architect must process,
among other things, the attributes of foresight, an understanding of construction materials,
communicating and coordinating abilities, essential design skills and an ability to design within
a set budget.

ENGINEER, a professional practitioner of engineering, concerned with applying scientific

knowledge, mathematics, and ingenuity to develop solutions for technical, societal and
commercial problems. Engineers design materials, structures, and systems while considering
the limitations imposed by practicality, regulation, safety, and cost.
STRUCTURAL ENGINEER, acts as an advisor to the architect on all structural problems
such as stability of the structure, suitability of materials proposed, structural feasibility of the
proposed design and sizes of structural members for a construction project.
SERVICE ENGINEERS, (plumbing, electrical, heating and ventilating, air conditioning,
sanitation, lifts and escalators and so on) contribute to the building design process to ensure
that thermal and visual comfort are achieved effectively. They analyze the clients requirement
and priorities and advise the architect on the most appropriate design solution.
The duties and responsibilities of the structural and services engineer include the
following:
-Providing specialist advice and assisting in the design of the construction project within the
scope of their respective specialist field.
-Producing calculations or other relevant data to assist in the design, cost planning, and the
assessment of suitability of materials/components and the like.
-Supervising their respective specialist fields of the project and modifying or redesigning work
whenever required.
QUANTITY SURVEYOR, is responsible for the study of the economies and financial
implications of a construction project and, hence, he or she would be the appropriate
construction professional to advise client/architect on matters relating to the economies and
cost of a proposed construction project.
CONSTRUCTION MANAGER, Whether they are described as site manager, site agent,
contracts manager, building manager or simply construction manager, these professionals are
responsible for running and managing a construction site or a large part of it.
A construction manager's role typically involves:
- Preparing the site and liaising with other construction professionals such as architects,
engineers, buyers, estimators and surveyors before construction work starts.
- Developing the programme of work and strategy for making the project happen.
- Planning ahead to prevent problems on site before they occur, for example, planning the
delivery and storage of equipment and materials.
- Making safety inspections of the site when work is underway and ensuring regulations relating
to health, safety and the environment are adhered to.

- Overseeing the running of several projects.

- Using construction management software packages to plan smooth work flows.
- Communicating with a range of people including the client, subcontractors, suppliers, the
public and the workforce.
The Construction Manager as executive is the most difficult and with the highest degree
of responsibility. A Construction Project Manager sets up the estimates, the budgets and the
construction timetable for the client and develops the construction strategy. He selects the
subcontractors and workers, and provides required explanations for the builders and other
professionals associated with the project, coordinating and collaborating with the architects,
engineers and specialists. The construction manager also ensures the construction project
complies with all building codes and any other legal or regulatory requirements. When delays
or problems occur as they always do the construction manager is the projects first
responder, ready to make the changes required to move the project past the issue.
GENERAL CONTRACTOR, is responsible for the day-to-day oversight of a construction
site, management of vendors and trades, and communication of information to involved
parties throughout the course of a building project. A building contractor is an individual who
engages in the planning, developing and coordinating of activities which coincide with the
building

of

structures.

The

building

contractor

is

the

individual

who

oversees

the constructions and ensures that all necessary measures are taken to result in the
completed finished product.
The production aspects of construction projects are undertaken by building contractors
who are essentially commercial companies that contract to construct development projects.
Although many major contracting establishments are able to undertake both design and
production work, their primary function is to build and to organize their considerable resources
basically as a manufacturing organization.
Duties and responsibilities of the contractor commence upon invitation to tender and
include the following:
-Carrying out a full site investigation prior to submission of tender to ensure that the bid
includes all the cost of contractual risks and problems.
-Submitting priced bills of quantities for examination and/or correction of any errors when
required by the architect.
-Planning and programming the works and reprogramming thereafter whenever unforeseen
events frustrate the program.

-Controlling directly employed operatives, sub-contractors, suppliers, materials and plant for
the execution of the project to programme and cost.
-Coordinating efforts of all operatives and ensuring that the completed works comply with the
contract specification and are also to the satisfaction of the architect.
-Notifying the architect of information requirements, delays to the construction programme,
discrepancy between contract documents, direct loss and/or expense sustained and so on.
-Paying the wages of directly employed operatives, sub-contractors and suppliers in time to
avoid conflicts over payment.
-Supplying all the information required by the clients professional advisers for the proper
administration of the works.
-Taking steps to carry out the contractors obligations to rectify all defects on completion of the
works.
-Providing post-occupancy repair and maintenance service if so required by the client.
TRADE CONTRACTOR OR SUBCONTRACTOR, is a person who is hired by a general
contractor (or prime contractor, or main contractor) to perform a specific task as part of the
overall project and is normally paid for services provided to the project by the originating
general contractor. While the most common concept of a subcontractor is in building works
and civil engineering, the range of opportunities for subcontractor is much wider and it is
possible that the greatest number now operate in the information technology and information
sectors of business.
The separate appointment oftrade contractors should reduce the cost of contracts, as the
management element is being provided by the construction manager. It also allows the
advancement of some works (such as groundworks or piling) which might begin even
before design of the above-ground works is complete.
Characteristics of trade contracts include:
- Trade contractors may be appointed through a single-stage procurement process, or through
a two-stage process with a pre-construction services agreement for the first stage.
- Each trade contract must have its own separate practical completion certification and so
they may have different defects liability periods. Certification cannot be dependent on
completion of works outside of the scope of the contract. As trade contracts may be
completed at different times, the construction manager must ensure that measures are in
place to protect completed work from ongoing activities.
- Trade contracts (such as the Joint Contracts Tribunal (JCT) CM/TC 2011) do not include
provisions

for liquidated

damages,

instead

the client'sdirect loss and/or expense for lateness.

the trade

contractor indemnifies

- Trade contracts may allow for retention, or may include a requirement for a retention bond.
- Trade contracts should include requirements to adopt collaborative practices.
- As there is no main contractor, trade contractors should provide master programmes for their
works.
- Trade contractor's should be require to provide regular information in relation to key
performance indicators.
- Where they carry out design, trade contractors may be required to provide as-builtdrawings.
NOTES:
-On management contracts, contractors are known as 'works contractors'.
-For

detailed

description

of

the

sequence

of

tasks

necessary

on

a construction

management contract, see the work plan: construction management: outline work plan.

MANUFACTURER, produces products through a process involving raw materials,

components or assemblies, usually on a large scale with different operations divided among
different workers. Other term Producer
ORGANIZED LABOR, An association of workers united as a single, representative entity
for the purpose of improving the workers' economic status and working conditions through
collective bargaining with employers. Also known as "unions". There are two types: the
horizontal union, in which all members share a common skill, and the vertical union,
composed of workers from across the same industry.
GOVERNMENT ADMINISTRATORS, Manages paperworks of the constituents of the local
Government. They are the ones that processes the approval of permits to laws.
CONTRACTORS LICENSE BOARD, The Contractors License Law : R.A 4566provides
that no contractor shall engage in the business of contracting without first having secured a
PCAB(Philippine Contractors Accreditation Board) license to conduct business without a license
first being obtained.
The law was enacted in 1965 to ensure for the safety of the public and that only the
qualified and reliable contractors are allowed to undertake construction in the country.
CONSTRUCTION CLAIMS / LITIGATION,
CONSTRUCTION CLAIMS, it is a demand or assertion by one of the parties seeking as a
matter of right, payment of money, other relief with respect in terms of the contract. It can be
caused by a number of factors. Understanding what causes
construction claims is the first step in avoiding them. In general, construction claims occur
because of the following:

- Delays in construction and completion of the contract;

- Delays in the delivery and supply of materials;
- Weather which slows down or prevents construction from proceeding;
- Owner requested changes;
- Changes which occur not at the request of the owner;
- Poor management and administration of the construction site;
- Site conditions which differ from those expected;
-The work becomes impossible to perform;
- Insufficient plans and specifications;
- Failure of any one party to disclose information which is material to the construction;
- Conflicts between those involved in the construction of a project;
- Termination of the contract by the owner or the contractor;
- Acceleration of the work;
- Failure to adequately schedule and coordinate the work; and
- Failure of parties to cooperate with each other in the performance of the work.
CONSTRUCTION LITIGATION, is an area of law concerning legal disputes that arises out of
building projects. Disputes can arise under both construction agreements and claims of injury
and wrongful death caused by negligent behaviour.
Construction Litigation refers to civil lawsuits involving private parties and is governed by
rules and burdens of proof that are distinct from those applicable to criminal prosecution. It
sometimes involve simple matters, such as non-payment, work conditions or project
deadlines, and often involve just two the general contractor and the subcontractor.
Construction Litigation involving negligence often centers on defects discovered by
homeowners or commercial property owners during or after construction process. Such
discoveries will sometimes lead to lawsuits against builders and construction companies based
on claims of defective materials, improper soil analysis and negligent structural engineering.

INSURANCE / BONDING COMPANIES, Construction insurances are required on every

single construction project. It can provide coverage for material, risks, natural disasters,
employees and even your own business.
BONDING COMPANY, A firm such as a bank or insurance company that provides bid,
fidelity, performance and other types of bonds on behalf of a first party to a second party.
Common Insurances used in a CONSTRUCTION INDUSTRY:
Liability Insurance, protects the contractors, home builders and remodelers against
injuries, accidents or property damage suffer on the job. While working on construction
projects, workers can accidentally damage a property mishandling materials and tools, or
while remodeling process is underway.
Builders Risk Insurance, or Course of Construction which is a kind of property insurance.
Its a form of insurance, which covers a building where the building is presently being
constructed. It can cover just the structure or also the materials on site waiting to be installed
or transported on the job site.
Performance bond, it guarantees the satisfactory completion of a project. This will require
having a collateral property or investment to back up the requirements of the surety agency. A
performance bond is usually issued by a bank or an insurance company, both of which is
surety.
Hold harmless agreement, is a contract clause typically found in construction contracts. It
is commonly provided by the subcontractor or the contractor, builder, or others related
professionals insuring against all work being executed by the subcontractor.
Flood insurance, are typically covered by the National Flood Insurance Program. A flood can be
considered a general or temporary condition occurring on two or more acres of land, affecting
two or more properties.
BANKING / FINANCING AGENCY, A bank that acts in some capacity on behalf of
another bank. It can mean any of the three types of bank:
- Bank in loan syndicate in a loan syndicate that advises other participating banks of
advances taken and changes in interest rates for a foreign or domestic borrower.
-A bank that participates in the credit card program of another bank by issuing credit card
program of another bank by issuing credit cards and performing other duties
-A foreign bank doing business in the U.S. On behalf of its parent bank, performing such
tasks as issuing international letters of credit, but not accepting deposits.
Also known as Agency Bank

PRIVATE ORGANIZATION, refers to any person, partnership, corporation, association or

agency which is not a public body that is operated for profit. It can be a self-sustaining, nonfederal entity, constituted or established and operating on local property, by individuals acting
outside any official capacity in the Local Government.
In fulfillment of the constitutional principles directing the state to encourage, promote
and respect nongovernmental, community~based and people's organizations in serving their
legitimate collective interests in our participatory democracy, it is hereby declared the policy
of the state to uphold the rights of the people to form unions, associations, or societies, and to
recognize and promote the rights and the roles of homeowners as individuals and as members
of the society and of homeowners' associations. To this end, the state shall endeavor to make
available resources and assistance that will help them fulfill their roles in serving the needs
and interests of their communities, in complementing the efforts of local government units
(lgus) in providing vital and basic services to our citizens, and in helping implement local and
national government policies, programs, rules and ordinances for the development of the
nation.