Introduction

The Standard Industrial Classification Manual (1987) (SIC) divides construction into three broad types: building construction done by general contractors or operative builders, heavy construction done by general contractors and selected specialty trade contractors (highways, power plants, etc.), and construction done by specialty trade contractors such as electricians, plumbers, and painters. According to the 1992 census of the construction industry, there were nearly 2 million businesses in the United States operating in the construction industries. Although most of those construction establishments were small, they equaled $582 billion in total value; 1.3 million were nonemployers, and over half of the employer businesses had less than 5 employees. Yet those with 5 employees or more accounted for more than 80% of the total value of business done. They numbered 214,207 and represented 11% of all business. Those with paid employees accounted for $539 billion of business, of which $528 billion was for the

value of construction work. Their payments for construction work subcontracted to other businesses amounted to $137 billion, leaving a net value.of construction work of $391 billion and a value added of $235 billion.