ABSTRACT

The high level of fragmentation within the industry can be attributed largely to the local nature of building up until modern times. Designers, builders and the crafts operated within towns, counties and sometimes states exclusively. Fragmentation historically was aided by general contractors moving away from employing their craft labor directly to buying these services indirectly through sub-contractors. A further historical feature related to the above is the high level of turn-over in the industry caused by a variety of factors. Related to the timing issue is a belief on the part of owners that the time taken to actually construct a project from site preparation to commissioning is just too long, and there is some truth. The highly competitive nature of design and construction and the cyclical character of demand commits companies to a level of financial efficiency, especially with regard to their overheads.