1.2 Brief about 22 Organizations: Part 1

Out of 22 organizations, we will discuss about 9 ownership based organizations, general organization structure, funding sources and projects duration.

See Video or continue reading

9 Ownership Based Organization

1 Developers

  • Generally developer’s are involved in construction of residential projects (Low income group, Affordable, Luxury, Designers, Premium and Skyscrapers, Villas, Plotting), redevelopments, commercial, offices, retails, SEZ (Special Economic Zones), mix use, logistics (Warehouse),  townships, hospitality, Institutional buildings.
  • Ownership lies with Individuals, stakeholders for the development of projects. There is a possibility that companies are having surplus money to construct new projects or as per expansion plans they approach Banks, NBFC’s, Financial Institutes for funding the project. REIT (Real Estate Investment Trust) takes active participation in commercial/office buildings projects. 
  • Departments at head office level are business development, liaisoning, finance, accounts, audit, company secretary, legal (Including labour laws),  branding, marketing, sales, administration, human resource development, training, procurement, equipment, IT, quality, environment, health and safety, design, etc and engineering (planning, monitoring, cost management (budgeting, tendering, contracting, billing, cost report), services (electrical/mechanical/plumbing/fire fighting), coordinators).
General Organization Chart - Head Office
General Organization Chart – Head Office
  • Important parameters such as planning, monitoring and controlling lies with head office only. Regional/branch offices can exist in certain regions based on the number of projects in that region, in some cases, few of head office departments will have their representatives accountable for that particular region only.
  • Project wise setup will be based on the quantum of work involved, but to maintain quality of construction, full setup of the engineering team and associated departments will be deployed at site with proper hierarchy for accountability and responsibility. Generally following teams are deployed at project level. 
  • All standard operating procedures will be executed diligently and will be monitored by respective head office departments to sustain company standards.
  • Project duration range between 2 to 5 years but for large projects having multiple phases or high-rise constructions, takes around 5 to 8 years.

2 Infrastructure Companies

  • Construction of roads, bridges, dams, tunnels, power plants (nuclear, solar, wind, thermal, hydro)  railways (broad gauge, metro, mono), airports, seaports, townships, smart cities, Urban infrastructures such as, truck terminals, bus terminals, water treatment plants, sewerage treatment plants, sport complexes, markets (vegetables, grains, fruits, cloth, food courts).
  • Mainly big infrastructure development gets executed by funding from government agencies, various departments from central as well as state govt. like, NHAI, PWD, CIDCO, MMRDA, DDA,, municipal corporations, autonomous bodies, private organizations, independently or with Joint venture. 
  • Sometimes funding for infrastructure developments comes from International funds for the benefits of some sectors of societies, social, health parameters, etc. with lower interest rates. Few other options of funding the projects are by having models of BOT (Build Operate and Transfer) basis, BOOT (Build Own Operate and Transfer) basis. For implementation of new technologies wherein special experience is required to execute a world quality project, then there is a possibility of funding from foreign organizations having special knowledge, technique. This funding comes with some balanced clauses set by government authorities to benefit both local as well foreign organizations.
  • Generally government policies determine the budget for various departments for building infrastructure at the country/state/city level. Each department frames strategy for development by appointing specialist consultants to carry out feasibility and related studies. Various department’s help/approval are taken for appointing required agencies/consultants. Based on the department’s strength, expertise and capabilities, execution strategies are determined and works are getting executed with the help of consultants/contractors/EPC (Engineering, Procurement and Construction contract)/other agencies.
  • The Project duration are generally more compared to the duration of real estate projects and it ranges from 3 to 10 years and BOT, BOOT basis projects concession period extends up-to 30 years. 

3 Industrial Institutions

  • Factories, logistics, refineries, pre-engineered buildings, etc.
  • Ownership lies with individuals or institutes for the development of Industrial units. There is a possibility that institutes are having surplus money to construct new units or as per expansion plans, they take the help of banks, NBFC’s, financial Institutes for funding the project. 
  • The internal team determines the strategy for execution of project based on strengths, capabilities & expertise required vs available. Architects/consultants are appointed for carrying out various designs. The construction is carried out by contractors or subcontractors under the supervision of project management team either In-house or third party consultants.
  • Duration of projects ranges from 3 to 7 years.  

4 Private Institutions

  • Private Institutes such as Reliance, Infosys, Mahindra, Godrej, Tata, Apollo hospitals are involved in various construction activities as per organization’s strategies.
  • Ownership lies with institutions for the development of required structures/infrastructure. There is a possibility that institutions are having surplus money to construct new structures or as per growth strategies or they approach banks, NBFC’s, financial institutes for funding requirements as per cash-flow.
  • Few companies carry out major work by in-house team/sister concerns, by utilizing internal resources and/or access architects/consultants as and when required. The construction is carried out by contractors or subcontractors under the supervision of project management team either In-house or third party consultants. 
  • Duration of Projects are generally 3 to 5 years. 

 5 Financial Institutions

  • Banks, NBFC’s (Non Banking Financial Companies), asset management companies, foreign investors, multiple funds, invests in construction industries. To ascertain the project in details for investment purpose, they need technical professionals (Architects /Engineers/Consultants) to carry out due diligence, setting up of processes and systems to monitor and control projects (Monthly/ Quarterly/Yearly reports), valuation and audit of projects. 
  • Financial institutes hire technical professionals at tier 1 and tier 2 cities, whereas funds, asset management companies in tier 1 cities only.
  • Generally institutes invest in well organized companies and sometimes they appoint development managers for complete project management except funding. Financial institutes have well defined methodologies for the monitoring and controlling of project progress as well as budget and sometimes they hire professional agencies for strengthen analysis.
  • Duration of projects are generally 3 to 10 years in phases as per project schedule and investment criteria.

6 Research Institutions

  • Professionals with scientific inclination are part of such institutes. Many government organizations as well as private organizations are carrying out research in improving productivity, timelines and introduction of new materials/machinery, etc. Private organizations  focus on innovation for enhancing organization’s profitability and carry out research at project level as well as in laboratories. In quality laboratories many researches/analysis are being carried out on concrete design (Use of multiple ingredients in concrete mix, such as fly ash or equivalent, crush sand, plasticizers, retarders, ice to address excess heat), analysis of concrete core samples, physical & chemical properties of various materials, soil parameters and probable alternatives for design considerations. Few research are being carried out for different products/methods of waterproofing treatments, elevation treatments and many more analysis for all stages of construction activities. N number of researches are taking place based on geographical, geological parameters, climate conditions, usage in case of Industrial parameters, use of local materials. 
  • Special research are being carried out to address various factors due to new technologies/concerns, such as wind tunnel tests for high rise constructions, use of Eco friendly products to address environmental concerns.
  • Advanced research can be carried out by implementing Information technology for utilization of resources (Man, Materials, Machinery). Many engineering and technology campuses are helping/exploring research, as required by construction Industries.
  • Generally tier 1/tier 2 cities will be the place to explore scientific capabilities. 

 7 Educational Institutions

  • For multitasking learning and teaching educational institutes are the best. Journey can commence as a Lecturer and lead to achieve a Phd. (Doctorate). For those who have administration skills, can aim for becoming Principal of either diploma, degree or post graduate colleges. Next destination can be Vice Chancellor of a University or be part of the Education Ministry.   

8 Software Institutions (Construction Industry Products)

  • An organization (Infrastructure & real estate) takes help of ERP (Enterprise Resource Planning) a technology for improving transparency, effectiveness and efficiency of every department. IT professionals gets involved with designing, implementation and regular training. There are specific software for Design (BIM – Building Information Modeling), Planning (MS Project, Primavera) and Cost Management.
  • Different modules of ERP – technology are being created/modified and shared with relevant client’s to fulfill organization’s specific requirements.
  • Software institutes work with hardcore technology professional (IT) along with relevant technical professionals at Tier 1 and Tier 2 cities. Many international organizations from developed countries are sharing their services with the help of local teams.
  • Nowadays the main focus of software companies is towards (A) artificial intelligence in every sector.

9 Manufacturing Organizations

  • Important resources in the construction industry are materials and equipment (Machinery). N number of ingredients are required to produce various products to be used for construction and hence number of manufacturing organizations are producing products catering to  the construction industry.  
  • Manufacturing  industry needs a third resource which is manpower, hence people are hired for production, sales & marketing and application. Production team is contributing in the manufacturing plant and the sales team presents a product to the buyer, where they share details of ingredients, enhancing the construction process. Marketing people will share benefits of use of products in increasing either productivity and/or efficiency. Various teams are involved in the implementation/application process.
  • Generally manufacturing units are away from city/town, whereas sale, marketing people travel to the city as well as remote areas.

Related reading

1.1 Professionals in Construction Industry: Career Mapping

Find direction, Organization’s key areas & 3 levels

Opportunities, Application of RAM

1.3 About 22 Organiztions – Part 2

11 Services based & 2 Specialized fields

Fees, Structures, Duration

1.4 Functions – Roles – Expectations – Head Office

40 Functions – Educations & Skills

24 Functions at Head office

1.5 Functions – Roles – Expectations – Project level

40 Functions – Educations & Skills

16 Functions at Project level