Now a days, Construction Industry still maintaining it relevancy in improving any country economy. This is because in construction there is lots of other industry will involve. It covered vast range of industry. Some of the major field that directly involve in the construction industry are Manufacturing Industries, Financial,Timber industries, Transportation industries, traders for the construction material and also Labour.
By taking a glance on the few listed industries that having direct impact due to this construction activities, it only mean one thing, That is, there is lots of money to be grab in this industries. Take for instance. A 10 million worth in value of a project is awarded to a contractor. The ratio of the construction material to construction work is ranging from 6:4 to 7:3. with this ratio, it is about 6 Million to 7 million is for the manufacturer, supplier, and transportation. the remaining is for the labour cost. For contractor usually the profit margin will be ranging around 3% to 6% of the contract sum. with some simple calculation contractor will make 400K to 600K for a 10 million project. How about the the other industry that involve? This huge sum of money is vital to ensure that the economy keep on moving.
Without construction industry there will be no Houses, No road, No utilities and may other things.
However Construction industry is not for those who only think that they will make money with money. Person who involve in this industry must have knowledge, skill and commitment to ensure their success. It is very important that they know what is the risk in this industry.
Some of the major risk is Labour factor, follow by weather, the construction life cycle, Material and financial and many more. Thus if you are thinking to involve in construction business because you have strong financial background, re-think about it.
By taking a glance on the few listed industries that having direct impact due to this construction activities, it only mean one thing, That is, there is lots of money to be grab in this industries. Take for instance. A 10 million worth in value of a project is awarded to a contractor. The ratio of the construction material to construction work is ranging from 6:4 to 7:3. with this ratio, it is about 6 Million to 7 million is for the manufacturer, supplier, and transportation. the remaining is for the labour cost. For contractor usually the profit margin will be ranging around 3% to 6% of the contract sum. with some simple calculation contractor will make 400K to 600K for a 10 million project. How about the the other industry that involve? This huge sum of money is vital to ensure that the economy keep on moving.
Without construction industry there will be no Houses, No road, No utilities and may other things.
However Construction industry is not for those who only think that they will make money with money. Person who involve in this industry must have knowledge, skill and commitment to ensure their success. It is very important that they know what is the risk in this industry.
Some of the major risk is Labour factor, follow by weather, the construction life cycle, Material and financial and many more. Thus if you are thinking to involve in construction business because you have strong financial background, re-think about it.
