A Account Of Engineering Industry In India

The present analysis reports account of construction industry in India. It issues that engineering industry is one of the oldest establishments providing ample career to the people from town level to metropolitan towns. How big is construction industry amounts from small enterprise owned by a couple of individuals to a big industry employing thousands of people.

In today's work inherent dynamics of development industry have been reviewed and figured it is infrastructure or capital creation industry, which straight and indirectly uses capital goods and all the types of resources.

It has been also highlighted that federal government agencies has immediate interference in engineering activity right from acquisition of land to commissioning of the task.

To face the temporal deviation of feast and famine express of building industry emphasis on systematized management has been advised.

Like some other business, failing of structure companies is also quite typical. This issue has also been overviewed. Incompetence, lack of experience, newness, smallness and financial handicap are the few reasons cited for such failures.

It has been concluded that lessons should be learnt from failures as success is never last and failure is never fatal. It's the courage of management that counts. At last it is not failing but low purpose is a criminal offense.

Key words: Construction industry, management, task, cost, infrastructure.

1. Advantages

Historically structure industry is one of the oldest and most significant industry in unorganised sector providing enough work to the people. Prior to the independence, the development activity in India was confined to building of dwellings, spiritual places like mosques and temples etc. at individual and community level, by using traditional techniques, which are still being found in developing countries like India.

The Taj Mahal and Lal Quila will be the legandry exemplory case of competence of Indian skill in neuro-scientific structure. However very traditional record of the building operation of these buildings aren't available today. The annals of systematised or organised engineering practice in India can be followed back again to around 1847 Advertising when Lord Dalhouise set up the Public Works Team, called PWD, today, to construct civil engineering framework which included street, small dams, canals etc. The section worked effectively for a century. In 1947, the indie India decided to launch a mammoth multipurpose river valley job, called Bhakhra Nangal Job on the river Sutlej in the North West India for irrigation and electric power generation at a price of Rs. 7750 lakhs in 1952 which portions today around more than Rs. 100, 000 crore in first five season plan where 50% of capital outlay was allotted to structure of civil works. [5] The building of Bhakhra Dam was considered by irrigation wing of PWD of Punjab with the aid of complex knowhow from foreign help on cost plus basis. This can be considered as a significant breakthrough in the field of development by India as there were no big structure companies offered by that point to take up such stupendous job and more over network analysis like Construction Planning Method / also called Critical Way Method (CPM) and Program Analysis & Review Technique (PERT) hadn't taken formal shape.

The progression of Indian engineering industry has implemented the same basic pattern as occurred in other countries, primarily founded by the federal government and slowly bought out by small and big businesses. During execution of Bhakra Nangal dam Indian authorities realised need of professional competence in the field of construction and the first professional consultancy company Country wide Industrial Development Firm (N I D C) was set up in the public sector in 1954. Subsequently lots of speciality companies in design and Structure came into existence like Indian Railways Structure Limited (IRCON), National Building Structure Company (N B C C), Rail India Transportation and Engineering Services (R I T E S), Engineers India Limited(E I L) and in private M N Dastur & Co. Hindustan Structure Company will be the name value to be stated. In past due sixties authorities allowed overseas collaborations in these services. The rules for such cooperation were prepared and given in 1968 with binding that local advisor would be the main builder in such collaborations. The target behind such binding was to build up indigenous design features comparable to in flown overseas technology and skills. The results of the strategy was establishment of joint endeavors in India.

2. Building and National Economy:

By just using common sense it could be inferred that economic programs of any country is ready to improve any particular sector of overall economy. Improvement or emphasis on any particular sector may or may not need help of other sectors like engineering. A microscopic study of economy, regardless of its express i. e. main, supplementary or tertiary, reveals that development of the majority of the industries need help of engineering. In nutshell, a difference between demand and supply is essential for the development of a particular sector.

Role of structure and its effect on other area can be seen from Body 1. 1

Thus it can be said that any attention to optimise structure activity will lead to reduction in waste of materials, saving of energy and keeping of your energy. This will surely lead to decrease in cost over runs of other jobs. Thus, building sector is directly or indirectly affects the overall current economic climate of the united states.

The pattern of Indian market of last fifty years demonstrates construction work amounts to around 40% of development investment. Roughly 16% of Indian working population depends on engineering for its living. The engineering industry creates immobile property well worth over Rs. 20000 crore by employing more than 3 crore people. It improves nation's GDP by 5% and gross capital formation of 78%. It really is expected that total capital expenditure of condition and centre will be getting close to Rs. 802087 crores through the period 2011-12. This amount implies an improvement of Rs. 658500 crore from the shape of Rs. 143587 in 1999-2000. In the 21st century there's been an increase in the share of the building sector in GDP and capital development. The GDP from structure at factore cost or at current prices increased to Rs. 174571 crores (12. 02 % of the full total GDP)in 2004 -05 from Rs. 16238 crores (10. 39% of the full total GDP in period 2000-01. The increasing participation of the private sector in infrastructure development through open public private relationship and the strategy like Build Own Transfer (BOT) can be cited as the main factor for such upsurge in GDP. However there's always scope for more active involvement from private sector in this direction through investment. There are around 200 organizations from corporate and business sector, working in Indian construction industry. The amount of registered category A contractors is around 120000 working for local development authority, condition departments and central government bodies like CPWD. The amount of small companies and petty contractors working as sub contractors for principal contractors are extensive. So there may be ample scope for development of building industry at micro as well as at macro level in form of infrastructure development.


Construction industry has some peculiar characteristics like any other industry. Firstly, it is just a capital-intensive industry concerning current and future outlays of cash with the expectation of a blast of benefits extending very good into the future.

Secondly, construction job takes a long length of time to complete e. g. the Bhakra Dam required fifteen years because of its completion (1950-1965) plus they also have a long gestation period.

Thirdly, the useful life of building project of countrywide importance is lengthy usually more than 60 years for the majority of the major constructions.

Fourthly, in building project, products and services are mixed together. In development, product is set and machine and men move, unlike assembly line development in which product goes.

Fifthly, a huge construction needs a large land area. Acquisition of such land leads to payment of compensation to the owners of the land, which has legal and politics over tones. In some instances like structure of dam, it requires rehabilitation of close by villages. Such problems usually do not happen with the other industries.

Sixthly, cost gain analysis of general public infrastructure created by development activity such as roads, bridges and dams cannot be finished with traditional idea of profit maximisation by themselves. Special economic tools like Community Cost Benefit Examination (SCBA) and concepts of welfare economics are essential for the valuation of such resources.

Seventhly, two engineering projects aren't identical in all respects. Thus, construction task can be viewed as as a job work of a huge magnitude contrary to any other manufacturing facility producing products at mass scale by a single machine.

Eighthly, the human resource employed in construction forms a temporary company for the job at the site and disperses in different directions when the project is over.

Ninthly, experience of generations performs a vital role as most of the construction materials immediately used after quarrying will be the natural material and performance or comparative merit of such material takes a while because of its pronouncement, the time may be in decades.

Tenthly, loss of life of workers during the execution stage of job is quite typical, so security and precaution are primary concerns.

Such peculiar characteristics of structure project opened up the portals for the development of special managerial tools, like materials management, CPM and PERT to take care of the task in a specialist manner.

In India, construction industry is fragmented and a sizeable engineering work is conducted by the unorganised sector.

Such peculiar attribute creates favourable conditions for the establishment of a new company. If Structure Company is weighed on the basis of men; materials and money following facts appear.

As the majority of the construction is performed either on site or precast members, are fabricated and constructed on the site and the majority of the structure equipment can be found on rental basis, thus a little capital is invested in fixed property and equipment.

Construction companies require relatively low working capital as after award of deal, company realises mobilisation move forward from owner before starting the work.

In India, companies, usually use labour builder for the supply of labour drive. So hardly any employees are on the everlasting pay roll of the company.

These factors are accountable for the delivery of small to very big structure companies. This introduces competition on the market. There are pitfalls but a appropriately managed development company is able to pay abundant dividend to its owners/shareholders.

3. Constructions and National Development:

For any developing country like India, development of infrastructure is the prerequisite for the financial progress of the country. To achieve this objective optimised building is the need of the hour as capital is a scarce resource

4. Types of Development:

Total building work can be divided into two wide categories viz. public and private.

The public assignments i. e. whose immediate beneficiary will be the general population, is usually completed by the federal government, of course govt. get it done by any builder or by construction company by awarding the work through bids and tenders. It really is general population money or any financial aid or loan from firms like World Bank, that is put in. Dams, Bridges, Canals, Metro Rail, Vitality Assignments, DUDA, SUDA are typical examples of public tasks.

Private projects like house of a person or construction of a factory, a medical home, hotel or project where taxpayer's money is not included can be categorised as a private project. Frankly speaking profit motive is obviously there in most of the private projects.

In private assignments, capital outlays are less when compared with public assignments.

Secondly in Indian working environment one cannot find the money for delay in private tasks but cost over works and delays in public projects are a day to day trend in India.

5. Consumers of Engineering Industry:

Following will be the consumers of building industry

An Individual

Group Casing Societies

Centre, State, MUNICIPALITY and Development Regulators.

Corporate Sector

Other countries at International level.

Every consumer has own peculiar requirements, which can be being identified in pursuing paragraphs.

5. 1 Individuals:

An individual needs the services of a engineering company for the structure of specific house, which is typically his desire house. In such building, company cannot disregard individual flavor and preferences. Individuals who are performing the project have to help and reach a decision in advance on the item of choice and shade e. g. shade and size of tile of bathroom, coloring, size and quarry of marble rock etc. if building has to carry on smoothly.

5. 2 Group Real estate Societies:

The enclosure demand will be around 31 million by 2015(MPRA 2008)In planning and building of an apartment or building blocks for group enclosure society, the requirement can be labeled into two broad categories. [13]

First requirement is of a person in his house. In an organization housing almost all of the finishing items are kept for the average person occupant so he could finish the house according to his choice, flavor and preferences.

Second necessity is the tastes of an organization of people as a whole or community. need. To fulfil this requirement planner needs knowledge of architectural sociology, human being behavior, security aspect, and maintenance executive methods, generosity of the individuals and cooperation on the list of people.

5. 3 Corporate and business Sector:

Corporate sector hires the services of Engineering Company for commercial building, for stock or for workplace etc.

In such buildings, building economics, cost optimization, requirement of

future expansion and versatility of the program will be the key issues. There is certainly ample range for creative imagination and technology in commercial sector assignments.

5. 4 Federal Construction:

Local Development Government bodies, CPWD, PWD of various states etc will be the department which look after the building of government sponsored, civil engineering works. Here Development Company is guided by strict rules and regulations of the state, for such departments, time factor is least important.

5. 5 International Contract:

After the next World Warfare under developed, oil-rich countries were active in creating infrastructure of the country to boost economical development. Sometimes even developed countries need huge structure for the incidents like Olympic and Asian video games.

These jobs are usually financed by an individual country or by some international funding organization like World Bank or investment company. In such cases international bids are asked. Development companies from US, THE UK, Western world Germany and France usually take the best benefit of these deals.

Now competition is increasing. Companies from Japan, South Korea and India are also getting business talk about in these countries in building and in establishing of power channels and infrastructure. Those companies who offer turnkey services have glowing chances of success in your competition when the nature of job is purely works agreement. Here sub company is capable of mobilising construction tools and manpower and gets subcontracts from main contractor. Joint venture is an extremely common happening in international agreements.

6. Main Organs of Engineering Industry

There are three main organs of structure industry other than the buyer.

The Owner

The Consultant

The Contractor


Civil Engineering Jobs are usually cost intensive. Usually the trader does feasibility research in advance. Any trader or promoter is concerned about two things. First of all investor is worried about the speed of return. Secondly the habits of cashflow. The perfect situation will be high and early come back. i. e. on what day what amount is required and from where the same will be established. The dog owner or promoter may be a person, a government specialist, a government division, a corporate and business house etc.

6. 2 The Advisor:

In Civil Engineering Tasks, Architect, Engineer, Job Supervisor and Chartered Accountant usually form the -panel of consultants. These folks advise the dog owner based on their knowledge, experience, and know how. It is generally presumed that any person who have experience and knowledge can provide advice on a particular issue of his field.

The basic function of engineer is to create and do necessary permutation and mixture to optimise the solution. Although consultant should have experience, knowledge and wisdom that all certainly come with age but individuals who are amply trained with new materials, new technology, new equipment and of course having a great deal of energy and passion to take action new are also appealing on the task.

6. 3 The Builder:

In Civil Executive Job, contractor translates the blue print into reality with the help of employees and material. The practice of service provider dispatch in civil anatomist could very well be as old as civil executive itself. A poorly written contract contract is actually a good reason behind bone of contention. In agreements, one should always seek the help of an legal expert. This is very important that owner himself should boost his knowledge on the subject matter like regulations of agreement, negotiable instrument action and consumer cover action etc.

7. Regulatory Physiques Related with Building:

Regulatory bodies related with any business can be categorised into two broad categories viz. basic and specific.

Income Tax, Labour Judge, Labour Union, Electricity Plank will be the departments with which every business organization has to offer, fall generally category. So every business corporation should be well versed with the rules, regulation, written and unwritten laws of these departments.

The regulatory body specific to engineering at local level are pursuing: (1) Local Development Authority, (2) Pollution Control Board, (3) Water Works and Conservancy, (4) Local Police.

7. 1 Local Development Specialist:

It is the first regulatory body, which is experienced in any engineering. Most of the rules, rules and byelaws of development government bodies of province of Uttar Pradesh are given in the booklet "Regulation of Building Procedure in Uttar Pradesh. This very booklet every construction supervisor should have and should always keep himself touching any office of the development specialist for the knowing of day-to-day changes in the working and rules and regulation of the specialist.

In fact, rules, legislation and bye regulations are framed to provide healthy living but sometimes these regulations are one sided i. e. in favour of government only. Thus, it is advisable that rules should not be violated in common circumstances.

However, there is always a provision for the compounding. This is to be weighed by the owners i. e. gain or damage on an unauthorised development.

7. 2 Air pollution Control Board (PCB):

Now a times legislation regarding environmental air pollution have become very strict in India to, like in advanced countries. Sometimes large projects like structure of power seed, multipurpose river valley project are ended or even empty scheduled to environmental concerns. Most common assignments that have been in trouble recently include Tehri Dam in Uttranchal and Narmada in Madhya Pradesh.

Clearance from PCB is also necessary for construction of a stock or fabrication of any processing plant. The days are over when effluents were directly discharged into the river. There is no harm in conforming to PCB norms but sometimes these polices are difficult to obey and PCB acts as a headache. Planners should incorporate PCB suggestion right from site selection to job formulation.

7. 3 Normal water Works and Conservancy:

If construction is usually to be done in metropolitan area then initial question comes to mind is what will bring on water during structure. If municipal water supply is used, municipality charges additional tariff on it. So that it is a good idea that first of all job of building manager is to obtain a normal water pump installed and notify the municipality that general population drinking water is not being used for engineering.

The second thing in case of tasks like hotel and apartment is the removal of wastewater and nights soil. It really is obligatory upon liaison officer of the development company or engineering manager to start the issue for the permission of interconnection of sewer of the building to the municipal sewer.

7. 4 Local Police:

Local police plays an important role in any construction task in India because development government bodies always take the help of police to meet their aims or in case there is mishappening on the website local police must be taken into self-assurance. It is obligatory on the part of construction manager to keep up good relations with local law enforcement officials station and cops of that area. Of course maintenance of such relationships, always lead to additional expenditure on the development company.

8. HOME BASED BUSINESS in Construction Industry:

Construction of infrastructure like street network, canals, urban development, extension and restoration of existing facility are few activities by which capital formation takes place in almost all of the countries of the world. So there's always ample opportunity for construction from community level to international level for the building companies, depending after size and capability and connection with the business.

9. Management in Structure:

Based on work experience, it's been observed that almost all of the construction companies deal with their business in an exceedingly unorganised manner. This eventually brings about failure of business. The numbers of small and medium size companies' failures are a lot more.

Construction industry has been characterized as weak inefficient, nebulous, backward and gradual to incorporate changing conditions. The bottom line is majority of engineering companies are poor absorber of management knowledge. The reason given for it may be as under.

Every construction project is unique in itself and doesn't need very strict complex standardization. An procedure in building work consists of many skills and skill, largely of non-repetitive character. Remote location of the project, poor method of transportation and varying production of labour are some factors, that are beyond the contractor's control. Thus engineering business is volatile in mother nature with many pros and cons.

Any development activity is actually a developing process. Therefore the decision-making people are incredibly few. Any wait in on the spot decisions, increases the cost and hampers the improvement of development. Such complexities lead to a managerial task. It does not indicate management problems of building are entirely not the same as other management problems.

Like any other industry, building industry is also experiencing cutthroat competition. Products and services of construction industry also face temporal deviation in demand and supply.

Such conditions necessitate the training of managerial practice specific to development. Today skilled management is necessary for the survival of construction industry. This maxim has not received satisfactory attention in building companies in India. The result is high incidence of failure.

10. Failures of Engineering Company:

Any construction activity starts off from scrape and passes through various elaborate processes and finally project leads to a built up facility or gets to to start out up phase of the project and finally job becomes operational. Like other business in structure business also, there are extensive slips between glass and lip. The inability of building business is a topic of analytical inquiry and a subject of concern. So many investigators have analyzed the issue. A few are being reported here.

Dun & Bradstreet (1985-1994) have researched the failure of Construction Company for quite some time (10 years). They list the following reasons for the failures. [1]


Unbalanced experience

Lack of managerial experience

Lack of experience specifically line




Reasons unknown

The first four items detailed in above list account for over 90 percent of the failures. This fact displays that financial success of Construction Company is dependent almost completely upon the quality of its management. Sometimes prolonged work, poor profit margin, insufficient proper accounting procedure can be cited as reason behind the failing. If we club all these reasons, it tips towards poor management.

Recently Kale and Arditi (1998) did a thorough research in this way. They conclude that newness, adolescence and smallness are three major factors, that are responsible for inability of development companies. [2]

Arditi et. al. (2000) found budgetary and macroeconomic issues as main reason. [8] Kivrak and Arslan(2008) have reviewed the critical factors creating the inability of engineering companies through the study conducted on forty medium and small size development companies of Turkey. They may have inferred insufficient experience and country's economic condition as important factor for the failing. [7]

In scholar's view financial handicap could very well be the root cause of failure, which is often associated with new companies. It may be concluded that basically, if anybody fails in any business, i. e. he cannot understand the economics or intricacies or commerce of that business.

There is no dearth of literature on the success testimonies of varied companies. Regrettably success is a public celebration and failure is a private funeral. So for a new entrepreneur, it is best to study from failures somewhat than from success tales.

In this regard scholar is of the view that base of right moving rock always rests on incorrect footprints. These incorrect footprints are sometimes called experience. The bottom line is a new businessman should know DONTS first alternatively than DOS. It's the first step to perform the development business.

11. The Development Managers:

The construction supervisor is the most critical resource in implementation phase of the project. He is supposed to release basic functions like managing, staffing, directing, planning and controlling. A good performance of development manager is essential for the expansion, development and success of Engineering Company.

Although the professionals do not normally, perform the construction work with their own hands, Yet they can be in charge of keeping the job on timetable within the price limits. They must have telescopic as well as microscopic eye-sight on each and every step of construction operation, right from preliminary estimates and various types of costs to the final inspection and repayment.

In managing any construction task, personality of development manager performs a essential role. This very trait can't ever be overlooked. Mustapha and Naoum (1998) have looked into factors, which effect success of site professionals. These are of strong thoughts and opinions that personal variables as a whole have an impact on efficiency of site managers. [4]

The construction administrator should also manage to handling crisis and contingencies at site. Crisis and contingency do arise at construction site. Managers should be well equipped to cope with such emergencies. To cope with such contingencies collective work is necessary. Loosemore (1998) has determined effective responsibility and teamwork is the basic managerial tool to handle the turmoil.

12. Dependence on Professional Competence:

If a corporation or contractor is ignorant about his legal rights, entitlements rather than vigilant, he will get partial success and will have to be contented with few chips of fruit made by his hard labour and greater chunk will go to the owner who will rarely volunteer a helping hand.

So there can be an extreme need to instil competence in the management of the valued industry. Launching a comprehensive span of study, comprising all the relevant aspects of building management and by writing good books and doing research work, covering all aspects of the condition, can complete this gap.

Since engineering activities are completed mostly at the building site, which are usually much flung from main places, the academician/writers, and the faculty might not be familiar with the practical difficulties and nuances of development management. These might be the reason that construction management has not received due place in the institutes, colleges, universities and in many management catalogs.

13. Application of present newspaper:

This research work will be useful to individual owner, consultant and company as well.

If a entrepreneur determines to enter in construction business he is being told in advance about the professionals and cons of engineering industry. If he blueprints his business and manages the building work himself, by employing his own structure team and purchasing the material himself, he will certainly flourish.

If the businessman who's conversant with the nuances of construction management practice, can remove maximum from the service provider by applying the knowledge reviewed herein, with very little difficulty and fixing their problem with time without being deceived or cheated by anybody.

Consultants may use the present benefit optimising the job during conception, explanation and planning phase of the task.

At last the maximum benefited is the contractor who feels the whip (earnings) of the heart and soul of construction project i. e. building phase.

14. Conclusion

Today, anticipated to increased competition and the capital, which is scarce, large constructions like metro rail, infrastructure development, high-rise building can't be handled without the use of modern building equipment and modern development management techniques to reduce time also to maintain higher specifications of building quality. Similarly, it's important to make use of modern equipment and latest development management tools to optimise the construction activity to improve the physical efficiency of predetermined and varying factors of production. It does not mean that will leave thousands of labourers and other real human resource jobless. It really is an irrational thinking as it is well done that 'tomorrow will need its own course'.

Meticulous management of the budget is necessary for the exponential expansion of the business.

At previous any effective activity will serve the society so is with the engineering activity. In broader sense every specific of the country will get advantage of increased productivity directly or indirectly through the created specific assets or open public infrastructure.

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