The construction industry is the largest industry in the world. It is more of a service than a manufacturing industry. Growth in this industry in fact is an indicator of the economic conditions of a country. This is because the construction industry consumes a wide employment circle of labor. While the manufacturing industry exhibit high-quality products, timelines of service delivery, reasonable cost of service, and low failure rates, the construction industry, on the other hand, is generally the opposite. Most projects exhibit cost overruns, time extensions, and conflicts among parties. Figure 1 is an example of a complicated project. Table 1, also, exhibits some magnificent projects that suffered from huge cost overruns.
Table: Magnificent projects with huge cost overruns
|Project||Cost overruns (%)|
|Sydney Opera House
Concorde Supersonic Aeroplane
In general, the construction industry is more challenging than other industries due to: its unique nature; every project is one-of a kind; many conflicting parties are involved; projects are constrained by time, money and quality; and high risk. These all dictates the need for project management.