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Construction Equipment Industry

The construction equipment industry produces and sells the equipment needed by general construction contractors to complete construction projects. The construction equipment industry supplies everything from heavy equipment machines to smaller tools. During profitable periods, companies in the construction equipment industry can record profits of hundreds of millions of dollars.

The construction equipment industry provides the equipment used in projects of several different methods.The traditional method is to use the design/bid/build approach, where an architect or engineer oversees the project. They handle the design, produce construction drawings, oversee bids and contracts and the building process itself. The links between the architect, the client and the main contractor are direct. The contractor can win a project through the lowest blind bid or through the construction manager at-risk method, where the contractor guarantees to deliver the project within a guaranteed maximum price. Instead of simply serving as construction manager, the contractor also serves as a consultant to the owner during the design and development processes.

The design-build method has been increasing in popularity over the past decade. In design-build, the owner doesn't hire an architect to design the project, then seeks bids from a contractor. In this case, the owner solicits bids from a architect/contractor teams, who develop their own designs and include complete design and construction costs in their bids. This is different from the traditional process, where the architect completes the design before the contractors put in their bids.

In the management procurement method, the owner holds the greatest amount of control. Instead of hiring an architect to handle the project in construction, or hiring a consortium, the owner oversees every part of the process. They hire the architect, the construction manager and, in many cases, the subcontractors. Proponents of this method believe it speeds up the procurement process and increases flexibility throughout the building process.

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