Globalisation and Construction

Globalisation and Construction

Globalisation and Construction

Historical background

In the ancient world construction relied on the environmental resources of land, climate and collective local skills to create shelter forms which reflected a precise and detailed knowledge of local climatic conditions on one hand, and on the other, a reasonable understanding of the performance characteristics of the construction materials available. The first shelters and settlements were constructed from stone, mud and materials collected in the forests, and provided protection against cold, wind, rain and other weather elements. The methods used to construct these shelters using the said materials grew out of countless experiments and accidents and the experience of generations of constructors who continued to use what worked and rejected what did not. Construction in the early communities was an activity in which all members of the community participated. People participated in all stages, from planning to production and were able to integrate their values and themselves to reflect their cultures. (Hamilton, 2009, 442-488)

The Medieaval Age was followed by “Renaissance” during which there was renewal in architecture, building and science and was signified by the introduction of another ambitious and comprehensive publication: four books on architecture by the Italian Andrea Palladio, published in 1570. This created a new style of Palladianism. However, this period saw the erosion of the traditional medieaval monopoly of the construction guilds as the result of the introduction of new construction methods. Decrees and acts abolished craft (guild) associations and eventually, the demise of the guilds resulted in the introduction of professional designers and contractors. In general terms, this period marked the evolution of construction from uncoordinated activities to an organised industry. (Hamilton, 2009, 442-488)

Globalisation Of Construction

There are several ways in which construction firms enter the international market. Among them notable are: first, economic booms such as the one resulting from sale of oil. Oil-rich countries of the Middle East and North Africa, for instance, created substantial construction demand that brought in foreign firms. A second route to international construction market that is often used is bilateral and sometimes multilateral agreements, which set up protocols that enable firms of the participating countries to enter the markets of each other/ one another. A third important route to international construction market is through participation in large international projects, such as the Suez Canal in 1959-69, the Panama Canal in 1900-1914 and more recently, the New Hong Kong Airport, the Channel Tunnel and the Three Gorges Dam in China. A fourth route that is used to the international construction market is to carry out construction work for Multinational Corporations (MNCs). The growth of multinational operations in truly global operations has been an important factor in the internationalisation of construction. The lowering of trade barriers, the movement of funds and setting up of new operations globally have created a platform for interested construction companies to follow and exploit. When MNCs move out of their domestic markets it is reported that many continue to use their tried and tested suppliers, often the same ...