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WALTER SISULU UNIVERSITY: BUTTERWORTH CAMPUSNATIONAL DIPLOMA: CIVIL ENGINEERING
MANAGEMENT II: MODULE 2: CONSTRUCTION ENTERPRISES AND THEIR STRUCTURES
Table of Contents
Item Page
Table of Contents 1
1. Learning Outcomes & assessment criteria2
2. Introduction 2
3. Organisation Structures of the Three Types of Construction Firms 3
a) Small Firm........................................................................................................................................................3
b) Medium Size Firm...........................................................................................................................................4
c) Large Firm........................................................................................................................................................5
4. Economic concepts 7
d) Capital..............................................................................................................................................................7
i) Own Capital...................................................................................................................7
ii) Borrowed Capital..........................................................................................................7
e) Turnover...........................................................................................................................................................7
f) Fixed Assets......................................................................................................................................................7
g) Overheads (In-Direct-Costs)............................................................................................................................7
5. Operational arrangements within civil engineering firms 7
h) The Small Construction concern i.e. Sole Proprietor......................................................................................8
iii) Organisational System..................................................................................................8
iv) Management.................................................................................................................9
v) Communication..............................................................................................................9
vi) Overheads.....................................................................................................................9
vii) Turnover......................................................................................................................9
viii) Capital........................................................................................................................9
i) Medium Sized Firms.........................................................................................................................................9
i) Organisational Structure...............................................................................................10
ii) Management................................................................................................................11
iii) Organisational Structure.............................................................................................11
iv) Communication..........................................................................................................11
v) Overheads....................................................................................................................11
vi) Turnover.....................................................................................................................11
vii) Capital........................................................................................................................11
viii) Fixed Assets.............................................................................................................12
j) The Large Firm...............................................................................................................................................12
i) Organisational Structure...............................................................................................12
ii) Communication...........................................................................................................12
iii) Overheads...................................................................................................................12
iv) Turnover.....................................................................................................................12
v) Capital..........................................................................................................................13
6. References 16
Walter Sisulu University Management II Page 2.1
,WALTER SISULU UNIVERSITY: BUTTERWORTH CAMPUS
NATIONAL DIPLOMA: CIVIL ENGINEERING
MANAGEMENT II: MODULE 2: CONSTRUCTION ENTERPRISES AND THEIR STRUCTURES
1. Learning Outcomes & assessment criteria
Specified Learning Outcomes Assessment Criteria:
Students must be able to:
1. Identify and distinguish the types of 1. Identify the three most common types of construction
construction firms. concerns.
2. Explain the way in which small, 2. Explain the following economic concepts:
medium and large construction 2.1. Capital
concerns are managed. 2.2. Turnover
2.3. Fixed assets
2.4. Overheads
2.5. Operating costs
2.6. Profit sharing
3. Distinguish between the three most common types of
construction firms by describing the following for
each type:
3.1. Organisational structure of firm
3.2. Function of positions in firm
3.3. Span of control in firm
3.4. Communication within firm
3.5. Decision making within firm
3.6. Capital requirements, turnover, fixed assets,
overheads, operating costs and profit sharing
2. Introduction
Modern society requires various types and sizes of Civil and Building companies to fulfill its needs
and aspirations. These needs can range from constructing a garden wall, to building houses, hospitals,
schools, skyscrapers, sportfields, roads, dams and bridges.
Civil engineering contractors that are capable of handling the various size contracts also vary in size
accordingly, i.e.:
Small Contractor will only be capable of the minor civil engineering works, e.g. minor construction
work, sportfields, etc.
Medium Size Contractor will tend to concentrate his activities on medium sized civil engineering works,
e.g. access roads, water reticulation networks, schools and minor township developments.
Large Contractor will concentrate on major sized civil engineering works, e.g. township developments,
airports, building skyscrapers, major dams, bridges and major road works.
These fields of interest overlap to a certain extent and the large contractor could be found tendering for
schools and hospitals, etc. During times of economic recession when construction work is scarce the
tendering fields overlap to a much greater degree as contractors start tendering on virtually any
available work.
Walter Sisulu University Management II Page 2.2
, WALTER SISULU UNIVERSITY: BUTTERWORTH CAMPUS
NATIONAL DIPLOMA: CIVIL ENGINEERING
MANAGEMENT II: MODULE 2: CONSTRUCTION ENTERPRISES AND THEIR STRUCTURES
3. Organisation Structures of the Three Types of Construction Firms
a) Small Firm
OWNER
ARTISAN ARTISAN 2 ARTISANS
LABOURER 10 LABOURERS 4 LABOURERS
Walter Sisulu University Management II Page 2.3
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