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      Many construction projects suffer from preventable financial problems. Underbids ask for too little money to complete the project. Cash flow problems exist when the present amount of funding cannot cover the current costs for labour and materials, and because they are a matter of having sufficient funds at a specific time, can arise even when the overall total is enough. Fraud is a problem in many fields, but is notoriously prevalent in the construction field. Financial planning for the project is intended to ensure that a solid plan, with adequate safeguards and contingency plans, is in place before the project is started, and is required to ensure that the plan is properly executed over the life of the project.

     Mortgage bankers, accountants, and cost engineers are likely participants in creating an overall plan for the financial management of the building construction project. The presence of the mortgage banker is highly likely even in relatively small projects, since the owner's equity in the property is the most obvious source of funding for a building project. Accountants act to study the expected monetary flow over the life of the project, and to monitor the payouts throughout the process. Cost engineers apply expertise to relate the work and materials involved to a proper valuation. Cost overruns with government projects have occurred when the contractor was able to identify change orders or changes in the project resulting in large increases in cost, which are not subject to competition by other firm as they have already been eliminated from consideration after the initial bid.

 
 
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      Construction  engage in the design of temporary structures, quality assurance and quality control, building and site layout surveys, on site material testing, concrete mix design, cost estimating, planning and scheduling, safety engineering, materials procurement, selection of equipment, and cost engineering and budget control.


 

The Construction industry in the United States provides employment to millions with all types and levels of education. Construction contributes 14% of the US Gross National Product. Construction engineering provides much of the design aspect used both in the construction office and in the field on project sites.

 

 

 

 

 

 

 

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