he construction industry is the second largest industry in India after agriculture. It accounts for about 11% of Indias GDP.

It makes significant contribution to the national economy and pro ides employment to large number of people. !here are mainly three segments in the construction industry like real estate construction "hich includes residential and commercial construction# infrastructure building "hich includes roads$ rail"ays$ po"er etc# and industrial construction that consists of oil and gas refineries$ pipelines$ te%tiles etc. &ccording to a study by &''()*&+$ the burgeoning Indian construction industry$ currently "orth ,-. billion$ "ill rise to /',10. billion by 0.1.. )onstruction is an essential part of any countrys infrastructure and industrial de elopment. )onstruction industry$ "ith its back"ard and for"ard linkages "ith arious other industries like cement$ steel bricks etc. catalyses employment generation in the country. )onstruction is the second largest economic acti ity ne%t to agriculture. 1roadly construction can be classified into 2 segments 3 Infrastructure$ Industrial and 4eal 5state. Infrastructure segments in ol e construction pro6ects in different sectors like roads$ rail"ays$ ports$ irrigation$ po"er etc. Industrial construction is contributed by e%pansion pro6ects from arious manufacturing sectors. 4eal estate construction can be sub7di ided into residential$ commercial$ malls8multiple%es etc. !he construction acti ity in ol ed in different segments differs from segment to segment. )onstruction of houses and roads in ol es about -9% and :.% of ci il construction respecti ely. 1uilding of airports and ports has construction acti ity in the range of ;.79.%. <or industrial pro6ects$ construction component ranges bet"een 1970.%. =ithin a particular sector also construction component aries from pro6ect to pro6ect. )onstruction sector contributed about 11.9% to the countrys GDP in <> .?. ( er past fe" years$ gro"th of the construction has follo"ed the trend of economic gro"th rate of the country. !he multiplier factor bet"een gro"th rates of construction and GDP has been about 1.9@71.:@. ( er past 2 years$ construction as a percentage of GDP has increased from ?..% in <> .: to ?.9% in <> .?. )onstruction acti ity being labour intensi e has generated employment for about 22 million people in the country. !he construction industry in India is highly fragmented. !here are number of unorganised players in the industry "hich "ork on the subcontracting basis. !o e%ecute more critical pro6ects$ no"adays bids are increasing placed in consortium. 1ut the profitability of the construction pro6ects aries across different segments. )omple% technology sa y pro6ects can fetch higher profit margins for construction companies as compared to lo" technology pro6ects like road construction. Aarious pro6ects in )onstruction industry are "orking capital intensi e. =orking capital reBuirement for any company depends on the order mi% of the companies. !he construction industry operates on the basis of contractual agreements. ( er the years different types of contracts ha e been de eloped. It mainly depends on the magnitude and nature of "ork$ special design needs$ annual reBuirements of funds and comple%ities of 6ob. )onstruction pro6ects can be materialised through number of smaller contracts "hich mainly depends upon siCe of the pro6ect and di ersified nature of acti ities

to be carried out in the pro6ect. &s a result$ 'ubcontracting is a common phenomenon in the construction industry