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Construction industry development - Dissertation Example

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1 INTRODUCTION Over the past five years, the construction industry has been awash with tunnelling projects with there being a lot of enthusiasm globally from industry players (Deloitte 2012). This has mainly been due to advancements in tunnelling technology and techniques, which have occurred over the past decade, and also due to increased awareness of the need for ‘green’ projects, which have less environmental impact (Deloitte 2012)…
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Construction industry development
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Download file to see previous pages Underground constructions occur in a wide array of sectors and areas. These include highway construction, sewerage system, metro / subway systems, electricity cables and transmissions systems, nuclear power facilities, water systems, flood management systems, natural disaster and war underground hiding bunkers, and hydropower plant systems (Beer 2009). With the recognition of the benefits for the countries that come along with underground construction, such as reducing congestion, lowering environmental degradation, reducing pressure put on land and efficient utilization of strategic resources, many countries have increasingly invested towards this form of construction (Brown 2001; Beer 2009). The high business opportunities in the emerging countries within the construction industry have attracted a plethora of construction entrepreneurs into these markets. Russia in specific has attracted a lot of attention not only due to its growing economy, but specifically also due to the upcoming events: 1) The high profile Winter World Olympic Games to be held in Sochi, Russia in 2014, and the 2) 2018 Fifa World Cup, which has seen the development of a number of high scale underground systems (Kral 2009; Deloitte, 2012). However, it is imperative that the current business climate for underground construction in Russia be understood clearly to enable effective decision making for the wide array of potential investors (Datamonitor 2011; Deloitte 2012). The business environment may present a number of challenges to various investors, both local and foreign, who seek to do business in underground construction. The industry conditions and entry barriers in terms of economic, political and financial factors that impact a business need be taken into consideration when opening or expanding a business (World Bank Report 2009). In essence therefore, this research study seeks to investigate the current business conditions within the tunnelling and underground construction in Russia, and specifically look at entry barriers that impact the businesses and the ability of various potential entrepreneurs investing in this industry. 1.1 Background and Context Growth in underground construction has increased in the current era due to the realization of its several advantages. While talking about the benefits of going underground Paul (2004) stated that going underground has several benefits. Author stated that with regards to accommodating growing urban population, underground space provides several facilities such as environmentally safe and modest urban transit systems, shopping facilities and car parks etc. With regards to isolation, underground space is a natural shelter for severe weather; it provides safeguard against climate, earthquakes, noise etc which could be possible threats in case of severe human activities like explosion and/or natural disasters like hurricane. Author continued that with regards to environmental preservation and topography, effective use of underground space leaves more space above ground and hence allows preserve air and natural vegetation thus ...Download file to see next pagesRead More
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