2000 Peurifoy Lecture: Construction Practices in Developing Countries

Many contractors are expanding into global markets. Further, many owners procure construction services to build facilities in developing countries. The construction practices in these countries differ in important respects from practices in industrialized countries. This paper reviews some of the more significant differences in construction practices in developing countries. Five primary factors are discussed: cost of labor, cost of money, technology and methods, infrastructure, and role of the design professional. The hypothesis is presented that the main driving factors affecting construction practices are the cost of labor and the cost of money. These two factors place speed of construction as a secondary objective. Low labor costs lead to construction practices being labor-intensive. There is a distinct absence of construction equipment, especially small lifting devices used for material handling. Additionally, the lack of infrastructure means that many materials commonly purchased in the United States from a vendor are fabricated using on-site labor in developing countries.