AL CHORAIRI AND PARTNERS W.L.L.

Construction

NAICS #23 | The Sector as a Whole

The construction sector comprises establishments primarily engaged in the construction of buildings or engineering projects (e.g., highways and utility systems). Establishments primarily engaged in the preparation of sites for new construction and establishments primarily engaged in subdividing land for sale as building sites also are included in this sector.

Construction work done may include new work, additions, alterations, or maintenance and repairs. Activities of these establishments generally are managed at a fixed place of business, but they usually perform construction activities at multiple project sites. Production responsibilities for establishments in this sector are usually specified in (1) contracts with the owners of construction projects (prime contracts) or (2) contracts with other construction establishments (subcontracts).

Establishments primarily engaged in contracts that include responsibility for all aspects of individual construction projects are commonly known as general contractors, but also may be known as design-builders, construction managers, turnkey contractors, or (in cases where two or more establishments jointly secure a general contract) joint-venture contractors. Construction managers that provide oversight and scheduling only (i.e., agency) as well as construction managers that are responsible for the entire project (i.e., at risk) are included as general contractor type establishments. Establishments of the "general contractor type" frequently arrange construction of separate parts of their projects through subcontracts with other construction establishments.

Establishments primarily engaged in activities to produce a specific component (e.g., masonry, painting, and electrical work) of a construction project are commonly known as specialty trade contractors. Activities of specialty trade contractors are usually subcontracted from other construction establishments but, especially in remodeling and repair construction, the work may be done directly for the owner of the property.

Establishments primarily engaged in activities to construct buildings to be sold on sites that they own are known as operative builders, but also may be known as speculative builders or merchant builders. Operative builders produce buildings in a manner similar to general contractors, but their production processes also include site acquisition and securing of financial backing. Operative builders are most often associated with the construction of residential buildings. Like general contractors, they may subcontract all or part of the actual construction work on their buildings.

There are substantial differences in the types of equipment, work force skills, and other inputs required by establishments in this sector. To highlight these differences and variations in the underlying production functions, this sector is divided into three subsectors.

Subsector 236, Construction of Buildings, comprises establishments of the general contractor type and operative builders involved in the construction of buildings. Subsector 237, Heavy and Civil Engineering Construction, comprises establishments involved in the construction of engineering projects. Subsector 238, Specialty Trade Contractors, comprises establishments engaged in specialty trade activities generally needed in the construction of all types of buildings.

Force account construction is construction work performed by an enterprise primarily engaged in some business other than construction for its own account and use, using employees of the enterprise. This activity is not included in the construction sector unless the construction work performed is the primary activity of a separate establishment of the enterprise. The installation and the ongoing repair and maintenance of telecommunications and utility networks is excluded from construction when the establishments performing the work are not independent contractors. Although a growing proportion of this work is subcontracted to independent contractors in the Construction Sector, the operating units of telecommunications and utility companies performing this work are included with the telecommunications or utility activities.

Foundation, Structure, and Building Exterior Contractors

NAICS #2381 | This industry group comprises establishments primarily engaged in the specialty trades needed to complete the basic structure (i.e., foundation, frame, and shell) of buildings. The work performed may include new work, additions, alterations, maintenance, and repairs.

Flooring Contractors

NAICS #23833 | This industry comprises establishments primarily engaged in the installation of resilient floor tile, carpeting, linoleum, and hard wood flooring. The work performed may include new work, additions, alterations, maintenance, and repairs. Laying concrete flooring--are classified in Industry 238110, Poured Concrete Foundation and Structure Contractors; Installing stone or ceramic floor tile--are classified in Industry 238340, Tile and Terrazzo Contractors; and Selling and installing carpet and other flooring products as retail establishments--are classified in Sector 44-45, Retail Trade.

Rubber Product Manufacturing

NAICS #3262 | This industry group comprises establishments primarily engaged in processing natural, and synthetic or reclaimed rubber materials into intermediate or final products using processes such as vulcanizing, cementing, molding, extruding, and lathe-cutting.

Fabricated Metal Product Manufacturing

NAICS #332 | Industries in the Fabricated Metal Product Manufacturing subsector transform metal into intermediate or end products, other than machinery, computers and electronics, and metal furniture or treating metals and metal formed products fabricated elsewhere. Important fabricated metal processes are forging, stamping, bending, forming, and machining, used to shape individual pieces of metal; and other processes, such as welding and assembling, used to join separate parts together. Establishments in this subsector may use one of these processes or a combination of these processes.

The NAICS structure for this subsector distinguishes the forging and stamping processes in a single industry. The remaining industries, in the subsector, group establishments based on similar combinations of processes used to make products.

The manufacturing performed in the Fabricated Metal Product Manufacturing subsector begins with manufactured metal shapes. The establishments in this sector further fabricate the purchased metal shapes into a product. For instance, the Spring and Wire Product Manufacturing industry starts with wire and fabricates such items.

Within manufacturing there are other establishments that make the same products made by this subsector; only these establishments begin production further back in the production process. These establishments have a more integrated operation. For instance, one establishment may manufacture steel, draw it into wire, and make wire products in the same establishment. Such operations are classified in the Primary Metal Manufacturing subsector.

Metal Coating, Engraving (except Jewelry and Silverware), and Allied Services to Manufacturers

NAICS #332812 | This U.S. industry comprises establishments primarily engaged in one or more of the following: (1) enameling, lacquering, and varnishing metals and metal products; (2) hot dip galvanizing metals and metal products; (3) engraving, chasing, or etching metals and metal products (except jewelry; personal goods carried on or about the person, such as compacts and cigarette cases; precious metal products (except precious plated flatware and other plated ware); and printing plates); (4) powder coating metals and metal products; and (5) providing other metal surfacing services for the trade. Both fabricating and coating and engraving products--are classified in the Manufacturing sector according to the product made; Engraving, chasing or etching jewelry, metal personal goods, or precious metal products (except precious plated metal flatware and other plated ware)--are classified in Industry 33991, Jewelry and Silverware Manufacturing; and Engraving, chasing or etching printing plates--are classified in U.S. Industry 323122, Prepress Services.

Industrial Supplies Merchant Wholesalers

NAICS #42384 | This industry comprises establishments primarily engaged in the merchant wholesale distribution of supplies for machinery and equipment generally used in manufacturing, oil well, and warehousing activities. Merchant wholesale distribution of hydraulic and pneumatic (fluid power) pumps, motors, pistons, and valves--are classified in Industry 423830, Industrial Machinery and Equipment Merchant Wholesalers; and Merchant wholesale distribution of welding gases--are classified in Industry 424690, Other Chemical and Allied Products Merchant Wholesalers.

Sporting and Recreational Goods and Supplies Merchant Wholesalers

NAICS #42391 | This industry comprises establishments primarily engaged in the merchant wholesale distribution of sporting goods and accessories; billiard and pool supplies; sporting firearms and ammunition; and/or marine pleasure craft, equipment, and supplies. Merchant wholesale distribution of motor vehicles and trailers--are classified in Industry 423110, Automobile and Other Motor Vehicle Merchant Wholesalers; Merchant wholesale distribution of motorized passenger golf carts--are classified in Industry 423860, Transportation Equipment and Supplies (except Motor Vehicle) Merchant Wholesalers; and Merchant wholesale distribution of athletic apparel and athletic footwear--are classified in Industry Group 4243, Apparel, Piece Goods, and Notions Merchant Wholesalers.

Building Material and Supplies Dealers

NAICS #4441 | This industry group comprises establishments primarily engaged in retailing new building materials and supplies.

Sporting Goods Stores

NAICS #45111 | This industry comprises establishments primarily engaged in retailing new sporting goods, such as bicycles and bicycle parts; camping equipment; exercise and fitness equipment; athletic uniforms; specialty sports footwear; and sporting goods, equipment, and accessories. Retailing sporting goods via electronic home shopping, mail order, or direct sale--are classified in Subsector 454, Nonstore Retailers; Retailing new or used campers (pickup coaches) and camping trailers--are classified in Industry 441210, Recreational Vehicle Dealers; Retailing new or used snowmobiles, motorized bicycles, and motorized golf carts--are classified in Industry 44122, Motorcycle, Boat, and Other Motor Vehicle Dealers; Retailing new shoes (except specialty sports footwear, such as golf shoes, bowling shoes, and spiked shoes)--are classified in Industry 448210, Shoe Stores; Repairing or servicing sporting goods, without retailing new sporting goods--are classified in Industry 811490, Other Personal and Household Goods Repair and Maintenance; and Retailing used sporting goods and used bicycles--are classified in Industry 453310, Used Merchandise Stores.