Essay: Construction Industry in Iran Current Problems and Solutions

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Iranian construction projects are a major part of the overall Iranian economy. Unfortunately many of these important construction projects are stalled, delayed and overly expensive due to a variety of situations and conditions. There are five major factors or categories that may have an effect on or play a role in delaying or disrupting a construction project in Iran, they are:

Economic Issues & Financing

International Sanctions

Education

Production Design

Building Materials

The goal and objective of this study and pursuing research paper is to examine and explore the causes and main consequences in Iranian construction practices. To better understand the obstacles that many construction projects in Iran face and to implement new ideas and methods, to find possible positive solutions to these problems and perhaps promote and develop an ideal construction industry and practices in Iran.

Economic Issues - Inflation has been growing and increasing at or near a 25% rate per year. This leads to rising cost in materials and labor and can result in difficulty starting a project or keeping projects funded throughout. This high inflation rate along with a weak private sector in Iran are two economical issues that plague the construction industry in Iran. Start up capital and financing is difficult to access in Iran as well. So much of Iran's economy is dependent on oil and gas prices.

International Sanctions - Because of unfriendly terms with most of the rest of the world Iran does not benefit from technological advances in equipment and methods. Also because of international sanctions Iran has difficulties gaining foreign investors for any projects. With sanctions comes lack of funds and lack of experience, neither of which are good things in the construction industry.

Education - Proper training and training opportunities are not available in Iran to construction workers. This lack of industry knowledge and education often adds confusion and uncertainty in construction which slows down work and can also cause safety hazards.

Production Design - The regulations that are in place in the construction industry are largely put in place by industrialized countries like Canada, New Zealand and The United States. These strict regulations on design are often not able to be met by Iranian construction crews, the money, technology and knowledge just is not available. Engineers and contractors in Iran do not have computer software available to them in order to design regulation building that will be safe and cost effective.

Building Materials - The materials Iran has are far from meeting international standards. They use low quality and substandard, the budget just is not there for quality materials. Also it is very difficult to order materials to be shipped into Iran and if it is… [END OF PREVIEW]

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"Construction Industry in Iran Current Problems and Solutions."  Essaytown.com.  November 20, 2011.  Accessed May 27, 2019.
https://www.essaytown.com/subjects/paper/construction-industry-iran-current/9058631.