Infrastructure vs. Construction: Understanding the Key Differences

Outside the real estate sector, the words ‘infrastructure’ and ‘construction’ are often used interchangeably. However, if you wish to understand the business better, it is necessary to understand the difference between these two.

In the most basic sense, infrastructure means all the physical and digital systems that are needed to run a country or region’s economy. Construction on the other hand refers to the process of building and maintaining these infrastructural projects.

https://realestateandepc.wordpress.com/2023/08/17/infrastructure-vs-construction-understanding-the-key-differences/

1. Infrastructurevs.Construction:
UnderstandingtheKeyDifferences
EverythingYouNeedtoKnowAboutConstructionandInfrastructure.
Outsidetherealestatesector,thewords‘infrastructure’and
‘construction’areoftenusedinterchangeably.However,ifyouwishto
understandthebusinessbetter,itisnecessarytounderstandthe
differencebetweenthesetwo.
Inthemostbasicsense,infrastructuremeansallthephysicaland
digitalsystemsthatareneededtorunacountryorregion’seconomy.

2. Constructionontheotherhandreferstotheprocessofbuildingand
maintainingtheseinfrastructuralprojects.
WhatisInfrastructure?
Infrastructureisthefoundationofanycity,townorcommunity.It
includesroads,bridges,schools,hospitals,airports,
telecommunicationsystems,watersystems,andothersuchsystems
whicharerequiredtosustainthesocialandeconomiclifeinthe
region.
Broadlyspeaking,infrastructurecanbebrokendownintothree
categories–construction,maintenanceandupgrades.Construction
involvesbuildingnewphysicalassets.Maintenancekeepstheexisting
infrastructureingood,workingcondition.Upgradesmeangradual
improvementsmadetotheexistinginfrastructuretomakeitmore
up-to-date.
WhatisConstruction?
Constructionisthephysicalprocessofbuildingandmaintainingthe
infrastructure.Itincludesplanning,designing,repairing,renovating,
andmaintaininginfrastructureprojects.Itusuallyinvolveslarge
upfrontinvestmentsandrequiresalargerworkforce.

3. Constructionistheimplementationofplannedinfrastructural
developments.Itisaconsequenceofinfrastructuralplanning.Thus,it
isamorephysicallylaboriousprocess.Itinvolvesplanning,
acquisitionofrawmaterials,construction,operationandmaintenance.
WhatistheimportanceofInfrastructure?
Infrastructureinvestmentscansignificantly impactthequalityoflife
andeconomyofacountryorregion.Plannedinfrastructural
developmentshelpimprovethelivesofordinarycitizens,createjobs,
improvepublicsecurity,andspureconomicgrowth.
Well-plannedinfrastructureprojectscouldreducecostsandimprove
theefficiencyofbusinessesandprovidepeoplewithasmoothand
securelife.Ithelpsimprovetheoverallproductivityandoutputofa
regionorcountry.
Fromabusinessperspective,infrastructureisagrowingindustryat
themoment.AccordingtoMordorIntelligence,theglobal
infrastructuresectorisestimatedtobeworth$2.57trillionin2023
andisexpectedtoreach$3.48trillionby2028.Thiswouldmeanthat
theindustryhasaforecastedgrowthrateof6.27%.

4. ShapoorjiPallonjiInfrastructureCapitalCompanyPvt.Ltd.(SPInfra)
hasbeenpartoftheIndianinfrastructuresceneformorethantwo
decades.Thebusinesswasestablishedin1997aspartofthe
ShapoorjiPallonjiGrouptodevelopsustainableinfrastructureassets
thatdelivervaluetolocalcommunities.Sincethen,SPInfrahasmade
significant contributionstotheinfrastructuraldevelopmentof
communitiesinsideandoutsideIndia.Withservicesinpower,
transportation,naturalresourcesandportsandterminals,SPInfrais
anindustryleaderintheinfrastructuraldevelopmentsectorinIndia.
SPInfra’sworkiscomplementedbytheworkdonebyShapoorji
PallonjiEngineering&Construction(SPE&C).SPE&CisIndia’sfirst
ISO9000-2001certifiedconstructioncompany.Itwasalsothefirst
Indiancompanytoexecuteaprojectoverseas(in1975).SomeofSP
E&Cs’mostnotableprojectsincludeTheImperial,India’stallest
residentialtwintowersandTheAquaticGalleryinAhmedabad,India’s
largestpublicaquarium.SPE&Cwasranked54thinthetop250
InternationalContractorsbyENRin2021.
TofindoutmoreabouttheprojectsundertakenbySPInfraandSP
E&Cvisithttps://www.shapoorjipallonji.com/

5. OriginallyPublishedat-
https://realestateandepc.wordpress.com/2023/08/17/infrastructure
-vs-construction-understanding-the-key-differences/