CENSUS OF CONSTRUCTION INDUSTRIES
Legal Form of Organization Summary of Findings

GENERAL SUMMARY OF FINDINGS

The Legal Form of Organization report provides data by legal form of company organization and type of operation from the 1992 Census of Construction Industries covering construction establishments with payroll. In addition, limited data on construction establishments with no payroll during 1992, obtained from administrative records of the Federal Government, are also included. (Establishments with no payroll are, for the most part, company owned and operated by a single person.)

Establishments covered in this report were primarily engaged in contract construction, or construction on their own account for sale, as defined in the 1987 Standard Industrial Classification (SIC) Manual. The SIC Manual defines construction in three broad types:

1. Building construction by general contractors or operative builders;

2. Heavy construction (highways, power plants, etc.) done by general contractors and selected special trade contractors; and,

3. Construction done by special trade contractors such as electricians, plumbers, and painters.

There were 1.9 million construction establishments in the United States operating in the construction industries. These establishments accounted for $582 billion in total value of business done.

Most of the 1.9 million construction establishments were individually owned. There were 1.5 million individual proprietorships, accounting for 76 percent of all construction establishments. However, these individual proprietorships accounted for only $73.2 billion in total value of business done, or 13 percent of all establishments. Establishments classified as corporations accounted for 20 percent of all establishments and 81 percent of the total value of business done. Partnerships accounted for 3 percent of all establishments and 3 percent of the total value of business done. Establishments with other legal forms of organization and establishments which could not be classified accounted for the balance.

ESTABLISHMENTS WITH PAYROLL

Selected statistics are shown by legal form of company organization and type of operation (single- or multiunit companies).

Total value of construction work for all construction establishments with payroll in 1992 amounted to $528 billion. Establishments of multiunit companies accounted for only 2 percent of all establishments, but accounted for 21 percent of the total value of construction work. Establishments of single-unit companies accounted for 98 percent of the number of employer establishments and 79 percent of the total value of construction work.

There were 332,309 establishments that operated as corporations, accounting for 58 percent of all employer establishments. They had total value of construction work of $453 billion, 86 percent of the value of all establishments. There were 240,543 establishments, or 42 percent that operated as individual proprietorships, partnerships, and other forms of organization which could not be classified. They accounted for 14 percent of the total value of construction work. Of these unincorporated establishments, 194,653 were organized as individual proprietorships, and 24,167 were partnerships. Establishments with other legal forms of organization and establishments which could not be classified accounted for the balance.

Establishments of multiunit companies, on the average, were larger than those of single-unit companies. The average multiunit establishment had 69 employees and total value of construction work of $10.5 million. The average single-unit establishment had only 7 employees and total value of construction work of $741 thousand.

Establishments operating as corporations tended to be larger than those operating as partnerships or individual proprietorships. The average corporate establishment had 11 employees and total value of construction work of $1.4 million. The average partnership establishment had 5 employees and total value of construction work of $619 thousand. The average for individual proprietorships was approximately 3 employees and total value of construction work of $209 thousand.

ESTABLISHMENTS WITHOUT PAYROLL

During 1992, there were 1.3 million establishments with no payroll classified as construction. According to administrative records of the Federal Government, their value of business done during 1992 was $42.5 billion. By far, most of these establishments, about 93 percent, were individual proprietorships accounting for 75 percent of the total value of business done.

For the establishments without payroll, only information on total value of business done was available from administrative records.