The construction sector and construction activities are considered to be one of the major sources of economic growth, development and economic activities. The construction and engineering services industry plays an important role in the economic uplift and development of the country. It can be regarded as a mechanism of generating employment and offering job opportunities to millions of unskilled, semi-skilled and skilled workforce. The construction industry plays an essential role in the socio-economic development of a country. The activities of the industry have great significance to the achievement of national socio-economic development goals of providing infrastructure, sanctuary and employment. It includes hospitals, schools, townships, offices, houses and other buildings; urban infrastructure (including water supply, sewerage, and drainage); highways, roads, ports, railways, airports; power systems; irrigation and agriculture systems; telecommunications etc. It deals with all economic activities directed to the creation, renovation, repair or extension of fixed assets in the form of buildings, land improvements of an engineering nature. Besides, the construction industry generates substantial employment and provides a growth impetus to other sectors through backward and forward linkages. It is, essential, therefore, that, this vital activity is nurtured for the healthy growth of the economy. The main purpose of this study is to see whether growth in the construction industry actually caused the economic increase or, alternatively, did economic expansion strongly contribute to construction growth instead? Globally, the construction industry is regarded as one of the largest fragmented industries. An estimate of annual global construction output is probably closer to the U.S $ 4.5 trillion in 20041. The construction industry is also a prime source of employment generation offering job opportunities to millions of unskilled, semi-skilled and skilled workforce. A global picture of construction output and employment in developing and developed countries can be seen in table -1 below. It can be seen from the table-1 that total construction output worldwide was estimated at just over $3,000 billion in 1998. Output is heavily concentrated (77 percent) in the high-income countries (Western Europe, North America, Japan and Australasia). The contribution of low and middle-income countries was only 23 % of total world construction output (ILO Geneva2001).