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    Building Economics Lecture Notes

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    Jackson
    This document outlines a lecture on building economics for a third year architecture course. It discusses the construction industry and its relationship to the economy. Specifically, it notes that the construction industry provides physical facilities for other activities, is affected by economic factors like demand, and has a large dependence on government projects. It also describes the complexity of the construction industry, noting it consists of subsectors and projects with multiple stages from conception to completion.

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    Building Economics Lecture Notes

    Uploaded by

    Jackson
    6K views17 pages
    This document outlines a lecture on building economics for a third year architecture course. It discusses the construction industry and its relationship to the economy. Specifically, it notes that the construction industry provides physical facilities for other activities, is affected by economic factors like demand, and has a large dependence on government projects. It also describes the complexity of the construction industry, noting it consists of subsectors and projects with multiple stages from conception to completion.

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    Construction Industry & the Economy

    Original Title

    Building Economics lecture notes

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    This document outlines a lecture on building economics for a third year architecture course. It discusses the construction industry and its relationship to the economy. Specifically, it notes that the construction industry provides physical facilities for other activities, is affected by economic factors like demand, and has a large dependence on government projects. It also describes the complexity of the construction industry, noting it consists of subsectors and projects with multiple stages from conception to completion.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    6K views17 pages

    Building Economics Lecture Notes

    Uploaded by

    Jackson
    This document outlines a lecture on building economics for a third year architecture course. It discusses the construction industry and its relationship to the economy. Specifically, it notes that the construction industry provides physical facilities for other activities, is affected by economic factors like demand, and has a large dependence on government projects. It also describes the complexity of the construction industry, noting it consists of subsectors and projects with multiple stages from conception to completion.

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    You are on page 1of 17

    ABA 2307

    B. Arch 3rd Year 2015


    BUILDING ECONOMICS
    Lecture 2

    Outline

    Course Overview

    Course Outline

    Semester Plan

    CATs & Assignments

    Building Economics

    1
    3

    Construction Industry & the


    economy
    Determinants of demand &
    supply

    Cost in use/Life cycle costs

    Estimating methods

    Measurements & role of a QS


    3

    Construction Industry & the Economy


    Today's lecture plan, we will look at

    Introductions

    Role of the construction industry

    Industry & the economy

    Relationships & processes

    Complexity of the construction industry


    4

    Introduction

    The construction industry is the sector


    involved with erection, repair and
    demolition of buildings and civil engineering
    structures in an economy

    Construction industry & the property


    industry are intertwined
    5

    Introduction cont

    The construction industry handles the


    constructed-facility production process while
    the property industry handles the
    constructed-facility output.

    Demand for constructed facilities is satisfied


    either through the purchase or lease of a
    building from the existing stock
    6

    Introduction cont

    The function of the construction industry is


    therefore to serve the portion of total
    demand for constructed space in the
    economy that cannot be served from the
    existing stock of constructed space.

    Role of construction industry

    It provides constructed physical facilities


    which provide space where other activities

    may take place

    The monetary value of all the buildings & civil


    engineering works produced by the industry in
    a given period of time, normally 1yr is referred
    to as the gross output of the constr. industry
    8

    Construction industry & the Economy

    The construction industry affects & is

    affected by the economy

    The interrelationships between the industry


    & the economy stem from three distinct
    characteristics of the industry:
    Size;
    investment goods;
    Government is a client for a large part of its work
    9

    Construction industry & the Economy

    Size is important because changes in output

    of the construction industry have a significant


    effect on the size of the national product
    both directly and indirectly.
    If the output of the industry is down, total
    investment is down, and the investment is of vital
    concern to the health of the nation.
    10

    Construction industry & the Economy

    It provides an investment good means that it is

    subject to fluctuations in demand, for most of


    its products will be required only if certain
    other factors are favorable, e.g the expected sales of goods, which a factory
    would produce
    the availability of mortgages for house purchase
    the economic climate in which government takes
    decisions about the level of social services
    11

    Construction industry & the Economy

    The dependence on government as a client

    means that government is able to influence


    the demands on the industry by: action on its own proposed projects
    control of credit and interest rates

    12

    Construction industry & the Economy

    There are 4 main aspects of economic life in

    which the construction industry affects & is


    affected by the economy

    in demand and output


    in employment and incomes
    in balance of payments
    in the level of prices.

    13

    Complexity of the construction industry

    It may be assumed to consist of sub sectors,

    each sub-sector consisting of numerous


    projects, and each project involving different
    stages of activities from project conception
    to completion.

    The basic process conception to completion


    is regarded as the INPUT-OUTPUT.
    14

    Complexity of the construction industry

    15

    Complexity of the construction industry

    16

    Questions?

    17

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