Construction Economics: A New Approach

Construction Economics: A New Approach

Language: English

Pages: 352

ISBN: 1138183725

Format: PDF / Kindle (mobi) / ePub

Construction Economics provides students with the principles and concepts underlying the relationship between economic theory and the construction industry. This new edition has been fully revised with a new introduction which provides an overview if economic developments since the Global Financial Crisis, and introduces new economic thinking.

With new data, examples, initiatives, readings, glossary items and references, the fourth edition of this established core text builds on the strengths of the previous edition:

  • a clear and user-friendly style
  • use of a second colour to highlight important definitions and formulae
  • regular summaries of key points
  • a glossary of key terms
  • extensive use of tables and figures
  • extracts from the academic journal Construction Management and Economics to consolidate and prompt discussion
  • reviews of useful websites

This invaluable textbook is essential reading across a wide range of disciplines from construction management and civil engineering to architecture, property and surveying.





















In search of a paradigm: notes on the work of D.A. Turin. In Essays in Memory of Duccio Turin, Koenigsberger, O.H. and Groak, S. (eds), Pergamon, Oxford, pp. 47–51 Ferry, D. and Brandon, P.S. (1991) Cost Planning of Buildings, Blackwell Scientific Publications, Oxford. Hillebrandt, P.M. (1985) Economic Theory and the Construction industry, 2nd edn, Macmillan, London Ive, G. (1990) Structures and strategies: an approach towards international comparison of industrial structures and corporate

have to pay for car repairs, shoes or concert tickets, they know exactly what the cost (market price) will be. In short, private costs are those borne solely by the companies or individuals who incur them. They are ‘internal’ in the sense that a firm or household must explicitly take account of them. 41 03-Chapter 2.indd 41 10-11-2012 11:36:43 Effective Use of Resources EXTERNAL COSTS These are not so straightforward, as they represent the costs of actions borne by people other than those

industry, we can identify the total market supply at each price; we do this in the final column. Price £/Unit 4 5 Quantities Supplied Firm B Units/day Firm C Units/day Total Market Supply 0 0 0 0 0 300 Firm A Units/day 300 0 6 400 300 200 900 7 500 380 250 1,130 8 580 460 280 1,320 9 620 500 290 1,410 10 650 520 295 1,465 73 06-Chapter 5.indd 73 10-11-2012 11:37:24 Effective Use of Resources In Table 5.1 we see how three firms comprising an industry

management. Although the process originated more than 60 years ago within the US manufacturing sector and was referred to as value engineering, it has been increasingly applied to large-scale construction projects since the 1980s. For our purposes the terms value management and value engineering are synonymous, but in the UK the former term seems to be used more frequently. VALUE MANAGEMENT In the most general sense, value management is a specific event organised to identify and eliminate

(for example, see Latham 1994; Egan 1998; National Audit Office 2001; Fairclough 2002; HM Government 2008; IGT 2010; Cabinet Office 2011). These reports have highlighted the inefficiency caused by the sheer scale and complexity of the construction industry. A recurring recommendation is the need for the construction process to be viewed in a holistic way by a multidisciplinary team. This reflects the fact that construction draws knowledge from many areas, and an important but undervalued area is

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