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A basic outline of economic considerations that come to play in construction management - Essay Example
Author : watsicawalker
Finance & Accounting
Pages 10 (2510 words)
In this brief report, a basic outline of economic considerations that come to play in construction management will be weighed, including essential concerns of economic theory, general implications of market functions, and industry-specific applications. …
According to the research findings economic theory, despite its crucial impact upon the ultimate success of construction projects and corporations, is often insufficiently understood by construction management professionals. Warren argues that this is due, at least in part, to an insufficient linkage between economic theory and the contexts of construction applications that such professionals hold as their primary disciplinary concern. After all, most construction professionals enter the engineering and building field because they want to design and construct physical structures, not in order to apply economic theory. However, as Hillebrandt argues, basic economic theories must be weighed when approaching construction management because they impact everything from cost of contracts, procurement of resources, and pricing of services offered. In this section, a very basic outline of economic principles that apply in construction management will be offered. The presentation here is kept deliberately simple because, as De Valence argues, construction economics has yet to define a consensus approach to economic theory that accommodates the conditional realities of construction management. Specifically, De Valence argues that construction economies, as a “still emergent” field, has not yet developed a set of disciplinary applications of economic theories, but merely borrows from a number of other fields, such as finance or economics itself. ...