Economics And Finance In Construction Case Study

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CONTENTS

Contents 2

TASK 1 P1 3

TASK 2 M1 5

BIBLIOGRAPHY 6

INTRODUCTION

In Task one I have to explain the basic economic principles that underpin construction projects. I am going to mention the different markets, such as labour, commodity, housing and finance. I will also explain the different impacts that will occur in the the construction industry. Further on I will discuss the the inflaiton and interest. I will first give a brief introduction on what economics is, and then in detail what supply and demand is and what affects it. Further on I will explain the markets and the inflation.

In task two I will explain the prolems with economics and finance. And solutions which I have researched and different aspects of the economic prinicple.

TASK 1 P1

Economics and Finance in Construction are a key part of the construction industry and it’s basically focused on the scarce sources we all have. Everyone needs to get their finances right without doubt or else anyone can easily come to an end where there is no more help or solutions with financial matters. To make sure that the economy stays safe and secure economists argue that people must make careful choices and when it comes to construction the matter to be taken into concern is the, choices we make about investments and how to deal with them because one of the main things for construction is investments and without any there would be no buildings or construction work unless someone has the money to spend other than the bank’s lending money.

When relating economy with demand, construction is highly dependent in these changes as whenever there is a change in any matter regarding construction this highly affects the construction industry. Examples like that are d...

... middle of paper ...

... and get all your finances right. When labour shortages occur this then slows down the construction development.

BIBLIOGRAPHY

Topliss, S., & Hurst, M. (2010). Construction & The Built Environment. Edinburgh: Pearson Education Limited.

Summary: I have mentioned the different types of market and the two main factors which are supply and demand, I have wrote in detail what they are and how they affect construction. Also I have mentioned the interests and inflation charge and how they affect the economy and the construction industry. In task two I have mentioned the different problems relating to economics which includes the shortages and scarcity. I have also mentioned the different thinking’s of the human nature and what the factors are. Finally I have spoken about the different solutions and how it has affected construction.

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