Economic Factors Building
Economic and legislative factors influence the design team and contractor throughout the building project from inception to completion
In this assignment, I am going to highlight the various factors which influence the building project from inception to completion in India. If we consider place as one of the factor for construction economics, it will be fix as India as a country. in this assignment I am going to briefly describe a PEST analysis and its influence on the project.
Introduction:
Lets see what is Economics?
Economics is the social science that studies the production, distribution and consumption of goods and services.(Wikipedia)
The science which studies human behavior as a relationship between ends and scarce means which have alternative uses(Lionel Robbins,1932).
PEST analysis is one of the best tools describing economic factors. PEST analysis consist of following major factors which strongly influence on the building projects from inception to completion.
Quarterly Gross Domestic Product (year-on-year gro...
Gross Domestic Product (GDP) growth rate for OECD-...
World map showing countries by nominal GDP per cap...PEST factors are as follows-
Political Factors
Economic Factors
Social Factors
Technological Factors
Some of the other factors which has also strong influence on the building project economy can be as follows
Buyer Power
Supplier power
Michael Porters five force factors
Stock Market performance
Industry outlook
Apart from the above factors we need to understand what is project and what are the stages of project
Project:
Project is the definition of planning, organising and managing resource to bring about the successful completion of specific project goals and objectives(Wikipedia)
Following are the main stages in the construction projects:
1)Conceptualization
2)Pre Construction
3)Construction and execution
4)Post construction and handover to the client.
Indian Construction Industry Scenario:
The Indian construction industry recorded a consistent double digit year on year growth of 12% during 2001-05 and is expected to grow at 25%-30 % during 2005-10.the key drivers of this growth are government...