Economic Factors Building

Essay by Ready2Fall October 2014

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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.


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.

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 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:


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...