Beruflich Dokumente
Kultur Dokumente
Transportation
Banking
Architects and Engineers etc who offer services,
insurance agencies for buildings, educational
institutions, who train professionals.
Conclusion
Inflation
Building industry comes under ambit of Consumer Protection
Act. There should be strict rules by sanctioning authorities to
see that the building is constructed as per sanction and
specifications.
Monopoly and Oligopoly
In the building industry, there is no monopoly. The only
department in central government, which does not have
architects is Ministry of Railways and AP state. They are
managed by engineers only. There is oligopoly in the building
industry i.e., there are reputed builders and reputed producers
of building who produce quality building materials because of
intense competition.
Production
Employment
MACRO ECONOMICS
It deals with aggregates and averages of entire economics like
national income, aggregate products, aggregate outputs, total
employment, total consumption, savings and investments,
aggregate demand, aggregate supply, general level of prices.
Here it also studies how these aggregates are fluctuating and
affecting the economic growth of the country. Macro
Economics is also called Income Theory.
Limitations
Efficiency in Economics
Capability and able to perform duties well. The efficiency in
production of building materials is high as there is competition
and those who work in production are offered annual bonus
depending upon the profits made by companies.
Fiscal Policies
Some Fiscal policies are controlled by Central Government
and some by State Government by levying taxes like sales tax,
excise tax, income tax, import/export duties, property tax,
wealth tax, taxes on investments in fixed deposits if the
interest earned is more than 10,000/ per year, taxation is either
directly or indirectly.
Unit - 2
Equity in Economics
LABOUR INTENSIVE INDUSTRY VERSUS CAPITAL
INTENSIVE INDUSTRY
There is a problem of choosing between labour intensive
industries or Labour intensive methods and Capital Intensive
industries or Capital Intensive Methods. In under developed
countries, due to chronic unemployment or cheap labour to
capital is preferred.
The most efficient use of resources in less developed countries
will tend to favour labour intensive methods. For innovations,
it would also follow the Capital Saving and Labour using
innovations, it would be preferred. It would be profitable to
adopt capital-intensive techniques to increase productivity.
If the export industries are capital-intensive such as mining
and mineral refining, then, even though there is surplus labour,
extensive investment has to be done in order to earn necessary
Foreign Exchange.
For example, In India, Labour force is available in plenty.
This is the reason most of the building industry is Labour
Intensive including both skilled and unskilled labour.
Only certain prestigious projects are handled by Reputed
Building agencies like L&T, Raheja Builders etc who employ
only skilled labour force handled by all professionals like
Architects, Engineers, project Managers, etc and they handle
construction using precast building elements and heavy
equipment and machines.
They work on TURN KEY basis like designing and
execution on a time bound programmes. In construction of
International Airports, the private agencies invest the capital,
design, build and operate for certain number of years to
recover their investment and profits (BOT). Sometimes we
send skilled technical professionals, skilled labour to other
countries to help in their construction activity. Sometimes we
import Technical Knowhow for production of advanced
building materials for domestic consumption.
Unit - 3
BUILDING CONSTRUCTION ECONOMICS
We will be discussing Inputs into Building Construction in
terms of four important factors:
1.
2.
3.
4.
Land
Labour
Capital
Materials
Land
Marshall defines Land Land means the materials, and the
forces which nature gives us freely for the human beings
(other creatures as well), in land, in water, in air, light and
Heat.
Labour
Any work whether manual or material which is undertaken for
a monetary consideration, is called Labour in economics.
Marshall defines Any exertion of mind or body
undergone partly or wholly with a view to some good
(consideration) other than pleasure, derived directly from
work.
Capital
Refers to that part of mans wealth which is used in producing
further wealth or which yields an income. Land is considered
as a capital as:
1.
2.
Natural Materials
Manmade Materials
Natural Materials
Natural materials such as stones, mud, minerals, water (wood),
ores for various materials like Gold, silver, copper, iron,
aluminium, sand etc.
Manmade Materials
These materials include bricks, stone blocks, tiles, granites,
marble, steel, aluminium, copper products, PVC, cement,
wood, plywood, laminates, paints, most of the building
materials.
Building industry put to use both natural and manmade
materials, to construct structures to cater to various needs of
human beings on the Gods Gift LAND.
Technological research in producing innovative new Building
Materials that can withstand suitably THE GLOBAL
WARMING, which is causing ecological imbalance at an
alarming rate and such innovations are the need of the hour.
This is true especially in the case of our country INDIA.
Unit - 4
FINANCING OF PROJECTS | ECONOMICS RELATED
TO BUILDING INDUSTRY
Financing of Projects is the most important factor determining
the success of the project. Various factors influence the
success of a project.
In this article, we are going to study the major factors that are
responsible for the success of the Building project
Here are the four factors:
1.
2.
3.
4.
Sources
Total Cost Estimation of the Project
Utility in Financing
Agencies and Institutions directly and indirectly
influencing the economic aspects of a project
Sources
Loans are available for both purchasers and Builders from:
All Nationalized Banks,
Co-operative Banks,
Private Banks,
LIC HFL,
Finance Companies,
Insurance Companies like General Insurance Co (GIC),
United India Insurance Co Ltd, National Insurance Co Ltd,
Oriental Insurance Co Ltd, New India Assurance Co Ltd (for
the employees), Foreign Direct Investment FDI, 20
Nationalised Banks along with Regional Rural Banks come
under Public sector.
Commercial Banks, Cooperative Banks operate under
provisions of Cooperative societies Law of states for credit
and non-credit purpose.
National Bank of Agriculture and Rural Development
(NABARD) help Farming sector.
Total Cost Estimation of the Project
Price to be paid for a things like;
indirectly