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Introduction To Building Economics

Building economics concerns production and consumption of buildings and related services. It analyzes commercial activities related to architecture and construction. Buildings are produced by builders and consumed by those who buy or rent spaces for various functions, with services provided by professionals. Scarce resources like land and materials result in unmet housing demand. Any legally permitted activity that results in construction to serve people who are willing to pay, directly or indirectly, can be considered an economic activity. Goods include natural resources converted into manmade materials for construction. Producers range from extractors of raw materials to manufacturers of construction products to service providers in transportation, banking, and training that support the industry. Money is now the standard medium of exchange for all building-related activities

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Rhythm Satya
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92 views

Introduction To Building Economics

Building economics concerns production and consumption of buildings and related services. It analyzes commercial activities related to architecture and construction. Buildings are produced by builders and consumed by those who buy or rent spaces for various functions, with services provided by professionals. Scarce resources like land and materials result in unmet housing demand. Any legally permitted activity that results in construction to serve people who are willing to pay, directly or indirectly, can be considered an economic activity. Goods include natural resources converted into manmade materials for construction. Producers range from extractors of raw materials to manufacturers of construction products to service providers in transportation, banking, and training that support the industry. Money is now the standard medium of exchange for all building-related activities

Uploaded by

Rhythm Satya
Copyright
© © All Rights Reserved
Available Formats
Download as PDF, TXT or read online on Scribd
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BUILDING ECONOMICS

Assignments 1
Report on elementary concept of building economics

Submitted By
Rhythm Satya
Ishan Institute of Architecture and Planning
6th Semester
Introduction to Building Economics
Building economics is concerned with production and
consumption and services and the analysis of commercial
activities –
As it is related to architecture and building activity – all types of
buildings for all types of functions by the builders (production)
and consumption i.e., the ones who either buy or hire those
buildings for various functions with the services offered by
professionals like architects, planners, engineers etc.

Ends – scarce means


The scarce means like land, building materials, and allied services
result in failing to meet the demand in housing sector.
Basic concept – any activity (legally permitted) which shall result
in building activities to serve people for which the people are
ready to pay the price directly or indirectly by buying or hiring
the spaces can be treated as an economic activity.

Goods and services


Economic good is a physical object like natural or manmade
(artificial) goods.

Natural goods
Sources like land, water, air, natural stones, sand basic raw
materials to be converted to manmade materials to be used for
construction of buildings.

Manmade goods
Product like mosaic tiles, tiles of all stones, ceramic tiles, wall
finishes, doors/windows/woodwork, electrical materials, water
supply and sanitary pipes and fittings etc, harnessing solar power,
A/C plants, heating, cooling etc.
Producers
Producers are individuals, builders, contractors in private sector
or governments state or central.
Primary producers are those who produce raw materials like
wood, stones, basic raw materials for production of building
materials.
Secondary producers are those who are engaged in production of
materials like cement, procure sand, metal, steel, aluminium,
various other materials to be used in building construction.

Tertiary producers
Tertiary producers are those who carry out the following
functions:
• Transportation

• Banking

• Architects and Engineers etc who offer services, insurance

agencies for buildings, educational institutions, who train


professionals.

Consumers
In good old days, there was barter system with no profit motive.
Present days, the medium of exchange is money which is used in
so many forms for buying and selling for all activities.

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