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Building Economics

Building Economics

Building economics is concerned with production and consumption and services and the analysis of commercial activities. Construction firms look for building economic experts to keep up with the budget plan of a project.

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.

One of the most important aspects of construction economics is value analysis. This involves figuring out how much money a project will cost and how long it will take to complete. It also determines which options are the best deal for the client. Value analysis also involves analyzing the tradeoffs between different options. For example, if two options have the same cost but one takes longer to complete, it would be more valuable to choose the option that takes less time.

Construction economics is an important field that helps to optimize projects for both the client and the contractor. By understanding how value affects projects, both parties can make better decisions about which option is best for them.



(a) Feasibility stage

This is an exploratory stage. The Client states his wishes and limitations. The design team explores possibilities and then gives client what can be accommodated within the parameters.


(b) Cost Plan Stage

The Quantity Surveyor gives distribution of costs within the development for other Consultants to fit in their design.


(c) Cost Estimate Stage

The Quantity Surveyor estimates the cost of the design from the other Consultants.


(d) Cost Check Stage

Compares the cost of the design with his cost plan to check whether the design is within the Budget or not. Necessary changes are then recommended.


(e) Bills of Quantities

The Quantity Surveyor prepares the Bills of Quantities ready for tender action.


(f) Cost Analysis

On receipt of the tenders the Quantity Surveyor checks and compares them with his cost forecast. A recommendation of the award of tender is then made.


(g) Tender Documents

The Quantity Surveyor prepares and compiles contract documents for signature by the Client and Contractor.


(h) Cost Control

During construction period changes may occur which the Quantity Surveyor must keep good record of and advice on their cost implication to the project..


(i) Interim Valuations

The Quantity Surveyor prepares Interim Valuations for the Contractor to present to the Client for payment.


(j) Financial Appraissals

From time to time the Quantity Surveyor prepares Financial Appraisals. These Financial Appraisals are advice to the Client on the financial status of the project resulting from variations during construction stage.


(k) Variation Orders

The Quantity Surveyor draws variation orders on all Architects Instructions.


(l) Financial Account

After all has been said and done, the Quantity Surveyor then compiles the FinalAccount of the project. It incorporates all the variations that have been made to the contract during construction period and gives the final sum of money to be paid to the Contractor. In other words the Quantity Surveyor is the last person on site to tie up all the loose ends of the project.