Principles of Construction Economics

1. Principles of Construction Economics

2. Construction industry strategies world economic crisis

3. Introduction • A situation in which the economy of a country a sudden downturn brought on by a financial crisis. An economy facing an economic crisis will most likely experience a falling GDP ,a drying up of liquidity and rising/falling prices due to inflation/deflation

4. Economic crisis • Its mean an economic recession is primarily attributed to the actions taken control the money supply in an economy • Inflation is the increse in the prices of goods and services over the period.

5. Factors for Financial Crisis • Sub-prime lending • Originate and distribute model • Financial engineering, derivatives • Credit rating agencies • Lax regulation • Large global imbalances

6. Effect for construction industry • Contrctor not interest to invest the large money in the construction industry • Credit conditions are tightening and obtaining credit insurance is increasingly difficult • Construction companies face financing difficulties and, in some extreme cases, even bankruptcy. • The contraction in the new housebuilding segment is continuing and even deepening.

7. Contin.... • The non-residential market is influenced by the business climate, • In general, civil engineering works have fallen back compared to previous year although it helped to sustain construction activity in many countries.

8. How to face economic crisis by construction industry • Government decrease the taxes on the construction firms and will give the more benifits • Handle limit project • Try to control inflation, interest rate and unemployment • Find new oppurtunatity to produce product and sell in a new market • Manage the team with the contractor • Use the new techniques

9. Conclution • In order to effectively solve the current eeconomic crisis sufficient control over inflation, interest rate and unemployment is vital • Try to find new oppurtanities to produce new product or try expand the market • Try to reduce imports from other countries • Motivating the construction wor ks by given loan at lower interest rate • Reducing the staffs turnover by giving a higher salary

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