Unit 23 Construction Economics & Sustainability Assignment Brief
| Qualification | Pearson BTEC Higher Nationals Construction |
| Unit Number | 23 |
| Unit Title | Construction Economics & Sustainability |
| Unit code | H/618/8136 |
| Unit level | 4 |
| Credit value | 15 |
Introduction
Construction is both a major influence on, and is influenced by, the economy. The construction sector has considerable impact on local, regional and national economies. However, it is also highly dynamic and responds to fluctuations in broader global economies.
When considering construction economics, we must also consider other factors that will influence the cost and viability of construction projects. Both political and social factors have a role in shaping the way that construction projects can be achieved. Thus, during the planning and execution phases of a project, a quantity surveyor must be aware of and seek to integrate the influence that social, political and economic factors will have on project costs, procurement and design.
Students will gain insight into the ways that political, social and economic factors influence construction. Through this, they will consider the relationship between these factors and how they are reflected in a project and in the broader economy. To integrate this knowledge, students will examine projects to evaluate the way that construction economics, combined with societal and political factors, may influence construction costs and procurement route.
Learning Outcomes
By the end of this unit, students will be able to:
LO1 Discuss the political, economic, social and environmental factors that influence the construction industry
LO2 Assess the relationship between economic factors, material and labour costs
LO3 Explore strategies for construction procurement that address economic, social, environmental and political challenges
LO4 Present an analysis of an existing or proposed development in relation to the economic, social and political factors influencing its success.
Essential Content
LO1 Discuss the political, economic, social and environmental factors that influence the construction industry
- Construction sector
- Supply and demand
- Equilibrium
- Stakeholders
- Political influences
- Legislation
- Taxation
- Tax credits, deductions and subsidies
- Political uncertainty
- Economic influences
- Economic model (e.g., free market economy, command/planned economy)
- Investment (e.g., investor types, investment types, return on investment (ROI))
- Economic indicators (e.g., GDP, Retail Price Index, manufacturing activity, employment statistics)
- Economic subsidies
- Market influence (e.g., inflation/deflation, recession/depression)
- Interest rates
- Regional variations
- Profit
- Social influences
- Demographic changes
- Social trends
- Attitudes
- Environmental influences
- Environmental impact (e.g., carbon emissions, materials and scarcity, energy use)
- Environmental initiatives (e.g., industry goals, government targets)
LO2 Assess the relationship between economic factors, material and labour costs
- Factors influencing material costs
- Material type (e.g., raw, processed, product)
- Material supply (e.g., local, international, import taxes, tariffs, customs)
- Transport
- Availability (e.g., scarcity, sustainability, renewable)
- Factors influencing labour costs
- Labour availability (e.g., demographics, trades, professions, skills shortages)
- Labour relations (e.g., unionised labour, casual labour, professionals)
- Labour practices (e.g., working hours, role definitions)
LO3 Explore strategies for construction procurement that address economic, social, environmental and political challenges
- Procurement types
- Traditional
- Design-Build (e.g., single-stage, two-stage)
- Management
- Private Finance Initiative/Public-Private Partnership (e.g., Design-Build-Operate (DBO), Build-Own-Operate-Transfer (BOOT))
- Other (e.g., framework agreements, engineering procurement and construction (EPC), fast-track construction, partnering, prime contracting)
- Procurement in response to
- Economic factors (e.g., cost, time, ROI)
- Social factors (e.g., stakeholders (individual, public, private, institutional), employment, environmental factors, political factors)
LO4 Present an analysis of an existing or proposed development in relation to the economic, social and political factors influencing its success
- Presentation type
- Report
- Audio/visual
- Audience
- Professional
- Non-professional
- Peer
- Project/development type
- Residential
- Commercial
- Institutional
- Procurement
- Procurement route
- Contract type
- Drivers/influences
- Economic
- Political
- Social
Learning Outcomes and Assessment Criteria
| Pass | Merit | Distinction |
| LO1 Discuss the political, economic, social and environmental factors that influence the construction industry |
D1 Critically evaluate the ways that global economics influences construction. |
|
| P1 Explain the ways that economic models may influence construction projects.
P2 Describe the relationship between political decisions and construction costs. |
M1 Analyse the impact of the economic ‘market’ on construction costs. | |
| LO2 Assess the relationship between economic factors, material and labour costs |
D2 Critically analyse the dynamic relationships between material and labour costs with inflation. |
|
| P3 Review a set of general arrangement drawings, selected details and door/window schedules to determine the factors that influence material and labour costs.
P4 Produce an outline bill of quantities related to a given project. |
M2 Compose a Schedule of Works. | |
| LO3 Explore strategies for construction procurement that address economic, social, environmental and political challenges | ||
| P5 Discuss the ways that different procurement routes respond to social, political, and economic drivers.
P6 Examine the relationship between procurement route and sustainability. |
M3 Analyse the influence of government policy on the procurement route for public projects. | |
| Pass | Merit | Distinction |
| LO4 Present an analysis of an existing or proposed development in relation to the economic, social and political factors influencing its success |
D3 Present a critique of a project’s procurement route in response to political, social and economic drivers. |
|
| P7 Examine the ways in which a construction project responds to political, social and economic influences.
P8 Present the outcomes of the analysis of a construction project. |
M4 Justify an approach to presenting project analysis in meeting audience needs. | |
Recommended Resources
Print resources
GRUNEBERG, S., FRANCIS, N. (2019), The Economics of Construction, (Economics of Big Business), Agenda Publishing
HIGHAM, A., BRIDGE, C., FARRELL, P. (2016), Project Finance for Construction, Routledge
MCDONOUGH, W., BRAUNGART, M. (2010), Cradle to Cradle: Remaking the Way We Make Things, North Point Press
MYERS, D. (2016), Construction Economics, Taylor & Francis
STAIGER, R. (2015), Foundations of Real Estate Financial Modelling, Routledge
Links
This unit links to the following related units:
- Unit 2: Construction Technology
- Unit 3: Science & Materials
- Unit 4: The Construction Environment
- Unit 5: Legal and Statutory Requirements in Construction
- Unit 10: Measurement & Estimating
- Unit 12: Tender & Procurement
- Unit 25: Quantity Surveying Practice
- Unit 27: Law & Legal Frameworks in Quantity Surveying
- Unit 29: Contracts & Management
- Unit 36: Value Engineering & Cost Control
- Unit 38: Advanced Quantities for Complex Building Projects
- Unit 54: Advanced Quantity Surveying Practice
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