Design Economics for the Built Environment: Impact of Sustainability on Project Evaluation

Chapter 1Economic Context, Policy Environment and the Changing Role of Design Economists

Herbert Robinson and Barry Symonds

1.1 Introduction

Construction projects are essential for industrial development, business growth and economic transformation. However, major industry reviews and current challenges in the UK construction industry have identified a number of problems forcing construction firms and their clients to reconsider the way they procure and manage projects. A number of criticisms have also been directed specifically at quantity surveying firms assuming the role of economists focusing on cost management and a range of services to provide value for money for clients of the construction industry.

This chapter provides the economic context for construction projects, examines the policy environment and underlying implications for design economists. First, the role of construction in economic development is explored followed by a discussion of the global construction market, the drive towards international trade and the internationalisation of construction services. Secondly, the policy environment is examined and policy measures to stimulate construction investment are discussed with examples of how fiscal, monetary and industry specific policies affect construction processes, resource markets which in turn affect construction costs. Thirdly, the role of the design economists in responding to the policy issues resulting in increasingly complex challenges to reduce social, ...