Building Construction Economics
We will be discussing Inputs into Building Construction in terms of four important factors:
- Land
- Labour
- Capital
- Materials
Land
Marshall defines Land “Land means the materials, and the forces which nature gives us freely for the human beings (other creatures as well), in land, in water, in air, light and Heat”.
- Land is nature’s gift
- Land has no supply price (supply remains same) whether price of land is high or low
- Land is permanent (lack of mobility)
- Land lacks mobility in geographic sense
- Provides infinite variation in fertility, utility, situation etc
Labour
Any work whether manual or material which is undertaken for a monetary consideration, is called Labour in economics.
Marshall defines “Any exertion of mind or body undergone partly or wholly with a view to some good (consideration) other than pleasure, derived directly from work.
- Labour is inseparable from labourer.
- Labourer has to sell his labour in person.
- Labour has no reserve price.
- Labour has weak bargaining power.
- Labour force cannot be increased or decreased.
Capital
Refers to that part of man’s wealth which is used in producing further wealth or which yields an income. Land is considered as a capital as:
- It is free gift of nature.
- Capital is perishable whereas land has no mobility.
The capital can be increased but the amount of land is fixed and the value may vary depending on location. Capital formation is the very core of the Economic development. Without capital, Building industry cannot survive and flourish for the benefit of the society.
Materials
Materials are available in two forms:
- Natural Materials
- Manmade Materials
Natural Materials
Natural materials such as stones, mud, minerals, water (wood), ores for various materials like Gold, silver, copper, iron, aluminium, sand etc.
Manmade Materials
These materials include bricks, stone blocks, tiles, granites, marble, steel, aluminium, copper products, PVC, cement, wood, plywood, laminates, paints, most of the building materials.
Building industry put to use both natural and manmade materials, to construct structures to cater to various needs of human beings on the God’s Gift “LAND”.
Technological research in producing innovative new Building Materials that can withstand suitably THE GLOBAL WARMING, which is causing ecological imbalance at an alarming rate and such innovations are the need of the hour. This is true especially in the case of our country INDIA.