BUILDING ECONOMICS-I

(BACH-904)

LECTURE -II

BUILDING ECONOMICS
AR.DIGAMBER SINGH

COLLEGE OF ARCHITECTURE IET.BHADDAL,ROPAR

B.ARCHITECTURE
JULY-NOV 2019
 Building Economics
Introduction
Building owners generally wish to lower costs or increase profits. To accomplish this,
buildings must be LOCATED , DESIGNED, ENGINEERED, CONSTRUCTED,
MANAGED, and OPERATED with an eye to the economic consequences of these
decisions.
•Select locations which enhance revenue opportunities, or lower costs, or both.
•Architects need to consider the OWNING AND OPERATING COSTS of alternative
building designs.
•Mechanical and structural engineers need to take into ACCOUNT THE ECONOMY
of alternative DESIGNS AND SIZES of building systems and components.
•Architects and engineers need to work together to make economic trade offs
between the BUILDING ENVELOPE and MECHANICAL SYSTEMS .
•Construction companies and builders need to select COST-EFFECTIVE
MATERIALS, EQUIPMENT , and CONSTRUCTION TECHNIQUES . Building
managers and operators need to establish COST-EFFECTIVE MAINTENANCE,
REPAIR, and replacement policies, and to decide when and what to renovate .

In short, those who design , engineer, construct, manage, operate , and own buildings are
faced with numerous decisions which affect the economics of buildings
 Building Economics

Definition
Economics -is the study of DEMAND AND SUPPLY OF GOODS AND SERVICES through
a medium which PRODUCES GOODS/SERVICES.
Economics is also the study of PRODUCTION AND CONSUMPTION of goods and
transfer of wealth to produce and obtain those goods. Building Economics is a branch
of general economics It is based on application of principles of economics related to
CONSTRUCTION INDUSTRY.

Another Definition

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.
 Building Economics
BUILDINGS- ROLE AND IMPORTANCE

•Buildings- anti-thesis to natural environment constitute manmade environment

•Buildings- constitute major component of any city give distinct character and personality
to a city are living organism

•Buildings--- Provider of space where all indoor human activities are performed living,
working, care of body & spirits vital for human growth

•Buildings --provide optimum/worst living conditions make people healthy/sick vital for
human growth- 80% of human life spent in buildings

• Buildings – largest consumers of energy (50%) ,largest consumers of resources, major

generators of waste.
• Buildings – responsible for large carbon footprints , responsible for global warming
major determinant of global sustainability.
•Buildings - integral part of human journey will continue to define human growth
development and Civilizations
• Buildings- needs to be planned, designed and constructed as sustainable buildings and
maintained with care to make them qualitative, cost-effective, least consumers
of energy ,least consumers of resources least generators of waste
 Building Economics
Buildings Economics Scope
Economics is the study of Demand and supply of goods and services through a medium
which produces goods/services. Economics is also the study of production and
consumption of goods and transfer of wealth to produce and obtain those goods. Building
Economics is a branch of general economics. It is based on application of principles of
economics related to construction industry Building Economics is concerned with:
construction industry
its place in economy role of construction firms
role of designers and constructors (builders),
processes employed in construction and final building product Present scope of
Building Economics lays emphasis on Building Product and how to make it
more economical, effective and efficient But does not involve resources and
accounting practices.
Importance of Building Economics
Need to introduces /integrate Economy in Building Project in early design stage
•Economy made integral part of project planning, construction and management
•Helps in managing cost over-run
•Helps in managing time over-run through time management-
•Ensuring Building design completed within schedule time
•Provides complete picture of total cost of project.
 Building Economics
Importance of Building Economics
•Helps designer integrating aesthetics and economy
•Helps in meeting clients needs within given resources
•Helps in meeting clients needs within given Time
•Helps in creating product without sacrificing quality
•Looks at life cycle cost rather than initial cost
•Provides most economical solution to building construction / operational costs
•Reduces maintenance cost to minimum
•Provides value for money to client
•Provides highest building efficiency in design
•Helps in making planning choices/ bringing economy in buildings
•Helps Architect to bring innovation in design and construction of building
Principles of building economics.
 Building Economics

Principles of building economics.

THANK YOU