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

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 both 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. Second, 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. Third, the role of the design economists in responding to the policy environment and increasingly complex challenges to reduce social and environmental costs, as well as economic costs through efficiency, and productivity are discussed. Throughout the chapter, reference is made to how various sections or subsequent chapters relate to the current, emerging and the future role of the design economists in applying theories and principles, and developing practical tools and techniques to respond to new challenges and policy initiatives influenced by the global and national agenda such as climate change, sustainability and building information modelling (BIM).