Having reached down to the project level, this Part will conclude the Infrastructure Insight series and will do so by examining how a contractor conceptually prices a project.
To examine economic aspects of the construction industry at the project level, this Part examines how a private property developer might conceive a project price and some of the theoretical and actual outcomes which arise.
In examining the supply side of construction, it is useful to examine some measures of how both contractor knowledge and dominance by owners can be re-balanced.
Unilateral administrative action Another red flag is unilateral political action over civil servant professionals.
The previous Part introduced the industry market, highlighting ‘imperfect knowledge’ on the part of both owners and contractors, and the dominance by owners.
While the previous Part dealt with the inputs and outputs of the construction industry, this Part starts examining the industry itself; that is, how industry entities act on the resources between input and output.
The previous Part dealt with construction at a macro level, and signalled difficulties in tracking its output in Guyana.
Construction as an engine An insight into infrastructure might be gained by looking at construction’s specific role in helping societies to grow and develop.
What construction entails Construction can be described as the activities required to form and assemble materials and components to make infrastructure products, fixed to the land, with such products to be utilised in the place where constructed, by the society and human community as a whole.
Introduction Poorer countries of the world face a chronic and an acute shortfall of capital funds needed for infrastructure development, due largely to difficulties in mobilising internal reserves and, arguably, to an exploited past.