Construction Economics: Analyzing Project Impact & Tram Extension

This report delves into construction economics, examining the impact of projects during the construction phase and the potential effects of tram extensions on the local economy. It highlights the role of construction and engineering services in the UK's financial development and discusses how infrastructure projects, like railroads and tramways, contribute to economic growth by improving connectivity and efficiency. The report also touches upon the importance of GDP as an economic indicator and explores the financial challenges and benefits associated with large-scale projects like the Edinburgh Tram project. Furthermore, it discusses different types of construction contracts, such as measurement contracts and design-build contracts, and procurement methods. The report concludes that the construction industry is vital for a country's economic growth, providing investment opportunities and supporting national socio-economic goals.

Construction Economics

Table of Contents
 Introduction
 Impact of the project during the construction phase
 Possible impact on the local economy of the tram extension
 Task 3
 Conclusion
 References

Introduction
Construction economics is a branch of preferred economics. It. Includes the utility
of the techniques and expertise of. Economics to the take a look at of the
construction company, the construction procedure and the construction industry.
Construction and engineering services enterprise play an critical role inside the
financial uplift and development of the United Kingdom.

Impact of the project during the construction
phase
Railroads created a greater interconnected society. Counties had been capable of
more without problems work together because of the decreased travel time. With
the use of the steam engine, humans were able to tour to distant locations tons
greater quick than in the event that they have been the usage of most effective
horse-powered transportation. It has been established by way of so many times
how delivery infrastructure has added pace and performance to a country's
progress. Good physical connectivity inside the city and rural regions is important
for economic boom.

Cont…
Gross home product (GDP) is the monetary cost of all finished items and services
made within a country at some stage in a particular duration. GDP gives an
economic snapshot of a country, used to estimate the scale of an financial system
and boom rate. GDP may be calculated in three methods, using prices, production,
or incomes. GDP allows policymakers and imperative banks to decide whether or
not the financial system is contracting or increasing and promptly take important
motion.

Possible impact on the local economy of the
tram extension
First, constructing a mild rail line or another rail infrastructure is highly-priced
and big parts of the investment of those investments are undertaken with the aid
of nation establishments, i.e. They use taxpayers’ money, in order that they should
be nicely justified. Secondly, some governments need to know whether or not the
funding is a success no longer best in growing the number of public shipping
passengers, but also in phrases of wider effect – fine or terrible – at the economic
system of the rail corridors served, or the vicinity as an entire.

Cont…
The Edinburgh Tram task has fee extra than two times the unique finances and has
been behind schedule by means of over four years. An jap extension to the Port of
Leith has been postponed although preparatory work on the tram rails has already
been completed. Tram passenger numbers in Edinburgh are forecast to upward
push from 4.5m to 8.2m over the first 15 years, with fare profits to climb from
£7.7m £20.8m in keeping with year.

Task 3
The contract sum for measurement contracts is not finalised until completion of
the project, where it is assessed on remeasurement to a previously agreed basis.
This type of contract can arise where the works to be carried out by the contractor
cannot for good reason be accurately measured before tender. Normally the
design will be reasonably complete and an accurate indication of quality will be
available to the tenderer. The contract of this type with least risk to the client is
probably that based on drawings and approximate quantities.

Cont…
Traditional Procurement - Traditional procurement concerned manually handling
the characteristic, with heavy dependence on office work, getting on calls with
human beings for updates, and many others., in order that goods and offerings attain
one factor to another in a stipulated time body.
Design and Build - Design and construct is a term describing a procurement course
wherein the main contractor is appointed to design and assemble the works, rather
than a conventional agreement, wherein the purchaser appoints consultants to design
the improvement after which a contractor is appointed to assemble the works.

Conclusion
From the above report, it can be concluded that The production industry is an
essential a part of the us of a's financial system. Construction is an critical zone
that contributes significantly to the financial boom of a country. It additionally
creates funding possibilities throughout diverse associated sectors and critical to
the success of country wide socio-economic goals.

References
 Benjaoran, V. and Peansupap, V., 2020. Grid-based construction site layout
planning with Particle Swarm Optimisation and Travel Path
Distance. Construction Management and Economics, 38(8), pp.673-688.
 Connaughton, J.N. and Collinge, W.H., 2021. Trialling a new approach to
interdisciplinary collaboration in UK construction: A projects-as-practice
analysis. Construction Management and Economics, pp.1-22.