ABSTRACT
This chapter explains some of the challenges that the professional practice of Construction Economics (CE) is increasingly facing in its application to the life cycle management of current and future construction projects. Myers main message and a clear message as well is that construction economics, implicitly referred to in the life cycle of projects, embraces the three perspectives of an overview of the economy, a study of industrial sector and an analysis of construction market. Risk analysis is required through the construction budgeting process, implying a convenient economic appraisal of risk contingency, subject to the Project Managers determination and authority. The rate at which the owner organization spends money during the design and construction phase of a project is usually determined by the terms of the contract that they have with an Engineering, Procurement and Construction (EPC) company. Cost-Benefit Analyses (CBAs) identify public projects presenting, for a community, economic feasibility conditions for their execution.
