ABSTRACT
In Chapters 4 and 5 we discussed two central ideas in explaining the market: demand and supply (see the Key Points in these chapters). In terms of construction economics, it is important to appreciate that those making the demands are referred to as clients and those who respond to their instructions by supplying the products are referred to as contractors. Both groups can take many forms, and it is common to emphasise that each project is a one-off. The analogy of a film set is sometimes employed to illustrate how the various contractors move in, do their work (complete a project) and then leave for another location to do ‘similar’ work for another client. Hence the industry is characterised by a fragmented approach, with each sub-group concentrating on its own specialism.
