ABSTRACT
Construction projects arise for several reasons. They may be undertaken in the public sector to meet political, social or community needs. They may be undertaken in the private sector for use, or as projects that can be sold upon completion for profit, be rented or leased to some other organisation. Different techniques are available by which to evaluate the original needs of development. In some cases, these rely upon investment appraisal techniques that assess the expected profitability of undertaking such work. Other techniques may also be used that attempt to form a relationship between the benefits that might be achieved by the development and the costs involved with the project. In other cases it is possible to calculate the costs of not undertaking such work and to compare these against the costs of development. Public accountability will also require that funds have been spent wisely on the appropriate developments. In every situation the necessity of understanding the full financial implications is very important, since whether the development is private or public sector funded, there are only limited funds available for investment purposes.
