Экономические науки/10. Экономика предприятия

A. Chernyavs’kyy

Department of special constructions of DPSK Ltd.

Resource approach in civil engineering economics

Development of civil construction is an indicator of overall social and economic evolution of society. Construction in its turn can stimulate multiplication effect and exert positive influence on employment, overage salary level, development of trade and services sector.

Research of capital and floating assets, human resources (together with investing process) plays major role in construction economics. Theoretic works on capital and floating assets are basic foundations for optimization of financial and material flows. Timeliness of research in the field of construction economics is determined by growing competition in the construction services market.

Economics of construction in general is many-sided area of knowledge. At least three approaches on essence of capital and floating assets can be mentioned.

The first point of view is based on interpretation of building sector as a social and economic system. L. Chistow [4] takes resource approach stand and considers capital and floating assets to be financial and material resources in construction cycle.

The position of A. Asaul [1] and V. Chernyak [3] falls in categories of real estate economics. Capital and floating assets are strongly connected with development of real estate investment. Real estate appraisal is the key question.

The third approach is remarkable for its breadth of views. V. Buzyryow [2] uses methods of accounting and housing property management to describe capital and floating assets structure and trends.

Depending on ultimate objective of research, capital assets can be grouped by:

1) using in production process (productive or nonproductive);

2) effect on objects of labour (active or passive part of capital assets);

3) functionality (buildings and erections, power equipment, working machines etc.).

Fig. 1. Structure of capital assets in building sector (in comparison with industry), %

The main measures of capital assets objects actual life time increasing include providing maximum possible scientific and technical achievements in designed object and timely modernization of object using optimum criteria and limitations.

Structure of material floating assets can be characterized by the following percent ratios: 20-35% at preparation stage, 60-70% at production stage and 5-10% at selling stage.

Fig. 2. Material floating assets at different stages of circulation

Structure of floating assets depends on:

- cost of material resources at preparation stage;

- duration of being of material resources at preparation stage;

- type of current cost of construction growth curve at all stages;

- cost of construction works;

- duration of production stage in turnover cycle;

- duration of selling stage.

Methods of acceleration of floating assets turnover include resources cost reducing and straightening of current cost growth curve at preparation stage.

About 10-20% of human resources in European countries are employed in building sector.

Structure of blue collar workers is as follows:

- common labors – 41%;

- constructions erectors – 26%;

- mechanization experts – 19%;

- transportation workers – 7%;

- drivers – 2%;

- others – 5%.

Fig. 3. Approximate structure of human resources in building sector

There is notable growth in percentage of mechanization experts and constructions erectors. This trend is supposed to continue due to technological progress.

World labor market is formed by human resources exporting and importing. The major centers of labor migration include Western Europe, USA, Canada and oil producing countries of the Middle East. Growing importance of international factor in labor market can be illustrated with the following facts:

- nearby 40% of all builders in Switzerland are foreigners;

- from 86 to 92% of all human resources in Qatar, UAE and Kuwait are formed of labor migrants [6].

References

[1] Asaul A. (2007) Economics of real estate. Piter, St. Petersburg.

[2] Buzyryow V., Chekalin V. (2001) Economics of housing property. INFRA-M, Moscow.

[3] Chernyak V. (2007) Economics and management at enterprises (construction). KNORUS, Moscow.

[4] Chistow L. (2001) Economics of construction. Piter, St. Petersburg.

[5] Endres A., Kwerner I. (2004) Economics of natural resources. Piter, St. Petersburg.

[6] Yatsenko A. Dubyniuk Y. (2005) International markets of resources. CNL, Kyiv.