week 2 Flashcards
what does GDP measure
the measure of the market of all final goods and services produced in an economy
why is GDP important
it gives information about the size of the economy and how it is performing
what does an increase in GDP mean
that the economy is strong
what happens when GPD decreases
employment often declines
what is chained volume
Chain volume measures are derived by linking together (compounding) movements in volumes, calculated using the average prices of the previous financial year, and applying the compounded movements to the current price estimates of the reference year.
what does a high inflation rate do for the country
Raw material cost rise higher project costs
Reduces purchasing power of money leading to reduced investment
Higher interest rates harder to finance projects
Construction worker wage increases higher project cost
Material delivery wage increase higher project cost
Housing affordability
Profit for construction companies drops
Company losses, bankrupt
Reduction in exports
Lower GDP
issues in the construction industry
Work conditions
Illegal employment
Hire and fire
Fair wage
Attrition
Knowledge transfer issues
Improper conducts-thefts, kidnapping, assault
Occupational health and safety
sustainability issues in construction
- Environmental degradation
- Issues of wastes and disposals
- Air, noise and water pollution
- Energy efficiceny
- Culture of g fragmentation Material shortages (costs)
Complexities- risks and uncertainties
Operational/technological risk
Financial risks
Cultural risks
Health risks
Risk of the known-known, the known-unknown, the unknown-known and the unknown-unknown
Social costs to construction risks
Environmental risks
corruption issues
Dishonest conduct
Bribery
Nepotism
Informality of the sector leads to abuse
Are there real causes for overruns delays and quality issues?
Collusion and Cartels Why are actual construction estimates never transparent? – it is called the concept of amorality,
when to use cost guide compare to handbook of Rawlinson
If project is over 1.5 million use handbook if it is under use cost guide
why do we need construction projects
meet essential needs
employment
create wealth
add value to the economy
create solutions
top 13 countries for GDP
USA
China
Germany
Japan
india
United Kingdom
france
Brazil
italy
canada
russia
Mexico
australia
Australia’s economic growth 2025
0.8%
inflation 2025
2.4 per cent
unemployment rate 2025
4%
employment growth
3.1%
wage growth
3.5%
average weekly earnings
$1480
aud to Usd
1 aud = 0.62usd
what is excluded in the GDP
unpaid work
volunteer work
illegal activities
what is the inflation rate target
2-3%
biggest employment industry
retail
why does australia need more homes
The current rate of construction is well below the target.
New home commencements have been declining for over two years.
Challenges to building more homes
Councils are not approving enough developments.
It takes too long for developments to be approved.
