In task one I have to explain the different markets within the construction industry. I will use national statistics as a source of raw data.
In task two I will describe the four main economic resources needed to enable a construction project to start, looking at the scenario I will be writing as a junior quantity surveyor to the manager and will basically describe the requirements to enable a construction project to start.
In task three I will analyse the different types of finance available for a typical construction project, including the different conditions and terms which have been imposed by the provider. This will entail researching leading banks and finance providers, with regard to their requirements and conditions.
In task four I will resarch leading compnies and provide information on different sources with respect to their terms and conditions.
TASK 1 P2
Capital markets: Capital markets are where buyers and sellers involve with trade of financial securities and they have a pledge, which is called bonds and stocks. Capital markets involve in lending/borrowing money on a longer time basis and involve investors to invest and keep it secured. All the financial transactions are between users of funds and suppliers of funds.
Commodity Markets: Commodity markets are where every supply is controlled by the government and they decide what products and services are needed. They also decide when and how to distribute it. Commodity markets actually help and work to obtain the actual products, such as working in a farm and growing food, also like going out to the sea and pumping oil from the ground, these are all commodity markets unlike the manufactured products where different techniques are used to obtain the ...
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...s that his money might not be repaid back if the business fails.
Shares: preference shares offer their owners preferences over normal shareholders. The difference between the ordinary and the preferred shares is that the preferred shares get the allowed to a fixed payment while ordinary shares don’t. But preference shareholders don’t get to vote in general meetings.
Investments: it’s the purchase of an item that will make more money in the future. An investment will require a good explanation on the business which is being build, as well as the lender is going to take a percentage of that business. For example someone who wanted to build a construction project but he needed £ 100000 he goes to another business man to tell him about his project and if he accepts he gets the money on one condition and that is the lender will take a 30% of the construction project.
As the United States economy struggles through a sluggish time with the stock market dropping and unemployment rising, being competitive in the job market has become extremely important among professionals. Engineers are no exception. For most engineering firms, being competitive and successful requires obtaining design projects offered by companies in other fields. These projects can range from designing heating and ventilation systems for office buildings to water systems for cities to computer networks for businesses—the list of possibilities and disciplines is extensive. To get these jobs, engineers must make a bid proposal for the project. Bidding involves estimating the entire cost of the project, including the designing and building processes, as well as the materials and labor. Usually, the company with the lowest bid and the best plan gets the job. The ethical issue in this process is determining the cheapest building materials and construction procedures possible without compromising public safety.
Demand plays a huge part on the construction industry before and whilst recovering from the recession. Demand is the willingness and ability of buyers to purchase different quantities of a good at different prices during a specific period of time.
With a variety of procurement routes to choose from, how can one facilitate the selection of the most appropriate construction contract and avoid situations where the owner insists on using a less appropriate one? How do we begin to focus the conversation on training, and updating efforts to create a reduced number of documents (Construction Canada, 2014)? In the next chapter this dissertation will further analyse the trends and investigate how different procurement routes naturally align themselves in certain asset classes in
Corporations create two kinds of securities: bonds, representing debt, and stocks, representing ownership or equity interest in their operations. (In Great Britain, the term stock ordinarily refers to a loan, whereas the equity segment is called
Another terminology is Preferred stock, which varies in comparison to common stock investors are paid dividends consistently.
In every project there are always some universal characteristics that will be shared. They all have a comprehensible and established purpose and very distinct life durations. Overall, all projects are doing something that may possibly be new or yet a one time endeavor but have explicit requirements which include; time, price, and performan...
First is to examine each of those projects to the corporate objectives, compare and contrasting project selection criteria and justify why a project meets the selection criteria.
Scott Jardine, 2007, “Managing risk in construction projects – how to achieve a successful outcome – an article”, PricewaterhouseCoopers.
Capital markets are markets "where people, companies, and governments with more funds than they need (because they save some of their income) transfer those funds to people, companies, or governments who have a shortage of funds (because they spend more than their income)" (Woepking, ¶3). The two major capital markets are stock and bond markets. Capital markets promote economic efficiency by moving funds from those who do not have an immediate need for it to those who do. Individuals or companies will put money at risk if the return on the intended investment is greater than the return of holding risk-free assets. An example of this would be those that invest in real estate or purchase stocks and bonds. Those that invest want the stock, bond, or real estate to grow in value or appreciate. An example of this concept would be if an individual or company invested an amount saved over the course of a year. While investing may be riskier, these individuals hope that the investment will yield a greater return than leaving the money in a savings account drawing nominal interest. In this example the companies that issue the stocks or bonds have spending needs that exceed their income so the company will finance their spending needs by issuing securities in the capital markets. This is a method of direct finance because the "companies borrowed directly by issuing securities to investors in the capital markets" (Woepking, ¶5).
The physical- financial entity is a balance of two different components working towards the same common goal. Each one has their areas of focus and attributes to contribute to the project. If one has more influence than the other, an imbalance could occur and result in problems with the development and its success. The physical side must work with the architects, engineers, and construction team to create the schematic design and budget possibilities for the project in the predevelopment stage. This will include alternatives and rough preliminary designs. When the development moves over to the document development stage, they become responsible for the construction documents, budgeting, and schedules for the actual construction of the project. The financial side of the development involves the business side of the project. This is where the market and marketability studies will be conducted and various feasibility and investment analysis reports will be submitted. The financial entity of the development will continue to work through the predevelopment and document development stages to put forth the best suited analysis for the market, feasibility, and marketability studies.
This paper explores what it takes to be a construction manager and the responsibilities of being a construction manager and the skills that a construction manager should have. It also explores what good construction managers do to have success on their construction projects and the steps that a construction manager must follow to end a project and meet their deadlines at the same
The Construction industry in the US has faced some interesting changes throughout its progression. From economic instability during the housing market crash to amazing technological advances to reduce the need for construction workers and therefore the cost associated with newly built properties in the real estate market. Beginning with the first tools ancient man used to carve their niche in the soon to be global expansion of arguably one of the oldest trades in history, construction has a rich history of trial and error, analysis and engineering that covers a very necessary skill that directly affects everyone who seeks and finds shelter, a place to work or any aspect of public works and many
Ans. Commodity Finance means funding of the commodity trading. It is a type of trade finance where a company in the commodity market is funded by the investors to make maximum output and repay the loans to the investors when the exports of commodity begins. A commodity can include metals and mining (hard commodities), agriculture crops (soft commodities) and even energy.
At times, the term "market" is used to refer to more strict exchanges. That is, organizations that aid the trade in financial securities for instance, a commodity or stock exchange. It may also be an electronic system (like NASDAQ) or a physical place (like the NYSE, BSE, NSE). Trading of stocks occurs mostly on an exchange. However, corporate actions like merger or spinoff are occur away from the exchange. In addition, any two people or companies, for of any kind reason, may decide to sell stock bet...
Market is a place where sellers and buyers of a product are spread. It’s an area where a product is being sold to a set of buyers at a certain price.