Why do costs of civil engineering grow faster than prices in general?

Terttu Vainio, Eero Nippala

Research output: Chapter in Book/Report/Conference proceedingConference article in proceedingsScientificpeer-review

Abstract

Infrastructure construction is changing. The formerly closed domestic markets have opened up and become international in Finland like in many other countries. The transformation of a closed public sector into an open market has proven a challenge both to the public sector and enterprises. Infrastructures themselves are also changing. They can be made to include technology that gives extra value to clients. Infrastructure is never complete, but despite its static nature must be modified along with changes in regional structure, society and structural changes of industry. The importance of competitive intelligence has increased in market-based operation. It is needed by the clients of infrastructure construction and the service providers, both in shortterm planning of operations and long-term strategic planning. This paper focusses on research delving into the long-term changes and challenges of infrastructure construction. The research assessed the future changes in infrastructure construction and their impacts on the basis of LoNGPESTEL analysis. The research was done in co-operation between the state, local government and the university and research organisations. Asset management, financing of infrastructure maintenance, structural changes in the public sector, labour availability and competence, EU directives and environmental legislation, soil materials and recycling of materials, as well as urbanisation have been put forward as the greatest challenges to infrastructure construction.
Original languageEnglish
Title of host publicationProceedings Construction Industry Economics
Subtitle of host publicationCIB Publications 383
Pages141-152
Publication statusPublished - 2013
MoE publication typeNot Eligible
Event19th CIB World Building Congress, WBC13: Construction and Society - Brisbane, Australia
Duration: 5 May 20139 May 2013
Conference number: 19

Conference

Conference19th CIB World Building Congress, WBC13
Abbreviated titleWBC13
CountryAustralia
CityBrisbane
Period5/05/139/05/13

Keywords

  • cost
  • price
  • civil engineering
  • time series

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  • Cite this

    Vainio, T., & Nippala, E. (2013). Why do costs of civil engineering grow faster than prices in general? In Proceedings Construction Industry Economics: CIB Publications 383 (pp. 141-152) http://site.cibworld.nl/dl/publications/pub_383.pdf