Building economics complete notes m1 m2m3m4 AKTU

Notes on building economics module 1,b.arch,AKTU,compiled by Ar. Sawan kumar sharma
Nbe-m1-arch-aktu-sks
BUILDING ECONOMICS (RAR – 609)
B. ARCH. SEMESTER – VI
Module-1
Elementary concepts of Economics Introduction to Economics- Definitions, Needs& Wants, Nature & Scope of Economics. Division
of economics – Microeconomics-scarcity, Utility - Marginal, Total& Average.Laws of Demand and Supply. Macro
Economics-Economic system in India.
Elementary concepts of Economics
For understanding building economics we have to first understand economics and the its relation to the
building industry or sector.One of the earliest recorded economic thinkers was the 8th-century B.C.
Greek farmer/poet Hesiod, who wrote that labor, materials, and time needed to be allocated efficiently to
overcome scarcity. But the founding of modern Western economics occurred much later, generally
credited to the publication of Scottish philosopher Adam Smith's(Father Of Economics)1776 book, An
Inquiry Into the Nature and Causes of the Wealth of Nations.[1]
Introduction to Economics
Definitions
i. “The branch of knowledge concerned with the production, consumption, and transfer of
wealth.”..........................................(Oxford dictionary)
ii. “A study of mankind in the ordinary business of life; it examines that part of individual and social
action which is most closely connected with the attainment, and with the use of the material
requisites of well-being”...........................................................(Alfred Marshall)
Economics is a social science concerned with the production, distribution, and consumption of goods and
services. It studies how individuals, businesses, governments, and nations make choices on allocating
resources to satisfy their wants and needs, trying to determine how these groups should organize and
coordinate efforts to achieve maximum output.
Needs and Wants [ 2 ]
Two people could argue for hours about whether a given product or service is a need or it is a want.
Obviously, circumstance and frames of reference are important in this discussion. What one person needs,
another person wants. Also, there are a variety of ways to meet a need or a want.
Need is something needed to survive. In economics, the idea of survival is real, meaning someone would
die without their needs being met. This includes things like food, water, and shelter.
A Want, in economics, is one step up in the order from needs and is simply something that people desire
to have, that they may, or may not, be able to obtain. Again, with those two simple definitions, it doesn't
seem like there should be much to talk about, but there is. Economics deals with how we allocate scarce
resources, and those scarce resources may be needed to meet someone people's needs and other people's
wants. So, we do need to talk about wants and needs.
Nature & Scope of Economics [ 3 ]
Economics is that branch of social science which is concerned with the study of how individuals,
households, firms, industries and government take decision relating to the allocation of limited resources
to productive uses, so as to derive maximum gain or satisfaction.Simply put, it is all about the choices we
make concerning the use of scarce resources that have alternative uses, with the aim of satisfying our
most pressing infinite wants and distribute it among ourselves.

NatureofEconomics
Economics is a science: Science is an organised branch of knowledge, that analyses cause and effect
relationship between economic agents. Further, economics helps in integrating various sciences such as
mathematics, statistics, etc. to identify the relationship between price, demand, supply and other
economic factors.
Positive Economics: A positive science is one that studies the relationship between two variables but does
not give any value judgment, i.e. it states ‘what is’. It deals with facts about the entire economy.
Normative Economics: As a normative science, economics passes value judgement, i.e. ‘what ought to
be’. It is concerned with economic goals and policies to attain these goals.
Economics is an art: Art is a discipline that expresses the way things are to be done, so as to achieve the
desired end. Economics has various branches like production, distribution, consumption and economics,
that provide general rules and laws that are capable of solving different problems of society.
Therefore, economics is considered as science as well as art, i.e. science in terms of its methodology and
arts as in application. Hence, economics is concerned with both theoretical and practical aspects of the
economic problems which we encounter in our day to day life.
ScopeofEconomics
Microeconomics: The part of economics whose subject matter of study is individual units, i.e. a
consumer, a household, a firm, an industry, etc. It analyses the way in which the decisions are taken by
the economic agents, concerning the allocation of the resources that are limited in nature. It
studies consumer behaviour, product pricing, firm’s behaviour. Factor pricing, etc.
Macro Economics: It is that branch of economics which studies the entire economy, instead of individual
units, i.e. level of output, total investment, total savings, total consumption, etc. Basically, it is the study
of aggregates and averages. It analyses the economic environment as a whole, wherein the firms,
consumers, households, and governments make decisions. It covers areas like national income, general
price level, the balance of trade and balance of payment, level of employment, level of savings and
investment.
The fundamental difference between micro and macro economics lies in the scale of study. Further, in
microeconomics, more importance is given to the determination of price, whereas macroeconomics is
concerned with the determination of income of the economy as a whole.

Nevertheless, microeconomics and macroeconomics are complementary to one another, as they both
aimed at maximising the welfare of the economy as a whole. From the standpoint of microeconomics,
the objective can be achieved through the best possible allocation of scarce resources. Conversely, if we
talk about macroeconomics, this goal can be attained through the effective use of the resources of the
economy.
Scarcity [ 4 ]refers to the basic economic problem, the gap between limited – that is, scarce – resources
and theoretically limitless wants. This situation requires people to make decisions about how to allocate
resources efficiently, in order to satisfy basic needs and as many additional wants as possible. Any
resource that has a non-zero cost to consume is scarce to some degree, but what matters in practice is
relative scarcity. Scarcity is also referred to as "paucity."
Utility [ 5 ] is ‘usefulness’. In economics utility is the capacity of a commodity to satisfy human wants.
Utility is the quality in goods to satisfy human wants. Thus, it is said that “Wants satisfying capacity of
goods or services is called Utility.”
Kinds of Utility:
(i) Marginal Utility:
Marginal utility is the utility derived from the last or marginal unit of consumption. It refers to the
additional utility derived from an extra unit of the given commodity purchased, acquired or consumed by
the consumer.It is the net addition to total utility made by the utility of the additional or extra units of the
commodity in its total stock. It has been said—as the last unit in the given total stock of a commodity.
According to Prof. Boulding—”The marginal utility of any quantity of a commodity is the increase in
total utility which results from a unit increase in its consumption.”
(ii) Total Utility:
Total Utility is the utility from all units of consumption. According to Mayers—”Total Utility is the sum
of the marginal utilities associated with the consumption of the successive units.”
(iii) Average Utility:
Average Utility is that utility in which the total unit of consumption of goods is divided by number of
Total Units. The Quotient is known as Average Utility.
Laws of Demand and Supply [ 6 ]
Law of Demand: An economic law stating that as the price of a good or service increases, the quantity
demanded decreases, and vice versa

Law of Supply: An economic law stating that as the price of a good or service increases, the quantity
supplied increases, and vice versa
Economic system in India[ 7 ]
India is mainly an agricultural economy. Agricultural activities contribute about 50% of the economy.
Agriculture involves growing and selling of crops, poultry, fishing, cattle rearing, and animal husbandry.
People in India earn their livelihood by involving themselves in many of these activities. These activities
are vital to our economy. The Indian economy has seen major growth in the last few decades. The credit
for this boom largely goes to the service sector. Agriculture and associated activities have also been
improvised to match the global standards and the export of various food products has seen an upward
trend thereby adding to the economic growth. The industrial sector does not lag behind a bit. A number
of new large scale, as well as small scale industries, have been set up in recent times and these have also
proved to have a positive impact on the Indian economy.
Government’s Role in Economic Growth
Majority of the working Indian population was and is still engaged in the agriculture sector. Growing
crops, fishing, poultry and animal husbandry were among the tasks undertaken by them. They
manufactured handicraft items that were losing their charm with the introduction of the industrial goods.
The demand for these goods began to decline. The agricultural activities also did not pay enough.
The government identified these problems as hindering the economic growth of the country and
established policies to curb them. Promotion of cottage industry, providing fair wages to the laborers and
providing enough means of livelihood to the people were some of the policies laid by the government for
the country’s economic growth.
The Rise of the Industrial Sector
The government of India also promoted the growth of small scale and large scale industry as it
understood that agriculture alone would not be able to help in the country ’s economic growth. Many
industries have been set up since independence. A large number of people shifted from the agricultural
sector to the industrial sector in an attempt to earn better.
Today, we have numerous industries manufacturing a large amount of raw material as well as finished
goods. The pharmaceutical industry, iron and steel industry, chemical industry, textile industry,
automotive industry, timber industry, jute, and paper industry are among some of the industries which
have contributed a great deal in our economic growth.

The Growth in Service Sector
The service sector has also helped in the growth of our country. This sector has seen growth in the last
few decades. The privatization of the banking and telecom sectors has a positive impact on the service
sector. The tourism and hotel industries are also seeing a gradual growth. As per a recent survey, the
service sector is contributing to more than 50% of the country’s economy.
Indian Economy after Demonetization
The worst affected were the people in the rural areas who did not have access to internet and plastic
money. This affects many big and small businesses in the country very badly. Several of them were shut
down as a result of this. While the short term effects of demonetization were devastating, this decision
did have a brighter side when looked at from long term perspective.
The positive impact of demonetization on the Indian economy is a breakdown of black money, the
decline in fake currency notes, increase in bank deposits, demonetization stopped the flow of black
money in the real estate sector to ensure a fair play, increase in digital transactions, cutting monetary
support for terrorist activities.
Many of our industries are cash-driven and sudden demonetization left all these industries starving. Also,
many of our small scale, as well as large scale manufacturing industries, suffered huge losses thereby
impacting the economy of the country negatively. Many factories and shops had to be shut down. This
did not only impact the businesses but also the workers employed there. Several people, especially the
laborers, lost their jobs.

Module-2
Economics in relation to Architecture, Engineering and other
sciences
Meaning and scope of building economics, Issues and challenges associated with building projects. Building Efficiency, Building
Life-cycle. Costs and Benefits of Building – Monetary and Non Monetary.
Meaning and scope of building economics[ 8 ]
Building economics is concerned with production and consumption and services and the analysis of
commercial activities –
As it is related to architecture and building activity – all types of buildings for all types of functions by
the builders (production) and consumption i.e., the ones who either buy or hire those buildings for
various functions with the services offered by professionals like architects, planners, engineers etc.
Ends – scarce means
The scarce means like land, building materials, and allied services result in failing to meet the demand in
housing sector.
Basic concept – any activity (legally permitted) which shall result in building activities to serve people
for which the people are ready to pay the price directly or indirectly by buying or hiring the spaces can be
treated as an economic activity.
Goods and services
Economic good is a physical object like natural or man-made (artificial) goods.
Natural goods
Sources like land, water, air, natural stones, sand basic raw materials to be converted to man-made
materials to be used for construction of buildings.
Man-made goods
Product like mosaic tiles, tiles of all stones, ceramic tiles, wall finishes, doors/windows/woodwork,
electrical materials, water supply and sanitary pipes and fittings etc, harnessing solar power, A/C plants,
heating, cooling etc.
Producers
Producers are individuals, builders, contractors in private sector or governments state or central.
Primary producers are those who produce raw materials like wood, stones, basic raw materials for
production of building materials.
Secondary producers are those who are engaged in production of materials like cement, procure sand,
metal, steel, aluminium, various other materials to be used in building construction.
Tertiary producers
Tertiary producers are those who carry out the following functions:
Transportation
Banking
Architects and Engineers etc who offer services, insurance agencies for buildings, educational
institutions, who train professionals.
Consumers
In good old days, there was barter system with no profit motive. Present days, the medium of
exchange is money which is used in so many forms for buying and selling for all activities.

Importance of Building Economics [ 9 ]
a. Need to introduces /integrate Economy in Building Project in early design stage
b. Economy made integral part of project planning, construction and management
c. Helps in managing cost over-run
d. Helps in managing time over-run through time management-
e. Ensuring Building design completed within schedule time
f. Provides complete picture of total cost of project
g. Helps designer integrating aesthetics and economy
h. Helps in meeting clients needs within given resources
i. Helps in meeting clients needs within given Time
j. Helps in creating product without sacrificing quality
k. Looks at life cycle cost rather than initial cost
l. Provides most economical solution to building construction / operational costs
m. Reduces maintenance cost to minimum
n. Provides value for money to client
o. Provides highest building efficiency in design
p. Helps in making planning choices/ bringing economy in buildings
q. Helps Architect to bring innovation in design and construction of building
Issues and challenges associated with building projects [ 10 ]
What’s your biggest challenge on your construction projects? Contractors big and small seem to face the
same problems on project after project. Whether you are a one-man painting contractor, a small remodel
business, or a general contractor with 20-years of industry experience, these construction problems have
most likely plagued you at one time or another.
Here are the ten biggest problems facing construction professionals today.
1. Lack of Skilled Workers
There is a big problem facing the construction industry: not enough skilled workers to fill a growing
demand. The younger generation is being pushed toward college, and not vocational trades. The benefits
of a career in construction are not being sold to millennials, and much of today’s existing workforce is
closing in on retirement.
2. Lack of Communication
When things go wrong on a project, it is almost always due to a communication breakdown along the
way. Technology is the answer to your communication problems. Two-thirds of Americans own
smart-phones, so there is a good chance that almost everyone on your project has one. Using email, text
messages, and construction technology apps on a project can get information instantaneously to all
people on the project in real time and reduce the slowdowns and speed bumps of a communication
breakdown.
3. Unreliable Subcontractors
Many contractors have problems finding reliable subs for their jobs. If you are in a pinch and need to find
a sub, check with the materials suppliers and vendors that you work with regularly. They will have the

inside scoop, and may have a great recommendation for a sub. You can also ask other subcontractors that
you have worked with for a recommendation, too. Always check a sub’s licenses, make sure they carry
general liability insurance, and list your company as additional insured on their insurance before you hire
them.
4. Scheduling
Scheduling can be tricky for even the most seasoned construction professional. Once again, construction
technology is providing a solution for this common problem. Project management apps that you can
access from a desktop or your smartphone or tablet allow you to visually map out a project timeline.
Many apps allow for a “sticky-note” style virtual board that allows you to easily see what needs to be
completed, and gives real-time project status updates.
5. High Insurance Costs
Contractor insurance is part of the cost of doing business, but that doesn’t mean you have to overpay for
it. You can get lower rates on your contractor insurance by combining coverage, not letting your
coverage lapse, and reviewing your policies each year for changes that may save you money.
6. Changing Minds of Homeowners
Homeowners who want changes in the middle of a project may “forget” about the requests they’ve
made when it comes time to pay the bill. In order to protect yourself, your reputation, and your bottom
line; be sure that you get a signed change order every single time.
7. Available Cash
You have payments due to subs, employees, vendors, materials suppliers, and equipment renters… but
you don’t get paid until the project is complete. And unless you have enough available cash flow, this
can be a major problem. Have an open business line of credit to see you through the tough spots between
bills due and project’s end, and you won’t have to see your credit (or reputation) suffer.
8. Document Management
Contracts, change orders, materials orders, receipts, invoices, employment applications, certificates of
insurance… you probably have enough paper to fill an entire trailer of filing cabinets. It’s time to go
paperless. A digital solution can help you stay on track of documents, organized on your projects, and
on-time with your payments. At the very least, scan all documents into your computer and digitally file/
organize them. Be sure to backup your computer to a cloud service or hard drive regularly in case you
have a hardware issue.
9. The Blame Game
Nothing ever goes smoothly in construction 100% of the time. When there is a bump in the road, fingers
start pointing. The general contractor blames the sub, the homeowner blames the general contractor, the
project manager blames the owner. When a worst-case scenario actually occurs, skip the blame game and
finger pointing and get back on track with a builders risk policy. This type of specialized property
insurance covers the project, and all of the principles working on it. Extreme weather, natural disasters,
even theft and vandalism can all be situations where a course of construction policy can get you back to
work without finger pointing and burnt bridges.
Did the owner change their mind on materials after they were installed? Or decided they didn’t like the
work after it was done and are claiming you didn’t fulfill your contract? Carrying a liability policy with
Faulty Workmanship Coverage can protect you from coming out of pocket for those new materials. The
right coverage eliminates the Blame Game, keeping your clients happy and your bottom-line covered.
10. Ever-changing Regulations
Federal, state, county, and even city regulations are constantly being changed and updated. How are you
supposed to stay on top of everything? Follow blogs and industry publications to get the latest updates on
changing regulations that affect your business. Sign up for newsletters, and have new blog posts
automatically emailed to you. Prevent inbox clutter by having these industry-specific emails sent to a

specific folder in your inbox. Then, set aside 10-15 minutes each day when you can catch-up on
everything you need to know to stay compliant.
Building Efficiency [ 11]
Building efficiency is generally explained in terms of area which is defined as Percentage proportion of a
building's rentable area, not counting the area occupied by elevators, equipment, hallways, lobby,
restrooms, etc.
Formula:
Rentable area x 100 ÷ Total floor area.
A building envelope includes elements, such as walls, windows, doors, roofs, foundations, and chimneys
that separate an interior space from an exterior environment. The characteristics of the building envelope
dictate how the building will interact with its environment. Careful design and upkeep of the building
envelope will minimize energy use by two of the predominant energy-using systems, namely the heating,
ventilating, and air conditioning (HVAC) system, and the lighting system. HVAC energy use is
optimized by semi-isolation (i.e., minimization of infiltration and unwanted heat loss or heat gain) of the
interior conditioned spaces from the exterior environment during periods of heating and cooling; in other
words, to maximize efficiency when the building is being heated, cold exterior air should not infiltrate,
and heat from the interior should not transfer across the envelope to the exterior. Similarly, when the
building is being cooled, warm exterior air should not infiltrate, and heat from the exterior should not
transfer across the envelope to the interior. The exception to this is when natural ventilation (e.g.,
through an open window, door, or other structural element) is desirable or necessary for ventilation,
cooling, or even heating. The term semi-isolation is chosen because in many cases heat gain (or loss)
from (or to) the exterior is desirable, and further minimizes HVAC energy use. For example, window
designs that allow for solar heat gain and prevent heat loss further reduce heating costs. In regards to the
lighting system, a building envelope that is designed to make full use of daylighting will substantially
reduce electrical lighting energy use. Daylighting has the additional benefit of reducing the cooling load,
as natural light is characterized by less heat than fluorescent or incandescent lamps for a given level of
illumination. This article present energy efficiency opportunities associated with the various elements of
a building envelope, namely the exterior walls, windows, rooftops and ceilings, foundations, floors, and
basements. It also briefly describes ways to control unwanted infiltration, while insuring adequate
ventilation.
Exterior Walls
Insulation
Minimize Thermal Bridging
Passive Solar Heating
Passive Solar Cooling
Air Flow and Moisture Control
Windows
Day lighting
Reduce Heat Gain
Optimize Heat Gain
Low-Conductivity Casements
Rooftops and Ceilings
Insulation
Cool Roofs and Coatings
Solar Collectors
Foundations, Floors, and Basements
Infiltration and Ventilation.

Building life cycle [ 12 ]
Building life cycle refers to the view of a building over the course of its entire life - in other words,
viewing it not just as an operational building, but also taking into account the design, construction,
operation, demolition and waste treatment.[1] It is useful to use this view when attempting to improve an
operational feature of a building that is related to how a building was designed. For example, overall
energy conservation. In the vast majority of cases there is less than sufficient effort put into designing a
building to be energy efficient and hence large inefficiencies are incurred in the operational phase.
Current research is ongoing in exploring methods of incorporating a whole life cycle view of buildings,
rather than just focusing on the operational phase as is the current situation.
Cost-Benefit Analysis [ 13 ]
Before building a new plant or taking on a new project, prudent managers conduct a cost-benefit analysis
to evaluate all the potential costs and revenues that a company might generate from the project. The
outcome of the analysis will determine whether the project is financially feasible or if the company
should pursue another project.
The Cost-Benefit Analysis Process
A cost-benefit analysis (CBA) should begin with compiling a comprehensive list of all the costs and
benefits associated with the project or decision.
The costs involved in a CBA might include the following:
1. Direct costs would be direct labor involved in manufacturing, inventory, raw materials,
manufacturing expenses.
2. Indirect costs might include electricity, overhead costs from management, rent, utilities.
3. Intangible costs such as customer impact of pursuing a new business strategy, project, or
construction of a manufacturing plant, delivery delays of product, employee impact.
4. Opportunity costs such as alternative investments, or buying a plant versus building one.
5. Cost of potential risks such as regulatory risks, competition, and environmental impacts.
Benefits might include the following:
6. Revenue and sales increases from increased production or new product.
7. Intangible benefits, such as improved employee safety and morale, as well as customer satisfaction
due to enhanced product offerings or faster delivery.
8. Competitive advantage or market share gained as a result of the decision.
Monetary and Non Monetary [ 14 ]
Monetary Benefits
If you want to get technical about it, as human resource professionals are prone to do, monetary
incentives are designed to reward employees for outstanding job performance or longevity.
As its name implies, a monetary incentive has an explicit monetary value; an employee knows exactly
what one is worth. In addition to cold, hard cash, monetary rewards can take the form of:
Bonuses.* Commissions.
Merit pay.
Profit sharing.
Stock options.
Vacation time (beyond an employee's normal paid time).

Non-Monetary Incentives
Non-monetary incentives are designed to recognize a special achievement or the completion of something
that enhances an employee's job performance or value to a company. Such a meritorious category might
include the attainment of a sales goal, the culmination of a special research project or graduation from a
training program that leads to a desirable certification.
A non-monetary incentive does not take the form of cold, hard cash, but this doesn't mean an employee
cannot discern its monetary value. Some traditional favorites among employers include:
Health-care benefits.
Life insurance.
Promotion.
Vehicle or vehicle allowance.

Module-3
Project Financing
Equity, Financing Institutions in Financing Process, Interim Finance and Permanent Financing, BankLoan - Simple Interest and
Compound Interest. Types of Mortgage, Lease Arrangements.
Project Financing [ 15 ]
Project Financing is a long-term, zero or limited recourse financing solution that is available to a
borrower against the rights, assets, and interests related to the concerned project. If you are planning to
start an industrial, infrastructure, or public services project and need funds for the same, Project
Financing might be the answer that you are looking for.The repayment of this loan can be done using the
cash flow generated once the project is complete instead of the balance sheets of the sponsors. In case the
borrower fails to comply with the terms of the loan, the lender is entitled to take control of the project.
Additionally, financial companies can earn better margins if a company avails this scheme while partially
shifting the associated project risks. Therefore, this type loan scheme is highly favoured by sponsors,
companies, and lenders alike.
Key Features of Project Financing
Since a project deals with huge amount funds, it is important that you learn about this structured
financial scheme. Below mentioned are the key features of Project Financing:
Capital Intensive Financing Scheme: Project Financing is ideal for ventures requiring huge amount of
equity and debt, and is usually implemented in developing countries as it leads to economic growth
of the country. Being more expensive than corporate loans, this financing scheme drives costs
higher while reducing liquidity. Additionally, the projects under this plan commonly carry
Emerging Market Risk and Political Risk. To insure the project against these risks, the project also
has to pay expensive premiums.
Risk Allocation: Under this financial plan, some of the risks associated with the project is shifted towards
the lender. Therefore, sponsors prefer to avail this financing scheme since it helps them mitigate
some of the risk. On the other hand, lenders can receive better credit margin with Project Financing.
Multiple Participants Applicable: As Project Financing often concerns a large-scale project, it is
possible to allocate numerous parties in the project to take care of its various aspects. This helps in
the seamless operation of the entire process.
Asset Ownership is Decided at the Completion of Project: The Special Purpose Vehicle is
responsible to overview the proceedings of the project while monitoring the assets related to the
project. Once the project is completed, the project ownership goes to the concerned entity as
determined by the terms of the loan.
Zero or Limited Recourse Financing Solution: Since the borrower does not have ownership of the project
until its completion, the lenders do not have to waste time or resources evaluating the assets and
credibility of the borrower. Instead, the lender can focus on the feasibility of the project. The
financial services company can opt for limited recourse from the sponsors if it deduces that the
project might not be able to generate enough cash flow to repay the loan after completion.
Loan Repayment With Project Cash Flow: According to the terms of the loan in Project Financing, the
excess cash flow received by the project should be used to pay off the outstanding debt received by
the borrower. As the debt is gradually paid off, this will reduce the risk exposure of financial
services company.
Better Tax Treatment: If Project Financing is implemented, the project and/or the sponsors can receive
the benefit of better tax treatment. Therefore, this structured financing solution is preferred by
sponsors to receive funds for long-term projects.
Sponsor Credit Has No Impact on Project: While this long-term financing plan maximises the leverage of
a project, it also ensures that the credit standings of the sponsor has no negative impact on the
project. Due to this reason, the credit risk of the project is often better than the credit standings of
the sponsor.

What Are the Various Stages of Project Financing?
Or
Explain the project financing process?
1. Pre-Financing Stage
Identification of the Project Plan - This process includes identifying the strategic plan of the project
and analysing whether its plausible or not. In order to ensure that the project plan is in line
with the goals of the financial services company, it is crucial for the lender to perform this
step.
Recognising and Minimising the Risk - Risk management is one of the key steps that should be
focused on before the project financing venture begins. Before investing, the lender has every
right to check if the project has enough available resources to avoid any future risks.
Checking Project Feasibility - Before a lender decides to invest on a project, it is important to check
if the concerned project is financially and technically feasible by analysing all the associated
factors.
2. Financing Stage
Being the most crucial part of Project Financing, this step is further sub-categorised into the
following:
Arrangement of Finances - In order to take care of the finances related to the project, the sponsor
needs to acquire equity or loan from a financial services organisation whose goals are aligned
to that of the project
Loan or Equity Negotiation - During this step, the borrower and lender negotiate the loan amount
and come to a unanimous decision regarding the same.
Documentation and Verification - In this step, the terms of the loan are mutually decided and
documented keeping the policies of the project in mind.
Payment - Once the loan documentation is done, the borrower receives the funds as agreed
previously to carry out the operations of the project.
3. Post-Financing Stage
Timely Project Monitoring - As the project commences, it is the job of the project manager to
monitor the project at regular intervals.
Project Closure - This step signifies the end of the project.
Loan Repayment - After the project has ended, it is imperative to keep track of the cash flow from
its operations as these funds will be, then, utilised to repay the loan taken to finance the
project.
Types of Sponsors in Project Financing
In order to determine the objective of the project and the risks related to it, it is important to know t
he type of sponsor associated with the project. Broadly categorised, there are four types of project
sponsors involved in a Project Financing venture:
Industrial sponsor - These type of sponsors are usually aligned to an upstream or downstream
business in some way.
Public sponsor - The main motive of these sponsors is public service and are usually associated with
the government or a municipal corporation.
Contractual sponsor - The sponsors who are a key player in the development and running of plants
are Contractual sponsors.
Financial sponsor - These type of sponsors often partake in project finance initiatives and invest in
deals with a sizeable amount of return.
Conclusion
Project Financing is a long-term, non-recourse or limited recourse financing scheme that is used to fund
massive projects which can be repaid using the project cash flow obtained after the completion of the
project. This scheme offers financial aid off balance sheet, therefore, the credit of the shareholder and
Government contracting authority does not get affected. In Project Financing, multiple participants are
allowed to handle the project while the ownership of the project is entitled according to the terms of the

loan only after the project is completed. This financial scheme offers better credit margin to lenders while
shifting some of the risk from the sponsors to the lenders.
As the Indian Government continues to investment on the infrastructure of the country, it is expected that
there will be massive developments in future in terms of power, transportation, bridges, dams etc. Most
of these projects will be using the Public Private Partnership (PPP) method indicating a rise in Project
Financing during the upcoming years. This entire cycle will further help improve the economic condition
of India.
Equity [ 16 ]
In finance, equity is ownership of assets that may have debts or other liabilities attached to them. Equity
is measured for accounting purposes by subtracting liabilities from the value of an asset. For example, if
someone owns a car worth $9,000 and owes $3,000 on the loan used to buy the car, then the difference of
$6,000 is equity. Equity can apply to a single asset, such as a car or house, or to an entire business entity.
Selling equity in a business is an essential method for acquiring cash needed to start up and expand
operations.
When liabilities attached to an asset exceed its value, the difference is called a deficit and the asset is
informally said to be "underwater" or "upside-down". In government finance or other non-profit settings,
equity is known as "net position" or "net assets".
Financing Institutions
A financial institution[17](FI) is a company engaged in the business of dealing with financial and monetary
transactions such as deposits, loans, investments, and currency exchange. Financial institutions
encompass a broad range of business operations within the financial services sector including banks, trust
companies, insurance companies, brokerage firms, and investment dealers. Virtually everyone living in a
developed economy has an ongoing or at least periodic need for the services of financial institutions.
Financial institutions [ 18 ], otherwise known as banking institutions, are corporations that provide services
as intermediaries of financial markets. Broadly speaking, there are three major types of financial
institutions:
Depository institutions – deposit-taking institutions that accept and manage deposits and make
loans, including banks, building societies, credit unions, trust companies, and mortgage
loan companies;
Contractual institutions – insurance companies and pension funds
Investment institutions – investment banks, underwriters, brokerage firms.
Interim Finance
Interim Financing[ 19 ]is the process of obtaining temporary, short term financing to close a real estate
transaction.
Interim financing[ 20 ], also called bridge financing or a bridge loan, is often used by a buyer who is selling
a home to buy another, but the sale of the first home cannot be completed before the purchase of the
second home must be completed.
Interim financing is used to cover the remaining purchase price of the second home until the proceeds of
the first sale are received.
Advantages of Interim Financing
Interim financing may be necessary to prevent losing a sale or purchase of property. Rather than
canceling a transaction due to a temporary delay in closing a transaction, a mortgage lender may find it
advantageous to loan short term funds to a buyer. The lender benefits because it obtains interest on the
loan during the interim period, usually 30–60 days. The buyer benefits because the new property can be
closed earlier and the buyer does not risk losing the property.

Disadvantages of Interim Financing
Since the interim loan carries an interest charge on its own, the buyer will pay more in interest.
Fortunately, this additional interest is only for a short time and is usually nominal. There will also be a
loan fee which varies from lender to lender.
At First Foundation, we understand that real estate transactions cannot always be closed in sync with
each other. In the event interim financing becomes a necessity, we can often work with a lender to obtain
interim financing for you.
Permanent Financing
Permanent financing [21] is used to purchase or develop long-term fixed assets like factories and
machinery. Since the payoff from a long-term asset tends to be over a period of time, financing through
long-term options reduce the risk of principal payoff not being made (in the case of debt financing).
Permanent Financing[22] refers to a longer term loan or debt instrument. It can also be thought of as longer
term equity financing or debt. Most of the time, such long term financing becomes utilized to buy or
develop the kinds of long lasting fixed assets like machinery or factories. The payoffs and contributions
from such longer term assets happen over grater lengths of time. This is why long term financing makes
sense in order to lessen the risks that the principle will not be paid down or off, as could be the situation
with debt financing.
With longer term debt financing, money will be borrowed from a third party source so that a business can
finance a particular project and the associated assets or purchases. On the other hand, longer term equity
financing centers on putting up company assets in exchange for obtaining funding for particular projects
and their relevant asset purchases. There are many cases where a partial ownership stake in a corporation
will be offered so that the firm is able to come up with the necessary capital for the projects. Both
opposing options come with their own pros and cons. This is why the owners of the company or the
corporate directors will be the ones who have to decide for themselves which choice works best for their
particular enterprise and scenario.
Loan[23]
A loan is money, property, or other material goods given to another party in exchange for future
repayment of the loan value or principal amount, along with interest or finance charges. A loan may be
for a specific, one-time amount or can be available as an open-ended line of credit up to a specified limit
or ceiling amount.
Loans are typically issued by corporations, financial institutions, and governments. Loans allow for
growth in the overall money supply in an economy and open up competition by lending to new
businesses. Loans also help existing companies expand their operations. The interest and fees from loans
are a primary source of revenue for many banks, as well as some retailers through the use of credit
facilities and credit cards. They can also take the form of bonds and certificates of deposit.
Types of Loans
A number of factors can differentiate loans and affect their costs and terms.
Secured vs. Unsecured Loan
Loans can be secured or unsecured. Mortgages and car loans are secured loans, as they are both backed
or secured by collateral.
Loans such as credit cards and signature loans are unsecured or not backed by collateral. Unsecured loans
typically have higher interest rates than secured loans, as they are riskier for the lender. With a secured
loan, the lender can repossess the collateral in the case of default. However, interest rates vary wildly on
unsecured loans depending on multiple factors, including the borrower's credit history.
Revolving vs. Term

Loans can also be described as revolving or term. Revolving refers to a loan that can be spent, repaid and
spent again, while term loans refer to a loan paid off in equal monthly installments over a set period. A
credit card is an unsecured, revolving loan, while a home-equity line of credit (HELOC) is a secured,
revolving loan. In contrast, a car loan is a secured, term loan, and a signature loan is an unsecured, term
loan.
Special Considerations for Loans
Interest rates have a significant effect on loans and the ultimate cost to the borrower. Loans with high
interest rates have higher monthly payments—or take longer to pay off—than loans with low interest
rates. For example, if a person borrows $5,000 on an installment or term loan with a 4.5% interest rate,
they face a monthly payment of $93.22 for the next five years. In contrast, if the interest rate is 9%, the
payments climb to $103.79.
Loans with high interest rates have higher monthly payments—or take longer to pay off—than loans
with low interest rates.
Similarly, if a person owes $10,000 on a credit card with a 6% interest rate and they pay $200 each month,
it will take them 58 months, or nearly five years, to pay off the balance. With a 20% interest rate, the
same balance, and the same $200 monthly payments, it will take 108 months, or nine years, to pay off the
card.
Simple vs. Compound Interest
The interest rate on loans can be set at a simple interest or a compound interest. Simple interest is interest
on the principal loan, which banks almost never charge borrowers.
For example, let's say an individual takes out a $300,000 mortgage from the bank, and the loan
agreement stipulates that the interest rate on the loan is 15% annually. As a result, the borrower will have
to pay the bank the original loan amount of $300,000 x 1.15 = $345,000.
Compound interest is interest on interest and means more money in interest has to be paid by the
borrower. The interest is not only applied to the principal but also the accumulated interest of previous
periods. The bank assumes that at the end of the first year, the borrower owes it the principal plus interest
for that year. At the end of the second year, the borrower owes it the principal and the interest for the first
year plus the interest on interest for the first year.
The interest owed, when compounding is taken into consideration, is higher than that of the simple
interest method because interest has been charged monthly on the principal loan amount, including
accrued interest from the previous months. For shorter time frames, the calculation of interest will be
similar for both methods. As the lending time increases, the disparity between the two types of interest
calculations grows.

Difference Between Simple and Compound Interest [24]
Mortgage [25]
A mortgage loan is a type of secured loan where you can avail funds by providing your asset as collateral
to the lender. This is a popular form of financing as it helps the borrower avail a high loan amount and
prolonged repayment tenor.A mortgage is usually a loan sanctioned against an immovable asset like a
house or a commercial property. The lender keeps the asset as collateral until the borrower repays the
total loan amount.
Mortgage loans are of 3 types:
Home loans
Commercial property loans
Loans against properties.
A home loan or a commercial property loan can be availed only to purchase a home or a commercial
space respectively. On the other hand, a loan against property has no end-use restrictions. It can be used
to fund overseas education, a wedding, a home renovation, etc.
Simple Interest Compound Interest
It is calculated on the total principal amount for
the total tenure.
It is calculated on the principal amount
periodically (monthly, quarterly, half-yearly or
annually).
The accumulated interest on the principal is not
added to the calculation of interest for the next
period.
The interest that you accumulate periodically is
added to the calculation of interest for the next
period.
The interest earned/paid will not increase even if
the calculation is done periodically.
The interest earned or paid will increase if the
frequency of interest generation or payment is
more.
The accumulation of interest is slow.
The accumulation of interest is fast since you
get interest on the growing interest amount as
well.
Simple interest will not earn you enough for
savings and investments but will benefit you if
you take a loan.
Compound interest will earn you more in
savings and investments but will be costlier on
a loan.
It is not good for wealth creation. It is good for wealth creation.
It is beneficial to the borrower but not to the
lender. You will be paying less on a loan that is
taken on simple interest.
It is beneficial to the lender but not to the
borrower. You will be paying more on a loan
that is taken on compound interest.
Simple interest is easy to calculate. Compound interest is complicated to calculate.

Lease[26]
A lease agreement is an arrangement between two parties – lessor and lessee, by which the lessor allows
the lessee the right to the use a property owned or managed by the lessor for a specified period of time, in
exchange for periodic payment of rentals.
The agreement does not provide ownership rights to the lessee. However, the lessor may grant
permission to the lessee to modify or change the property to suit his needs. The lessee is responsible for
the condition of the property during the lease period. Lease agreements may be used for the lease of
properties, vehicles, household appliances, construction equipment, and other items. The lease agreement
outlines the conditions of the arrangement so that each party understands his rights and obligations under
the lease.
Contents of a lease agreement:
Common contents of a lease agreement include:
a. Names of the lessor and lessee or their agents.
b. Description of the property.
c. Amount of rent and due dates, grace period, late charges.
d. Mode of rent payment.
e. Methods to terminate the agreement prior to the expiration date and charges if any.
f. Amount of security deposit and the account where it is held.
g. Utilities furnished by the lessor and, if the lesser charges for such utilities, how the charge will be
determined.
h. Amenities and facilities on the premises which the lessee is entitled to use such as swimming pool,
laundry or security systems.
i. Rules and regulations such as pet rules, noise rules and penalty for violation.
j. Identification of parking available, including designated parking spaces, if provided.
k. How tenant repair requests are handled and procedures for emergency requests.
Terms commonly included in a lease agreement:
a. Duration: Period for which the lease agreement will be in effect.
b. Rent: The consideration or payment made by the lessee to the lessor in exchange for the property
leased out.
c. Deposits: The amount of deposit required (if any), the purpose of each deposit, and conditions for
return or adjustment of deposit at the end of the lease period.
d. Terms of Use: The purpose for which the property is to be used and terms and conditions
regarding use of the property.
e. Utilities: Which utilities are included in the rent, and which utilities the tenant is responsible for.
f. Insurance: Whether the lessee is required to ensure the property – this is most often used in
commercial rental agreements.
g. Repairs and Maintenance: Party responsible for repairs and maintenance of the property – lessor or
lessee.

Module-4
Economic performance of building
Decision Making using techniques of economic performance to measure tangible and non-tangible issues - Cost-Benefit Analysis,
Incremental Analysis and Multi-criteria Analysis.
The economic performance of the building assesses the costs that occur during its whole life cycle, thus
giving direct comparison of costs during its life cycle, expressed in monetary units.
Cost - Benefit Analysis[27]
A cost-benefit analysis provides an economic framework to evaluate the viability of a proposed project.
Cost-benefit analysis is the systematic gathering of technical and financial data about a given business
situation or function. Information gathered and analysed through this method assists decision-making
about viability and resource allocation. A cost-benefit analysis specifies financial inputs and expected
quantitative and qualitative returns from a given project.
Costs
Costs are anticipated expenditure. They can be tangible, and therefore quantifiable, or intangible and less
easy to assign a dollar figure. Costing a project is difficult and advice from financial staff will be helpful.
Attempt to provide a dollar figure for each cost. When quantifying costs that will be encountered in the
future, consider whether inflation should be factored in. Gathering as much relevant data as possible
will ensure accurate results. Even so, some costs may need to be estimated, as clear-cut figures may not
be available. The use of ï¿½best guessï¿½ estimates is valid for intangible costs, as they will have to be,
by definition, estimations. Where this is necessary, ensure that the assumptions used to assign a dollar
figure are stated.
Tangible or quantifiable costs
Information on the level of staff expertise and training required to undertake the proposed project and its
expected time frame are tangible costs. Cost types include:
a. direct project costs (eg, staff, office space);
b. acquisition costs (eg, purchase of technology);
c. implementation costs (eg, loss of productivity); and
d. whole of life ownership costs (eg, operating costs, maintenance, upgrade/replacement of facilities,
staff, training and support).
Intangible or non-quantifiable costs
Costs associated with intangibles, although not easy to quantify, need to be recognised as they can impact
on the overall costs of the project under consideration. The costï¿½benefit analysis should acknowledge
non-quantifiable costs, even if they are not factored into the calculations in the analysis. Depending on
the project, some intangible costs to consider may include:
a) the impact of non-compliance with legislation
b) impaired knowledge management (exacerbated by decentralised operations)
c) diminished corporate memory (compounded by administrative change and high staff turnover)
d) the impact of not achieving best practice standards (ie, not complying with relevant ISO Standards)
e) potential litigation costs due to inadequate records management and information management
f) reduced accountability in decision-making and actions
g) reduced organisational productivity

What are benefits?
Benefits are the returns expected from a project. Most benefits are articulated in terms of improvements
or cost savings. Like costs, benefits can be quantifiable (tangible) and non-quantifiable (intangible).
You should attempt to provide a dollar figure for each benefit. Again, when quantifying benefits that will
be achieved in the future, consider whether inflation should be included. Again, seek advice from
financial staff. Bear in mind that secondary benefits may also be derived from a project ï¿½ that is,
benefits that will be achieved because other benefits were delivered. They must be practical and realistic.
The best way to achieve this is to investigate benefits over a reasonable time frame.
Tangible or quantifiable benefits
Tangible benefits are quantifiable service or financial gains to the organisation. Tangible benefits include:
a. improved effectiveness (eg, improved service delivery, improved access)
b. improved efficiency (eg, reduced costs, more efficient use of existing resources)
c. enabling or supporting other benefits (eg, using business analysis for work process re-engineering)
Intangible or non-quantifiable benefits
Intangible benefits are non-quantifiable improvements in the ï¿½welfareï¿½ of the organisation. These
are still valuable tools in convincing management to undertake a proposed project. Intangible benefits
include:
a) compliance with governance obligations
b) achieving best practice standard (ie, compliance with ISO standards)
c) reduced exposure to litigation costs
d) improved management of corporate memory
e) improved policy formation and delivery
f) increased organisational productivity
Organisations have little choice but to comply with legislative requirements. Therefore, quantifying
these benefits may not be very useful. It is more important to emphasise the benefit of achieving
compliance.
Another way at looking at benefits is to divide them into:
a. performance driven benefits
b. value driven benefits
c. societal benefits
Performance driven benefits include aspects such as organisational outcomes, customer satisfaction, and
return on investment. Value driven benefits include increased access, flexibility or ease of use. Finally,
societal benefits may include environmental aspects such as reduced traffic and pollution, unemployment,
and the potential for new markets. These benefits can be assessed both quantitatively and qualitatively.
Quantitative data can be obtained from market/customer surveys. Qualitative data can be obtained
through interviews or via written feedback via a number of channels.
Determining cost-benefit analysis results
Compare the overall costs and the overall benefits that the proposed project would deliver to the
organisation. Are the benefits derived more important than the costs to the organisation? Figures in
dollars will strengthen an argument as to why the project is viable and valuable. Management is more
likely to endorse the allocation of financial resources if the predicted return on investment (benefits
minus costs) is persuasive. Incorporate the calculations and findings of the costï¿½benefit analysis into
a business case to support the proposed project. The report should highlight costs and benefits in
monetary figures, but also emphasise the intangible facets associated with undertaking the proposed
project.

Cost-Benefit Analysis: Step-by-Step Example
The following example works us through a cost benefit analysis based on an employee turnover decision
making process.
Calculating Employee Turnover Costs
Step 1: Calculate the Current Rate of Turnover
a. # of employees leaving per year ________
b. average number of employees ________
c. divide line a by line b ________
d. % of turnover = line c x 100 ________
Step 2: Calculate the Annual Cost of Employee Turnover to the Company
Employment Advertising ï¿½ all recruitment advertising and related costs ________
Employment Agency and Search Fees ï¿½ fees to employment agencies, search firms, and recruitment
consultants ________
Internal Referrals ï¿½ costs for bonuses, fees, gifts, etc, awarded to employees participating in a
company-sponsored referral program ________
Applicant Expenses ï¿½ travel and subsistence costs ________
Relocation Expenses ï¿½ moving expenses and all other costs associated with relocation ________
Employment Staff Compensation ï¿½ all salaries, benefits,
and bonuses of the employment staff involved in recruiting,
interviewing, hiring, and training new employees ________
Other Employment Expenses ï¿½ all other related expenses,
such as the cost of facilities, telephone, consultants, etc ________
Orientation and Training ï¿½ include management time, trainer fees, materials, and other costs for
training new employees ________
Estimated Total Costs ________
Number of New Employees ________
Average turnover cost per new employee: divide total costs
by the number of new employees. ________
Step 3: Calculate Estimated Reduction in Turnover
Use data collected from needs assessment surveys, focus groups, exit interviews, etc, to determine how
many of your separating employees typically leave because of dependent care or other work/life issues.
________
Deduce how many of these probably would not have left had your proposed program or policies been in
place. (Remember that employees often are reluctant to name child care as a reason for leaving.
Therefore, your needs assessment may understate the problem.)________
Estimated reduction in turnover: subtract line 2 from line 1. ________

Step 4: Calculate Expected Savings in Turnover Costs
Multiply the expected reduction in turnover (step 3) by the average turnover costs per new employee
(step 2) to determine the expected savings in turnover costs.
________________ x _________________ =
(reduction in turnover) (average turnover cost) ________
Calculating the Cost of Absenteeism
Step 1: Calculate the Annual Cost of Absenteeism Per Year
___________________ x __________________ =
(# work days lost per year) (cost per work day) ________
Step 2: Calculate the Expected Reduction in Absenteeism
Estimate the percentage of current absences that might be due
to child care problems. ________
Step 3: Calculate Expected Savings in Absenteeism Costs
Multiply the annual cost of absenteeism (Step 1) times the
estimated reduction that might result from proposed work/life
policies (Step 2) to determine expected savings.
Total savings: _____________ x ______________ =
(annual cost) (expected reduction) ________
Incremental Analysis[28]
Incremental analysis is a decision-making technique used in business to determine the true cost difference
between alternatives. Also called the relevant cost approach, marginal analysis, or differential analysis,
incremental analysis disregards any sunk cost or past cost. Incremental analysis is useful for business
strategy including the decision to self-produce or outsource a function.
Incremental Analysis Explained
Incremental analysis is a problem-solving approach that applies accounting information to decision
making. Incremental analysis can identify the potential outcomes of one alternative compared to another.
Relevant Versus Non-Relevant Costs
Analysis models include only relevant costs, and these costs are typically broken into variable costs and
fixed costs. Incremental analysis considers opportunity costs—the missed opportunity when choosing one
alternative over another—to make sure the company pursues the most favorable option.
Non-relevant sunk costs are expenses already incurred. Because the sunk costs will remain regardless of
any decision, these expenses are not included in incremental analysis. Relevant costs are also called
incremental costs because they are only incurred when an activity of relevance has been increased or
initiated.
Types of Incremental Analysis Decisions
Incremental analysis helps companies decide whether or not to accept a special order. This special order
is typically lower than its normal selling price. Incremental analysis also assists with allocating limited
resources to several product lines to ensure a scarce asset is used to maximum benefit.
Decisions on whether to produce or buy goods, scrap a project, or rebuild an asset call for incremental
analysis on the opportunity costs. Incremental also analysis provides insight into whether a good should
continue to be produced or sold at a certain point in the manufacturing process.
Multi-criteria Analysis.[29]
Multiple-criteria decision-making (MCDM) or multiple-criteria decision analysis (MCDA) is a
sub-discipline of operations research that explicitly evaluates multiple conflicting criteria in decision
making (both in daily life and in settings such as business, government and medicine). Conflicting
criteria are typical in evaluating options: cost or price is usually one of the main criteria, and some
measure of quality is typically another criterion, easily in conflict with the cost. For example in
purchasing a car, cost, comfort, safety, and fuel economy may be some of the main criteria we consider –
it is unusual that the cheapest car is the most comfortable and the safest one.

MCDM or MCDA are well-known acronyms for multiple-criteria decision-making and multiple-criteria
decision analysis; Stanley Zionts helped popularizing the acronym with his 1979 article "MCDM – If not
a Roman Numeral, then What?", intended for an entrepreneurial audience.
MCDM is concerned with structuring and solving decision and planning problems involving multiple
criteria. The purpose is to support decision-makers facing such problems. Typically, there does not exist
a unique optimal solution for such problems and it is necessary to use decision-maker's preferences to
differentiate between solutions.
"Solving" can be interpreted in different ways. It could correspond to choosing the "best" alternative from
a set of available alternatives (where "best" can be interpreted as "the most preferred alternative" of a
decision-maker). Another interpretation of "solving" could be choosing a small set of good alternatives,
or grouping alternatives into different preference sets. An extreme interpretation could be to find all
"efficient" or "nondominated" alternatives (which we will define shortly).
The difficulty of the problem originates from the presence of more than one criterion. There is no longer
a unique optimal solution to an MCDM problem that can be obtained without incorporating preference
information. The concept of an optimal solution is often replaced by the set of nondominated solutions. A
nondominated solution has the property that it is not possible to move away from it to any other solution
without sacrificing in at least one criterion. Therefore, it makes sense for the decision-maker to choose a
solution from the nondominated set. Otherwise, she/he could do better in terms of some or all of the
criteria, and not do worse in any of them. Generally, however, the set of nondominated solutions is too
large to be presented to the decision-maker for the final choice. Hence we need tools that help the
decision-maker focus on the preferred solutions (or alternatives). Normally one has to "tradeoff" certain
criteria for others.
References for detailed study:
1. Brandon Dupont. "The History of Economic Ideas: Economic Thought in Contemporary Context," Chapter 1. Routledge,
Taylor & Francis Group. 2017.
2. https://study.com/academy/lesson/the-difference-between-wants-vs-needs-in-economics.html on 29-03-2020.
3. https://businessjargons.com/economics.html on 29-03-2020.
4. https://www.investopedia.com/terms/s/scarcity.asp on 29-03-2020.
5. http://www.economicsdiscussion.net/utility/utility-meaning-characteristics-and-types-economics/13594 on 29-03-2020.
6. https://econprojectsd.weebly.com/law-of-supply-and-law-of-demand.html on 29-03-2020.
7. https://www.toppr.com/guides/essays/essay-indian-economy on 29-03-2020.
8. http://www.civilprojectsonline.com/economics/introduction-to-building-economics-as-related-to-architecture/on
29-03-2020.
9. https://www.slideshare.net/JITKUMARGUPTA/building-economics on 29-03-2020.
10. https://citizensgeneral.com/business-insurance-news/postid/29/the-10-biggest-problems-in-construction-solvedon
29-03-2020.
11. https://www.eolss.net/Sample-Chapters/C08/E3-18-02-03.pdf on 29-03-2020.
12. https://en.wikipedia.org/wiki/Building_life_cycle on 29-03-2020.
13. https://www.investopedia.com/terms/c/cost-benefitanalysis.asp on 29-03-2020.
14. https://smallbusiness.chron.com/differences-between-monetary-nonmonetary-incentives-26139.html on 29-03-2020.
15. https://www.bankbazaar.com/personal-loan/project-financing.html on 29-03-2020.
16. https://en.wikipedia.org/wiki/Equity_(finance) on 29-03-2020.
17. https://www.investopedia.com/terms/f/financialinstitution.asp on 29-03-2020.
18. https://en.wikipedia.org/wiki/Financial_institution on 29-03-2020.
19. http://www.businessdictionary.com/definition/interim-financing.html on 29-03-2020.
20. https://www.firstfoundation.ca/mortgage-glossary/interim-financing/ on 29-03-2020.
21. http://www.investorwords.com/3673/permanent_financing.html on 29-03-2020.
22. https://www.financial-dictionary.info/terms/permanent-financing/ on 29-03-2020.
23. https://www.investopedia.com/terms/l/loan.asp on 29-03-2020.
24. https://www.bankbazaar.com/fixed-deposit/simple-interest-formula.html on 29-03-2020.
25. https://www.bajajfinserv.in/what-is-mortgage-loan on 29-03-2020.

26. https://cleartax.in/s/lease-deed-sample-download on 29-03-2020.
27. https://sielearning.tafensw.edu.au/MBA/9791K/BusinessServices/lo/1207_020138_608K_03_wi/1207_020138_608K_0312
_wi.htm on 29-03-2020.
28. https://www.investopedia.com/terms/i/incremental-analysis.asp on 29-03-2020.
29. https://en.wikipedia.org/wiki/Multiple-criteria_decision_analysis on 29-03-2020.

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