Economics

High quality design can stimulate a number of derived effects such as improved health, productivity and learning or improved urban life. The calculated value of these effects can surpass the construction costs over a number of years.

Construction accounts for about 8% of the Gross Domestic Product and a considerable part of society’s assets and resource consumption. Due to this, strict financial diligence is a core element of construction and alterations. It is important to be aware that the derived effects of construction may have a significant long-term economic value. The wealth of society is - so to speak - tied up in bricks and mortar.

Construction costs can be managed by working with buildability and industrial processes in the design. But if operation, maintenance and future replacements are also considered in an economic perspective – known as Life Cycle Costing (LCC) – it often changes the picture of what solutions are most profitable in the long term. If future recycling is incorporated in the design of the building, it can form part of a circular economy. This means that the building components can form part of new cycles when they are recycled. This can help future-proof the economic value of the building.