Issue ? 28. September 2011

New Possibilities of Marginal Analysis in Construction

Olga V. Grushina – Ph.D., associate professor,  Economics, Investment Management and Real Estate Management Department, Baikal State University of Economics and Law.
E-mail: olga7771972@mail.ru

Irina G. Homkalova – assistant professor,  Economics, Investment Management and Real Estate Management Department, Baikal State University of Economics and Law.
E-mail: hig06@mail.ru

The crisis situation had a drastically negative impact on the construction industry. Realty prices slump led to a significant decrease in profit for the construction enterprises and investors began to give preference to more profitable industries. As a result, many construction companies have lost possibility of increasing the construction volume. The researcher pay specific attention to the development of theory and mechanism of cost management of a construction company in a changing economy. Non-stationary processes in economy defined the non-classical peculiarities of formation of supply and demand for real estate in Russian Economy. Adaptive abilities of an enterprise start to play a special role in management. The mechanism of cost management on the basis of budgeting, will allow the processes of administrative adaptation of a construction company to change the conditions to be realized. The authors analyze the ways of cost classification using the constant costs allocation. The mechanism of updating of this type of costs will allow an optimization of parity of volume-costs-profit without a surge in prices.

Keywords

Construction economics, housing demand and supply, housing pricing, costs for construction of housing per square meter, costs classification, transaction costs, non-switching costs, marginal approach.