Relation Between Engineering Economics and Civil Engineering:

 

1.    In past there was no concept of resource limitations. Cost factor was over looked and large palaces, tombs, monuments were built.

 

2.    Now there is general economic decline, for example in Dubai, U.S.A, Pakistan and all over the world.

 

3.    When resources shrink, it is necessary to control expenses or spend very carefully.

 

4.    To use resources properly it is necessary to consider proposal in broader perspective, consider all possible options of an engineering project component.

 

5.    This approach of careful use of resources has been successfully applied in civil engineering. Since in civil engineering projects are designed an implemented and finances are needed.

 

6.    For each project following aspects are to be evaluated:

 

(a) Nature, purpose, scope of project.

(b) Cost-benefit (return on investment).

(c) Need of project.

 

7. The project to be further reviewed from following additional aspects for feasibility:

 

(a) Technical

(b) Financial/Economic

(c) Environmental/Social

8. Engineering economics deals with financial or economic views point of any project to check what is being spent on civil engineering. Project will give profit or project will suffer losses.

 

9. Engineering economics in case of civil engineering deals with alternates or options. For example:

 

(a) Road construction

(b) Pipeline laying

(c) Students to elaborate