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This module enables students to develop their understanding of the fundamental theories and concepts of economics and financial accounts as well as how these operate in firms in the construction and built environment sector. This module introduces key theories and concepts of macro and microeconomics, as a means to locate students’ understanding of the construction sector – in light of its very broad scope including aspects of production and consumption, through manufacturing, building and operation of real estate/assets and infrastructure. As such it includes an introduction to carbon accounting.

The module also explores financial accounts, introducing and exploring how companies operate. This includes the principles of business accounting (prudence, going concern etc) and certain aspects of the law in respect of financial responsibilities of directors and companies. This approach provides basic knowledge drawn from company documents, case law and textbooks. It begins to build the technical commercial vocabulary and analytical skills that will help students be able to understand business accounts, and the wider economic context within which firms are based.

Lectures, seminars and discussions in class, are informed by selected reading tasks.

Students are required to sit a mid-year test and then an unseen exam at the end of the module. The module leader provides formative feedback on quizzes, and students gain experience of reading example business financial documents – an important professional skills development opportunity.

Aims:

To provide students with a basic working understanding of:
1. the fundamental theories in macro and microeconomics, such as consumer choice andÌýdemand, as well as production and supply, competition and markets;
2. how an economy works, i.e. institutions, banking, financial services and money.
3. key terms in business accounting, reporting and auditing – particularly those used in companyÌýaccounts (profit and loss, cashflow etc);
4. current debates and ideas about alternative economic models, including the circularÌýeconomy, climate change and resource implications, and other economic challenges thatÌýprojects managers may need to address in the future, notably balancing cost and carbon andÌýnot seeing these as exclusive.
NB: knowledge gained in this module is extended through modules Professional Practice 4 (BusinessÌýStatistics and Data Analytics) and Professional Practice 5 (Project Financial Controls and Reporting)Ìýin the Year Two syllabus.

Learning Outcomes:

On successful completion of the module, students will be able to:

• Describe the key economic forces, models and mechanisms, including production and supply,Ìýand competition and markets.
• Explain how business accounting operates, using key terms appropriately to explore andÌýappraise company financial documents.
• Appreciate the nature of a project manager’s responsibilities in respect of company finances,Ìýlabour and resources.
• Discuss how economic thinking is responding to major global and societal changes andÌýsuggest what this may mean for construction in the future.
• Outline key areas of legislation, regulation and the law which affect business accounting.
• Apply this knowledge to critically comment on business accounts and financial information.

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