Economic Analysis of Housing Construction Methods

by Shlomo Peer, Head; Dept. of Constr. Mgmt. and Economics, Building Res. Sta., Technion-Israel Inst. of Technol., Haifa, Israel,
Abraham Warszawski, Sr. Res. Engr.; Building Res. Sta., Technion-Israel Inst. of Technol., Haifa, Israel,

Serial Information: Journal of the Construction Division, 1972, Vol. 98, Issue 2, Pg. 287-294

Document Type: Journal Paper


A systematic procedure is proposed for comparison of building costs per dwelling unit in different construction methods. Cost components (labor, materials, investment, general expenses, transportation of prefabricated elements and overhead) are analyzed for their time-dependence and quantity dependence. The study was carried out, with the aid of a model, on a typical housing project comprising 12_ dwelling units, with a view to eliminating uncharacteristic external influences. Four construction methods were studied, with different degrees of mechanization, as used at present in Israel: conventional, cross-walls, partial prefabrication and comprehensive prefabrication. Results were analyzed with regard to sensitivity to changes in the following cost parameters: cost of labor and materials, investment, size of project, construction pace, annual output of prefabrication plant, and dwelling-unit floor-area. A description of the model and a brief outline of the construction methods are given. The main results are reported as percentages.

Subject Headings: Construction methods | Prefabrication | Construction costs | Economic factors | Housing | Residential construction | Labor | Investments

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