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This is a revised and updated edition of Patricia Hillebrandt's classic textbook, which has been used by generations of students. It deals with the application of economic theory to the workings of the construction firm and the construction industry and brings the subject right up to date. After opening chapters describe the nature of the subject and the place of the construction industry in the economy, the book analyses in detail the determination of demand and the way demand is treated in the industry. Following chapters look at the way the industry supplies the products and the determination of their price. The book includes a topical assessment of the implications for competition in the industry of new methods of procurement; a new chapter on the economics of the demand for rehabilitation, repair and maintenance; and two new chapters dealing with broader issues, including the application of theory to problems of appropriate technology for developing countries, and decisions of the firm as to its choice of businesses.