Bringing together those aspects of modern theories of economics and management which are of particular relevance to the strategic behaviour of major construction firms, this book is aimed at the non-specialist reader. It analyzes the different behaviour of firms due to the special characteristics of the construction industry. After a chapter setting the scene for the relevant theories, the book launches into a discussion of business objectives and strategy of which diversification and international strategy are major components. This links in to financial policy, because it is the special financial aspects of contracting which partly determine market policy and diversification into contracting. Further chapters focus on the management structure of contracting organizations and the behaviour of managers and manpower management. Finally the major difference between the pricing behaviour of contracting firms and that of firms in other industries is emphasized. A companion volume by the same authors is also available - "The Modern Construction Firm".