## CONSTRUCTION AND DEVELOPMENT ECONOMICS

 SHE Level 2 SCQF Credit Points 20.00 ECTS Credit Points 10.00 Module Code M2K203056 Module Leader Duncan Cartlidge School School of Computing, Engineering and Built Environment Subject Construction and Surveying Trimester B (January start)

### Pre-Requisite Knowledge

Property Economics (Level 1)

### Summary of Content

This module deals with the valuation of land and property including the preparation of a developer's budget. It also covers the economics structure of the construction sector and an introduction to life cycle costing and sustainability. Theories, principles and applications of cost management.

### Syllabus

Valuation of land and real property: comparative approach, residual, investment, profits and contractors' methods Investment appraisal: payback method, discounted cash flow approaches, capital allowances and property taxation. Developer's budget: costing out a development project including costs of land, construction, short-term finance, professional fees, etc; Optimization of development scheme. Construction economics: structure of construction sector, mergers and takeovers, materials supply sector, input-output relationships between construction and the economy as a whole, forecasting construction output, technological change Whole cycle costing: introduction to whole cycle costing in construction and sustainability. Project evaluation: analysis of the planning and construction of major projects Application of standard methods of valuation Techniques, principles and procedures of cost management. Methods, uses and selection of appropriate methods of cost forecasting. Sources, uses, limitations, applications of construction cost data, including use of cost indices. Interpretation, uses, application of BCIS Standard Form of Cost Analysis, including methods of updating and adjustment

### Learning Outcomes

On successful completion of this module student should be able to:1. Value land and property using five different approaches A2, C1, C2, D2, D3, D13.2. Prepare and modify a developer's budget including optimizing the use of resources. A3, A4, B1, B2, C2, C3, D3, D6, D12, D13, D14.3. Carry out a whole life cost appraisal for a simple construction project A4, B4, B5, C2, C3, D3, and D13.4. Recognise and apply the framework of cost management A4, B1, C1, D3.5. Identify, select and apply appropriate methods of cost forecasting A4, B3, B5, C3, D1, D3, and D13.6. Recognise sources of cost data and utilize same as appropriate A3, B2, C3, C6, and D3.

### Teaching / Learning Strategy

Lectures, supported by tutorials, seminars and workshops, and augmented by flexible learning materials will provide the basis for delivery of development appraisal Cost management and design economics topics will be delivered through the use of student-centred, flexible learning materials.

Ashworth A (20185) Cost Studies of Buildings 6th Ed, Prentice Hall Benge D (2014) NRM1 Cost Management Handbook (2014) Routledge Ferry D J, Brandon P S & Ferry J (2014) Cost Planning of Buildings 9th Ed, Blackwell Myers Danny (2008) Construction Economics: 2nd Ed. a new approach, Spon, London. Walton K (2015) Tolley's Capital Allowances Lexis Nexis Harvey J (2004) Urban Land Economics 6th Edition, Palgrave. Shapiro, MacKinin and Sons (2013), Modern Methods & Valuation 11th Ed, Estate Gazette RICS (2012) New Rules & Measurement: Order of Cost Estimating and Cost Planning, RICS Cartlidge D, (2012) Quantity Surveyor's Handbook, 2nd Edition, Routledge Millington A F (2000) Property Development, Estates Gazette. Millington A F (2000) Introduction to Property Valuation, 5th Edition, Estates Gazette. Building Cost Information Service Standard Form of Cost Analysis (2012): Principles, Instructions and Definitions, BCIS

### Transferrable Skills

Development of: Analytical, appraisal, interpretative and quantitative skills(D1) Written, graphical and IT presentation skills including the use of computer spreadsheets for financial projections (D9), (D13) Verbal, visual and responsive presentation skills (D9) Group working, Team Working (D12)

### Module Structure

Activity Total Hours
Practicals (FT) 12.00
Independent Learning (FT) 134.00
Lectures (FT) 24.00
Assessment (FT) 18.00
Seminars (FT) 12.00

### Assessment Methods

Component Duration Weighting Threshold Description
Course Work 01 n/a 50.00 35% Case Study of Construction Project (1800 words)
Exam 01 2.00 50.00 35% Construction and Development Economics exam