SHE Level 2
SCQF Credit Points 20.00
ECTS Credit Points 10.00
Module Code M2K224610
Module Leader Martin MacDonald
School School of Computing, Engineering and Built Environment
Subject SCEBE - School Office
  • B (January start)

Pre-Requisite Knowledge

Applicable Mathematics-1, Construction Technology

Summary of Content

The module has been designed to illustrate the application of: -Economic principles to the building and construction process. -Providing an overview of the construction industry and its role in the economy -Understanding a construction firm and its management from an economic perspective -A comparative performance of the Oman construction and property markets -Valuation of land and property including the preparation of a developer's budget. - Applications of cost planning and cost control techniques in pre-contract project cost are also included.


Introduction to microeconomics and macroeconomics: Microeconomics The scope and nature, background to demand and supply, features and trend of markets, productivity, labour force, capital investment, finance and land. Macroeconomics The principle of macroeconomics, the organization of industry, economic systems and international trade. The construction industry and its economic development: Structure and role of construction industry in the economy' 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, the impact of international capital flows for the property and construction industry. Valuation of land and real property: Valuation techniques: Comparative approach, residual, investment, profits and contractors' methods Investment appraisal: Techniques for investment appraisal. Payback method, discounted cash flow approaches, Internal Rate of Return Developer's budget: Costing out a development project including costs of land, construction, professional fees, etc., optimization of development scheme, Life cycle costing: introduction to life cycle costing in construction Project evaluation: analysis of the planning and construction of major projects Cost Planning & Cost Control: Application of standard methods of valuation techniques, principles and procedures of cost planning & cost control

Learning Outcomes

On successful completion of the module the student should be able to:Understand market forces and relationships and the basic economic principles that underpin the built environment. (A1, A2, A3)Supply a context for the study of Oman and international construction industry. (A4, A5, A6)Describe the dynamics of a product market in terms of demand and supply. (B1, B2, B3, C1, C2, D1, D2, D3)Identify and appraise the structure and the comparative performance of Oman construction and property markets in relation to the use of capital, land and labourValue land and property using the appropriate valuation techniques. (D4, D5, D8, D10)Prepare and modify a developer's budget including optimizing the use of resources. (D1, D2, D7, D12)Carry out a life cycle cost appraisal for a simple construction project. (D3, D4, D6)Recognise and apply the framework of formal cost planning and cost control. (C1, C2, D1, D2)

Teaching / Learning Strategy

Lectures will be used to convey basic concepts and principles with explanatory examples. Tutorials hours will be used to reinforce the module material taught during the lecture. Lectures provide an introduction to staff and resources, lecture programme, assessment strategy, texts and software in a flexible learning mode. Learning and teaching strategies will be developed and implemented, appropriate to students' needs, to enable all students to participate fully in the module. Lectures, guest speakers, case studies, and individual and team projects. Topics will be delivered through the use of student-centered, flexible learning materials.

Indicative Reading

Reference Book: 1. Beardshaw, "Economics-A Students Guide 4th Edition. Addison J et al ,1998 2. Begg, David K H, "Foundations of Economics" McGraw Hill, 2000 3. Griffiths, Alan, "Applied Economics", Addison Wesley Longman, 2001 4. Hillebrandt, Patricia, "The Modern Construction Firm". Macmillan 1994 5. Manser J.E, " Economics: A Foundation Course for The Built Environment" , International Thomson* , 1994 6. Myers, Danny, " Economics & Property", Estates Gazette, 1994 7. Hillebrandt P.M, "Economic theory & the Construction Industry", MacMillan 2000 8. Richmond D, "Introduction to Valuation", MacMillan* 9. Ashworth A, "Cost Studies of Buildings", 2nd Edition, Longman* 10. Ferry D. J, Brandon P. S & Ferry J, "Cost Planning of Buildings" 7th Edition ,Granada *,1991 11. Ashworth A & Hogg K (2002) Willis's Practice & Procedure for the Quantity

Transferrable Skills

Critical thinking and problem solving Cognitive/intellectual skills Knowledge and understanding in the context of the subject Learning style and orientation to learning Time management(organising and planning work) Independent working Information retrieval skills Group working Communication skills, written, oral and listening.

Module Structure

Activity Total Hours
Tutorials (FT) 28.00
Independent Learning (FT) 100.00
Assessment (FT) 16.00
Lectures (FT) 56.00

Assessment Methods

Component Duration Weighting Threshold Description
Coursework 1 n/a 30.00 35% context based report (1500 words) economics in engieering projects in the context of Oman.
Exam (Exams Office) 2.00 50.00 35% Unseen written examination - 2 hours
Exam (School) 1.50 20.00 35% Mid Term Test -  Unseen written examination-1½ Hours