CONSTRUCTION AND DEVELOPMENT ECONOMICS

SHE Level 2
SCQF Credit Points 20.00
ECTS Credit Points 10.00
Module Code M2K225133
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. The percentage of Work Based Learning for this module, as represented by the Independent Learning "Activity Type" , is 76%. The percentage of Work Based Assessment for this module is 30%, which is represented by Coursework 2.

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 the student should be able to:1. Value land and property using five different approaches.2. Prepare and modify a developer's budget including optimizing the use of resources.3. Carry out a whole life cost appraisal for a simple construction project.4. Recognise and apply the framework of cost management.5. Identify, select and apply appropriate methods of cost forecasting.6. Recognise sources of cost data and utilize same as appropriate.A2-A6, A8, A9, B1-B4, B6 SDS GA: 2.2,3.2,3.5,3.6,4.1,4.2,4.4]

Teaching / Learning Strategy

This subject will be delivered by a student led "flipped classroom "core information, and supporting overhead materials will be made available for each lecture electronically in GCU Learn. Seminars/tutorials will concentrate on applying core information in lectures to problem questions given in advance. Students are referred to supporting reading materials to deepen their knowledge and understanding of lecture and seminar topics Aspects delivered in the 'Flipped Classroom' mode will require students to view lecture material online and complete formative exercises prior to engaging and completing an on-campus seminar with academic support leading the discussions to explore the relevance of the content and specific to their workplace.

Indicative Reading

Ashworth, A (2015) Cost Studies of Buildings 6th Ed, Prentice Hall Benge, D (2014) NRM1 Cost Management Handbook, Routledge Ferry, D J, Brandon P S & Ferry J (2014) Cost Planning of Buildings 9th Ed, Blackwell Myers, Danny (2016) Construction Economics: 4th 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 (2017) Quantity Surveyor's Handbook, 3rd Edition, Routledge 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 Written, graphical and IT presentation skills including the use of computer spreadsheets for financial projections Verbal, visual and responsive presentation skills Group working, Team Working [C1-C6, D1, D3-D5, E1, E3, E5-E7 SDS GA: 5.1 - 5.3]

Module Structure

Activity Total Hours
Practicals (FT) 6.00
Assessment (FT) 18.00
Independent Learning (FT) 152.00
Seminars (FT) 24.00

Assessment Methods

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