DEVELOPMENT AND PROJECT ECONOMICS

SHE Level 5
SCQF Credit Points 15.00
ECTS Credit Points 7.50
Module Code MMK221219
Module Leader John Lowe
School School of Computing, Engineering and Built Environment
Subject Construction and Surveying
Trimester
  • A (September start)

Summary of Content

This module operates an overall 50% pass rate. The core of this Module will centre around development appraisal including:: The valuation of land and property including the preparation of a developer's budget and an introduction to the principles of life cycle costing. The factors influencing urban and regional economics including government policies, planning and land use. The impact of this on land values. Theories, principles and applications of Cost Planning and Cost Control techniques in pre-contract project costing will also be utilized in the Module.

Syllabus

Valuation of land and real property: comparative approach, residual, investment, profits and contractors' methods Investment appraisal: payback method, discounted cash flow approaches. Term and revision method. Developer's budget: costing out a development project including costs of land, construction, short-term finance, professional fees, etc; Optimization of development schemes. Life cycle costing: introduction to life cycle costing in construction Project evaluation: analysis of the planning and construction of major projects. Application of standard methods of valuation. Techniques, principles and procedures of cost planning and cost control. 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:Value, appraise land and property using different approaches Develop, evaluate and modify a developer's budget including optimizing the use of resources. Undertake a life cycle cost appraisal for a simple construction project Recognise and apply the framework of formal cost planning and cost control Identify the objectives of cost forecasting and cost control Identify, appraise, select and apply appropriate methods of cost forecasting Recognize sources of cost data and utilize same as appropriate.(A1, A2, A3. A4. A5, A6, B1, B2, B3, B4, B5, B6, C2, C4, C5, C6)

Teaching / Learning Strategy

A web-based form of delivery will be used throughout the module. All students will use the web for all of their teaching and learning materials. Full-time and part-time students will be able to participate in enhancement seminars which will facilitate discussion and allow them to meet visiting speakers and take part in site visits and simulations where appropriate. This material will also be made available to distance learning students. Assignments will adopt an integrated approach to the appraisal of projects from inception through to construction and beyond.

Indicative Reading

Ashworth A Cost Studies of Buildings, Longman Kirkham. Richard: Ferry and Brandon's Cost Planning of Buildings (2007), Blackwell, London Flanagan R & Tate B (1997) Cost Control in Building Design, Blackwell Myers Danny: Construction Economics: a new approach, second edition (2008), Taylor and Francis, London Paul N. Balchin, Jeffrey L. Kieve, Gregory H. Bull (1995): Urban Land Economics and Public Policy, Palgrave Macmillan, London. The Royal Institution of Chartered Surveyors (1982) Quantity Surveyors Practice Pamphlet No 3 Pre-Contract Cost Control and Cost Planning, RICS Building Cost Information Service Standard Form of Cost Analysis (1987): Principles, Instructions and Definitions, BCIS. Millington (2001) An Intorduction to Valuation Fifth Edition, Estates Gazette, London. Practice Standard for Earned Value Management (2005) Project Management Insitute. ISBN: 978-1930699427 Sponsoring Change: A Guide to the Governance Aspects of Project Sponorship (2009) Association for Project Management ISBN: 978-1903494301 Analysis for financial management, Higgins, Robert C, 10th Edition For (Oman Students Only) Bi financial Mnagement & Accounting System, Nadhani A.K (Oman Students Only) Costruction Accounting and Financial Management, Petrson Steven J 3rd Edition (Oman Students Only)

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, Role playing. (D1, D6, D7, D8, D9, D10, D12, D12, & D14)

Module Structure

Activity Total Hours
Independent Learning (FDL) 130.00
Independent Learning (PT) 110.00
Seminars (FT) 20.00
Independent Learning (FT) 110.00
Assessment (FDL) 20.00
Seminars (PT) 20.00
Assessment (PT) 20.00
Assessment (FT) 20.00

Assessment Methods

Component Duration Weighting Threshold Description
Coursework n/a 20.00 45% On-line test 1 hour 20 minutes
Coursework n/a 30.00 45% Individual assignment analysing a project 1,500 words excluding tables, diagrams, etc.
Coursework n/a 30.00 45% Group assignment: development project: 1,000 words per student excluding tables, diagrams, etc.
Coursework n/a 20.00 45% Contributions to on-line discussion boards - 750 words.