Building Economics and Cost Planning

At the end of this course, students should be able to: 1. discuss factors affecting construction costs; 2. prepare preliminary estimates and budgets for construction works; 3. discuss construction and the economy; 4. understand market structures in construction industry; and 5. carry out cost planning of building works.

Practical procedures for building construction estimating of most major trades; analysis of factors and methods affecting construction costs; bid strategies; preparation of preliminary budgets and complete working estimates with quantities and costs of materials, labour and overhead, how computer applications are explored in building constructions and the economy, managing the macro economy, environmental economics, economic system of resource allocation, market mechanisms in construction. Costs of construction materials, theories of demand and supply. Types of market structures in construction industry. Cost planning: introduction to cost criteria, planning and process of cost planning, cost centre and design economics; cost data, indices analysis and research. Cost Benefit Analysis; cost checks and reconciliation, construction cost (cost implication of construction methods, practical application of cost control during construction process). Review of measurement of building works and estimating within professional offices; economics and the construction industry.