Construction Economics III

At the end of this course, students should be able to: 1. Understand and apply cost indices and cost analysis as tools for determining preliminary estimate; 2. Develop advanced knowledge and skill for aligning cost plan to preliminary estimate or cost limit; 3. Develop the knowledge and understanding of cost modelling techniques and cost engineering techniques at pre-contract stage; 4. Understand and apply the techniques used in investment appraisal of private developments; 5. Understand and apply the cost/benefit analysis technique used in the appraisal of public developments; and 6. Develop the knowledge and understanding of sources of funds for development, public investment, mortgage financing, development bonds, loans, grants, subsidy and taxation.

Building cost indices and locational indices: principles, build up and uses. Use of cost analysis data and indices in establishing preliminary estimates of future projects. Advanced cost planning and cost control to align cost plan with preliminary estimate or cost limit; cost modelling techniques; cost engineering techniques: cost estimating or assessment methods employed in cost engineering. Effect of Building geometry on construction cost; development economics: aims of private developers and preparation of developer’s budget. Investment appraisal techniques. Aims of public developers and the use of cost/benefit analysis for evaluating public projects. Choice and acquisition of sites and their effects on developments. Sources of funds for development, public investment, mortgage financing. Development bonds, loans, grants, subsidy and taxation. Group assignment, using peer support to develop the knowledge and skill for aligning cost plan to preliminary estimate or cost limit.