CE2CCE-Construction Economics

Module Provider: School of Construction Management and Engineering, School of Built Environment
Number of credits: 10 [5 ECTS credits]
Level:5
Terms in which taught: Spring term module
Pre-requisites:
Non-modular pre-requisites:
Co-requisites:
Modules excluded:
Current from: 2023/4

Module Convenor: Dr Martin Green
Email: m.s.green@reading.ac.uk

Type of module:

Summary module description:

The subject of the module is the micro and macroeconomics of the construction sector, including cost management and forecasting for the development of construction projects from the client/owner, design team, and contractor’s perspective. The focus is from the concept and the early design stage, through the design and construction process, and into occupancy.Ìý

Aims:

1. Provide a knowledge and understanding of the economic and financial context of the development and construction of built facilities.


2. To understand basic techniques and undertake calculations related to the estimating, and cost planning of a proposed project, including the financial management from strategic definition and concept, through the design and production stage, to completion and occupancy.


3. Understand the issues considered in the financial appraisal of proposed development projects, including the cost implications of planning approvals.


4. Understand how to undertake a whole life appraisal of a project taking account of time, cost, performance, selection of the most appropriate discount rate, and the categories to be included in the appraisal.

Assessable learning outcomes:

The student will:

1. Identify and analyse the micro-economic and financial factors affecting the development of built facilities.


2. Identify and understand different estimating techniques for giving a cost to a built facility and select the appropriate technique for use in different circumstances.


3. Produce a developer’s budgetÌýfor planned construction works.


4. Understand the principles of estimating for construction work, including forecasting at the early stage of the project and estimating based on design and measured information.


5. Understand the principles of cost planning and cost management during the design stage of a project.


6. Understand the concept of whole life appraisal of built facilities and/or building components and its calculation and evaluation prior to and during the design stage.

Additional outcomes:

Outline content:

1. The process of development of built facilities, the organisations and their responsibilities. The management systems, the parties, the economic and financial context.


2. Time value of cost and revenue, the use of the different types of price and cost indices.


3. The principles of building up unit price rates for estimating prices.


4. Financial appraisal/development budgets.


5. Pricing construction work from design through to site production.


6. Design cost planning from concept to bid.


7. Pricing the preliminaries items in a bill of quantities using estimating principles.


8. Whole life appraisal techniques, incorporating whole life costing.

Brief description of teaching and learning methods:

Formal teaching will include lectures, to give a basic explanation and context to the basis content of the module. Textbooks and industry reports will be recommended reading in order to supplement the lecture information.