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: Autumn term module
Pre-requisites:
Non-modular pre-requisites:
Co-requisites:
Modules excluded:
Module version for: 2017/8

Module Convenor: Prof Roger Flanagan

Email: r.flanagan@reading.ac.uk

Summary module description:
The subject of the module is the micro-economics and financial management accountancy of property development and construction projects.

Aims:
1. To provide a knowledge and understanding of the economic and financial context of the development and construction of built facilities.
2. To enable students to undertake basic techniques and calculations related to the financial appraisal of proposed development and construction projects, particularly:
• Discounting and compounding.
• Valuation of built facility projects.
• Financial feasibility appraisal; profitability, rates of return.
• Forecasting and controlling construction cost at design and construction stages.
• Total cost appraisal of built facilities.

Assessable learning outcomes:
The student will:
1. Identify and analyse the micro-economic and financial factors affecting the development of built facilities.
2. Discount and compound, at appropriate rates, cost and revenue profiles of development projects to produce time weighted values.
3. Identify and understand different techniques for giving a value to a built facility and select the appropriate technique for use in different circumstances.
4. Appreciate and apply basic quantification techniques to the concepts of profitability and rate of return from the point of view of developers and constructors involved in built facility development.
5. Understand the principles of costing and accounting for construction work, including forecasting at the early stage of the project and estimating based on design information.
6. Understand the concept of total cost 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 management systems, the parties, the economic and financial context. 2. Time value of cost and revenue. Compounding and discounting. 3. Valuation methods for built facilities. 4. Financial appraisal. 5. Costing construction work, pre-and post- design. 6. Design cost planning. 7. Cost and revenue related to the construction process. 8. Whole life costing.

Brief description of teaching and learning methods:
Students will be provided with a Study Guide, which, taken with its references to basic texts and data, will provide a full documentary account of the subject matter and the techniques of the module. The Study Guild will also provide self- assessment questions and calculation problems which the student can undertake to test their understanding of the subject matter and their proficiency of in the financial calculation techniques.
Some of these questions will be used as the basis of tutorial discussion. Formal teaching will include lectures, to give a basic explanation and context to the basis content of the module.

Contact hours:
  Autumn Spring Summer
Lectures 10
Tutorials 4
Guided independent study 86
       
Total hours by term 100.00
       
Total hours for module 100.00

Summative Assessment Methods:
Method Percentage
Written exam 100

Other information on summative assessment:

Formative assessment methods:
The Study Guide will have questions which can be answered and self -assessed on the basis of provided model answers.

Penalties for late submission:
The Module Convenor will apply the following penalties for work submitted late, in accordance with the University policy.

  • where the piece of work is submitted up to one calendar week after the original deadline (or any formally agreed extension to the deadline): 10% of the total marks available for the piece of work will be deducted from the mark for each working day (or part thereof) following the deadline up to a total of five working days;
  • where the piece of work is submitted more than five working days after the original deadline (or any formally agreed extension to the deadline): a mark of zero will be recorded.

  • The University policy statement on penalties for late submission can be found at: http://www.reading.ac.uk/web/FILES/qualitysupport/penaltiesforlatesubmission.pdf
    You are strongly advised to ensure that coursework is submitted by the relevant deadline. You should note that it is advisable to submit work in an unfinished state rather than to fail to submit any work.

    Length of examination:
    One two- hour examination

    Requirements for a pass:
    A mark 0f 40%

    Reassessment arrangements:
    Re examination in August /September

    Additional Costs (specified where applicable):
    1) Required text books:
    2) Specialist equipment or materials:
    3) Specialist clothing, footwear or headgear:
    4) Printing and binding:
    5) Computers and devices with a particular specification:
    6) Travel, accommodation and subsistence:

    Last updated: 31 March 2017

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