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: 2022/3

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. 

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 budget for 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.

Contact hours:

	Autumn	Spring	Summer
Lectures		10
Guided independent study:
Wider reading (independent)		70
Exam revision/preparation		20
Total hours by term	0	100	0
Total hours for module	100

Summative Assessment Methods:

Method	Percentage
Written exam	100

Summative assessment- Examinations:
One two- hour examination

Summative assessment- Coursework and in-class tests:

Formative assessment methods:

Penalties for late submission:

The Support Centres will apply the following penalties for work submitted late:

• where the piece of work is submitted after the original deadline (or any formally agreed extension to the deadline): 10% of the total marks available for that 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: https://www.reading.ac.uk/cqsd/-/media/project/functions/cqsd/documents/cqsd-old-site-documents/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.

Assessment requirements for a pass:
A mark 0f 40%

Reassessment arrangements:
Re examination in August /September

Additional Costs (specified where applicable):

1) Required text books:  None

2) Specialist equipment or materials:  None

3) Specialist clothing, footwear or headgear:  None

4) Printing and binding:  None

5) Computers and devices with a particular specification:  None

6) Travel, accommodation and subsistence:  None

Last updated: 22 September 2022