BUILDING ECONOMICS | QSB 3214
We have two lecturers for this subject: Sr. Loo Seong King and Ms Dianne Kok Hui Wei. This subject blends the concept of economics into building and construction. Since the construction industry involve a large sum of money in every project, clients want their building to be completed with the best quality, in the shortest time, and at the cheapest cost. What we learned is that it is not possible to achieve all three qualitites, building economics shows the balance between cost and the other two qualities.
Building economics not
only apply to construction costs of a building, but the whole-life costs, or
the costs-in-use. The type of material used in construction can determine the
amount spent on maintenance throughout the life of the building. 'Spending a
little more initially may result in a greater saving throughout the life of the
building' explains the concept of value for money.
We also learned
about investment and development appraisal, where we determine which investment
is better finacially. We learned that time value of money, where a sum of mony
today is worth more than the same amount of money in the future.
For our
assignment, we had to evaluate tenders from three contractors and decide which
one provides the best offer. We had to compare and contrast the tenders in
terms of elements and schedule of rates against our estimate and also each
other. After we decided which tender had won, we had to draft a letter of
acceptance to the contractor.
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