20 credits at level HE6
This module seeks to expose the student to the concepts of risk and cost management of construction projects by the quantity surveyor and others acting on behalf of the building client. Many of the techniques, procedures and processes used by quantity surveyors and others in this field are relatively new and are at the leading edge of these aspects of construction; with the traditional role of the quantity surveyor undergoing considerable change, students will be encouraged to embrace these new ideas and skills to enable them to make informed judgements when giving early cost advice.
1 to encourage students to critically appraise the value management techniques available in terms of timing, relevance, or importance of associated problems in the use of such techniques;
2 to enable students to understand the tools and procedures available to assist in advising clients properly in the decision making process regarding options available to clients in obtaining the optimum use of scarce resources;
3 to provide the student with a knowledge base to enable them to develop a critical awareness of design economics, synthesising techniques of life-cycle cost management; value engineering; value analysis; risk analysis and development appraisal;
4 in developing their own skills, to make the student aware of the input into such techniques by other professional advisors.
Time value of money (25%)
Valuation table; annual sinking fund; investment appraisal techniques
Life-cycle cost management (10%)
Available techniques; its importance to clients and the industry; problems associated with its use.
Value engineering (12%)
Its origins and current application; uses within the construction industry.
Value analysis and management (18%)
Purpose and techniques; input by consultants other than quantity surveyors.
Risk analysis (25%)
Certainty and uncertainty; identification of risk and responses to risk; use of simulation techniques to help analyse risk and the management of risk; its importance within the construction industry.
Development appraisal (10%)
Techniques available; purpose and uses.
Lectures and tutorials
Coursework and examinations
when you have successfully completed this module you will:
to demonstrate that you have achieved the learning outcome you will:
|1.||Have a perception of the philosophy of value management within the construction industry||Set out the procedures for function analysis for design of various building elements.|
|2.||Be able to critically appraise risk factors inherent in the construction process, and the methods available to quantify and manage such risk;||Distinguish between deterministic and stochastic probability|
|3.||Be able to distinguish between short-term capital costs and life-cycle costs of projects, and appreciate how they are determined||Evaluate project selection strategies; calculate the various forms of Time-Value-of-Money|
|4.||Be able to demonstrate how the concept of alternative design solutions can be used to maximise value for money through value engineering processes.||Set out the procedures for function analysis for design of various building elements.|
|5.||Know how to synthesise and adopt a problem solving approach in a given situation rather than seek ready made solutions||(Assessed through the other outcomes)|
|6.||Be able to critically appraise alternative solutions available to clients and the management of the construction process, in particular the fields of risk and cost management.||Demonstrate how risks are priced into both the pre-tender and tender estimates|
|7.||Be able to discount income flows and one-off sums of money||Calculate Annual Sinking Fund,Years’ Purchase, GDV|
Your achievement of the learning outcomes for this module will be tested as follows:
|Description||(involving responses to life cycle cost-in-use design problems; and feasibility studies), to determine the content of individual student knowledge / application.||All areas not covered under coursework|
Before taking this module you must have successfully completed the following:
No restrictions apply.
Ashworth, A. and Hogg, K. "Added value in Design and Construction", Ist Edition, Longman 2000
Ashworth ,A "Cost studies of Buildings" 3rd Edition, Longman 1999
Best, R. and De Valence, G. " Building in Value", 1st Edition, Arnold, 1999
McGeorge, D. & Palmer, A., “Construction Management: New direction”, Blackwell, 1997..
Flanagan, R., and Tate, B. " Cost Control in Building Design", 1st Edition, Blackwell,1997
Byrne, P., and Cadman, D., "Risk Uncertainty and Decision Making in Property Development", 2nd Edition, Spon,
Flanagan, R., and Norman, G., "Risk Management and Construction", Blackwell, 1993.
Smart, A., and Green, S., "Methodology for Value Management", CIOB, 1992.
Green, S. and Popper, P., "Value Engineering, The Search for Unnecessary Costs", CIOB, 1990.
Professional and Academic Journals
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