Design Economics for the Built Environment

Editors and Contributors xii Foreword xxiii Preface xxv PART I THEORIES, PRINCIPLES AND APPROACHES 1 1 Economic Context, Policy Environment and the Changing Role of Design Economists 3 Herbert Robinson and Barry Symonds 1.1 Introduction 3 1.2 The economic context 4 1.3 Globalisation of construction market 6 1.4 The policy environment and the construction industry 9 1.5 Current and emerging role of design economists 11 2 Theories and Principles of Design Economics 16 Herbert Robinson and Barry Symonds 2.1 Introduction 16 2.2 Factors affecting design costs and benefits 17 2.3 Capital cost theory 18 2.4 Whole life cost theory 21 2.5 Value management theory 23 2.6 Value of design theory 24 2.7 Carter's model 26 2.8 Resource?]based theory 27 3 New Approaches and Rules of Measurement for Cost Estimating and Planning 31 Barry Symonds, Peter Barnes and Herbert Robinson 3.1 Introduction 31 3.2 The standardisation of cost estimating 32 3.3 The RICS NRM 1 33 3.4 RIBA plan of work, RICS estimating, cost planning and NRM 1 34 3.5 Cost estimating and cost planning 35 3.6 Elemental Standard Form of Cost Analysis (SFCA) 40 3.7 Benchmarking (cost limits) 41 3.8 Building information modelling 43 3.9 Concluding remarks 44 4 The Relationship between Building Height and Construction Costs 47 David Picken and Benedict Ilozor 4.1 Introduction 47 4.2 Research in the 1970s and 1980s 48 4.3 More recent research in Hong Kong and Shanghai 50 4.4 Conclusions 59 5 Appraisal of Design to Determine Viability of Development Schemes 61 Herbert Robinson 5.1 Introduction 61 5.2 Assessing costs and benefits of design alternatives 61 5.3 Appraisal of design using discounting methods 63 5.4 Appraisal of design using residual technique 65 5.5 Case study of the blackfriars development project 69 5.6 Concluding remarks 77 6 Eco-cost Associated with Tall Buildings 80 Peter de Jong and J.W.F. Hans Wamelink 6.1 Introduction 80 6.2 Overview of the Dutch housing market and land use planning 80 6.3 Eco-costs/value ratio and the EVR model 82 6.4 Applying the EVR model to housing 86 6.5 EVR and tall buildings 88 6.6 Embedding EVR in other sustainable ranking methods 89 6.7 Conclusion 90 7 Productivity in Construction Projects 93 Shamil Naoum 7.1 Introduction 93 7.2 Concept and measurement of productivity 94 7.3 Previous literature on factors affecting site productivity 94 7.4 Productivity survey 100 7.5 Proposed framework for site productivity 102 7.6 Conclusion and further research 104 8 Design Variables and Whole-Life Cost Modelling 107 Andrea Pelzeter 8.1 Introduction 107 8.2 Whole-life cost modelling 108 8.3 Steps in LCC modelling 110 8.4 Design principles to optimise lcc 112 8.5 A worked example of an office façade 116 8.6 Inclusion of carbon emissions into wlc modelling 118 8.7 Limitations of wlc 119 8.8 Concluding remarks 119 9 Procurement and Contract Strategy: Risks Allocation and Construction Cost 121 John Adriaanse and Herbert Robinson 9.1 Introduction 121 9.2 Procurement strategy and contract selection 122 9.3 Wembley stadium case study 123 9.4 Allocation of risks and forms of contract 124 9.5 Risks and construction costs 125 9.6 Procurement systems and contract issues 128 9.7 Alternative forms of procurement 133 9.8 Concluding remarks 135 10 Sustainable Design, Investment and Value 137 Thomas Lützkendorf and David Lorenz 10.1 Introduction 137 10.2 Formulation of project goals 138 10.3 Identifying value-related characteristics 142 10.4 The performance approach 143 10.5 Use of sustainability assessment systems 146 10.6 Relationship between sustainable credentials and value 148 10.7 Concluding remarks 150 11 Carbon Reduction and Fiscal Incentives for Sustainable Design 152 Paul Farey 11.1 Introduction 152 11.2 Key drivers of owners and occupiers 153 11.3 Reducing demand for energy in buildings 153 11.4 Fiscal drivers 155 11.5 Reliefs and allowances 161 11.6 Subsidies and incentives 173 11.7 Conclusion 175 12 Environmental Assessment Tools: An Overview of the UK's BREEAM and the US's LEED 177 Ina Colombo, Benedict Ilozor and Herbert Robinson 12.1 Introduction 177 12.2 Context and the need to design to reduce carbon emission 178 12.3 Key features of environmental assessment tools 179 12.4 The Breeam tool 180 12.5 The LEED tool 184 12.6 Concluding remarks 190 13 Space Planning and Organisational Performance 191 Benedict Ilozor 13.1 Introduction 191 13.2 Organisational performance and innovative work settings 192 13.3 Hypotheses and test results 193 13.4 Discussion 195 13.5 Conclusions 198 14 Achieving Zero Carbon in Sustainable Communities 201 Malgorzata Jacewicz and Herbert Robinson 14.1 Introduction 201 14.2 Key concepts and principles 202 14.3 Key features of decentralised energy networks 203 14.4 Activity-based design approach 204 14.5 Key steps in the design process 206 14.6 Evaluating energy, space and land requirements 209 14.7 Concluding remarks 211 15 Flood Risk Mitigation: Design Considerations and Cost Implications for New and Existing Buildings 213 Rotimi Joseph, David Proverbs and Jessica Lamond 15.1 Introduction 213 15.2 Increasing challenges of flooding due to global warming and urban development 214 15.3 Flood mitigation 215 15.4 Flood mitigation consideration for new buildings at design stage 218 15.5 Implications of mitigation measures in terms of building cost 218 15.6 Implications of mitigation measures in terms of property value and insurance cost 222 15.7 Conclusions 224 PART II INDUSTRY PERSPECTIVE, CASE STUDIES AND IMPLICATIONS FOR CURRICULUM DEVELOPMENT 227 16 Reusing Knowledge and Leveraging Technology to Reduce Design and Construction Costs 229 Herbert Robinson and Chika Udeaja 16.1 Introduction 229 16.2 Knowledge reuse in construction processes and projects 229 16.3 Knowledge reuse in construction projects 231 16.4 Leveraging knowledge systems to reduce time and costs 232 16.5 4Projects knowledge solution 234 16.6 Case studies and discussions 235 16.7 Concluding remarks 237 17 Sustainable Design Economics and Property Valuation: An Industry Perspective 240 Barry Gilbertson, Ann Heywood, Ian Selby and John Symes-Thompson 17.1 Introduction 240 17.2 Sustainable design economics and property valuation 240 17.3 Data collection 243 17.4 UK government impact 244 17.5 The valuation process 245 17.6 Conclusion 247 18 Cost Planning of Construction Projects: An Industry Perspective 248 Jon Scott 18.1 Introduction 248 18.2 Concept and format of a cost plan 248 18.3 How a cost plan is put together 253 18.4 How the cost plan evolves through the riba design stages 255 18.5 Main factors that affect the overall cost of a building 257 18.6 Impact of sustainability on cost plans 258 18.7 Recent developments in BIM and the implications for cost planning 260 18.8 Conclusion 260 19 Life Cycle Costing and Sustainability Assessments: An Industry Perspective with Case Studies 262 Sean Lockie 19.1 Introduction 262 19.2 Sustainability considerations in design 263 19.3 Using the life cycle costing standards 269 19.4 Case study 1 - whole building 275 19.5 Case study 2 - lighting 279 19.6 Concluding remarks 282 20 Designing Super-Tall Buildings for Increased Resilience: New Measures and Cost Considerations 284 James Hayhoe 20.1 Introduction 284 20.2 Challenges of tall buildings and the need for increased resilience 284 20.3 Factors influencing design and cost of tall buildings 285 20.4 Design of counter-terrorism measures 288 20.5 Cost of new measures and design 291 20.6 Concluding remarks 295 21 Building Information Modelling: A New Approach to Design, Quantification, Costing, and Schedule Management with Case Studies 299 Aviad Almagor and Barry Symonds 21.1 Introduction 299 21.2 Concept of Bim 300 21.3 Integration and dataflow 302 21.4 Model Progression Specification: Developing a common language 303 21.5 Quality 305 21.6 Cost planning 310 21.7 Construction schedule 314 21.8 Conclusion and future directions 317 22 Case Study: Value Engineering and Management Focusing on Groundworks and Piling Packages 319 Richard Powell 22.1 Introduction 319 22.2 Why VM? 319 22.3 When and where is VM applied? 320 22.4 Value management implemention and tools used 320 22.5 Practical benefits and savings 324 22.6 Reflection and concluding remarks 327 23 Case Study: Value Engineering of a New Office Development with Retail Provision 330 Paul Ullmer 23.1 Introduction 330 23.2 Why value management? 330 23.3 When and where is value management applied? 331 23.4 Value management implementation and tools used 332 23.5 Practical benefits and savings 334 23.6 Concluding remarks 335 24 Case Studies: Sustainable Design, Innovation and Competitiveness in Construction Firms 336 Arthlene Amos and Herbert Robinson 24.1 Introduction 336 24.2 Background and context 336 24.3 Key drivers of sustainability in design and construction 337 24.4 Case studies 339 24.5 Findings and discussions 340 24.6 Concluding Remarks 353 25 Case Study: Retrofitting Building Services Design and Sustainability in Star Island 356 Victoria Hardy 25.1 Introduction 356 25.2 Initial study or analysis to identify problems 357 25.3 Funding for capital improvement plan 358 25.4 Evaluation of design options and the cost implications 358 25.5 Proposed design solution and costs 359 25.6 Concluding remarks 361 26 Case Studies: Maximising Design and Construction Opportunities through Fiscal Incentives 362 Paul Farey 26.1 Introduction 362 26.2 Strategic considerations 362 26.3 Capital allowances planning 364 26.4 Enhanced capital allowances (ECA) 366 26.5 Land remediation relief (LRR) 367 26.6 Value added tax 368 26.7 Taxation anti-avoidance 370 26.8 Conclusion 370 27 Mapping Sustainability in the Quantity Surveying Curriculum: Educating Tomorrow's Design Economists 372 Chika Udeaja, Damilola Ekundayo, Lei Zhou, John Pearson and Srinath Perera 27.1 Introduction 372 27.2 Literature review on sustainability issues 373 27.3 Development of the Sustainability Framework 376 27.4 Mapping of Sustainability Education in QS Degree Programmes 380 27.5 Discussion and conclusions 382 Appendix A: UK Property Investment Yields (December 2013) 387 Appendix B: IPD/RICS Sustainability Inspection Checklist 2014 389 Index 392