Building Economics for Architects

Preface
Acknowledgments

1.Introduction
The Importance of Building Economics
Building Economics, Scope, Recurring Problems
Approach
Study Questions

2.The Initial Cost of Building Projects
Introduction
The Elements of Initial Project Cost: Overview
Equations for Total Initial Project Cost
Approach
Study Questions

3.Initial Building (Construction) Cost
Introduction
The Basic Concept of Cost Estimating
Estimating Methods for Building Cost-A Survey
Adjustments and Refinements
Building Cost Estimating by Ares Method
The Enclosure Method of Estimating Initial Building Cost
The Systems Methods of Estimating Initial Building Cost
Usefulness of Estimating Methods at Different Process Stages
Reliability; Accuracy Versus Precision of Estimating Methods
Weighing Costs and Benefits of Estimating
Study Questions

4.Financing Construction Projects
Introduction: Where the Money Comes From, Where the Money Goes
Main Phases in the Financing Process
Construction Financing
Permanent Financing
Financing Public Projects
Study Questions

5.The Future Performance of Buildings: Cost-In-Use; Life Cycle Cost
Overview
Estimating Future Costs
Non-Monetary Costs
Strategies for Estimating and Controlling Future Costs-In-Use
Estimating Costs-In-Use: Conclusions
Study Questions

6.Benefits and Value of Buildings
Overview
Monetary Benefits of Buildings
Non-Monetary Benefits; Use Value of Buildings
Design Strategies for Influencing Economic Benefits
Study Questions

7.Relating Building Costs to Benefits: Measures of Economic Performance
Survey of Economic Performance Measures for Building Projects
Net Benefit (Benefits Minus Costs)
Rates and Ratios
Periods
Performance Measures Accounting for Risk and Uncertainty: Decision Theory Criteria
Choosing the Measure of Economic Performance
Study Questions

8.Techniques of Economic Performance Aanlysis for Building Projects
Overview
Benefit-Cost Analysis
Incremental Analysis
Analysis of Payback; Breakeven Period
Life Cycle Cost Aanlysis
Rate of Return Analysis
Value Engineering
The Real Estate Pro Eorma Analysis and Statement
Study Questions

9.Financial Feasibility Analysis for Building Projects
The Concept of Feasibility
Feasibility Analysis: Auxiliary Concepts
Front Door Financial Feasibility Analysis for Building Projects
Back Door Financial Feasibility Analysis for Building Projects
Calculation of Yield Within Financial Feasibility Analysis
Example of Feasibility Analysis
Study Questions

10.Conclusion
Review
What We Found: A Summary of Answers and Recommendations
Unresolved Issues and New Questions
The Role of Time
Outlook

Appendix 1 Floor Area Conventions and Building Efficiency
Floor Area Measurement Conventions
Use of Floor Area-Based Indicators and Measures
Design Decisions Influencing Efficiency
Study Questions

Appendix 2 The Building Delivery Process
Introdustion
The Main Phases of the Building Delivery Process
Recurring Questions and Activities
Participants
Variations of the Process
Summary Observations
Study Questions

Appendix 3 Notes on Measurement
Measurement Problems: Key Concepts
Guidelines for Dealing with Measurement
Measurement Issues in Building Economics; Problems with the Use of Money as a Yardstick of Value
Factors Influencing the Valuation of Money
Study Questions

Appendix 4 Electronic Spreadsheets
Electronic Spreadsheet Models for Economic Performance Analysis of Schematic Design
Solutions-Overview
Spreadsheet Concepts
Sample Problems
Summary
Reference
Study Questions

Appendix 5 Systems and Models
Introduction: The Systems Approach
System and Model-Definitions
Models as Representation of Systems
Study Questions

Appendix 6 Measuring Performance: Evaluation
Approaches to Evaluation
Study Questions

Appendix 7 Finding the Best Solution: Optimization
Introduction
The Meaning of Optimum: The Best
Conditions for Meaningful Claims of Optimality
Global and Local Optima; Suboptimization
The Fundamental Approaches to Optimization
Optimization in Building
Study Questions

Appendix 8 Time and the Value of Money
Overview
Present Value, Future Value, Rates
Comparing Money Amounts at Different Points in Time
Conversion Factors and Tables

Appendix 9 Measures and Indicators of Performance
Performance Measures and Performance Indicators
Performance Indicators at Different Levels of Scale-Examples
Study Questions

Appendix 10 Knowing the Future: Forecasting
What We Must Know But Cannot Control
Forecasting and Forecasting Techniques
Forecastomg Tecjmoqies
Precautions in Forecasting

Appendix 11 Decisions Under Risk and Uncertainty
Types of Decision-Making Situations
Decision-Making Under Risk: Expectation Value
Decision-Making Uander Uncertainty
Underlying Assumptions and Unresolved Problems
Design Strategies for Poorly Described Context

Appendix 12 Building Value Measures Based on Quality of Occasion and Image
Occasion, Place, Image: Tenets of the Theory
Application to the Development of Measures of Building Value

Appendix 13 Types of Lease Arrangements
Gross Lease
Net, Double Net, Triple Net Lease

Appendix 14 Glossary

Appendix 15 References

Index