CON4033 - Construction Economics

Objectives:

Assessment tasks are designed to enable students to demonstrate the Learning and Employability outcomes for the relevant level of study. Level Learning Outcomes are embedded in the assessment task(s) at that level. This enables a more integrated view of overall student performance at each level.

Content:

This module is the study of economics in the construction and property sectors. It focuses on providing a description of the construction sector and an economic explanation of markets, industries as well as some of the major features of construction products. It includes analysing the critical principles of the relationship between economic theory and that of the construction industry. The module provides the fundamental concepts and theories of economics to underpin Commercial Management and project management functions. The module will cover the following:

1. Economic Principles: Teaching students about the basic principles of economics, including supply and demand, market forces, and economic indicators. This includes discussing topics such as price determination, market equilibrium, and economic cycles. Students will learn how these principles apply to the construction industry.
2. Cost Management: Teaching students about the principles and techniques of cost management in construction projects. This includes discussing topics such as cost estimation, cost control, and cost forecasting. Students will learn how to effectively manage project costs and budgets.
3. Financial Analysis: Teaching students about financial analysis techniques used in construction projects. This includes discussing topics such as cash flow analysis, profitability analysis, and financial ratios. Students will learn how to analyse and interpret financial data to assess the financial viability of construction projects.
4. Economic Evaluation: Teaching students about the methods and techniques used to evaluate the economic feasibility of construction projects. This includes discussing topics such as cost-benefit analysis, net present value (NPV), and internal rate of return (IRR). Students will learn how to assess the economic viability and profitability of construction projects.
5. Economic Factors in Construction: students learn about the economic factors that influence the construction industry. This includes discussing topics such as inflation, interest rates, government policies, and market trends. Students will learn how to analyse and evaluate the impact of these factors on construction projects.
6. Emerging technologies/concept(s):
- Examine industry’s preparedness to embraces new and emerging concept(s)
- Explore the use of 4D/5D technologies on productivity, project planning, quality and speed of assembly, health and safety, cost effectiveness, delay avoidance.
7. Cost Engineering Factors in Contracts Management:
- Critically evaluate and apply established research methods and techniques frequently adopted to articulate the challenges and prevailing issues within the discipline of cost/contract engineering management.
8. Business management/ professional standards/procurement/dispute solutions:
- Explore business and management challenges among construction SMES skills, the roles of clients in changing the dynamics and adversarial nature of procurement routes, contractual disputes and prevalence of ADRs.

Learning outcomes:
1. Demonstrate a comprehensive understanding of the economic principles of the construction industry, including the grasping concepts of supply and demand, pricing strategies, market dynamics and cost implications specific to construction projects
2. Equip students with the ability to effectively analyse and apply advanced cost estimation techniques to determine financial feasibility of construction project by quantifying and pricing construction works accurately, considering factors like labour, materials, overhead costs, cost control measures and indices for geographical price variations
3. Utilise appropriate software and technology to support financial analysis for construction projects.

Learning and Teaching Information:

Lectures - Seminars
Hours: 2h X 10 weeks = 20
Intended Group Size: All cohorts

Workshops - Tutorials
Hours: 2h X 10 weeks = 20
Intended Group Size: 20

Guided independent study
Hours: 260



Further Details Relating to Assessment

This module is designed to provide the student with a sufficient grounding in Economics as it applies in the UK and globally.

001: 15 minutes Group presentation
002: Formal unseen examination

Assessment methods will align with the learning outcomes of the underpinning BSc (Hons) QS, CM and CPM programmes.

Attention is given to ensuring all the six strands for the Curriculum for Social Justice - CFSJ: Curriculum Design Principles and Practices are complied with, namely:
Practice 1: Race Equity
Practice 2: Mental Health and Well Being
Practice 3: Internationalisation
Practice 4: Education for Sustainable Development
Practice 5: Employability and Enterprise
Practice 6: Digital Pedagogy

Overall, all assessments are designed to evaluate students' understanding of QS, CM and CPM concepts, their ability to apply knowledge to real-world scenarios, and their critical thinking and problem-solving skills. It is important to note that a combination of different teaching strategies will be adopted to cater to different learning styles and engage and meet the varying needs and learning potential of all students.

Please note that The Chartered Institute of Building – CIOB - and Royal Institution of Chartered Surveyors - RICS - as the professional bodies require students to achieve a pass mark in all assessed components, as all modules cover the Mandatory and Technical core competences.

Further details of assessment are available in the Assessment Handbook for your programme and in Assessment Briefs provided by Module Tutors.

Assessment:

Fact File

Module Coordinator - Lovelin Obi
Level - 4
Credit Value - 30
Pre-Requisites - NONE
Semester(s) Offered - 4S2

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