Pre-contract Studies Development Economics, Tendering and Estimating

by Ashworth, Allan

• ISBN13: 9781405177009
• ISBN10: 1405177004
• Edition: 3rd
• Format: Paperback
• Copyright: 2008-06-23
• Publisher: Wiley-Blackwell

Summary

Pre-contract Studies: Development Economics, Tendering and Estimatingprovides a comprehensive introduction to the property development process, with an emphasis on the financial analysis of projects in the context of development values and construction costs. The book covers capital investment, funding sources, the economics of development, evaluation of financial data, whole life costing and tendering, estimating and cash flow considerations. The process of getting a project from inception to completion is examined in detail, while the different methods of development appraisal, and the way developers' budgets are calculated, are explored with worked examples. The third edition has been extensively revised to reinforce aspects of valuations and more information has been added on the major property companies and who owns the land in Britain, as well as on conservation, PFI and value management. A large number of charts and graphs are new. The book is used on a wide range of undergraduate programmes in building, surveying and associated disciplines.

Author Biography

Allan Ashworth D.Univ (Hon), MSc, MRICS is a Visiting Professor at the University of Salford and the Adjunct Professor in Quantity Surveying at Unitec in New Zealand. He is a former HMI (Her Majesty’s Inspector) in the Department for Education and Employment and is currently the Senior Academic Advisor to the Centre for Education in the Built Environment based at the universities of Cardiff and Salford.

Table of Contents

Preface	p. x
Acknowledgements	p. xii
The Development Process	p. 1
Introduction	p. 1
Demand for development	p. 1
Customer satisfaction	p. 2
Site identification	p. 3
The development process	p. 4
Environmental impact assessment	p. 11
Sustainable development	p. 12
Listed buildings	p. 13
Conservation areas	p. 15
Property investment companies	p. 16
Developers	p. 19
Parties involved	p. 23
Planning and control	p. 28
Marketing	p. 29
Property Investment Economics	p. 32
Introduction	p. 32
Principles of investment	p. 33
Functions and features of the investment market	p. 35
Investment in property	p. 37
Value	p. 39
Major factors affecting property values	p. 40
The nature of property investments	p. 43
Distinguishing features of property	p. 45
Institutional investment in property	p. 50
Relationship between income and value	p. 55
Property investment and equities	p. 56
Real Estate Investment Trust (REIT)	p. 57
Strategy of property investment	p. 58
The property cycle	p. 62
Capital Investment	p. 65
Capital budgeting	p. 65
Leasing	p. 67
Strategic management	p. 68
Company finance	p. 68
The cost of capital	p. 73
Mergers and takeovers	p. 74
The case for investment in property	p. 76
House prices	p. 79
HM Land Registry	p. 82
New build or refurbish?	p. 83
Evaluation of Financial Data	p. 86
Accounting standards	p. 86
Accounting conventions	p. 88
Interpreting company accounts	p. 89
Analysis of investments	p. 91
Financial ratios	p. 92
Capital gearing	p. 94
Interest cover	p. 97
Depreciation of assets	p. 97
Share analysis	p. 100
Audit	p. 104
Taxation and property	p. 105
Capital allowances	p. 108
Risk and uncertainty	p. 110
Development Appraisal	p. 114
Introduction	p. 114
Development value	p. 114
General determinants of value	p. 115
Price, value and worth	p. 116
RICS Red Book	p. 117
Valuation Office Agency	p. 119
Investment appraisal	p. 119
Methods of valuation	p. 121
Valuation tables	p. 124
Developers' budgets	p. 130
Conventional and discounting methods of valuation	p. 142
Optimal investment criteria	p. 145
Cost-benefit analysis	p. 146
Urban Land Economics	p. 151
Introduction	p. 151
Site identification	p. 156
Land use patterns	p. 157
Environmental and social factors	p. 160
Planning controls	p. 162
Going green	p. 163
Site characteristics	p. 164
Sites for different uses	p. 168
Legal aspects	p. 178
Government intervention and assistance	p. 180
Property Development Economics	p. 188
Development since 1945	p. 188
Land ownership	p. 194
Office development permits	p. 195
Development land tax	p. 195
Urban regeneration	p. 195
Commercial development	p. 196
Industrial development	p. 199
Housing	p. 199
New towns	p. 200
City centre redevelopments	p. 201
Out-of-town shopping malls	p. 201
The Big Bang of 1986 and the crash	p. 203
Regional development	p. 206
Repair and renovation	p. 206
Environmental aspects of building development	p. 207
Future demand	p. 209
Indicators	p. 210
The European Union	p. 214
The European Union versus the USA	p. 216
Sources of Finance	p. 218
Introduction	p. 218
Investment	p. 218
Debt and equity finance	p. 219
Duration of funding	p. 222
Sources of finance	p. 223
Types of shares	p. 225
Sale and leaseback	p. 227
Joint ventures	p. 228
Concession contracting	p. 228
Needs of the institutions	p. 229
Principal sources of development finance	p. 231
Public sector developments	p. 244
Financial assistance for development	p. 245
Interactive financial assistance websites	p. 248
Investment from overseas	p. 248
Project Construction Costs	p. 250
Early price forecasting	p. 250
Cost planning	p. 252
Whole life costing	p. 258
Least cost solutions	p. 265
Budgeting, Costing and Cash Flows	p. 266
Introduction: business plans	p. 266
Budgetary control	p. 266
Costing	p. 269
Types of costs	p. 270
Cost centres	p. 271
The purpose of costing	p. 274
Costing methods	p. 277
Break-even analysis	p. 280
The recording of costs	p. 281
Contractor's cost comparison	p. 282
Estimated, target and actual costs	p. 285
Choosing a cost control system	p. 286
Cash flow	p. 286
Procurement	p. 293
Introduction	p. 293
Reports	p. 294
Major considerations	p. 294
Procurement strategy	p. 297
Price determination	p. 298
Procurement options	p. 300
Contractor selection	p. 301
Contractual options	p. 303
Construction Industry Board (CIB) Code of Procedure	p. 310
Coordinating Committee for Project Information (CCPI)	p. 311
Procurement management	p. 312
Conclusion	p. 312
Estimating and Tendering	p. 314
Introduction	p. 314
Organisation and administration of estimating	p. 314
Tendering	p. 315
Calculation of unit rates	p. 321
Operational estimating	p. 326
Estimator's report	p. 327
Tender adjudication	p. 328
Bidding strategy	p. 328
Information and communication technology	p. 329
Reporting on tenders	p. 329
Developments and Trends	p. 333
Change	p. 333
Private Finance Initiative	p. 336
Benchmarking	p. 339
Best value	p. 342
Partnering	p. 343
Value management	p. 346
Lean construction	p. 348
Facilities management	p. 350
Conclusion	p. 353
Bibliography	p. 354
Index	p. 359
Table of Contents provided by Ingram. All Rights Reserved.