You will provided with fundamental as well as in-depth knowledge of economics for the built environment. It enables students to understand the roles and impacts made by the construction sector in the national economy; government policies aimed at tackling the macro and micro economic problems at both national and local levels. Students will be taught economic consideration as well as economic factors of building design.For your information, Construction economics is a branch of general economics. It consists of application of techniques and expertise of economics to the particular area of construction industry. Construction economics is concerned with man’s needs for shelter and the suitable and appropriate conditions in which to work and live. It seeks to ensure the efficient use of available resources and to increase the rate of growth of construction in the most efficient manner.
1. Introduction to Principles of Economics
1.1) The construction industry and the economy
1.2) Overview of the Malaysian Construction Industry (i.e. issues of GDP and construction; common economic goals/ macroeconomic objectives: price stability, full employment, economic growth, balance of trade, protection of environment)
1.3) Productivity in the construction industry
1.4) Innovation in the construction industry
1.5) Circular Economy in the Construction Industry
1.6) Overseas construction opportunities for domestic firm
2. National and Local Government Economic Policy and the Built Environment
2.1) The economy’s cyclical growth path and construction cycles
2.2) Demand management in the economy by means of fiscal, monetary and direct policies; and the limitations of these policies to property markets
2.3) The multiplier process
3. Economics Factors of Building Design
3.1) Economics factors affecting design
3.2) Approximate Estimating
3.3) Cost planning and cost control during design stage
3.4) Elemental Cost Analysis and Cost Plan
4. Economic Assessments / Investment Appraisal
4.1) Interest-time relationships (compound amounts, present worth, compound amount of a uniform series, sinking fund deposit, present worth of uniform series and capital recovery)
4.2) Conventional techniques of investment appraisal (the pay–back method and the average rate of return methods)
4.3) Discounting techniques of investment appraisal (the net present value technique, the internal rate of return /DCF Yield, earning rate and incremental rate of return)
4.4) The effect of inflation
4.5) Sensitivity Analysis
5. Cost Analysis for Decision-making
5.1) Fixed, variable and mixed cost
5.2) Break-even cost analysis
6. Financial Analysis
6.1) Sources of Finance
6.2) Hedging Principles
6.3) Financial Statements (Balance Sheet, Profit and Loss Account, Fund Flow Statement)
6.4) Ratio Measures (Liquidity Ratio, Asset Management Ratio, Debt Management Ratio and Profitability Ratio)