Browsing by Subject "Building"

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    Open Access
    The Economics of Building Life Cycle Costing
    (1978) Stevens, Alan J
    If one is to arrive at a true reflection of the investment potential and total cost of a particular real property investment the appraisal method used must be capable of allowing for the following factors which, although by no means complete, incorporates those aspects which are required to give a valid and meaningful assessment of the investment . 1. Comparisons to be made with alternative investment opportunities 2. Limited life of certain components in a building which may have to be repaired or replaced 3. Comparisons to be made with alternative materials and/or forms of construction 4. The total costs and income generated throughout the effective life of the building including residual value at the expiry of the investment 5. The effect of the time value of money and the impact of inflation 6. Income tax implications 7. Adaptation to the individual characteristics of each specific project Life cycle costing which is essentially similar in concept to costs-in-use or terotechnology, is a sophisticated method of appraisal capable of satisfying the abovementioned needs. It could be defined essentially as: A financial appraisal technique which allows valid comparative evaluation of available alternative possibilities based on time-phased costs over a specific investment period in order to arrive at the optimum economic solution. The purpose of this thesis is to examine the economics of buildings with special reference to life cycle costing in order to illustrate how valid comparisons of alternative construction methods or material selection can be achieved with a view to optimizing total costs.
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    Open Access
    Factors affecting the accuracy of quantity surveyors pre-tender price forecasts in South Africa
    (1992) Pearl, Robert Gilfillan; Stevens, A.J.
    The primary purpose of this dissertation is to identify the factors which affect the accuracy of South African quantity surveyors' pre-tender price forecasts. Prices submitted by bidders at the tender submission stage of project development are utilised as the best practical measure for establishing the degree of accuracy achieved. A large number of design price forecasting techniques are available to estimators. Many of the techniques used in the early stages of design are applicable for providing budget amounts for design control purposes, whilst others are more· appropriate for forecasting anticipated tender sums. Features of price forecasting requiring attention at all stages of design development are identified as: (i) the influence of uncertainty inherent in the process, (ii) data / information availability and management, and (iii) the utilization of tendering data by means of 'feedback' systems. The factors affecting the accuracy of price forecasts are examined by means of a literature study, opinion surveys of estimators and empirical research on the results of estimate /tender comparisons. The relevance of the question of pre-tender price forecasts is demonstrated by the results of the study which indicates that the accuracy and reliability of South African quantity surveyors' estimates produced at the tender stage is inferior to that generally found overseas and do not meet the expectations of architects and clients. The conclusions drawn from this study indicate a distinct potential for improvement in early design stage price management.