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Unit of study_

DESC9195: Building Economics

Investors associated with the property industry require at the outset Return On Investment (ROI) evaluations before committing capital. This unit of study examines the economic principles as they apply to buildings, from capital growth and life cycle management perspectives. The focus is on economic and financial practices required for high performing building assets, contract procurement strategies, cash flow analysis, return on investment for retro-fitting, and economic appraisals of existing or new building assets. This unit will develop an understanding of carbon accounting in relation to building management and its importance to sustainable built asset portfolios. The unit, taught by case studies, will equip students with an understanding of economic principles and professional tools necessary for the procurement and management of real estate property, facilities and buildings at optimum economic and environmental performance.

Details

Academic unit Architectural and Design Science
Unit code DESC9195
Unit name Building Economics
Session, year
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Semester 2, 2022
Attendance mode Block mode
Location Camperdown/Darlington, Sydney
Credit points 6

Enrolment rules

Prohibitions
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None
Prerequisites
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None
Corequisites
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None
Available to study abroad and exchange students

Yes

Teaching staff and contact details

Coordinator Sunil Dubey, sunil.dubey@sydney.edu.au
Guest lecturer(s) Paul Luciani , paul.luciani@sydney.edu.au
Lecturer(s) Sunil Dubey , sunil.dubey@sydney.edu.au
Flavio Rossi, flavio.rossi@sydney.edu.au
Tony Stack, tony.stack@sydney.edu.au
Liz Partridge, liz.partridge@sydney.edu.au
Tutor(s) Tatiana Schonhobel Sanchez , tatiana.schonhobel@sydney.edu.au
Administrative staff Sunil Dubey
Type Description Weight Due Length
Assignment group assignment Report - Economic Feasibility of a pre-selected site/facility
Economic due diligence (report) and in-depth asset analysis on thLCC method
40% Multiple weeks
Due date: 28 Oct 2022 at 22:46

Closing date: 02 Nov 2022
4500 Words excluding data sheets.
Outcomes assessed: LO2 LO3 LO4 LO5 LO6 LO8 LO9
Small continuous assessment group assignment Class tasks
2 in-class tasks, multiple choice quiz & 1 x peer critique - papers
30% Multiple weeks Details are provided on Canvas.
Outcomes assessed: LO3 LO1 LO9 LO7 LO6
Assignment Essay
Life-cycle assessment (Econ-Matrix) of a pre-selected site/project.
30% Week 05
Due date: 15 Sep 2022 at 22:42

Closing date: 21 Sep 2022
Max 1500 words excl data & references.
Outcomes assessed: LO2 LO5 LO6
group assignment = group assignment ?
Group assignment with individually assessed component = group assignment with individually assessed component ?
  • Essay: Students will be required to select a project/site or case study and develop an economic management critique in essay format.
  • In Class / Live on-line assessments: Students will work in groups to undertake critical discussions (on-line & in-class) and short assessments including quiz and short critique.
  • Business report: Students will be required to choose a preselected case study, or their own project or building site, to develop an economic building/project proposal with emphasis on some of the key principles of building economics.

Detailed information for each assessment can be found on Canvas.

Assessment criteria

The University awards common result grades, set out in the Coursework Policy 2014 (Schedule 1).

As a general guide, a high distinction indicates work of an exceptional standard, a distinction a very high standard, a credit a good standard, and a pass an acceptable standard.

Result name

Mark range

Description

High distinction

85 - 100

Work of outstanding quality, demonstrating mastery of the learning outcomes
assessed. The work shows significant innovation, experimentation, critical
analysis, synthesis, insight, creativity, and/or exceptional skill.

Distinction

75 - 84

Work of excellent quality, demonstrating a sound grasp of the learning outcomes
assessed. The work shows innovation, experimentation, critical analysis,
synthesis, insight, creativity, and/or superior skill.

Credit

65 - 74

Work of good quality, demonstrating more than satisfactory achievement of the
learning outcomes assessed, or work of excellent quality for a majority of the
learning outcomes assessed.

Pass

50 - 64

Work demonstrating satisfactory achievement of the learning outcomes
assessed.

Fail

0 - 49

When you don’t meet the learning outcomes of the unit to a satisfactory standard.

For more information see sydney.edu.au/students/guide-to-grades.

For more information see guide to grades.

Late submission

In accordance with University policy, these penalties apply when written work is submitted after 11:59pm on the due date:

  • Deduction of 5% of the maximum mark for each calendar day after the due date.
  • After ten calendar days late, a mark of zero will be awarded.

This unit has an exception to the standard University policy or supplementary information has been provided by the unit coordinator. This information is displayed below:

Refer UoS guidelines and university policies on assessments and appeals.

Special consideration

If you experience short-term circumstances beyond your control, such as illness, injury or misadventure or if you have essential commitments which impact your preparation or performance in an assessment, you may be eligible for special consideration or special arrangements.

Academic integrity

The Current Student website provides information on academic integrity and the resources available to all students. The University expects students and staff to act ethically and honestly and will treat all allegations of academic integrity breaches seriously.

We use similarity detection software to detect potential instances of plagiarism or other forms of academic integrity breach. If such matches indicate evidence of plagiarism or other forms of academic integrity breaches, your teacher is required to report your work for further investigation.

You may only use artificial intelligence and writing assistance tools in assessment tasks if you are permitted to by your unit coordinator, and if you do use them, you must also acknowledge this in your work, either in a footnote or an acknowledgement section.

Studiosity is permitted for postgraduate units unless otherwise indicated by the unit coordinator. The use of this service must be acknowledged in your submission.

WK Topic Learning activity Learning outcomes
Week 02 Introduction: Building Economics and Cost Analysis Lecture (5 hr) LO1 LO2 LO3
Discussion on Building Economics and Cost Analysis Assignment Introduction and working on Assignment 1 Tutorial (2 hr) LO1 LO2 LO3
Week 04 Economic Management: Managing High Performing Assets Lecture (5 hr) LO3 LO4 LO6
Discussion on Economic Management: Managing High Performing Assets. Assignment 1 Review Tutorial (2 hr) LO4 LO6
Week 06 Fondational economics of property service provisioning and operational costing and contracts. Sourcing and Benchmarking: Strategic Sourcing and Procurement. Lecture (5 hr) LO4 LO5 LO6 LO7
Discussion on property economics, sourcing and Benchmarking. Working on Assignment 2 Tutorial (2 hr) LO4 LO5 LO6 LO7
Week 08 Financial Analysis: Economic Value and Return on Investment. Foundations of Whole of Life Cycle of Built Assets and accounting methods. Lecture (5 hr) LO4 LO6 LO7 LO8
Discussion on Financial Analysis: Economic Value and Return on Investment. Assignment 2 Review Tutorial (2 hr) LO4 LO6 LO7 LO8
Week 10 Student presentations and Spl lecture - Future Trends and Economic Appraisals. Peer presentations Lecture (5 hr) LO3 LO5 LO8 LO9
Assignment 2 Peer Presentations Tutorial (2 hr) LO3 LO5 LO8 LO9

Attendance and class requirements

Please refer to the Resolutions of the University School: http://sydney.edu.au/handbooks/architecture/rules/faculty_resolutions.shtml

Study commitment

Typically, there is a minimum expectation of 1.5-2 hours of student effort per week per credit point for units of study offered over a full semester. For a 6 credit point unit, this equates to roughly 120-150 hours of student effort in total.

Required readings

Please refer to Dr Sunil Dubey's introductory lecture for details on recommended texts and selected case studies for Building Economics. 

Selected texts and chapters from the following course resources / books / case studies:

  1. Manser, JE 1994, Economics: a foundation course for the built environment , Spon, London;
     
  2. Bon, R 1990, Building as an economic process: an introduction to building economics , Prentice Hall, Englewood Cliffs, N.J.;
     
  3. Kirk, SJ & Dell’Isola, AJ 1995, Life cycle costing for design professionals, 2nd ed., McGraw-Hill, New York;
     
  4. Kirkham, RJ, Brandon, PS, & Ferry, DJ. 2013, Ferry and Brandon’s cost planning of buildings , 8th ed., Wiley, Chicester
     
  5.  Pheng, LS 2018, Project Management for the Built Environment Study Notes , Springer Singapore, Singapore.

Note: Selected texts, chapters and case studies will be provided in e-format on canvas. Students are highly recommended to download e-version of recommended books/refreences from USYD library site.    

Learning outcomes are what students know, understand and are able to do on completion of a unit of study. They are aligned with the University’s graduate qualities and are assessed as part of the curriculum.

At the completion of this unit, you should be able to:

  • LO1. Undertake physical survey of a working facility or a built assets to develop economic understanding of infrastructure and operations.
  • LO2. Demonstrate economic due diligence of built assets and life cycle operations;
  • LO3. Conduct a simple economic appraisal of a built asset or facility;
  • LO4. Understanding of a complex operational, contractual and procurement cost data for qualitative and quantitative evaluations and analysis;
  • LO5. Demonstrate understanding of key principles of life cycle cost planning and management;
  • LO6. Apply life cycle cost management skills for strategic building operations, including investment analysis and business/financial return propositions;
  • LO7. Demonstrate understanding of the principles of contract management and procurement for built assets and property infrastructure;
  • LO8. Ability to plan, prepare and analyse economic reports and present (built assets) project outcomes to key stakeholders;
  • LO9. Work as a team (group work) to efficiently manage project objectives, resources and deliverable for built assets or portfolio of assets.

Graduate qualities

The graduate qualities are the qualities and skills that all University of Sydney graduates must demonstrate on successful completion of an award course. As a future Sydney graduate, the set of qualities have been designed to equip you for the contemporary world.

GQ1 Depth of disciplinary expertise

Deep disciplinary expertise is the ability to integrate and rigorously apply knowledge, understanding and skills of a recognised discipline defined by scholarly activity, as well as familiarity with evolving practice of the discipline.

GQ2 Critical thinking and problem solving

Critical thinking and problem solving are the questioning of ideas, evidence and assumptions in order to propose and evaluate hypotheses or alternative arguments before formulating a conclusion or a solution to an identified problem.

GQ3 Oral and written communication

Effective communication, in both oral and written form, is the clear exchange of meaning in a manner that is appropriate to audience and context.

GQ4 Information and digital literacy

Information and digital literacy is the ability to locate, interpret, evaluate, manage, adapt, integrate, create and convey information using appropriate resources, tools and strategies.

GQ5 Inventiveness

Generating novel ideas and solutions.

GQ6 Cultural competence

Cultural Competence is the ability to actively, ethically, respectfully, and successfully engage across and between cultures. In the Australian context, this includes and celebrates Aboriginal and Torres Strait Islander cultures, knowledge systems, and a mature understanding of contemporary issues.

GQ7 Interdisciplinary effectiveness

Interdisciplinary effectiveness is the integration and synthesis of multiple viewpoints and practices, working effectively across disciplinary boundaries.

GQ8 Integrated professional, ethical, and personal identity

An integrated professional, ethical and personal identity is understanding the interaction between one’s personal and professional selves in an ethical context.

GQ9 Influence

Engaging others in a process, idea or vision.

Outcome map

Learning outcomes Graduate qualities
GQ1 GQ2 GQ3 GQ4 GQ5 GQ6 GQ7 GQ8 GQ9
LO1         
LO2         
LO3         
LO4         
LO5         
LO6         
LO7         
LO8         
LO9         

Alignment with Competency standards

Outcomes Competency standards
LO1
National Standard of Competency for Architects - AACA
1.2. Establishment, analysis and evaluation of client project requirements and objectives.
2.1. Identification, analysis and integration of information relevant to siting of project.
2.2. Application of principles controlling planning, development and design for the project site.
LO2
National Standard of Competency for Architects - AACA
1.2. Establishment, analysis and evaluation of client project requirements and objectives.
1.7. Preparation of project brief for approval by client and relevant stakeholders.
2.2. Application of principles controlling planning, development and design for the project site.
3.6. Assessment of the economic impact on the project of design strategies and options.
LO3
National Standard of Competency for Architects - AACA
1. Design: Project briefing
2.6. Preparation and analysis of project development options in response to project brief.
3.2. Application of creative imagination, aesthetic judgement and critical evaluation in formulating design options.
3.7. Assessment and integration of construction systems and materials consistent with project brief.
4.5. Investigation and integration of appropriate structural, construction, service and transport systems in the project design.
5.3. Evaluation and integration of regulatory requirements.
LO4
National Standard of Competency for Architects - AACA
6.1. Identification and adoption of a strategy, program and process of documentation integrated through all project stages to enable project delivery.
6.3. Incorporation of the project requirements and objectives in accordance with Project Brief and approved Detailed Design.
6.7. Establishment of quality assurance systems to ensure consistency and completeness of project documentation in accordance with the requirement for the project brief, project timeframe and project budget.
7. Project Delivery: Procurement
LO5
National Standard of Competency for Architects - AACA
7.3. Selection of procurement method incorporates assessment of the impact on contractual arrangements between all project stakeholders.
7.4. Selection of procurement method incorporates assessment of the impact on selection, contracting and scope of work of consultants and specialist service providers.
7.6. Knowledge and application of all administration and principles for the selected procurement method and associated contracts.
LO6
National Standard of Competency for Architects - AACA
3.4. Design response incorporates assessment of relevant legislation, codes and industry standards.
6.7. Establishment of quality assurance systems to ensure consistency and completeness of project documentation in accordance with the requirement for the project brief, project timeframe and project budget.
9.1. Knowledge and implementation of appropriate practice model to ensure efficient, effective and ethical professional service.
9.4. Establishment of project team and practice structures required to deliver the professional services in a timely manner.
9.5. Knowledge of the legal and ethical obligations relating to copyright and intellectual property requirements.
LO7
National Standard of Competency for Architects - AACA
2.1. Identification, analysis and integration of information relevant to siting of project.
2.6. Preparation and analysis of project development options in response to project brief.
6.8. Project documentation is in accordance with, and appropriate to, the project contract and project procurement procedure.
7. Project Delivery: Procurement
7.3. Selection of procurement method incorporates assessment of the impact on contractual arrangements between all project stakeholders.
LO8
National Standard of Competency for Architects - AACA
8.8. Ensure that warranties, schedules, as built documentation, certificates, approvals and other project information are completed and handed to the client and relevant authorities as required under the contract.
8.9. Undertake post occupancy evaluation if required under the scope of the project agreement.
9.1. Knowledge and implementation of appropriate practice model to ensure efficient, effective and ethical professional service.
9.3. Identification and application of practice systems and quality management systems to facilitate efficient and timely delivery of architectural services in accordance with project objectives.
9.4. Establishment of project team and practice structures required to deliver the professional services in a timely manner.
LO9
National Standard of Competency for Architects - AACA
9.3. Identification and application of practice systems and quality management systems to facilitate efficient and timely delivery of architectural services in accordance with project objectives.
9.4. Establishment of project team and practice structures required to deliver the professional services in a timely manner.
9.6. Knowledge and application of professional ethics and ethical practices in respect to practice management and provision of professional service.
9.8. Clear and consistent communication with client and relevant stakeholders throughout project.
9.9. Provision of independent and objective advice through all phases of professional practice.
National Standard of Competency for Architects -
Competency code Taught, Practiced or Assessed Competency standard
1.2 A Establishment, analysis and evaluation of client project requirements and objectives.
1.4 A Identification of factors that may impact on client project requirements and objectives.
1.5 A Knowledge of different procurement processes available and evaluation of the impact these have on the project.
2.1 A Identification, analysis and integration of information relevant to siting of project.
2.2 A Application of principles controlling planning, development and design for the project site.
2.3 A Evaluation of factors influencing and impacting on project cost.
2.6 A Preparation and analysis of project development options in response to project brief.
3.6 A Assessment of the economic impact on the project of design strategies and options.
3.7 A Assessment and integration of construction systems and materials consistent with project brief.
8.7 A Identification and application of appropriate and consistent systems for record keeping and maintenance of document revisions.
8.9 A P Undertake post occupancy evaluation if required under the scope of the project agreement.
9.1 A P Knowledge and implementation of appropriate practice model to ensure efficient, effective and ethical professional service.
9.2 P A Knowledge and application of practice resources required to ensure efficient and effective professional service.
9.4 P A Establishment of project team and practice structures required to deliver the professional services in a timely manner.
9.5 A Knowledge of the legal and ethical obligations relating to copyright and intellectual property requirements.
9.7 P A Knowledge of legal and regulatory requirements and obligations in regard to architectural practice, practice management and registration as an architect.
9.8 P A Clear and consistent communication with client and relevant stakeholders throughout project.
9.9 A P Provision of independent and objective advice through all phases of professional practice.
Session feedback is requested from the students at the start, middle, and end of this unit so that revisions and improvements can be effected throughout. The content and case study specific changes have been introduced based on student feedbacks from earlier semesters. Main changes include: • provide thorough understanding about building management and economics; • facilitate integration of concepts of building economics in better management of assets; • provide more depth on current markets and RE competitive challenges; • develop leadership skills in built environment management and • improved coverage of financial markets, operational data analytics, and strategic thinking about built assets.

Refer to the instructions on peer consultations, additional webinars and case study review and discussions. 

Additional costs

N/A

Site visit guidelines

N/A

Work, health and safety

Refer to university guidelines and instructions, including regular updates and access related protocols. 

Disclaimer

The University reserves the right to amend units of study or no longer offer certain units, including where there are low enrolment numbers.

To help you understand common terms that we use at the University, we offer an online glossary.