The Editors

Professor Herbert Robinson, is currently a Regional Adviser and Head of Training Division at the United Nations African Institute for Economic Development and Planning (IDEP), part of United Nations Regional Economic Commission for Africa. He was Professor of Construction Economics at London South Bank University and a Senior Research Associate at Loughborough University, UK.

Barry Symonds, Senator h.c. Biberach an der Riss, Managing Director of Symonds Konsult International  and Associate Director for Rapid5D (BIM Solutions UK). He was the Head of Property, Surveying and Construction at London South Bank University, UK. As a chartered quantity surveyor, he worked as a partner and consultant for practices in the UK and New Zealand. He held academic advisory roles and has been visiting professor, and external examiner in the UK and abroad.

Professor Barry Gilbertson is a Visiting Professor at the University of Northumbria in Newcastle and was a partner at PricewaterhouseCoopers for 15 years. Barry was the first chartered surveyor to become a partner in a firm of chartered accountants, anywhere in the world, and the 123rd President of RICS in 2004/5. Barry was a member of the United Nations Real Estate Advisory Group and a member of the Bank of England's Property Forum.

Professor Benedict D. Ilozor teaches construction management, architecture, facilities planning, design & management at the School of Engineering Technology, Eastern Michigan University, where he is Research & Graduate Assistants Coordinator. He previously taught in Australian universities, and was head of Facilities Management for the Built Environment Research Group at the School of Architecture & Building, Deakin University.

Foreword xxiii

Preface xxv

PART I THEORIES, PRINCIPLES AND APPROACHES 1

1 Economic Context, Policy Environment and the Changing Role of Design Economists 3
Herbert Robinson and Barry Symonds

1.1 Introduction 3

1.2 The economic context 4

1.3 Globalisation of construction market 6

1.4 The policy environment and the construction industry 9

1.5 Current and emerging role of design economists 11

2 Theories and Principles of Design Economics 16
Herbert Robinson and Barry Symonds

2.1 Introduction 16

2.2 Factors affecting design costs and benefits 17

2.3 Capital cost theory 18

2.4 Whole life cost theory 21

2.5 Value management theory 23

2.6 Value of design theory 24

2.7 Carter’s model 26

2.8 Resource]based theory 27

3 New Approaches and Rules of Measurement for Cost Estimating and Planning 31
Barry Symonds, Peter Barnes and Herbert Robinson

3.1 Introduction 31

3.2 The standardisation of cost estimating 32

3.3 The RICS NRM 1 33

3.4 RIBA plan of work, RICS estimating, cost planning and NRM 1 34

3.5 Cost estimating and cost planning 35

3.6 Elemental Standard Form of Cost Analysis (SFCA) 40

3.7 Benchmarking (cost limits) 41

3.8 Building information modelling 43

3.9 Concluding remarks 44

4 The Relationship between Building Height and Construction Costs 47
David Picken and Benedict Ilozor

4.1 Introduction 47

4.2 Research in the 1970s and 1980s 48

4.3 More recent research in Hong Kong and Shanghai 50

4.4 Conclusions 59

5 Appraisal of Design to Determine Viability of Development Schemes 61
Herbert Robinson

5.1 Introduction 61

5.2 Assessing costs and benefits of design alternatives 61

5.3 Appraisal of design using discounting methods 63

5.4 Appraisal of design using residual technique 65

5.5 Case study of the blackfriars development project 69

5.6 Concluding remarks 77

6 Eco-cost Associated with Tall Buildings 80
Peter de Jong and J.W.F. Hans Wamelink

6.1 Introduction 80

6.2 Overview of the Dutch housing market and land use planning 80

6.3 Eco-costs/value ratio and the EVR model 82

6.4 Applying the EVR model to housing 86

6.5 EVR and tall buildings 88

6.6 Embedding EVR in other sustainable ranking methods 89

6.7 Conclusion 90

7 Productivity in Construction Projects 93
Shamil Naoum

7.1 Introduction 93

7.2 Concept and measurement of productivity 94

7.3 Previous literature on factors affecting site productivity 94

7.4 Productivity survey 100

7.5 Proposed framework for site productivity 102

7.6 Conclusion and further research 104

8 Design Variables and Whole-Life Cost Modelling 107
Andrea Pelzeter

8.1 Introduction 107

8.2 Whole-life cost modelling 108

8.3 Steps in LCC modelling 110

8.4 Design principles to optimise lcc 112

8.5 A worked example of an office façade 116

8.6 Inclusion of carbon emissions into wlc modelling 118

8.7 Limitations of wlc 119

8.8 Concluding remarks 119

9 Procurement and Contract Strategy: Risks Allocation and Construction Cost 121
John Adriaanse and Herbert Robinson

9.1 Introduction 121

9.2 Procurement strategy and contract selection 122

9.3 Wembley stadium case study 123

9.4 Allocation of risks and forms of contract 124

9.5 Risks and construction costs 125

9.6 Procurement systems and contract issues 128

9.7 Alternative forms of procurement 133

9.8 Concluding remarks 135

10 Sustainable Design, Investment and Value 137
Thomas Lützkendorf and David Lorenz

10.1 Introduction 137

10.2 Formulation of project goals 138

10.3 Identifying value-related characteristics 142

10.4 The performance approach 143

10.5 Use of sustainability assessment systems 146

10.6 Relationship between sustainable credentials and value 148

10.7 Concluding remarks 150

11 Carbon Reduction and Fiscal Incentives for Sustainable Design 152
Paul Farey

11.1 Introduction 152

11.2 Key drivers of owners and occupiers 153

11.3 Reducing demand for energy in buildings 153

11.4 Fiscal drivers 155

11.5 Reliefs and allowances 161

11.6 Subsidies and incentives 173

11.7 Conclusion 175

12 Environmental Assessment Tools: An Overview of the UK’s BREEAM and the US’s LEED 177
Ina Colombo, Benedict Ilozor and Herbert Robinson

12.1 Introduction 177

12.2 Context and the need to design to reduce carbon emission 178

12.3 Key features of environmental assessment tools 179

12.4 The Breeam tool 180

12.5 The LEED tool 184

12.6 Concluding remarks 190

13 Space Planning and Organisational Performance 191
Benedict Ilozor

13.1 Introduction 191

13.2 Organisational performance and innovative work settings 192

13.3 Hypotheses and test results 193

13.4 Discussion 195

13.5 Conclusions 198

14 Achieving Zero Carbon in Sustainable Communities 201
Malgorzata Jacewicz and Herbert Robinson

14.1 Introduction 201

14.2 Key concepts and principles 202

14.3 Key features of decentralised energy networks 203

14.4 Activity-based design approach 204

14.5 Key steps in the design process 206

14.6 Evaluating energy, space and land requirements 209

14.7 Concluding remarks 211

15 Flood Risk Mitigation: Design Considerations and Cost Implications for New and Existing Buildings 213
Rotimi Joseph, David Proverbs and Jessica Lamond

15.1 Introduction 213

15.2 Increasing challenges of flooding due to global warming and urban development 214

15.3 Flood mitigation 215

15.4 Flood mitigation consideration for new buildings at design stage 218

15.5 Implications of mitigation measures in terms of building cost 218

15.6 Implications of mitigation measures in terms of property value and insurance cost 222

15.7 Conclusions 224

PART II INDUSTRY PERSPECTIVE, CASE STUDIES AND IMPLICATIONS FOR CURRICULUM DEVELOPMENT 227

16 Reusing Knowledge and Leveraging Technology to Reduce Design and Construction Costs 229
Herbert Robinson and Chika Udeaja

16.1 Introduction 229

16.2 Knowledge reuse in construction processes and projects 229

16.3 Knowledge reuse in construction projects 231

16.4 Leveraging knowledge systems to reduce time and costs 232

16.5 4Projects knowledge solution 234

16.6 Case studies and discussions 235

16.7 Concluding remarks 237

17 Sustainable Design Economics and Property Valuation: An Industry Perspective 240
Barry Gilbertson, Ann Heywood, Ian Selby and John Symes-Thompson

17.1 Introduction 240

17.2 Sustainable design economics and property valuation 240

17.3 Data collection 243

17.4 UK government impact 244

17.5 The valuation process 245

17.6 Conclusion 247

18 Cost Planning of Construction Projects: An Industry Perspective 248
Jon Scott

18.1 Introduction 248

18.2 Concept and format of a cost plan 248

18.3 How a cost plan is put together 253

18.4 How the cost plan evolves through the riba design stages 255

18.5 Main factors that affect the overall cost of a building 257

18.6 Impact of sustainability on cost plans 258

18.7 Recent developments in BIM and the implications for cost planning 260

18.8 Conclusion 260

19 Life Cycle Costing and Sustainability Assessments: An Industry Perspective with Case Studies 262
Sean Lockie

19.1 Introduction 262

19.2 Sustainability considerations in design 263

19.3 Using the life cycle costing standards 269

19.4 Case study 1 – whole building 275

19.5 Case study 2 – lighting 279

19.6 Concluding remarks 282

20 Designing Super-Tall Buildings for Increased Resilience: New Measures and Cost Considerations 284
James Hayhoe

20.1 Introduction 284

20.2 Challenges of tall buildings and the need for increased resilience 284

20.3 Factors influencing design and cost of tall buildings 285

20.4 Design of counter-terrorism measures 288

20.5 Cost of new measures and design 291

20.6 Concluding remarks 295

21 Building Information Modelling: A New Approach to Design, Quantification, Costing, and Schedule Management with Case Studies 299
Aviad Almagor and Barry Symonds

21.1 Introduction 299

21.2 Concept of Bim 300

21.3 Integration and dataflow 302

21.4 Model Progression Specification: Developing a common language 303

21.5 Quality 305

21.6 Cost planning 310

21.7 Construction schedule 314

21.8 Conclusion and future directions 317

22 Case Study: Value Engineering and Management Focusing on Groundworks and Piling Packages 319
Richard Powell

22.1 Introduction 319

22.2 Why VM? 319

22.3 When and where is VM applied? 320

22.4 Value management implemention and tools used 320

22.5 Practical benefits and savings 324

22.6 Reflection and concluding remarks 327

23 Case Study: Value Engineering of a New Office Development with Retail Provision 330
Paul Ullmer

23.1 Introduction 330

23.2 Why value management? 330

23.3 When and where is value management applied? 331

23.4 Value management implementation and tools used 332

23.5 Practical benefits and savings 334

23.6 Concluding remarks 335

24 Case Studies: Sustainable Design, Innovation and Competitiveness in Construction Firms 336
Arthlene Amos and Herbert Robinson

24.1 Introduction 336

24.2 Background and context 336

24.3 Key drivers of sustainability in design and construction 337

24.4 Case studies 339

24.5 Findings and discussions 340

24.6 Concluding Remarks 353

25 Case Study: Retrofitting Building Services Design and Sustainability in Star Island 356
Victoria Hardy

25.1 Introduction 356

25.2 Initial study or analysis to identify problems 357

25.3 Funding for capital improvement plan 358

25.4 Evaluation of design options and the cost implications 358

25.5 Proposed design solution and costs 359

25.6 Concluding remarks 361

26 Case Studies: Maximising Design and Construction Opportunities through Fiscal Incentives 362
Paul Farey

26.1 Introduction 362

26.2 Strategic considerations 362

26.3 Capital allowances planning 364

26.4 Enhanced capital allowances (ECA) 366

26.5 Land remediation relief (LRR) 367

26.6 Value added tax 368

26.7 Taxation anti-avoidance 370

26.8 Conclusion 370

27 Mapping Sustainability in the Quantity Surveying Curriculum: Educating Tomorrow’s Design Economists 372
Chika Udeaja, Damilola Ekundayo, Lei Zhou, John Pearson and Srinath Perera

27.1 Introduction 372

27.2 Literature review on sustainability issues 373

27.3 Development of the Sustainability Framework 376

27.4 Mapping of Sustainability Education in QS Degree Programmes 380

27.5 Discussion and conclusions 382

Appendix A: UK Property Investment Yields (December 2013) 387

Appendix B: IPD/RICS Sustainability Inspection Checklist 2014 389

Index 392

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