DESIGN

ECONOMICS
BUILDING ECONOMICS 1 (DDWQ2333)
Prepared by: Nabilah Hanim binti Mohd Anuar
TABLE of contents

Cost Implication
IntroducTION 03 of design variables
to design economics 01
Cost Implication
04 of site variables
RELATIONSHIP
of building morphology & 02
design economics Cost Implication
05 of other variables
 01

iNTROducTiON
to design economics
 Design ECONOMIC
a plan or drawing produced social science concerned with how
to show the look and function choices are made to satisfy needs
or workings of a building and to achieve maximum output
About the introduction
The main objective of the design team is to get the best value for money
for client.
Best value for money does not necessarily the lowest but one that is
economical.

fulfils
function &
purpose
The DEfinition Design economics

building design that

gives value for money
to the client and fulfills
its function & purpose!
 02

RELATIONSHIP
of building morphology & design economics
RELATIONSHIP building morphology & design economics
Building morphology is a concept which addresses the design issues of a
construction project in relation with cost of construction.

design determines whether

value can be achieved at
acceptable costs
DESIGN COST
Aims to provide value to the client’s money who invested in the
construction project.
RELATIONSHIP building morphology & design economics
buildings come in a wide amount of design and functions

construction cost is influenced not only by the design, but by many factors

SITE
DESIGN
OTHERS
 RELATIONSHIP building morphology & design economics
Buildings come in a wide amount of design and functions.

Construction cost is influenced not only by the design, but by many factors.

size location
shape Ground condition
Construction Method
height
Procurement Method
Circulation Area Local Authorities’
grouping Requirements
 03
Cost
Implication
of design variables
Cost Implication of design variables
Changes in design will affect the construction cost of a building.

Design factors of a building includes:

size GROUPING

STOREY
shape
height
Circulation TOTAL
Area height
 BUILDING SIZE
It is one of the items to be considered in connection with any
construction project.

Logically, price of a bigger building is more expensive than a smaller

building.

The effect of increasing the size of the building will cause:

Increase in quantity of material Increase in time of completion

Increase in use of electricity Others

 BUILDING SIZE

However, with Product A Product B

increase the size Size 500gram 1200gram
of a building, will Price RM32.50 RM62.90
decrease its unit Price / gram 32.50 69.00
= 0.065 = 0.052
cost. 500 1200
RM0.07 / Gram RM0.05 / Gram
 BUILDING SIZE
In general, cost does not rise in proportion with the increase in size.

price
building
size cost

A larger buildings have lower unit costs than a smaller-sized

buildings offering the same quality of specification.
WALL-TO-FLOOR the lower the ratio of wall
to floor area, the more
Ratio Theory economical the building
BUILDING SIZE
Building A Building B
Size 30m x 30m 60m x 60m
Floor area 900m2 3600m2
Perimeter 120m 240m
Wall area
480m2 960m2
(4m height)
480 960
Wall : floor = 0.533 = 0.266
900 3600
(ratio)
0.53 0.27

Since Building B has lower ratio than Building A,

therefore Building B is said to be more economical.
 BUILDING SIZE
The fixed cost of construction is not directly proportionate to the
increase in the size of building.
Example of fixed cost in construction project:
Transportation Temporary access road Construction of store Cost remain
unchanged
Constructing & demolishing temporary buildings on site Insurance

The greater the floor area of a building, the lower the cost per square
metre.
area cost/m²
 BUILDING SIZE
The higher the ratio wall-to-floor ratio, the higher the cost of a
building.

This is due to:

The cost of installation & operation

Lift, escalators, air-conditioning and electrical equipment

The cost of maintenance

Larger building will have high maintenance cost

Additional size means more elements need to be maintained
 BUILDING PLAN SHAPE
In theory, big square building is the most economical building in
majority of cases.

The cost of a building will differ with just a change in its plan shape.

Plan shape of any building has important effect on overall cost of the
project.
structure maintenance

construction management
 BUILDING PLAN SHAPE
Different building plan shape that have the same gross floor area,
have different costs.

Building A Building B Building C

Same GFA Different plan shape Different cost

WALL-TO-FLOOR the lower the ratio of wall

to floor area, the more
Ratio Theory economical the building
 BUILDING PLAN SHAPE

Building A Building B Building C

Floor area 100m2 100m2 100m2
Perimeter 40m 58m 54m
Wall area (3m
120m2 174m2 162m2
height)
Wall area : floor 120 174 162
= 1.20 = 1.74 = 1.62
area (ratio) 100 100 100
1.20 1.74 1.62
Since Building A has lower ratio than Building B & C,
therefore Building A is said to be more economical.
 BUILDING PLAN SHAPE
The higher the ratio wall-to-floor ratio, the higher the cost of a
building.
This is due to:
Construction become more complicated & increase the labour cost

Increase of
Measurement work, foundation works, external walls, wall finishes, installation
for electrical wiring, piping, air-conditioning system, rainwater, drainage system
The cost of maintenance increase
Electrical cost, washing and cleaning, repainting, repairing and replacing wall
finishes
 BUILDING PLAN SHAPE
However, economical only is not enough.

Building also must be practical.

Factors influence the shape of a building;

the shape of the site the topography of the site

the purpose of a building aesthetic appearance

 BUILDING GROUPING
A saving of construction cost can be achieved by grouping the
building together

This is due to:

combined of party
walls of a building

saving in foundation

saving in external wall

 BUILDING GROUPING

Building A Building B
- 30 m
Party walls (3m height)
- 90 m2
150 m 90 m
External walls (3m height)
450 m2 270 m2
Total walls 450 m2 360 m2
Cost of walls
RM 9,000 RM 7,200
(e.g. RM20/m2)
Cost / building (RM 9,000 / 3) = (RM 7,200 / 3) =
RM 3,000 RM 2,400
 BUILDING GROUPING
One of the aims of an economic layout is to reduce the amount of
circulation area to an acceptable amount.

The GFA of a building must be close as possible to the usable space

of a building.
 BUILDING GROUPING
From the aspect of effective
use of space, 83% of space for
Building A can be rent out &
only 69% of space for Building
B can be rent out.
Building A Building B
GFA 108 m2 108 m2
Usable area 90 m2 75 m2 Building A has higher
Non - usable area 18 m2 33 m2 efficiency factor,
Efficiency factor (90 m2 / 108) = (75 m2 / 108) = therefore Building A is
more economical.
83% 69%
 BUILDING storey height
The storey height of a building are largely determined by the needs of
the user of the building

A height of 3.50m is considered practical for majority buildings.

However, a greater storey height than normal is necessary to some

building (with approval of relevant parties), to
accommodate large Function of building such as
machinery or equipment church, sport hall, theatres
prestige reason such as Avoid discomfort (If storey
hotel foyers height is too low)
 BUILDING storey height
Building with higher storey height have more cost per square metre
than building with lower storey height
The construction cost of tall buildings are greater than low buildings
offering the similar GFA
The cost of construction increase with the increase storey height of
building

Building
cost
Storey Height
 BUILDING TOTAL height
the construction cost of tall buildings are greater than low buildings
offering the similar gfa.
the cost of construction increase with the increase total height of
building.
tall building are necessary when;
land is limited land is expensive

the construction cost for higher building is more expensive

building
cost
total height
BUILDING TOTAL height
Building A Building B
Total GFA 200 m2 200 m2
Number of Storey 2 8
Storey height 3m 3m
Perimeter of
40 m 20 m
external walls at GL
External walls area (40 m x 3 m) x 2 = (20 m x 3 m) x 8 =
240 m2 480 m2
Cost of wall
RM 8,400 RM 16,800
(Rm35/m)

Building A has lower total of external, therefore

Building A is said to be more economical.
 BUILDING TOTAL height
Hoisting system Vertical transport

Service system Structure system

frame, floor, staircase

Wall system

Foundation system
 04
Cost
Implication
of site variables
Cost Implication of SITE variables
Each construction site has its own characteristics.

Different site have different site condition.

The site condition which effect the design of the building are;
Load bearing capacity
(safe: 600kN/m2)

Level of water table

(high water level need special foundation)

Contour of the land especially site with slopes

(cut and fill will be increased)
Cost Implication of SITE variables
The site of a building will give effect on cost of building.

The influence of site includes;

Size of site
The limited size of land will limit the size of building to be built
Shape of site
The shape of land will influence the design of building to be built
Location of site
The area of construction site and the availability of utilities

195
 05
Cost
Implication
of other variables
Cost Implication of OTHER variables
Factor affecting cost of a building (other factors):

Construction Method

Procurement Method
Local Authorities’
Requirements
 Construction Method
Changes in construction method of several parts or elements will
effects the cost of building / project.
Substructure
Frame
Upper Floor
Roof
Walls
Window
Finishes
 Construction Method
Changes in construction method of several parts or elements will
effects the cost of building / project.
Substructure
Frame Different types of site have different
types of foundation suitable to be build.
Upper Floor
Roof Different types of foundation have
different cost.
Walls
Window It depends on the capacity of soil,
building load, building regulations and
Finishes the use of plant
 Construction Method
Changes in construction method of several parts or elements will
effects the cost of building / project.
Substructure
Frame Different types of frame have different
cost.
Upper Floor
Roof This depends on the size of
construction, height of a building and
Walls load it will be bear.
Window
Finishes
 Construction Method
Changes in construction method of several parts or elements will
effects the cost of building / project.
Substructure
Frame Different types of upper floors have
different cost.
Upper Floor
Roof This depends on the type of upper floor
to be build.
Walls
timber
Window
Finishes concrete
 Construction Method
Changes in construction method of several parts or elements will
effects the cost of building / project.
Substructure
Frame Different types of roof have different
cost.
Upper Floor
Roof This depends on the type of roof to be
build.
Walls Pitch or flat
Window Timber / steel / concrete
Finishes Structure coverings / finishes
 Construction Method
Changes in construction method of several parts or elements will
effects the cost of building / project.
Substructure
Frame External / internal / partitions
Upper Floor
The shape, storey height and total
Roof height of the building influences the
area and cost of eternal walls.
Walls
round
Window
Finishes square
 Construction Method
Changes in construction method of several parts or elements will
effects the cost of building / project.
Substructure
Frame Different types of window have different
cost.
Upper Floor
Roof This depends on the type of window to
be use.
Walls
timber aluminium
Window
Finishes steel plastic
 Construction Method
Changes in construction method of several parts or elements will
effects the cost of building / project.
Substructure
Frame Different types of finishes have different
cost.
Upper Floor
Roof This depends on the type of roof to be
build.
Walls floor
Window wall
Finishes ceiling
Cost Implication of OTHER variables
Factor affecting cost of a building (other factors):

Construction Method

Procurement Method
Local Authorities’
Requirements
 Procurement Method
The actual cost of construction is not the only cost.

The costs of procurement are transaction costs which are separate

from the direct costs of a project.
Procurement cost includes:
obtaining an invitation to bid
estimating
drawing up a contract
administering the terms of the
contract
 Local Authorities’ Requirements
Based on National Land Code (NCL) 1965, lands in Malaysia are
dividing into three type:

Agriculture Building Industrial

 Local Authorities’ Requirements
Land can only be used according to the conditions
stated.
There is a procedure to be followed to change land use : The
conversion or subdivision of land:
 Local Authorities’ Requirements
LA will approve the plans of a building that is prepared by the
Architect and Engineer.

A fee is paid upon the submission of the plans.

TABLE of contents

Cost Implication
IntroducTION 03 of design variables
to design economics 01
Cost Implication
04 of site variables
RELATIONSHIP
of building morphology & 02
design economics Cost Implication
05 of other variables
 THANKS!Do you have any questions?

nabilah.hanim@utmspace.edu.my

011-27003124

Main Reference: AHMAD, K. H. (2011).Construction economics. Singapore, Pearson Custom Pub.