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Science of study of relationship between
human & how they use their limited sources
(Robin 1935 cited in Hillebrant 1993 in ‘Economic Theory and the Construction Industry’)
Selection of approaches to use or distributed
sources (Khairani 2005)
How to manage things effectively with
reasonable cost
Being referred as construction
economist
To be able to provide better judgment
for cost effectiveness
To identify and eliminate/reduce
unnecessary items which could help to
reduce overall project cost
Building cost is affected by various factors from
building design to type of finishing.
The main objective of design team is not to create
the cheapest building but the most cost-effective
building (Khairani, 2005).
The best building should be able to:
fulfill the functions as it was proposed by the clients
have acceptable designs which suits its function
provide value for money (Seeley, 2005)
Design Factor
Building Plan Shape
Collective Construction of Buildings
Building Size
Storey Height
Total Height of Building
Circulation Space
Site Factor
Site Factor to Building Size
Site Factor to Building Shape
Site Factor to Plot Ratio
Ground Condition to Building Design
Site Location to Building Design
Building Shape
Collective Construction of
Building
Building Size
Storey-height
Building Total Height
Circulation Space
The shape of a building determines how
much it will cost
In general, the simpler the shape, the less it
will cost
A B C
By using Wall to Floor ratio where wall area
(m2) divide by gross floor area (m2)
A B C
11m2 11m2
11m2
PARTY WALL
See example in page 219, Ekonomi Binaan,
(Khairani 2005).
Not all people fancy link buildings. Why?
Discuss for 10 minutes in group of 5 and
present your answers.
Some people willing to pay more for privacy
rather than to share their wall with somebody
else.
It’s all about money !!
Explain and illustrate by using
simple sketches and
calculations, what you
understand about the affect of
building shape OR collective
building to cost.
Generally, increases in size of buildings usually
produce reductions in unit cost, such as cost/m2
of floor area.
HYPERMARKET SCENARIO buy in bulk, the
price per unit is cheaper compare to when you
buy just one item.
ECONOMIES OF SCALE
characterizes a production
process in which an increase in
the scale of the firm causes a
decrease in the long run average
cost of each unit
Rationally, certain fixed costs such as
transportations, erection and dismantling of site
building, and compound for storage of materials,
temporary roads etc may not vary significantly.
A larger project is often less costly to build as
wall/floor ratio reduces.
See example in page 221 Ekonomi Binaan, (Khairani,
2006)
See also example Fig. 5.2 in page 87 Cost Studies of
Building (Ashworth, 2004)
Figure 2.2 shows the effect of doubling the
length of a rectangular building on the ratio of
wall to floor area. The length of external wall per
square metre of floor area is reduced from
3.83mm to 3.17mm, a reduction of 17.25%
(Seeley, 1989)
A 6-storey office has 360m2 of floor area on each
floor and served by 2 passenger lifts. The total
cost of the project of RM928,000 is equivalent to
RM430/m2 of floor area and the lifts cost
RM54,000, equivalent to RM25/m2 of floor area.
If the floor area was doubled on each storey, the
lift provision could remain the same and the cost
shall reduce to RM12.50/m2.
Although the construction cost per unit is
cheaper generally, it does not mean that the
operational cost is also cheaper.
cheaper
It is more cost-effective to build a big building
instead of building a few small buildings
which have same floor area.
See example in page 222 &223, Ekonomi
Binaan, (Khairani, 2006)
Changes in
storey height
cause
changes in the
cost of the
building
without
altering the
floor area.
area
Discuss for 10 minutes in group of 5 and
present your answers.
Main elements that affected by this changes are walls
and partitions together with their finishing. There will
be also changes in other areas such as:
Increased volume to be heated/cooled, higher level of
equipment
Longer service and waste pipe to supply sanitary appliances
Electrical wiring and water pipe
Staircases, escalators and lift
Additional load could result enlargement of foundations
Additional maintenance works
Constructional costs of
buildings rise with increases
in their height but these
additional costs can be partly
compensate by better
utilisation of
highly priced land
reduced cost of external
circulation works.
Low cost flat are best to be low except in very
high cost site locations where luxury rents are
obtainable.
Office developments in tower form are more
expensive in cost than low rise, however it
can compensate by the rent obtainable which
may more than the additional cost.
Discuss for 10 minutes in group of 3 and
present your answer to En. Faiz
Provision of vertical transportation i.e. hoist
& crane.
High operation & safety cost.
Increase engineering services i.e. lifts,
garbage disposal, sewage pump, fire fighting
and etc.
Provision for bigger foundations, structural
frame, staircases and etc.
Higher circulation areas
Required specialist contractors – less
competition (IJM is one of the best high rise building
contractor in Malaysia)
Wind loading – construction difficulties
Changes in number of storey can be explained by example in page 226, Ekonomi Binaan, (Khairani, 2006)
Similar example in Fig 5.5 page 92, Cost Studies of Building (Ashworth, 2004)
Summary of Outcome of Increment in Height of Building to the Cost of Building - Ekonomi Binaan, (Khairani, 2006)
1. Taipei 101, Taipei, Taiwan
2003 509 m (1,670 ft) 101
storey
2. Petronas Tower I, Kuala
Lumpur, Malaysia 1998
452 m (1,483 ft) 88 storey
3. Petronas Tower II, Kuala
Lumpur, Malaysia 1998
452 m (1,483 ft) 88 storey
4. Sears Tower, Chicago,
United States 1974 442 m
(1,450 ft) 110 storey
5. Jin Mao Building, Shanghai,
China 1998 421 m (1,381 ft)
88 storey
When Burj Dubai, United
Arab Emirates is
completed, it will be the
tallest building and
architectural structure in
the world at more than
800 meters (2625 feet).
(Wikipedia, 2007)
Circulate means MOVEMENT IN CIRCLE
Circulation space entrance halls, corridors,
stairways and lift wells.
wells
Circulation space can be regarded as ‘dead space’
which cannot be used for a $$ profitable $$
purpose and yet involves considerable cost in
heating, cooling, lighting, cleaning, decorating
and etc.
An economic layout for a building will have its
main aims – reduction of circulation space to a
minimum.
However, almost every type of building
requires some circulation space to provide
means of access between its sections.
sections
In prestige buildings, spacious entrance halls
and corridors add to the pride of the
buildings.
If we reducing the width of the corridors to an
extent that persons using the building suffer
could not really be justified.
Corridors also act as an escape routes in case
of fire.
So, cost is not the only criterion which has to be
examined.
Aesthetic and functional qualities are also very
important.
Circulation space requirements tend to rise with
increases in the height of buildings and special
consideration should be given when designing high
rise building.
The circulation areas are different between types of
buildings. Office blocks 19%, Laboratories
13%, 4-storey Flats 21% (Seeley, 1989).
For example, an office block costing
RM3,400/m2 of gross floor area with 20%
circulation space is equivalent to RM4,250/m2 of
usable floor area.
This is important in buildings such as office and
factories, which may be erected for letting
where rent is usually calculated on usable floor
area only.
See example in page 228 & 229 Ekonomi Binaan, (Khairani, 2006)
See also example fig 5.3 in page 88 Cost Studies (Ashworth, 2004)
BUILDABILITY (refer Ashworth pg 94-95)
The extent to which the design of a building
facilitates ease of construction, subject to overall
requirements for the completed project.
Largely concerned with the work on site and the
practicalities of producing a structure from design.
Design which require unnecessarily complex
construction methods and procedures or fail to take
into account of the mechanics of the work on site,
fail in this respect.
Excellence in Design
Cost