BUILDING ECONOMY 12.5 To be advised. BPD 3 (Architecture or Building). First semester Two hours of lectures and one to three hours of tutorials per week. The subject examines the interaction between the Australian Economy and the building industry, concentrating on methods of analysis used by management to understand, and utilise this interaction.

The subject will explore the cyclical nature of the industry and methods by which Building organisations identify and manage for cycles and random influences, particularly with reference to strategic planning, cash flow and liquidity management.

At the conclusion of the subject the student should:

  • understand the basic principles of the broad economic context in which the building industry operates;
  • understand the role of the Government both as a client and its influences through policy which effect the building industry;
  • understand the structure of the building industry and its significance in the general economy;
  • understand strategic planning for building management, and in particular methods of analysing trends and methods of simulating operations.
  • understand the possible economic impact of significant projects;
  • understand methods of forecasting including their limitations;
  • be able to appraise major capital works for both Public and Private Enterprise.
Economic background to the building industry. Financial analysis of capital works and capital works budget management. Trend line analysis, forecasting and simulation methods. A basic understanding of financial mathematics is assumed. One 2-hour examination (50 per cent); assignments totalling no more than 5,000 words (50 per cent). Robinson Jon Property Valuation and Investment Analysis: A Cash Flow Approach The Law Book Company Sydney 1989 Sugden, Robert & Williams Alan The Principles of Practical Cost-Benefit Analysis Oxford University Press