Building Economics
Learning Outcome 1: Evaluate models of urban development and economic aspects of urban problems.
Learning Outcome 2: Acquire technical knowledge of how to apply development appraisal techniques.
Assessment Brief: Students should complete both tasks below
1. Your client requested you to provide a report of approximately 2,000 words (minimum) explaining the potential solutions or existing Government interventions to the problems of urban development using a city of your choice. Your client is also interested in understanding the reasons or factors that ensure Government intervention in Urban development.
Your report should provide significant research evidence through reference to published sources, demonstrating analysis/critical appraisal of your findings, leading to appropriate recommendations. This should be professionally presented, incorporating illustrations and referenced examples where applicable.
Abstract/Executive summary
The student should summarize the entire report, including the purpose, methods, and findings.
Introduction
• A clear introduction to the background and purpose of the topic. This should include an explanation of how an urban area is developed with a focus on the theories that were discussed in class. The problems associated with the growth of an urban area should also be discussed. The student should relate those theories to the city of their choice. The aim of the report should also be indicated in this section.
Methodology and review of literature
• A well-structured paper with an appropriate flow and making good use of sections with relevant sub-headings to lead the reader through the analysis;
• A detailed step-by-step information on how the materials were sourced.
• Identification of a range of appropriate reference sources; insight and understanding reflecting the knowledge and critical evaluation of background reading;
• Comprehensive and accurate referencing of all sources used, following Harvard Style.
Analysis/synthesis of information
• Evidence of the problems associated with urban growth.
• Analysis of the driving factors behind the problems.
• Demonstrate a proper understanding of scenarios that would warrant Government Intervention (Hint: student must relate it to the concept of social cost and benefits and research more beyond what was discussed in class).
• Solutions or Government intervention to the problems.
• Criticism of the existing solutions and Government Intervention in the problems related to urban growth.
Conclusions
• Clear and reasoned conclusions based on the findings of the preceding sections;
• A clear statement of any recommendations arising from the criticism of Government intervention and solutions.
Presentation
• Clear and professional written paper;
• Appropriate font style, size, and line spacing;
• Use of justified body text;
• Clear presentation of any figures, diagrams, images, and tables used;
• Free from spelling, typographical, syntax, and grammatical errors.
The report should be in a page-numbered report format and include the following:
• Title page
Assignment title, module code, full name and student code, as well as submission date.
• Abstract
• Table of Contents
• Introduction
• Findings and Analysis
• Conclusions
• Recommendations
• References
• Appendices
Your assignment must be word processed and presented in a report format with simple sub-headings.
1. A developer is considering purchasing a piece of development land on which to build a speculative open plan office block. Using the information below, calculate the residual land value that the developer would be willing to bid for the site.
Include all workings in your answer.
» Office block @ 10,000 m² IPMS2
» Construction period is 1.5 years
» Estimated rental value is £380 per m² for IPMS3
» Yield is 8%
» Building costs @ £1,400 per m²
» Ancillary costs @ 5% of building costs
» Contingencies @ 5% of building and ancillary costs combined
» Professional fees @ 13% of building costs
» Interest costs @ 8%
» Developers profit @ 20% of total development costs