DEVELOPMENT ECONOMICS (QSB 4223)

DEVELOPMENT ECONOMICS (QSB 4223)

PORTFOLIO SEMESTER 6

DEVELOPMENT ECONOMICS (QSB 4223)

Lecturer: Mr Ho June Khai 
                  Miss Dianne Kok Hui Wen

Purpose of study development economics

Development Economics enables the student to understand the basic principles of economics and its link to the real world of construction. Besides, this subject also enable understanding of the whole process of property development. Moreover, improve the understanding of the contribution of feasibility study in property development. The author was also came to learn the overall mechanism of the finance system in the construction industry.



Objectives

In this subject, the basic principles of economics are introduced to students. Since students are going to involve in the construction industry, this subject is very useful as it is link to the real world of the industry, instead of just studying based on books and theories. Last time, students are concentrated on site matters, but now students are explore wider to the understanding of the whole process of property development. There are many feasibility studies in property development, so students are able to enhance the understanding the contribution of these studies. Projects in construction industry normally involved huge amount of monetary term, a systematic finance arrangement will help the projects run smoothly. As a result, students are able to understand the general mechanism of the finance system in the industry through this subject.


Learning Outcomes

 Studied to recognize and recall the involvement of the construction industry to a nation’s growth economy. Also, learned to calculate the developer's budget through assignment. Author now is able to executed the cost-benefit analysis in the early stage of investment proposal and executed the valuation system to help on decision making during the feasibility stage. In addition, author able to classified various source of finance available in the construction industry. In this study, author now able to planned the requirement in a quality market research.

Test

After few months of studying this subject, student must prepared to face the mid term test which to test the students memories of what have learned from past few months and also to observe whether student able to apply the theories correctly. The test is about 2 hours where students must well prepared and well organized the time to answer the question. These test mainly consist of subjective questions as well as practical problem questions (where recall, analysis, evaluation and application of concepts learnt are necessary to answer the questions competently). 

Topics:

1. Introduction
2. Property Development
3. Property Investment Economics
4. Factors in Property Development
5. Development Appraisal
6. Cost-benefit Analysis
7. Market Research
8. Development Finance

Group Assignment 

Main aim of this group assignment is to help students develop a deeper appreciation of the concepts learnt in the module by applying them in the problems given in the assignment. This assignment is about developer wants to develop residential units and commercial units on a land with acres. Students are required to prepare few things for this assignment for instance calculate the number of units houses and shops to able built in the land, investment appraisal, cash inflow, cash outflow and combined of cash outflow and inflow.

After done the group assignment, author require to refer the previous works to find the net present value (NVP). The approaches to find this NPV, author must get the cash inflow and cash outflow amount only able to find out the NPV. Later on, author required to explain and comment the viablitiy of the project based on the result of NPV.

Cost Value Engineering

COST VALUE ENGINEERING (QSB 4214)

 COST VALUE ENGINEERING (QSB 4214) by Sr. Lee Wing Tey



Purpose of study cost value engineering

This subject also explores the understanding of value management among the students such as the types of these studies, procedure, process and others.  Among the chapters in this subject, value management tools and techniques is the chapter which I found to be most interested and useful for a Quantity Surveyor. This chapter consist method of function analysis which can help to decide materials are important and most useful for that project and it is helpful when exercising cost cutting. Although Value Management has its own problems but there are existing ways to solve them. Furthermore, this concept also brings benefits to Client through the implication in the construction industry



Objectives

The objectives of this study is to understand in general the value process, function analysis and team dynamics in the client’s value system. . Secondly, enable author to identify solutions to undertake value studies at different stage of a project. Lastly, is significant to let author to know value management in Malaysian construction industry in an effort to achieve value for money invested.

Learning Outcomes
Throughout different construction phases, students are able to identify the suitable time to carry out Value Engineering upon the completion of tasks given by lecturer. In addition, contribution of the Value Engineering or Value Management in the development process can be recognized and recalled. Never the less, students are trained to apply the Value Management to a value outcome in the process of decision making. Lastly, ability of analyzing the cost and value implications of project scope and generating Job-Plan for the implementation of Value Management workshop can be achieved.


Test

After few months of studying this subject, student must prepared to face the mid term test which to test the students memories of what have learned from past few months. This is to test the ability of the students in identifying, analysing and applying the principles of cost value engineering in the test.

Group Assignment

Students are required to prepare a case study of Value Management application in construction industry. The purpose of this assignment is enable students to develop a deep appreciation of the concept learnt by applying them in the assignment. Besides, students are also expected to explore outcome of the implication for the case study in local construction industry in both public and private sectors.

Research Dissertation

 RESEARCH DISSERTATION (QSB 4914) by 
Ms Theong May Chuan and Mr Leong Boon Tik



Purpose of having research dissertation
Research dissertation is to introduce author to academic research and provide some in-depth understanding of the research methodology. Author are required to undertake and submit a substantial piece of independent research work which consists of both recording and analyzing of data or the summary of published material on the topic supplemented by opinion gathered through interviews or questionnaires. Also, author are to negotiate a project title and specification with their supervisor. After period of work, author need to carry out necessary work to complete the dissertation.




Objectives
The objectives of this study is to develop awareness of the current local issues in the construction industry. Next, author need to explore the approaches to research. Lastly, author also required to demonstrate a systematic and orderly mind to produce a viable academic research.

Learning Outcomes

Students are capable to use a depth of subject knowledge and apply analytically and skills of the research to produce the project. Due to not all the information gathered are required, therefore students able to collect and select the only required data and information. After that, students are capable to use the suitable and appropriate techniques and tools to analyse the selected data. A comprehensive conclusion and summary are very important in order to produce a complete research, therefore students are able to acquire this skills also. Last but not least, the final report should be produce in project documentation and presentations by using keyboarding.

Construction Law

Construction Law (QSB 4414) by Sr. Eddie Lim Sek Cheon

Overall Reflections

Other than Measurement, a Quantity Surveyor also requires to have depth knowledge in contract. This subject is found to be important and very useful in our future. It enable students to explore their deep understanding in laws related to construction industry such as the roles and responsibilities of professional bodies, rules stated by local government such as National Land Code, Uniform Building By-Law and others. Author could able to develop an in-depth knowledge on the application of the law and the remedies available to the parties. Also, author will be able to adopt a systematic approach to analyze disputes and the respective liabilities. Lastly, to enhance the authors’ knowledge on matters involving contractual claims and its assessment.

Objectives

Commonly, there are many disputes happen in a project in the construction industry. Therefore, understanding on the general principles on the formation of contract and remedies especially in the event of breach is one of the purposes of the subject. Besides, it is important for a professional body such as architects, quantity surveyors and other professionals who are in relation with construction industry to understand their roles and liabilities regarding professional negligence and the use of collateral contract. This subject also focuses on the laws which are relating to payments, contractual claims and interpretation rules of ambiguity that found in the documents. In addition, students able to explore the laws relating to land and construction industry such as National Land Code, Street Drainage and Building Act, Uniform Building By-Law, Strata Title Act, and others. This subject also provide students in the knowledge of the principles and procedures stated by the Malaysian Government and Standard Form of Contract such as litigation, arbitration, adjudication and other alternative dispute resolution (ADR).

Learning Outcomes

There are various laws which relating to the construction industry such as land law and construction statutes. .Author can identified, explained and distinguished the various laws related to the construction industry including land law and construction statutes by demonstrating knowledge and understanding of the principles in law, conditions of contract and the applicable statutes. Next, author now able to analyze, interpret and apply this knowledge on the principles of law in administration of contracts and contractual claims including providing evidence of reasoned advice in relation to contractual claims and interpretation of any discrepancies of various contract documents. Lastly, author used appropriate methods of dispute resolution for different situations arising from construction contract. 

Course Work 1 – Seminar

Students are separate into 2 persons each group to carry out the seminar during tutorial session. The seminar is related to a law topic nominated and this topic is given to the seminar group one week before the presentation. After the presentation, the seminar group is required to ask two questions for discussion while the class also required to ask at least one question to the seminar group. The questions being asked are covered the details of relevant theories and concepts for the theory question presentation.

Course Work 2 – Loss & Expense Assessment

This is a group assignment comprises of four students in each group. Students are required to act as consultants assessing the applications of loss and expense claim by Contractor. The applications must be assessed based on the conditions of contract and principles of laws relating to remedies and damages due to breach of contract.

Course Work 3 – Mid Term Test

Through this 2 hours test, students ability in identifying, analysing and applying the principles of construction law in different situations can be assessed.