QSP7BEC Assignment 2 UCEM – March 2024 – Building Economics

Scenario

Your private sector client has plans to build a three-storey mixed-use development with a total GIFA of 1260m2 consisting of four shell-only retail units on the ground floor and three 1-bed and two 2-bed apartments on each of the first and second floors, all will be for let. The client would like the development to incorporate designs that will minimise running costs and be low maintenance. There is space for private residents’ parking to the rear of the building and a limited number of parking bays to the front for customers.

The existing brownfield site has been cleared ready for development and is located on the outskirts of a town centre in a location of your choice. The client has advised you that a residual appraisal had been carried out at the Stage 0, Strategic Definition stage, of the RIBA 2020 Plan of Work which demonstrates the viability of the project.

Task

You have been appointed as the project manager to the project. In readiness for the next meeting with the client prepare the following advice in the form of answers to the following three short questions.

a. Examine the importance of carrying out sensitivity analysis when analysing inputs in the residual appraisal, identifying the major risks that could affect the viability of the proposed development and how these can be managed;

b. Critically review the pre-contract cost control processes that will be implemented to ensure the building cost risk is effectively managed, making reference to the RIBA 2020 Plan of Work Stages;

c. Critically discuss the use of value management (VM) and value engineering (VE) processes that can be implemented to ensure optimal design solutions are selected that will minimise the long-term running and maintenance costs of the development.

Clearly state your assumptions and provide examples to support your explanation or discussion.

Reference list

You should include a reference list with a minimum of 10 separate relevant and appropriate sources that you have written about and cited within your work. A bibliography of uncited sources is not required.