Building Economics Assignment: RIBA Plan of Work, Cost Planning

This assignment, completed for a Building Economics module in the BTEC HND in Quantity Surveying program at the British College of Applied Studies, analyzes the impact of the global recession on the Sri Lankan construction industry. It delves into the benefits of the construction industry to the national economy, the significance of demand and supply in the residential and commercial markets, and the advantages of government intervention. The assignment also covers the RIBA plan of work, poster presentations, and cost planning, including the effects of design variables and modular coordination on construction costs. Furthermore, it examines post-contract cost control functions and the cyclical nature of the construction business, drawing from lecture notes, library resources, and online research to provide a comprehensive overview of the subject matter.

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Acknowledgement
This research study embraces much dedication and ready assistance received from
many people, who contributed in plentiful ways to complete this study. Therefore, I take this
opportunity to convey my gratitude to every one of them.
First and foremost, I am indebted for my lecturer, Ms. Pabasara Kariyawasam for the
guidance given and for his constructive support throughout the period of study.
I would like to extend my grateful appreciation to the head of department BCAS and all other
academic and non-academic staff of the department of Building construction at British
College of Applied Studies, for their support so kindly given throughout finalizing this
dissertation successfully.
Also, I take this opportunity to thank my loving friends for their helps and advices. I owe
much appreciation to Ms. Pabasara Kariyawasam who supported me to sharpen my thinking
and backed me up in fulfilling this endeavor. Last but not least to all my family members for
providing me spiritual and emotional support.

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Introduction
This is an assignment which is given by Ms. Pabasara Kariyawasam who is our lecturer of
Building Economics, for fourth semester in BTEC HND in Quantity Surveying. We are given
an assignment on Building Economics, which is the following modules have been explained
and also in this assignment scenario which is given in the assignment will be covered as
follows.
 Stage of RIBA outline plan of work
 Poster presentation
 Cost planning
 Types of cost planning
 Post contract cost control function of Quantity Surveyor
This is an individual assignment which is completed by gathering information from
lecture notes, library books, and browsing. I hope, this assignment will provide the necessary
information of given assignment tasks, and those who read this assignment they can gain vast
knowledge on particular subject.

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Contents
Introduction…………………………………………………………………………………..01
Acknowledgement …………………………………………………………………………...02
Contents………………………………………………………………………………………03
Task 01……………………………………………………………………………………04-07
Task 02………………………………………………………………………………..Poster 08
Task 03……………………………………………………………………………......Poster 09
Task 04……………………………………………………………………………………10-13
Task 05…………………………………………………………………………………CRA 14
Task 06……………………………………………………………………………………15-16
Task 07……………………………………………………………………………………17-21
Conclusion……………………………………………………………………………………22
Reference………………………………………………………………………….………….23

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Task 01
Due to the recent global recession, construction industry is a worst hit
industry worldwide. How has affected the Sri Lankan construction
industry? Which market segments were the most affected by this crisis?
Following points
- Construction industry is beneficial to the national economy
- Demand and supply is significant in residential market or commercial market
- Government intervention in construction industry is advantageous
- Construction business is cyclical in nature
 Construction industry is beneficial to the national economy
Construction sector and construction activities are considered to be one of the major sources
of economic growth, development and economic activities. Construction and engineering
services industry play an important role in the economic uplift and development of the
country. It can be regarded as a mechanism of generating the employment and offering job
opportunities to millions of unskilled, semi-skilled and skilled work force. It also plays key
role in generating income in both formal and informal sector. It supplements the foreign
exchange earnings derived from trade in construction material and engineering services.
Construction plays a major role in the construction industry. Here, the buildings are the key
evidence of the growth of the country. Normally now a days the developed countries have
numerous buildings and significant architect works to express their development to the world.
 Demand and supply is significant in residential market or
commercial market
Construction Industry is one of the most booming industries in the whole world. This
industry is mainly an urban based one which is concerned with preparation as well as
construction of real estate properties. The repairing of any existing building or making certain
alterations in the same also comes under Construction Industry.

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Demand in Construction Industry
Demand originates from different sub-sectors such as public housing, public-sector non-
housing, owner-occupied housing and private-sector industrial and commercial,
rehabilitation, improvements, repair and maintenance. However, only housing, industrial and
infrastructure sectors largely contribute to the construction output in Sri Lanka. It is therefore
in this light that output in those sub sectors are analyzed to review the trend of construction
Government policies will be the key deterministic factor in construction demand.
 The government also offered incentives to promote private investment and this led to
a considerable increase in investment in industrial, commercial and shopping
complexes.
 With respect to the private sector industrial and commercial buildings a significant
derived demand emerged with the establishment of Free Trade Zones, (an area for
investment by expatriate businesses with government incentive)
 Private and foreign capital was boosted through the provision of incentives and
infrastructure support. This change led the construction sector to grow at a much
faster rate of 14.3% at peak of the public sector investment, which coincided with
private sector investment in commercial and industrial buildings.
 The emergence of private property development companies made a considerable
impact on construction demand in this sector, particularly in urban areas where
demand grew rapidly with the expansion of the urban population. As a result,
condominium style apartments and pre-built luxury housing schemes were built in
urban/suburban areas.
 The cost of construction, land supply and available sources of finance, project
delivery systems had a direct bearing on the demand in this sector.
Supply in construction industry

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 The operation and behavior of the construction firm, price determination for
construction projects, the design process and the forecasting of construction prices
reflect the supply side of the construction industry.
 Sub-contracting practices, sourcing of materials; labor and plant are of vital
importance to the construction output in the industry.
 There are smaller firms in the industry and only 8% of the contractors are capable of
undertaking projects worth above SLR 10 million. This is one of the major reasons for
the greater share of donor-assisted projects being carried out by expatriate contractors.
 Contractors have moved away from labor-intensive construction methods to the use of
capital-intensive operations such as the use of prefabrication systems, and ready
mixed concrete in high-rise buildings. This trend has been prompted by the demand
for private housing commercial and industrial building
 In terms of project procurement, both the private and public sector clients widely
followed the traditional procurement systems
 Government intervention in construction industry is advantageous
There are changes in economy can be done to regulate construction industry during boom and
recession period. When we take the boom period, in the boom period the demand will
increase. Due to demand increase the supply also increase parellaly. According to the
increase of the demand and supply employment also increases. So there will be lot of
employment. Here we have to consider important factor which is when demand and supply
increase the prices for the product also increase. In this situation the government involvement
will be there. Government will analysis the rate for the product and provides the restriction
for the prices of the loans. The government will use the fiscal policies like tax and increase
the interest for the product. This is the method that the government uses to balance the
economy in the boom period.
 When we take the recession period, in the recession period the demand will decrease.
Due to demand decrease the supply also decrease parellaly. According to the decrease
of the demand and supply employment also decreases. So there will be unemployment
or idling of resources. Here we have to consider important factor which is when

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demand and supply decrease the prices for the product also decrease. In this situation
the government involvement will be there.
 The government use one method to balance this situation which is the government
will consume the product.
For example
 When the farmers cultivate one product, there will be no demand to that product.
Then the farmers get loss from his product. Here the government plays as the
consumer. The government will consume the entire product to the actual price, and
then the farmer won’t affected by his product. This is the method that the government
uses to balance the economy in the recession period.
 There are many market segments affected by the economic crisis like infrastructure,
residence, commercial sector. But I recommend residential sector is mostly affected
by the economic crisis, because in the recession period unemployment situation is
created. So the public sectors are mostly affecting.
 Construction business is cyclical in nature
A type of an industry that is sensitive to the business cycle, such that revenues are
generally higher in periods of economic prosperity and expansion and lower in periods of
economic downturn. Companies in cyclical industries can deal with this type of volatility
by implementing cuts to compensations and layoffs during bad times, and paying bonuses
and hiring en masse in good times. Cyclical industries include those that produce durable
goods such as raw materials and heavy equipment.

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Task 02

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RIBA plan of work
Task 03
Poster Presentation

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Task 04
4.1 You may consider the design variables, modular-coordination with any
relevant factors that would affect the construction cost.
This side of the consultant Team has prepared the overall plan for the proposed project
while they preparing the designs vary considerably. To give an opinion to the client to
select the most appropriate design it is depend with the cost implication of design variables.
And while the customer selects the best design of the project impact factors ranging from
the cost of the overall program. It changes the customer in the form, size, plant height, total
height, and fenestration and building costs resulting from the effects of other aspects that
need to be fully aware of customer wish to make the own influence for the final plan.
It is important that the method used to express the cost of construction allows alternative
designs and construction methods to be examined on a consistent basis. While a client

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chooses the best for your project has received considerable attention, how-ever, that will run
on the use of the costs expressed in this way to take into account very different conditions
on different projects.
The customer can choose the most appropriate solution after considering the information
available for the project. It is best that all project details are available for the customer to
choose the solution that best matches considering the following effects. There are some
factors are effective design
Plan form
Plan Proposal Forms are changing, not because we want to consider the wall area ratio
area / floor plans for certain outline proposals. Within these proposals circular shapes plans
are cheaper than other forms. But if we build plans circular, wishing used more skilled jobs,
it can not be divided internal appear correctly and have more waste. Not for the next form
of economic plant is square in shape. This square-shaped construction plan does not need
more skilled jobs, interior partitions easily divided and less waste.
Size of Work
Proposal Plans are varying sizes, here also want to consider the ratio of the area of the area /
floor wall for individual plans, explain the proposals. Within these proposals given large is
cheaper than the proposed small. Proposed Plans are varying heights, here also want to
consider the ratio of the area of the area / floor wall for individual plans, explain the
proposals. Within the proposed plans of low height are cheaper than high-rise plans. If you
build a tall building need large machinery, high technical and safety arrangement should
need. The low height is most suitable.
Circulation spaces
Plans Proposal circulation spaces are changing, they want to consider the ratio of the area of
Circulation area / functional for private plans, explain the proposals. Among the proposals
circulating more space functional area is not suitable and less circulation space more
functional area (which rests the order of the municipal council) is not appropriate.
Reasonable amount of movement is selected according to the order of the municipal
council.

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Build capacity
Building capacity is the extent to which building design facilitates ease of construction,
according to the general requirements for the finished building while considering customer
above factors will focus on the advantages and disadvantages of these methods. It is vitally
important for the customer to choose best of it, since money is under threat so he has to
make believe is best.
4.2 preliminary estimating
A rough estimate made in an early stage of the design work, prior to receipt of firm bids. See
also statement of probable construction cost.
At the beginning of a project by the owner, prior to any design, only limited information is
known about a project. However, the owner must know the approximate to evaluate the
economic feasibility of proceeding with the project. Thus, there is a need to determine the
approximate cost of a project during its conceptual phase. A conceptual estimate is also
known as a top-down, order of magnitude, feasibility, analogous, or preliminary estimate. It
is the first serious effort made to predict the cost of the project. A conceptual estimate is
usually performed as part of the project feasibility analysis at the beginning of the project. In
this way, the estimate is made with limited information on project scope, and is usually made
without detailed design and engineering data. The conceptual estimate is also defined as