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Design and Real Estate
Design is a thought process that leads to an inspired solution to a practical problem. Whether or not we are aware of it, design is one of the most powerful forces in our lives. Good design inspires, empowers and enlightens us. We consume design solutions everyday, it has made our lives more productive and interesting. As […]
Continue readingWhen should you write a specification?
A specification is the document that describes, in words, what cannot be visualized or explained on a drawing or in a model. This is not only applicable to construction; the same principles can be applied to all industries, from the aerospace, oil and gas and automobile industries to manufacturing. In construction, the specification can cover […]
Continue readingReal Estate Economics
Land is the physical space within which economic activity takes place. In classical political economy (the predecessor to modem economics), land was understood to be one of the three factors of production, along with capital and labour. Throughout most of economic history the primary function of land was for agricultural production. But since the birth […]
Continue readingJoint Ventures
Joint Ventures or JVs are agreements formed by two or more parties with the intent of achieving a specific objective; the objective in our discussions would be that of investment in real estate development. Unlike JVs in many other businesses, in real estate the JVs are usually terminated when the objective is achieved. Even there […]
Continue readingReal Estate Financing: Notes and Mortgages
Real Estate Financing: Notes and Mortgages Financing can be a very important component of investing in real estate. In general, when investors desire to obtain financing, they usually pledge, or hypothecate, their ownership of real estate as a condition for obtaining loans. In many cases, investors also pledge personal property to obtain loans. What follows […]
Continue readingMortgage Default – What is it?
One of the most important risks in making a mortgage loan is that the borrower will default on the note in some way, so that the lender may not receive the expected mortgage payments. The risk associated with mortgage loans depends in part on the rights of the lender if and when such default occurs. […]
Continue readingConstruction Cost Estimate – Classification Systems
An essential component of any cost estimating approach is the use of a standard framework for classifying and managing construction information. The framework chosen should accommodate cost data needs throughout the project life cycle and respond to the viewpoint and needs of the various users. If a firm does not use a standard construction information framework for estimating its projects, inconsistencies […]
Continue readingCost Estimate – Classification by Level of Detail
The quality and accuracy of estimates depends on the level of advancement of the design for the project (refer to Table 1). For this reason, different sets of cost estimates will be prepared at different stages of design development. At an early stage, estimates will be at a high level. As the design becomes more […]
Continue readingElemental Cost Breakdown
Meaningful cost comparisons and analyses of cost estimates will only be possible if cost data are based on a uniform standard analysis. The following section provides an overview of acceptable formats for a Schematic Design preparation by: Defining the Elemental Format Defining Selection of Elements Preparing Elemental Cost Analysis for an accommodation project Discussing design, estimation, escalation […]
Continue readingProcurement Methods for Design and Construction of Buildings
The roles, responsibilities and risks of the parties involved in a project vary considerably under different project procurement methodologies. Consequently, the selection of the best suited contracting strategy for procurement of design and construction services is a key component in the success of a project.The main principles and characteristics of the following widely used contractual […]
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