| CODE | CPM5005 | ||||||
| TITLE | Development and the Cost Approach (Construction) | ||||||
| UM LEVEL | 05 - Postgraduate Modular Diploma or Degree Course | ||||||
| MQF LEVEL | 7 | ||||||
| ECTS CREDITS | 5 | ||||||
| DEPARTMENT | Construction and Property Management | ||||||
| DESCRIPTION | This study-unit aims to enhance the examination of property valuations more comprehensively. It will concentrate on the development of properties, the development timeline, and all related processes. It will emphasize the construction industry's operational dynamics and current market trends. The cost approach, including building condition, D&O, maintenance, restoration, and refurbishment, will be presented in this unit. Lifecycle costs, capital expenditures, and depreciation allowance will also be incorporated into this portion of the course. This study-unit will encompass the traditional residual method, residual DCF, and phased developments. The study-unit plays a critical role in addressing feasibility versus viability, as well as development risk and evaluation. Study-Unit Aims: This study-unit aims to familiarise students with the fundamental concepts and principles related to development properties and the construction sector. Additionally, it will provide an overview of the business and market aspects associated with these industries. The curriculum will include the initiation of students into the cost approach, the significance of market analysis, development evaluation, and development risk assessment. This objective will be accomplished by facilitating individuals in leveraging their expertise in development and understanding of market dynamics to implement requisite adjustments using the conventional residual technique and its associated ramifications. Learning Outcomes: 1. Knowledge & Understanding: By the end of the study-unit the student will be able to: - Discuss the development of properties, development timelines and related processes; - Summarise the construction sector, its industry and market; - Explain the Cost approach; - Distinguish condition, D&O, maintenance, restoration and refurbishment, lifecycle costs, CapEx, depreciation allowance; - Explain the traditional residual method; - Analyse residual DCF and phased developments; - Explain development appraisal and development risk; - Distinguish between feasibility versus viability. 2. Skills: By the end of the study-unit the student will be able to: - Provide a comprehensive overview of the characteristics of development, including its properties, schedule, and procedural aspects. - Provide a concise overview of the construction sector, encompassing its industry dynamics and market conditions. - Explain the Cost approach, a method employed in valuation and appraisal processes to estimate the worth of a property based on its construction expenses. Main Text/s and any supplementary readings: - Isaac, D., O'Leary, J., Daley, M., (2016) Property Development: Appraisal and Finance, Red Globe Press. - Byrne, P. (1996) Risk, Uncertainty and Decision-Making in Property, Taylor and Francis. |
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| STUDY-UNIT TYPE | Lecture and Tutorial | ||||||
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The University makes every effort to ensure that the published Courses Plans, Programmes of Study and Study-Unit information are complete and up-to-date at the time of publication. The University reserves the right to make changes in case errors are detected after publication.
The availability of optional units may be subject to timetabling constraints. Units not attracting a sufficient number of registrations may be withdrawn without notice. It should be noted that all the information in the description above applies to study-units available during the academic year 2025/6. It may be subject to change in subsequent years. |
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