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Building Economics: Theory and Practice

✍ Scribed by Rosalie T. Ruegg, Harold E. Marshall (auth.)


Publisher
Springer US
Year
1990
Tongue
English
Leaves
492
Edition
1
Category
Library

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✦ Synopsis


We no longer build buildings like we used to nor do we pay for them in the same way. Buildings today are no longer only shelter but are also life support systems, communication terminals, data manufacturing centers, and much more. Buildings are incredibly expensive tools that must be constantly adjusted to function efficiently. The economics of building has become as complex as its design. When buildings were shelter they lasted longer than their builders. The avΒ­ erage gothic master mason lived 35 or 40 years. Cathedrals took 3 or 4 hundred years to build. Cost estimates were verified by great great grandchildren of the original designer. Today, creative economics has become as important as creative design and creative building. The dient brings builder, contractor, architect, and facilities manager to account in their life time. The cost of building can therefore no longer be left to chance or act of god. Solutions are no longer as ingeniously simple as those proposed by a FlorΒ­ entine builder early in the 15th century. He proposed to center the dome of S. Maria deI Fiore on a great mound of earth mixed with pennies. When the job was done street urchins would carry away the dirt in their search for the pennies. This was a serious suggestion offered by an early construction manager before Brunelleschi solved the problem more sensibly.

✦ Table of Contents


Front Matter....Pages i-xv
Front Matter....Pages 1-1
Building Economics at a Glance....Pages 3-15
Life-Cycle Cost (LCC)....Pages 16-33
Net Benefits (NB) and Net Savings (NS)....Pages 34-47
Benefit-to-Cost Ratio (BCR) and Savings-to-Investment Ratio (SIR)....Pages 48-66
Internal Rate-of-Return (IRR)....Pages 67-78
Overall Rate-of-Return (ORR)....Pages 79-91
Payback (PB)....Pages 92-104
Front Matter....Pages 105-105
Adjusting Dollar Amounts for Time of Occurrence....Pages 107-133
Treatment of Price Changes....Pages 134-146
Setting the Study Period....Pages 147-152
Selecting a Discount Rate or MARR....Pages 153-167
Estimating Costs and Benefits....Pages 168-185
Accounting for Taxes and Financing....Pages 186-200
Front Matter....Pages 201-201
Risk Exposure and Risk Attitude....Pages 203-215
Conservative Estimating, Breakeven Analysis, and Sensitivity Analysis....Pages 216-225
Risk-Adjusted Discount Rate and Certainty Equivalent Techniques....Pages 226-232
Decision Analysis, Simulation, and Other Techniques....Pages 233-250
Selecting the Best Technique....Pages 251-254
Front Matter....Pages 255-255
Selection of Building Designs and Building Components....Pages 257-268
Decision to Accept or Reject a Project....Pages 269-314
Front Matter....Pages 255-255
Decisions on Building Location....Pages 315-323
Lease or Buy Decisions....Pages 324-334
Economic Size of Building Components....Pages 335-345
Allocating Limited Budgets Among Competing Projects....Pages 346-353
Decisions on Timing of Equipment Replacements....Pages 354-360
Selecting Combinations of Interdependent Systems....Pages 361-367
Back Matter....Pages 369-486

✦ Subjects


Civil Engineering;Economics general


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