Course Details

Course Information Package

Course Unit Title	ENGINEERING ECONOMICS
Course Unit Code	CEC200
Course Unit Details
Number of ECTS credits allocated	5
Learning Outcomes of the course unit	By the end of the course, the students should be able to: Define who the main players in the industry are, how they operate, how they interrelate, and their impact on each other and the industry. Review main ‘project-level’ economics issues like contract types and procurement methods with emphasis on their economic side. Carry out ‘pre-contract’ economic exercises like preliminary design costing, elemental cost analysis, detailed estimating, and evaluate tender preparation and tender evaluation methods. Carry out ‘post-contract’ economic exercises like estimation of variations, preparation of valuations for interim payments, calculation of fluctuations, cost/value reconciliation. Carry out other economic exercises like development appraisal, cash-flow comparison, maintenance studies, life-cycle costing. Prepare and analyse financial statements like the balance-sheet, the profit and loss account, the cash-flow statement and interpret them using financial ratios. Define micro-economic issues like demand, supply, equilibrium, and elasticity as well as and macro-economic issues like unemployment, inflation, economic growth, exchange rates.
Mode of Delivery	Face-to-face
Prerequisites	NONE	Co-requisites	NONE
Recommended optional program components	NONE
Course Contents	Overview of the Construction Industry Who the main players in the industry are, how they operate, how they interrelate, and their impact on each other and the industry. ‘Project-Level’ Engineering/Construction Economics Introduction to the main contracts and procurement methods emphasizing on the economic side. Pre-contract project economics: preliminary design costing, elemental cost analysis, detailed estimating, tender preparation, tender evaluation. Post-contract project economics: estimation of variations, preparation of valuations for interim payments, calculation of fluctuations, cost/value reconciliation. Other project economic issues: development appraisal, cash-flow comparison, maintenance studies, life-cycle costing. ‘Company-Level’ Engineering/Construction Economics Introduction to Accounting and Finance issues like: financial statements (the balance-sheet, the profit and loss account, the cash-flow statement), financial ratios. ‘Industry-Level’ Engineering/Construction Economics Introduction to micro- and macro-economics: micro-economics (supply, demand, equilibrium, elasticity), macro-economics (Governmental policies, unemployment, inflation, economic growth, exchange rates)
Recommended and/or required reading:
Textbooks	Cost Studies of Buildings, Ashworth Contract Practice for Quantity Surveyors, J.W.Ramus Accounting and Finance for Building and Surveying, A.R.Jennings Economics and Construction, Andrew J. Cooke Various current articles, Government announcements, etc.
References	Estimating for Builders and Quantity Surveyors, Buchan/Fleming/Kelly
Planned learning activities and teaching methods	The course is delivered mainly through classroom instruction using powerpoint presentations and practical exercises. Current construction articles are presented and analysed. Classes are supplemented with numerous data and photograph presentations with regards to international construction developments. Discussion is generally encouraged. Class notes are made available to the students through e-learning.
Assessment methods and criteria	Assignments 15% Tests 25% Final Exam 60%
Language of instruction	English
Work placement(s)	NO