Eco Final Exam

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JUNE 2019

Q1 (a) factors affecting the demand for infrastructure products by public


clients :
1) Changes in income
-When there is an increase in income the standard of living improves causing more
people to buy their own houses which leads to an increase in the total demand of
house. However, when there is decrease in the income, more people will shift towards
rented housing. That means, the ability of customers to buy goods is based directly on
their income.

2) Changes in population
- As the population grows, there will be an increase in demand for goods and services.
The more people are there, the more needs and wants are required to be satisfied. It’s
not only the size of the population that affects demand, but the structure of the
population also affects the demand. Which is in term of Geographical distribution. for
example, As a country starts developing and goes up in development, there is a
tendency of the population to move to urban areas. This will increase in demand for
goods and services in urban areas such as educational building, medical centre and so
on.

3) Changes in taste
The market demand is also affected by buyer’s willingness to purchase different
goods. The tastes and preferences which affect this willingness vary over time. For
example, people nowadays are more intent/ prefer to buy/ rent high -rise buildings
compared to landed houses, especially in urban areas. This is because, high rise
residential buildings provide more facilities and services that further facilitate the
residents there. Such as hypermarkets, restaurant, gyms, swimming pools, clinics and
so on. So, the demand for landed houses will decrease in urban area as more people
prefer to choose high rise building.

4) the age and condition of the existing premises


There are some buildings that are abandoned and old but the structure of the building
are considered still in good condition. That building will make the city area look
backward. therefore, the state government will take the initiative to refurbish the
building so that it can become a tourist center and indirectly the area will be
developed. For example, bnadaraya melaka, kota afamosa, cally castle.

5) Social and economic conditions


which is how the demand of construction materials during certain situation of
economics conditions. Hmmmm
For example, if an area has a high unemployment rate, the demand for infrastructure
by the public sector will also increase with more development that will be carried out
to provide a wide range of employment opportunities. moreover, in term of
community safety, if the area has many criminal cases, then the public sector will
build more guard houses.

(b) Price determination between construction and other sector’s product (kena
elaborate more)
Construction product Other sector’s product
The price can only be determined when The price of a product is determined by
construction completed (final account) the law of supply and demand
- -Consumers have a desire to acquire a
product, and producers manufacture a supply
to meet this demand. The equilibrium market
price of a good is the price at which quantity
supplied equals quantity demanded.
The Prices influenced by the location of The price of a product must include the
the site sum of all costs associated with the
- production of a good or service
-which are total of fixed costs, variable costs
and semi-variable costs incurred through the
production, distribution, and selling of the
product.
The prices influenced by the type of The priced are influenced demand of
building customer taste .
- -Consumer tastes are constantly changing as
new technology/trend comes out. Therefore,
the price of the product which in trend are
more pricey than outdated product.
The prices influenced by the economic
situation

Q2 (a)
i) investing of economic solution
ii ) monitoring cost of a building
iii ) assessing the viability of the project

(b) the purpose of the whole LCC that enable client to make a right decision
- LCC of a building or structure incorporates the total costs associated with it from
inception through to eventual demolition. Which is including initial capital costs,
occupation costs, operating costs and the cost or benefit of the eventual disposal of the
asset at the end of its life.
-LCC approach emphasises the future cost flow and the advantages that are gained
during the life span of the building.
- the future cost and the advantages are changed to present values using discounting
techniques and with this method an economic evaluation of a proposal can be made.
-LCC also takes into account the costs related to construction and site clearing whrn
the building/ structure is no longer required.
-LCC also depends a great deal on the owner, user and designer’s effort to reduce the
recurring cost.
Tetiba rasa mcm kena explain objective dia n elaborate!!! adeh haih
Ni objective dia, kena elaborate lgikk

-LCC can indentifies the total cost involved ( rather than initial cost)
-can assists in effective decision making when choosing between several alternatives
and method to fulfill stated objective
- it is a management method that details out operations cost during the use of the
assets.
-can indentifies the areas where the operation cost can be reduced
Q3 (a) plan shape of the building (calculation n ilustration dlm Buku merah 184-
185)

-the plan shape of the building influences the structure, environment, construction
cost and management as well as maintenance cost of the building.
-the cost of a building will differ with just a change in its plan shape even if other
factors remain unchanged. generally, a building with with a simple shape will be the
lowest in terms of cost.
-with the example below, its show the gfa of all the shapes is the same that is
100m2.but the perimeter of the external wall for all 3 shape are different which
building A has length of 40m,while B and C is 50m. this is can make the length for
foundation works, walls and roofing works will changes .
-when the shape become complicated/irregular, it will increase the ratio of wall to
gross floor area as well as will increase unit cost.
- the ratio of wall to gfa is one of the ways that can be used to determine which
building is the most economical,
- building A is the most economical as its has the lowest ratio compared to buildings
B and C. the higher this ratio the higher the cost of a building
- this is because, there is an increase in measurement works,fdn works,external walls,
wall finishes
-construction works become more complicated and this increase labour costs
-installation work for electrical wiring,piping and air-conditioning system also
increase
-roofing construction becomes more complex due to the installation of rainwater
drainage system,gutter,fascia,barge board and eaves will increase.
-as well as in term of maintenance which is electrical cost is higher due to greater
usage of electricity to provide better lighting and air-conditioning system
-then, washing and cleaning cost increases due to there are more spaces and areas
-repainting cost,repairing and replacing wall finishes increases.

(b) total height of the building


-with the example below, its show the different total height of 2 building which are A
n B . total height of building b is higher that building A due to the storey height
building b is higher.
-building A is more economical than building B because it has the lowest total
building height
-the height of the building will influenced the construction cost in term of material
usage,operation and installation. The cost will high with the increases in total height
of the building or the storey height.
-the construction cost for the fdn structural frame will increase due to increase in load
on the fdn. The fdn will be bigger and might require a safer system such as in the use
of pilling.
- when the height of building is increase, the cost of installation, operation and
maintenance of lift , escalator and stair will also increase due to increase in height
from one storey to another.the cost for cable lift also will increase because of the
longer cable used.
- after that, maintenance cost such as repainting woks and cleaning of walls also will
increase due to the higher the building, the more difficult it is to do work and there is
need for special equipment.
-the cost for ceiling construction, finishes and upper floor increase due to increase in
rate of labour and vertical transportation cost, as well as installation of scaffolding.
-the higher total building ,the higher cost of electrical wiring,piping for water supply
and air conditioning system.

Q4 (a) 3 main factor to be considered in the construction of flat roof

1) Drainage system
it is important to give consideration to the type of drainage system which are gutter
mounted at low end of roof or internal drain system. The drainage system of the flat
roof prevents water from building up in one place, which can cause the roof to start
prematurely leaking and can also lead to other significant issues over time. Internal
drains will need to be properly matched to the size of the roof during the installation
process to help make sure that water is always routed in the right way.

2) Heat insulation
Another important consideration to construct flat roof is the type of insulation that be
use. it have to take a look at how well a particular type of insulation is capable of
resisting the transfer of heat due to ensure the occupant in the building do not feel hot

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