BUILDING

ECONOMICS
R EN UKA SON I
RITIK
R I YA VERMA
S HUBHNAGI S ON KAR
 CONTENTS

Introduction
Steps in MCA
Criteria for building economics
Evaluating building design and
construction options
Benefits and Limitation of MCA
Conclusion
References
 INTRODUCTION

Multi-criteria analysis (MCA) is a useful tool in

building economics for decision-making
processes that involve multiple criteria or
objectives. MCA is used to evaluate and
compare alternative building design and
construction options based on a set of criteria
that are relevant to the project objectives. The
criteria can be economic, environmental,
social, or technical in nature, and can be
weighted to reflect their relative importance.
 KEY ELEMENTS
Criteria and Alternatives: In MCA, a set of criteria are established to
evaluate the different alternatives being considered. These criteria are used
to assess the performance of each alternative against the objectives of the
project.
Weighting and Scoring: Each criterion is given a weight based on its relative
importance in the project. The criteria are then scored for each alternative,
and the scores are multiplied by the weights to calculate a weighted score
for each criterion.
Decision-making models: There are several decision-making models used in
MCA, including the Analytic Hierarchy Process (AHP), Simple Additive
Weighting (SAW), and Technique for Order Preference by Similarity to Ideal
Solution (TOPSIS). These models help to standardize the evaluation process
and provide a consistent framework for decision-making.
Sensitivity Analysis: Sensitivity analysis involves evaluating the impact of
changes in the weights of criteria on the final results. This helps to identify the
most sensitive criteria and ensure that the decision-making process is robust.
Vi s ual i zat i on: Vi s ual i z ati o n tool s s uc h a s
r ad ar charts a n d s c a tterpl ot s ca n b e us ed
t o p rovi de a g ra p h i c a l repres en t a t i on of
t he r esul ts o f th e MC A. Th i s h el ps
deci s i o n- makers to qui c k l y i d en t i f y t h e
st r eng ths an d wea k n es s e s of ea ch
al t ernati ve.
 CRITERIA FOR BUILDING
ECONOMICS
Capital costs: This includes the cost of land, materials, labor, and other
expenses associated with constructing the building.

• Operating costs: This includes the ongoing expenses associated with

maintaining and operating the building, such as utilities, maintenance,
repairs, and taxes.

• Energy efficiency: This includes the building's energy consumption and the
associated costs and environmental impacts.

•
 Occupant comfort: This includes factors such as indoor air quality, temperature,
lighting, and noise levels, which can affect the well-being and productivity of
occupants.

• Environmental sustainability: This includes the building's impact on the

environment, such as its carbon footprint, water usage, and waste generation.

• Flexibility and adaptability: This includes the ability of the building to be

modified or repurposed over time to meet changing needs and uses.

• Resilience and durability: This includes the ability of the building to withstand
and recover from natural disasters, climate change, and other risks and hazards.

• Return on investment: This includes the financial returns or benefits associated

with the building, such as rental income, property value appreciation, and cost
savings.
 EVALUATING BUILDING DESIGN
AND CONSTRUCTION OPTIONS
Here are some steps that can be followed in the evaluation process:

• Define the project goals: The first step is to clearly define the project goals and
requirements, such as the desired functionality, energy efficiency targets, budget
constraints, and aesthetic preferences.

• Identify design and construction options: Once the project goals are established, various
design and construction options can be identified that meet the requirements. This may
involve brainstorming sessions, consultations with architects and engineers, or research into
industry best practices and emerging technologies.
• Evaluate the options based on criteria: Each design and construction option
should be evaluated based on the established criteria, such as capital costs,
operating costs, energy efficiency, occupant comfort, environmental
sustainability, flexibility and adaptability, and resilience and durability.

• Conduct cost-benefit analysis: A cost-benefit analysis should be conducted

for each option to determine the financial costs and benefits over the life of
the building, including construction costs, operating costs, maintenance costs,
and potential revenue or savings.
• Consider stakeholder input: Input from stakeholders, including building
owners, occupants, and community members, should be considered in
the evaluation process to ensure that the design meets their needs and
preferences.

• Make informed decisions: Based on the evaluation and analysis of the

various design and construction options, an informed decision can be
made on the best option that meets the project goals and requirements
while balancing various trade-offs.
 BENEFITS
1 Comprehensive evaluation: MCA allows for a more
comprehensive evaluation of different options,
considering not just financial factors but also social,
environmental, and other impacts.

2 Transparency and objectivity: MCA provides a transparent

and objective process for decision-making, which can help
to build consensus and reduce bias.

Flexibility: MCA can be adapted to different contexts

3 and decision-making scenarios, allowing decision-
makers to customize the criteria and weights based
on their specific needs and goals.
 BENEFITS
4 Improved decision-making: MCA can lead to
better and more informed decisions, as it takes
into account multiple criteria and trade-offs.

5 Stakeholder engagement: MCA encourages stakeholder

engagement and participation in the decision-making
process, which can help to build trust and support for the
final decision.
 LIMITATIONS
1 Data availability and quality: MCA requires data on
various criteria and factors, and the quality and availability
of data can vary, which can impact the accuracy and
reliability of the analysis.

2 Subjectivity in weighting: The weighting of different criteria

and factors can be subjective, and different decision-
makers may have different opinions on the relative
importance of different criteria.
 LIMITATIONS
3 Complexity: MCA can be a complex and time-consuming
process, requiring expertise in decision-making methods,
data analysis, and stakeholder engagement.

4 Lack of consensus: Despite the transparency and

objectivity of the process, there may still be
disagreements among stakeholders on the final
decision, particularly if there are conflicting priorities or
values.
5 Cost: MCA can be costly, particularly if extensive
data collection and analysis is required, which may
be a barrier for some decision-making scenarios
 CONCLUSION
Multi-criteria analysis is a useful decision-making tool that allows
decision-makers to consider multiple criteria or factors when evaluating
different options. It provides a comprehensive and transparent process
for decision-making, and can lead to better and more informed decisions.
However, there are also limitations to consider, including data availability
and quality, subjectivity in weighting, complexity, lack of consensus, and
cost. It is important to carefully tailor the MCA process to the specific
needs and goals of the decision-making scenario, and to use it in
conjunction with other decision-making tools and methods to ensure a
robust and effective decision-making process.
 REFERENCES

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htt p s: / / www. p eren n i a l econ omi cs . co

m. au/ Mul ti - Cri teri a - An al ys i s