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INTEGRATED PROJECT
BSc. (Hons) in Quantity Surveying & Construction Management
RAJENDRA SASIRAJ
STUDENT ID: - 23047795
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ACKNOWLEDGEMENT
First of all I would like to thank the Almighty Lord Shiva and I convey thanks to our Integrated
Project Lecturer Mr. Ashan Asmone who gave me enormous guidance and support me
continuously. It was really helpful to me to complete this assignment successfully in a
scheduled time.
Further extending my gratitude to ICBT for giving me a chance to study this degree program
offered by SHU (Sheffield Hallam University) and I express my sincere thanks to the Director,
Lecturers and Staffs of ICBT.
I express my gratitude to my senior students clearing my doubts and also I never forget my
beloved parents at this time for allowing me to study and participate in this degree program to
improve my status in the society. Finally, I would like to thank my friends for incorporating
with me to complete my assignment
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CONTENTS
Page Number
1. Acknowledgement 01
2. Contents 02
3. Figure content 03
4. Table content 03
5. Introduction 04
6. Task 01 Fly Sheet 05
1.1 Dairy food processing &packing factory - Green project 06
7. Task 02 Fly Sheet 16
2.1 Preliminary site & location analysis of hotel project 17
8. Task 03 Fly Sheet 28
3.1 Elemental cost control method 29
3.2 Allowable building costs calculation 32
9. Task 04 Fly Sheet 35
4.1 Interim Valuation 36
4.2 Valuation Methods 38
4.3 Cost Benefit Analysis Method 41
4.4 Contractor’s cost control with S- Curve 43
10. References 45
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FIGURE CONTENTS
Page Number
1. Site location map for factory project 10
2. Flooding map of Colombo district 20
3. Average temperature for Colombo 21
4. Average Rainfall for Colombo 21
5. DS Division of Sri Lanka, affected by Tsunami 22
6. Site location map for hotel project 23
7. Area Location map for hotel project 25
8. Proposed building density 26
9. Interim valuation of building project 36
10. Time versus Net cash flow chart 42
11. S-curve(Time versus Cost) 43
TABLE CONTENTS
Page Number
1. GBCSL Point system by categories 08
2. GBCSL Rating by required points 08
3. USGBC Point system by categories 09
4. USGBC Rating by required points 09
5. Initial budget for each element 30
6. Elementary cost control process 30
7. Net cash flow for house X 41
8. Net cash flow for house Y 41
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INTRODUCTION
This assignment involves a submission of professional report, which is contained four tasks. In
the first task I explain about a dairy food processing and packing factory in the Eastern Province
of Sri Lanka under Board of Investment (BOI). The factory had to construct with building
concept and to achieve LEED and GBCSL platinum ratings by getting minimum 80 and 70
points respectively, and consider some key points such as 1000% hygienic & safe working
environment, minimum 50% of energy requirement should be met by bio gas & solar power,
waste water treatment and solid waste management, minimum disturbance of existing ecology
and also I add some essential factors to obtain a platinum rating from the accredited
professional organization. Further, I have given some recommendation to this project.
In the second task I explain about the hotel project in the Colombo area, by identifying the
potential of the site in terms of capturing potential customers and shape and size of the site,
further considering zoning and planning regulations with preliminary site analysis and location
analysis. In the third task I explain elementary cost control process for a building project with
an example, also did allowable building cost calculations with assumption, based on the results
advice the client on his investment decision. Finally, in the fourth task I explain about interim
valuations in the post contract stage with an example, and explain about valuation methods
application of those methods. Explained the cost benefit analysis with an example finally
explanation for income and expenditure curves (Particularly the S-curve) help contractors
control the project cost and he forecasts the cost implication with the use of S-curve with an
example.
I prepare this assignment with my knowledge gathered during lecture session, references given
from lecturer and sources collected from myself such as internet, magazine and books.
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Task 1
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EXECUTIVE SUMMARY
In the construction industry consultants one of the responsibilities is advising the client.
Currently the construction of green building becomes very popular, it mentions as structure
and using a process which is resource efficient and environmentally responsible and throughout
a building's life cycle. From green building construction can gain environmental, economic and
social benefits. In the report I have explained the green building concepts and how LEED
(Leadership in Energy & Environmental Design) and GBCSL (Green Building Council of Sri
Lanka) how they distribute the points in category wise and their rating system respectively.
The essential purpose of this report is to advise the client on the proposed dairy food processing
and packing factory to implement green building concept.
I have advice requirements to the client considering all required categories, prerequisite and
credits of both LEED and GBCSL for achieving platinum rating including 100% hygienic &
safe working environment, minimum of 50 % energy use of bio gas and solar power for
operations, waste water treatment and solid waste management, minimum disturbance to the
existing ecology to get certain points under each category and full fill the requirements and get
a platinum rating for the building.
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INTRODUCTION
In the construction industry consultants one of the responsibilities is advising the client. From
the advice, the client takes his correct final decision whether to invest in this project or not.
According to assignment task, the overseas investment company is the client for the project
and planning to invest in a dairy food processing and packing factory in the eastern province
of Sri Lanka under Board of Investment (BOI). The site extents approximately ten acres and
faces a river and have to implement green building concepts for this project to obtain a platinum
rating from LEED and GBCSL.
For this project I act as LEED consultant and prepare a comprehensive report to advise the
client for obtaining a platinum rating from LEED and GBCSL for his project.
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GREEN BUILDING
It is an environmentally sustainable building, which designed, constructed and operated to
reduce the total environmental impacts. For the users it will save money and create healthier
environments. They can feel the comfort in the building. (Build Green, n.d)
The concept of the green building has increased the efficiency of energy, water and materials
which used in buildings, even though decrease the negative impact of buildings on human
health and the surrounding environment through appropriate designing, construction,
operation, maintenance and the removal and recycling of waste. (Disna Mudalige, 2012)
Green Building Council of Sri Lanka (GBCSL)
It is a national organization, it conducts activities for the benefit of the general public without
profit motive based on its nonprofit agreement and the aim of the organization is to change the
national construction industry with green building practices. (GBCSL, 2012)
Categories Points at GBCSL
Sustainable Sites 25
Water Efficiency 14
Energy and Atmosphere 21
Materials and Resources 21
Indoor Environmental Quality 13
Innovation and Design Process 4
Management 4
Social and Cultural Awareness 3
Table 01- GBCSL Point system by categories (GBCSL, 2011)
GBCSL
Ratings Certified Silver Gold Platinum
Points 40–49 points 50–59 points 60–69 points 70 and above
points
Table 02- GBCSL Rating by required points (GBCSL, 2011)
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Leadership in Energy and Environmental Design (LEED)
It is internationally recognized organization which created and managed United States Green
Building Council (USGBC), it is an independent, third party green building certification
program that identifies best-in-class building practices and strategies. (USGBC, 2012)
Categories Points at LEED
Sustainable Sites 26
Water Efficiency 10
Energy and Atmosphere 35
Materials and Resources 14
Indoor Environmental Quality 15
Innovation and Design Process 6
Regional priority 4
Table 03- USGBC Point system by categories (USGBC, 2012)
GBCSL
Ratings Certified Silver Gold Platinum
Points 40–49 points 50–59 points 60–79 points 80 and above
points
Table 04- USGBC Rating by required points (USGBC, 2012)
Requirements for project to obtain platinum ratings
Dairy food processing and packing factory must get a platinum rating from LEED and GBCSL
by getting minimum 80 and 70 points respectively. As a consultant, I advised the client that to
consider some important factors to gain platinum rating.
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1) Sustainable Sites
Figure 01- Site location map for factor project (Google Map, 2013)
The proposed site is located in Mutur, western province of Sri Lanka, and the land is nearly 10
acres facing a lake, and A15 Trincomale highway and Trincomale harbor are near by the site
there will be no transport problem, and emergency services also available. There is a two
temporary store available at the site because last year there was some repair on A15 highway
so the people used this storage and left it on the site without dismantling. During the
construction period to prevent soil erosion, stock piling and erosion control blankets must be
used. The company should implement transportation facilities and parking facilities, office
staffs and workers, the company can provide staff with hybrid vehicles to reduce the fuel
consumption and cost. As alternative transportation some people can use public transportation
like bus because there is bus stand is near by the site. They can divide the parking slots with
shaded canopy for 2 wheelers and 4 wheelers separately to minimize parking area. If possible
they can construct an underground parking facility to all the staffs and workers. Maximize the
open spaces for the development in future.
The site is near to the sea, so salt wind can damage the metal find the best method for parking
facilities to prevent the vehicles from corrosion. As considering the building structure and
weather conditions, I advise that the solar panels should be fixed on the rooftops as shade to
reduce the heat and gain solar energy from this solar power for can reduce electricity bills. I
suggested the client to do soft landscaping & Irrigation works in project such as planting trees
on the land. Because of this factory environment will look beautiful & pleasant, heat absorption
is reduced by the trees and people can breathe fresh air. Minimize the deforestation to reduce
the disturbance of surrounding ecology. Further I recommended to reduce the light pollution
in such ways like; replace conventional high-energy bulbs with efficient CFLs and LED
A
Proposed Site
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floodlights because they are reducing the heat, light pollution and also energy efficient too, fix
motion sensors on essential outdoor lamps and replacing outdoor lights with intelligently
designed, low-glare fixtures to reduce the light pollution. And I also advise the client construct
waste water tanks in this project, these tanks helps to store the storm water this storm water use
for non-potable uses also such as toilet & urinal flushing, soft landscaping and irrigation works
2) Water efficiency
In the project water should be efficiently managed by staffs and worker, for the factory’s
function high amount of water consumed for drinking, flushing in urinal and toilets and other
various activities. I advise that water treatment plant with high-efficiency filtration systems
(aerobic or anaerobic) which should be built near to the waste water tanks at the site for
collecting water from the nearby lake and collecting storm water and use for portable & non-
potable uses also such as toilet & urinal flushing, soft landscaping and irrigation works. As the
river water, apply the treatment methods and use it for the live stocks for drinking and other
purposes, To reduce the potable water demand, high-efficiency fixtures should be installed
(urinals and water closets) and dry fixtures, such as toilets attached to composting systems.
Install the automatic sensors and detectors, during the constructing period contractor should
take a little more concentration on plumbing & drainage works to prevent leakage in the future.
And try to get maximum benefit from alternative resources as described in above. These
activities can increase the water efficiency, save water more than 40% for daily uses.
3) Energy and Atmosphere
This is going to be a big factor, for its operations & functions, it requires high energy, and we
are going to apply bio gas and solar power energy techniques to full fill minimum 50% energy
requirements for factory’s operations and functions.
To get a bio gas energy I recommended the client to build a bio gas plant at the site. This bio
gas is produced from organic wastes, it is a dairy food processing and packing factory, so he
can raise live stocks in the land area and collect animal dungs daily in large quantity and also
can collect other organic wastes from surrounding areas. All these organic wastes can
efficiently produce CFC free bio gas. It is a renewable energy source which is not impacting
the environment harmfully, creates a good atmosphere, reducing the organic wastes and
reducing the cost for the functions and operations.
As a second energy source is solar energy it is also a renewable energy source, according to
the weather condition and location of the site I recommended the client to install solar panel on
the roof top of the building to absorb sunlight and heat, and increase the solar cell batteries to
save energy in future needs.
Save the energy by use CFL bulbs for lighting instead of other light bulbs it will reduce the
light pollution and energy savings, turn off the unwanted blobs, take benefit by using the
maximum of daylight, use infrared sensors in a security lighting system because they are cheap
comparing to other products, Use motion sensors or other sensors to automatically turn on and
off the lighting fixtures as required.
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HVAC system and refrigeration operation and functions, these are affecting the ozone layer so
I advised the client to reduce the operation or use an alternative method such as instead of CFC
& HCFC refrigerators use HFC eco-friendly refrigerators because HFCs are not ozone-
depleting gases. Use the fire suppression systems in the project, which do not contain ozone
damaging harmful substance alike CFC, HCFCs, etc.
Considering refrigerators advice the staff and workers that not open the doors frequently, store
things properly so it's easy to pick them as required, and for the ACs advise them when it is on
close all doors & windows and seal all air leaks, and also I suggested instead of ceiling fan,
Pedestal fans and table fans are more efficient and energy savings also I advised the client plant
some trees surround the office which will reduce the indoor temperature by 2 ºC.
Finally I suggested that provide staff and worker company transportation with hybrid vehicles
which will reduce fuel consumption, CO2 out flow, environmentally friendly and reduce the
cost
4) Material and resources
As I already mentioned that there are two stores available in the land, Depends on the factory
requirements it can be renovated and reuse for future purposes. In the storage we saw some
paper, corrugated cardboard, glasses, and metals. Some of them can be reused and the rest of
them can be recycled and use for need.
Further, I advise the client for proper waste management plan in this factory solid waste &
waste water are major problem it has to be managed properly. And we can’t through directly
to environments, it affects the surroundings. As we consider solid waste, it will form during
the execution period of the project and operation of the factory. During the excavation and site
clearance period there some unwanted trees and bushes were removed from the site. Here some
of the trees are turns into wood and used for formwork, temporary fencing even used for
carpentry works remaining solid organic parts of the trees use for livestock (animal) food &
use it for bio gas. Another factor also he has considered in his mind that is waste water, the
client should build some water treatment plant with high-efficiency filtration systems (aerobic
or anaerobic) which should be built near to the waste water tanks at the site for collecting water
from the nearby lake and collecting storm water and use for portable & non-potable uses also
such as toilet & urinal flushing, soft landscaping and irrigation works.
During construction period client should get confirm that salvage material which taken from
the old storages are reuse and recycle. Find out the local material suppliers, use locally sourced
material and check the quantity of local materials specified for the project. Further I suggested
the client to use renewable materials like cotton, bamboo, straw board, etc which can be used
for office floor mats, shaded structures, wall finishes. Finally, he should get a certification from
third party people to check the quantity of certified wood products which are installed. And get
the total percentage.
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5) Indoor environmental quality
Working environment should be safe and hygienic in the factory which influence the
production line and operation line. This factory is facing a lake and near to sea, so it is easy to
get clean & fresh from the environment, staffs and workers should breathe clean air properly
so I advised the client to design and maintain a proper ventilation system to meet or exceed the
minimum outdoor air ventilation rates and can use Fans, Split AC, Window AC or Centralize
AC in the building for reduce heat and humidity.
Inform the staffs and workers that prohibit smoking in the building premises except in
designated smoking areas, these smoking rooms should be effectively captured, contain and
remove smoke and it should construct at least twenty five feet away from operable windows
and outdoor air intakes. CO2 detecting sensors should be fixed this building and identify the
CO2 level in the factory. Install CO2 and airflow measurement equipment activate alarms,
which will inform operators of a reasonable shortage in outdoor air delivery. During the
construction period to protect the HVAC system implement an indoor air quality management
plan. On working hours provide the staffs and labors with proper ventilation to breathe, clear
lighting facilities to work.
I advised the client that during the construction period contractor have to choose low-VOC
materials, with that he have to build the factory. The contractor should use low-VOC materials
to do painting & coating for floor finishes, wall finishes & ceiling fishes. Further solar panel,
some plants should be placed on the rooftops to reduce heat from the sun, use the renewable
and local materials such as cotton, bamboo, straw-board for floor mats, partitions and special
finishes.
To maximize daylight use and avoid light pollution, the contractor should design the building
with more windows, concerning exterior and interior shade, insulated daylighting panels,
building integrated photovoltaic technology, shallow floor plates and increase the perimeter
Finally I suggested the company to provide Health and Safety Environmental (HSE) training
to workers and they have supervised by some HSE officers in the working time because
operating machineries are not an easy task, workers should be alert every time, further company
should provide suitable clothes, face mask, gloves and foot wear for the workers to increase
the quality of work, and also I suggested them for construct separate female and male bath
room, before entering the production line they should clean themselves because it is a dairy
product and it will get contaminated quickly, therefore factory will produce quality output to
market.
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6) Innovation and Design Process
I advised the client include some innovations based on green building concepts such as energy
monitoring devices, insulated daylighting panels, building integrated photovoltaic technology,
shallow floor plates, green roofs, Light-Emitting Diodes (LEDs), rain collection and
wastewater systems, etc.
7) Regional priority & Social and Cultural Awareness
Social and cultural awareness are coming under GBCSL, so I advise to do site and location
analyze before starting construction activity, and find out whether the site is archaeologically
sensitive sites or is there is any heritage building located on the site, social and cultural details
of people living in that area. Regional priority is coming under LEED, it is to encourage
projects to pursue credits with regional environmental importance and LEED offers four bonus
Regional priority points for each project. According to this project no need to concern itself
because it is not applicable in this country.
8) Management
Management is an essential factor, it should be in considered in the following phases such as
initiating, planning, executing, monitoring &controlling and closing out. It is coming under
GBCSL. As I explain above client can increase his productivity by using less energy consuming
plants & equipment, reduce the parking area and maximize the open space for future purposes,
proper transportation methods use energy efficient vehicles such as hybrid vehicles and use
alternative, transportation and public transportation, fix the solar panels on the rooftops to
reduce the heat and gain solar energy.
Use energy efficient CFLs and LED floodlights to reduce the heat, light pollution, construct
waste water tanks in this project, it helps to store the storm water this storm water use for non-
potable uses also such as toilet & urinal flushing, soft landscaping and irrigation works, use bio
gas and solar power to save the energy consumption, there should be proper waste management
for wastewater and solid waste, use proper HVAC management in the building to reduce heat
and humidity for the occupants. Install CO2 and airflow measurement equipment with the
HVAC system. Use low- VOC materials in the building, use the renewable and local materials,
to maximize daylight use and avoid light pollution. Finally company should employ 1
accredited professional with GBCSL to guide and manage the project team and let the team
members understand the green building concept.
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CONCLUSION & RECCOMENDATIONS
As per the report, this factory is going to build with green building concept. I have advice
requirements to the client considering all required categories, prerequisite and credits of both
LEED and GBCSL for achieving platinum rating by getting minimum 80 and 70 points
respectively. Including 100% hygienic & safe working environment, minimum of 50 % energy
use of bio gas and solar power for operations, waste water treatment and solid waste
management, minimum disturbance to the existing ecology to get certain points under each
category and full fill the requirements and get a platinum rating for the building.
This proposed site is located in Mutur, Western province of Sri Lanka, and it is near to lake
and face the river. As per the site condition and location, contractor should prepare contingency
plan for the future. Flood can be happen by rain, river and coastal waves so the contractor has
to prepare himself and face the problem boldly in the future. This area highly experiences the
two monsoon rains in May to August and another one is October to January, special cases like
tornado also affecting the place. So contractor should monitor the weather reports and start the
construction activities in proper time, he should prevent the site from soil erosion by using
stock piling and erosion control blankets. Salt air can corrugate the metal so during the
construction time store the reinforcement bars and other metal item properly and apply the anti-
corrosion material on metal items and prevent from corrosion.
Use an energy efficient plant & equipment, use proper HVAC management in the building to
reduce heat and humidity for the occupants, Use low- VOC materials in the building, use the
renewable and local materials, to maximize daylight use and avoid light pollution. Finally
company should employ 1 accredited professional with GBCSL to guide and manage the
project team and let the team members understand the green building concept.
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Task 2
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EXECUTIVE SUMMARY
Before investing funds in projects we have to do site and location analysis to identify the
suitability of function according to the type and amount of the investments. This
comprehensive report contains analysis of all important factors which relates to new five star
hotel which contains with approximately six hundred and fifty rooms and land extents
approximately three acres, and it is located at P. O. Box 606, Kollupitiya, Colombo 03.
For this project site analysis and location analysis has been done very perfectly, because it is
going to become very big five star hotel so it has to satisfy everyone. As per analysis, I have
found that there is barren land which is suitable for the client requirements and also there is an
existing building in the land is not successful for the owner so it has to be demolish finally the
land will come nearly four acres is more than enough for the project. Further, I have given my
recommendation for Mr. Niroshanan Baleswaran (Client/End User) to construct a new five star
hotel based on current market research, environmental factors, needs and demand of that place.
Further, existing buildings and significant features in relation to demolition also took place in
this report. Further
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INTRODUCTION
Mr. Niroshanan Baleswaran, He is the client for this project and he is planning to construct a
five star hotel in modern style which contains with approximately six hundred and fifty rooms
and the proposed site located at, Kollupitiya, Colombo. And the hotel in going to be constructed
on the barren flat land. As a consultant, I have been requested to provide preliminary site and
location analysis properly on behalf of Mr. Niroshanan Baleswaran and the main objective of
this report is to advise client about the suitability of the site and location of his requirements.
Further, I have given my suggestion/recommendation on appropriate function of proposed five
star hotel.
I hope that I have referred appropriate information such as statistics, data, news, etc., To
accomplish this report properly in a given time. Therefore, I included all required details as
much as conceivable to be more effective. So I hope that it will be more sufficient and helpful
for Mr. Niroshanan Baleswaran to make his final decision which can become fruitful outcome.
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A. SITE ANALYSIS
Site analysis is considered as an important factor in the construction industry. It is used to
collect important information about particular sites and helps to identify and estimate numerous
features of particular sight. It has to be done before designing process of a project. From this
client/end user can get overall knowledge such as; determine what type of construction, can
identify the strength and weakness of site, which type of construction methods can apply, which
type of investment methods is suitable for this project. From this client/end user can make a
final conclusion. Further here client is Mr. Niroshanan Baleswaran is recommended about the
suitability of the site and location for the purpose.
Important factors in Site analysis
There are some considerable significant factors I have included in this site analysis to be more
effective and get maximum benefit out of it.
1) Old maps
Old maps help to get past details which give more information about particular land, such as
street name, type of land, past uses, changes in topography, sewer and drainage system, etc.
According to a detailed study of this area with many old maps it is not a shanty area and water
stagnant land, further there is no topographic changes happened in the past thirty years.
2) Flood potential
The proposed site located just 185m away from the sea and 1.80m above mean sea level, there
are no other water resources such as river, dam, lake, etc. Which are not close to proposed site
that could cause flooding, further land could suck consider amount rain water and it helps to
reduce water which stagnated in the site. But this site can be challenged by other methods of
flooding such as coastal water/sea water (Tsunami). But according to analyzed flooding maps
for the past two decades, this proposed site was affected once by flooding due to Tsunami in
26th
of December 2004 and then flood level was also very little. Further this matter is also to
be considered in the primary stage of designing.
Metro Colombo Urban Development Project (MCUDP) its aim is to compliment the ongoing
urban redevelopment programs of the Government of Sri Lanka by giving importance to
improving local infra-structure and services & reducing the social, economic and physical
impacts of flooding in the Metro Colombo Region. Metro Colombo Urban Development
Project (MCUDP) is managed by project management unit of the Ministry of Defence and
Urban Development. Project area will be include four local authorities and the total cost for
this project worth of US$ 223 million and it is funded by Government of Sri Lanka and
International Bank for Reconstruction and Development of the World Bank. (Ministry of
Defence, n.d) Therefore the hotel project is located in Colombo area and it will not get affect
by flooding in the future.
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Figure 02- Flooding map of Colombo district (ZKI, 2010)
Rainfall and Temperature charts
Colombo is located in the western province of Sri Lanka and it has a tropical climate
condition due to its topography and also it is experienced by dry season and two monsoon
seasons. (World Weather Online, 2014)
a) Monsoon Seasons
There are two monsoon season it falls on two different time period one is May to August and
another one is October to January. Colombo gets highest rainfall in May, 28 ºC is the average
temperature in Colombo. In the day time temperature is normally 28 ºC to 29 ºC but average
daily minimum falls only to 25 ºC to 26 ºC. (World Weather Online, 2014)
b) Dry Season
During the December to March time period in Colombo area feels hot and humid climate
condition average temperature is 27 ºC. Especially in the February month if we observed
the rain fall it is very less and temperature is rise up to 36 ºC. (World Weather Online,
2014)
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Figure 03- Average temperature for Colombo (World Weather Online, 2014)
Figure 04- Average Rainfall for Colombo (World Weather Online, 2014)
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3) Natural Disaster
Earthquake
In Sri Lanka, many slight earth quakes occurred in recent times. Prof. C.B. Dissanayake,
Sr Geologist of Peradeniya University told the daily news that there are twelve plate boundaries
on Earth which travels around. Our country is located beneath the Indo Australian plate, some
geologists have proved that a new plate is developing in south part, as an outcome the Indo Sri
Lanka plate is cracking right nearby south part. So we can observe and get experience more
earth quakes in future. (Walking the World, 2014). Therefore this the hotel should stand firmly
and against the earth quakes so it should be design properly for the future purposes.
Tsunami
In 26th
of December 2004, Sri Lanka face a massive disaster from coastal tidal waves that is
called Tsunami, it impact several places in which are very near to sea, even though this
proposed site is very little affected by this waves because this proposed site located just 185m
away from the sea and 1.80m above mean sea level. This Tsunami wave speed is very low in
Kollupitiya area compared to other coastal places. Therefore this the hotel should stand firmly
and against this kind of coastal waves so it should be design properly for the future purposes.
Figure 05- DS Division of Sri Lanka, affected by Tsunami
(Department of Census and Statistics, 2005)
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4) Flora and Fauna
From this figure 05 we can see the site location we can see a tree, bushes and grasses also it
has animals like dogs, cats, local birds (Pigens &Crows) especially at night time bats. There is
no endangered rare species or wild animal problem.
Figure 06 – Site Location map for hotel project (Google Map, 2013)
5) Cultural and man-made features
This site is located in Kollupitiya area which in Colombo city. There are all different culture
people living and working in this area because it is very popular area in Sri Lanka and well
known by everyone. There is no problem arise for utility connection such as electrical, water,
telecommunication, internet, sanitary, drainage, sewerage, etc. further there so many facilities
also there such as education facilities, health care facilities, banking and shopping facilities,
security facilities.
Proposed hotel project is coming under development zone as considering size and type of the
land we can go 10 or more 10 story building, as per UDA Building & Planning Regulation. But
it is depends on clients scope and budget.
Site
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Current situation and features of existing building, construction and demolition activities
in the project
As shown in the figure 05 there is 2 story old commercial building in the proposed site. This
old building is now not in a good condition to use. Very old style building also, the building
used as spare parts shop and currently it is not doing business because building is unstable, is
we see the building there many severe damages on major building elements such as internal
and external walls have many severe cracks big holes, some columns, slabs & beam severely
damaged and in rainy seasons water league in the building. Water penetrating from the building
internally and externally. Sanitary and waste disposal systems in the buildings are in bad shape,
electrical wire and cable are sorting and it is difficult to handle. Finally owner is this building
not getting profit doing business in this building, and also no benefit maintain this building
Moreover to construct a 5 star hotel in a modern style it require some space also if we demolish
the existing old building we can extend the land as total four acres. Clearing this building give
a good perspective view for the customers who can see from the road. And finally hotel demand
also increase.
While constructing high rise hotel like this contractor should be aware on external stake holders
(Public & Government authorities) while doing construction and demolition contractor should
take little concern access, loud noise, traffic management in peak hours, dust, safety of the
people, working hours and disposal of waste material, etc. because the project is in the
development zone and site is surrounded with many residential, commercial and public
buildings. So the contractor is very careful and avoid the disputes during project.
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B. LOCATION ANALYSIS
The purpose of location analysis is to identify the characteristics of several locations that affect
the demand and the value of the property. Like site analysis it is most important factor affecting
the investment and it should considered in the preliminary stage of construction. From this we
can identify what are the special features and available resources around the location.
Location analysis benefits and objective
 Analyzing the impact of the environment
 Providing sufficient and relevant information on location for the client
 To evaluate the important factors affecting the feasibility
 Can understand the zoning and planning rules and regulation
 Helping the client to gain more profit
Figure 07 – Area Location map for hotel project (Google Map, 2013)
Site
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1) Location Details
As per the figure 06, I have marked in the proposed site, P.O.Box No.606, Kollupitiya,
Colombo-03 site area is approximately 4 acreas rectangular shape land. There is a 2 story old
existing building in the land, proposed site is opposite to TNT Express and Hemas
Pharmaceuticals on the right side there is a petrol filling station also there and also the site near
to A2 Highway. Project is in the development zone and site is surrounded with many residential
commercial and public buildings.
2) Zone of the area
Proposed site is located in Kollupitiya development zone. As per figure 07, the proposed
building density by Urban Development Authority (Building & Planning Regulation 39) most
building which constructed 10 or more than 10 floors, from this data we can construct a multi-
story building depending on client scope, budget and also the rules and regulations of the
government authorities
Figure 08 – Proposed building density (Build Sri Lanka, n.d)
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3) Analysis on accessibility
There are some good transport facilities available around the site such as railway station, A2
highway. So many people around the area using such these transport getting maximum benefit
out of it, there is no traffic jam in peak hours also in this area because of proper traffic control
by the authorities. As per figure 06, people who are travelling by two wheeler or three wheelers
or other vehicles can use the Colombo plan road or Galle road. Materials and machines can be
transported to the site quickly. While doing construction there should maintain be proper
transport management plan to reduce the disputes.
4) Analysis on commercial functions
The propped site located in Kollupitiya area which coming under development zone. There is
no political, economic and social barriers in this place and several different cultural people
living and working in this area, after the civil war ended many tourists are coming from
different countries to this area so the hotel and tourism industries are growing so it is a big
advantage and the land suitable for constructing the hotel.
CONCLUSION & RECOMMENDATION
According analysis I consider the flood potential by evaluating rain fall and temperature chart,
geological surface of the land, flood maps and also described the natural features and
topography, cultural and man-made features in the site in site analysis and further consider
shape and size of the site, zoning & planning regulation, accessibility and commercial functions
from location analysis. Mainly I describe the demolition of old existing building and its
characteristics of that building. Finally with these information I recommend the client that
proposed site is very suitable for constructing a hotel.Further I recommend some matters for
the client to do effective construction of the hotel project and gain benefit out of it, which are
listed below;
 Before starting the construction check the weather chart because during May month
high rain fall is recorded so have to start the work in suitable month.
 Site is located in development zone so the project should be well managed by the project
manager to reduce the disputes and he should be aware of all factors which impacting
the project.
 Construct the hotel in a modern style with all facilities and to get the customer
satisfaction increase the suitable facilities.
 Construct the building structure with metal/aluminum & glass features.
 There should be proper waste management system and recycling system to reduce the
cost.
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Task 3
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3.1) Using an example of your choice (not necessarily an actual project) illustrates
elementary cost control process for a building construction project. State all necessary
steps and measures
In the construction industry, all the clients/end users are interested to obtain a fully functional
output, which have to complete at the scheduled time, estimated cost, and good quality within
the exact scope. Cost control is a process which should be continued through the whole
construction period to confirm that the cost of the project is kept within the fixed amount. This
process can be dived into two main areas; cost control during the design stage and cost control
by the contractors once the construction of project has started. It involves collecting and
measuring the cost record of a project and he work progress and also comparison of actual
progress with the planning. Its main objective is gain maximum profit within the scheduled
time and satisfactory of work. (Kohwee Liang, 2003)
Elementary cost control process
Elementary Cost control process is very easiest and extensively used method in building
construction projects at post contract stage. As cost controlling by each element is easier than
cost controlling considering whole building project. Whole construction is divided into many
elements. In the beginning whole project can be divided into major sections including sub
structure, super structure, finishes and services, etc. These each major section further divided
into many single elements, then these elements are estimated by direct and indirect costs, from
this complexity reduced and it provides clear path and good background to control cost.
Followings factors can affect the initial budget:-
 Price inflation
 Improper resource management (material, machinery, money & manpower)
 Improper coordination and supervision
 Too much waste
 Variation
 Delay, etc.
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Building project details (Assumption)
This is a two story house project currently it is under construction and project duration
estimated for twelve months. Total initial budget was LKR. 6.4 million. To manage cost control
for this project the contractor has choosed elementary cost control method. Here total building
dived into major sections, these each major section further divided into many single elements,
and then these elements are estimated by direct and indirect costs.
Major Sections Elements Budget (LKR)
Substructure Foundation 420,000.00
Substructure
Columns 475,000.00
Walls (Including Internal &
External)
535,000.00
Beams & Slab 1,325,000.00
Staircases 70,000.00
Doors & Windows (Including All
Types)
520,000.00
Roof 950,000.00
Finishes
Floor finishes 400,000.00
Wall finishes 450,000.00
Ceiling finishes 300,000.00
Services
Sanitary and Disposal system 215,000.00
Water installation 95,000.00
HVAC system 175,000.00
Electrical installation 225,000.00
Security system installation 215,000.00
Table 05- Initial budget for each element
Currently, beams and slab (element) part is under construction in this house project and initial
budgeted cost for Beams and Slab part is LKR 1,325,000.00 below mentioned chart explains
the elementary cost control procedure
Elements – Beams and Slab
Item Budget
(LKR)
Cost to date
(LKR)
Cost committed
(LKR)
Cost exposure
(LKR)
Over & (under)
(LKR)
Material 625,000.00 315,000.00 260,000.00 90,000.00 40,000.00
Plant 170,000.00 110,000.00 35,000.00 45,000.00 (10,000.00)
Labor 220,000.00 135,000.00 65,000.00 55,000.00 (35,000.00)
Supplier 150,000.00 85,000.00 45,000.00 35,000.00 (15,000.00)
Over head 160,000.00 87,000.00 47,500.00 33,500.00 (8,000.00)
Total 1,325,000.00 (28,000.00)
Table 06– Elementary cost control process
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According to above mentioned analysis, present status of this cost forecast is LKR 28,000, the
element (beams and slab) is below the budget and it is positive for the contractor. Further
contractor can deeply concern about cost of material, therefore contractor can take immediate
action and find out the best solution to avoid the unnecessary expenditures which will lead him
to losses. As a solution contractor should avoid or minimize the material wastage, find a
suitable place for storing materials, recruit some skilled labours and the same time he should
more cautious and improve the supervision and applying efficient management techniques.
Finally it will help to reduce the cost exposure for the future works of beams and slabs, and
also analyzing this method for every single element in the major section of this building the
cost of total construction will be controlled with profit.
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3.2) A speculative developer has provided the following details of a proposed speculative
shopping complex development
Followings are given details
 Gross floor area
 Non – lettable area 15%
 Estimated rent £ 80/m2
 Capitalization of rent 8%
 Building contract details
 Period 24 months
 Professional fees 10%
 Short term finance 17%
 Developer’s profit 15% of GDV
 Land cost (including all fees) £ 155,000
You are requested to calculate the allowable building costs. Mention all the assumptions
made. Based on the results you obtain, advise the client on his investment.
Following assumptions are considered for this calculations
 Service charges are taken from tenants
 Total floor area is 20,000m2
 Short term finance duration is 2 years
Rental received
Gross floor area = 20,000m2
 [J]
Non-lettable floor area percentage = 15%  [K]
Lettable floor area percentage = (100-15) %
= 85%  [L]
Lettable floor area = 20,000x0.85  [M] = [J] x [L]
= 17,000 m2
Estimated rent = £ 80/m2
 [N]
Net income per year = 17,000 m2
x£ 80/m2
 [O] = [M] x
[N]
= £ 1,360,000
Capitalization of rent = 8%  [P]
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Year's Purchase (YP) = 1 /i = = 1/ (8/100)  [Q]
= 12.5
Gross Development Value
Gross Development Value = £ 1,360,000x 12.5  [R] = [O] x [Q]
= £ 17,000,000
Developer’s Profit
Developer's profit 15% of GDV = 15% x £ 17,000,000  [S] = [0.17] x
[R]
= £ 2,550,000
Land cost
Short term finance at 17% for 2 Year = £ 155,000 x (17/100) x 2
= £ 52,700
The land cost [T] = £ 155,000 +£ 52,700  [T]
= £ 207,700
Summary of calculated details
Gross development value = £ 17,000,000  [R]
Developer’s profit = £ 2,550,000  [S]
Land cost = £ 207,700  [T]
Total allowable building cost = Gross development value - (Developer’s profit + Land cost)
= £ 17,000,000 – (£ 2,550,000+£ 207,700)
= £ 17,000,000 – (£ 2,757,700)
= £ 14,242,300
Construction cost
Take ‘A’ is the construction cost and Finance will be required at interest of 17% for 2 Years
construction period.
Construction cost = A
Professional fees = A x 0.10 = 0.1A
Finance = A x 0.17x 2 = 0.28A
Allowable building cost = Construction cost + Professional fees + Finance
£ 14,242,300 = A+ 0.1A + 0.28A
1.38 A = £ 14,242,300
A = £ 10,320,507.25
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ADVICE/RECOMMENDATION
As per the above calculation, total allowable building cost is £ 11,098,619.625 and construction
cost is £ 10,320,507.25. Form these calculations, cost consulting engineers can make a decision
whether this much amount is fit or unfit for his financial background and lifetime profitable
benefits to invest in this proposed shopping complex. Further, he can save his money by
following methods;
 Interest rate is high for this land, so can go for other financing companies for low
amount of interest.
 He can deduct interest by buying the land by his own money.
 If the land price is high he can buy a land with the same type of characteristics and
features in other places for low amounts.
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Task 4
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4.1) Using an example of your choice, explain how interim valuations in the post contract
phase were successfully implemented. Identify the difficulties faced during the process.
In the post contract stage interim valuation is an important process and this valuation generally
used on large project to ease the contractor cash flow. It is a detail breakdown prepared by
contractor quantity surveyor and checked by consultant quantity surveyor. The main purpose
is to get money required for carrying out works, it is the bill which includes the cost spent on
works that are completed in construction progress. Monthly interim valuation done as
accurately for interim certification. (ANON , n.d)
When preparing an interim valuation as depending on the contract terms following mentioned
items may be included;- Preliminaries, Works carried out, Variations, Works carried out by
Nominated Sub-contractors and Nominated Suppliers, Materials on site, Materials off site (if
allowed by the terms of contract), Remeasured items of works, Fluctuations, Assessed loss and
expense claims (HKIS, 2014)
Example
Here is a sample an Interim payment certificate from a contracting company in Dubai for the
large scale building project.
Figure 09 - Interim valuation of building project
PROJECT : New Head Office Complex, At Al Quoz Proje ct No. : 07/97
Dubai. Invoice Ref. No. ANC/078/07/97-03
CLIENT : M r. Tayeb Baker Contract Type : Remeasured
CONSULTANT : Dubai Consultant. X Lump Sum
CONTRACTOR : Al Nekhreh Contracting Co. LLC.
Contract Value (Dhs.) : Commencement Date :
Total of Variations (Dhs.) : Completion Date :
Adjusted Contract Value (Dhs.) : Extended Completion Date :
Amount of Performance Bond (Dhs.) : Valid Till :
Issued by :
DHS. DHS.
Value of work done up to : 13,850,739.14
Advance Payment 0.00
Variations 0.00
Materials on site 0.00
SUB-TOTAL 13,850,739.14 13,850,739.14
DEDUCTIONS
Retention (10%) On Works (1,385,073.91)
Retention (25%) On Materials on site 0.00
Recovery of Advance Payment 0.00
Amount of Previous Payment Certificate No. 0.00
SUB-TOTAL (1,385,073.91) (1,385,073.91)
ADDITIONS
Release of Retention (10%) 1,385,073.91
SUB-TOTAL 1,385,073.91 1,385,073.91
Net Amount to be Paid This Certificate 13,850,739.14
In W ords : (Dirhams Forteen M illion Two Hundred fifty Thousand Thre Hundred seven
& fils 0/20 only)
Q.S. ............... G.M. ............. Date : September 30, 2001
PAYMENT APPLICATION NO. 01
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Preparing interim valuation is little complicated matter and have to face some difficulties
during the process such as:-.
 Price fluctuation affecting the initial budget agreed in the contract, if the current market
prices increases suddenly, contractor has face the problems.
 Finding difficulties taking approval for bills it takes time due consultant’s disagreement
and argument on the amount
 Delay in submission of interim bills due to some wrong measurements and calculation from
contractor side so re-measure and re-calculate again so it take more time
 Contractual claims are risky during the period contractor may forget or the unknown of
how to make claims finally it him led for money losses
 Inefficiency of manpower, machinery, material and money management
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4.2) Identify four different valuation methods and compare the different applications of
those methods. Use examples to illustrate your answer.
The valuation methods are carried out in the preliminary stages, during, and at the end of a
project. There are many methods of valuing property, also each of the methods has its benefits
and disadvantages. It changes depending on purposes and requirement of the property. For real
estate valuation there are five methods are generally accepted and each includes the use of
comparison to a lesser or greater range.
Following methods are generally accepted in real estate valuation
 Comparative method
 Contractor's method
 Investment method
 Residual method
 Profits method
(RICS, n.d)
Comparative method
This valuation method is accepted and commonly used method, from this we can find out the
market price of the properties. The main task is to systematically collect data on similar
properties in the same location, find out the factors which influencing value and it should be
evaluated against each other, both asset and transaction characteristics considered under this
method. (Jordan lee & Jaffar, 2014).
Example
Mr. Peter is going to sell his 10 perches house which located at Havelock Street, Wellawata,
Colombo - 06, using transaction characteristics method by searching datas, that indicated that
four similar houses on the same terrace are sold for an amount between LKR 1,725,000.00 per
perch and LKR 1,735,000.00 per perch while the end of terrace house sold for LKR
1,750,000.00 per perch. All happened within the last four months. Another search using assets
characteristics method would show there were also four similar terrace houses sold on the
parallel to Havelock Street for an amount between LKR 1,722,500.00 per perch and LKR
1,740,000.00 per perch. With this information, Mr. Peter can confidently assume that his house
price should be no less than LKR 1,722,000.00 and could possibly fetch LKR 1,740,000.00
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Contractor’s method
The contractor's method is used for some properties a like: - Public Sectors, Town Councils,
Healthcare Providers, etc. which having unique and specialized purposes. Because of their
unique nature which prevents them from valuing for commercial use. (De Carlon, n.d).
Below mentioned equation is the basic for the contractor's method of valuation
Value of Existing Property = [(Cost of Building + Cost of Site) - Depreciation and
Obsolescence Allowances] (De Carlon, n.d).
Example
Value of Existing Property = [(Cost of Building + Cost of Site) - Depreciation and
Obsolescence Allowances]
= [(LKR 3, 500,000.00 + LKR 7, 500,000.00) - LKR 2, 300,000.00]
= LKR 8, 700, 000.00
Investment method
Investment method is commonly used by investor for estimating the investment properties
which are used to produce income from sales, rents, etc. to calculate the value of the property
on the current market is knowing the net income is which produced by the property. This is
done combination with assessing the condition of the property for possible renovation expenses
or future repair. (De Carlon, n.d).
This investment method of valuation is calculated by using the yield from the property, if the
higher value of the yield means return investment also higher. (Padraig Hyde & Sons, n.d)
Example
When there is a property in market which has requesting price of $ 300,000 and $ 700 of
monthly rental income. So yield of property will be 2.8%. [($ 700 x 12) 100/$300,000 =2.8 %]
(Padraig Hyde & Sons, n.d)
In the market there is a property which asking for a price of LKR 3, 500,000.00 and the monthly
rental income is LKR 35,000.00, therefore yield of property is calculated by below mentioned
method;
Yield of the property = [(LKR 35,000.00 x 12)/ LKR 3, 500,000.00] x 100
= 12 %
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Residual method
Residual method of valuation is used to estimate the amount for buildings or land, which is to
be developed or renovated. From the estimated amount investor can come to a conclusion that
it is worth investing for or not. (ANON, 2014).
Below mentioned equation is the basic for the residual method of valuation;-
Value of property in its present condition = Value of completed project – Total development
cost. (Padraig Hyde & Sons, n.d)
To get more perfect value, it would be essential to include all expected depreciation and
appreciation cost in development once finish deduct total development costs such as taxes,
financing and interest cost and even the builder’s profit margin that could would permit for
exact residual value of site to be obtained. (Padraig Hyde & Sons, n.d)
Example
There is a newly constructed property which located at Havelock Street, Wellawata, Colombo
-06, estimated sale price for the property is LKR 10 million and the total building cost is LKR
8 million, from this residual value of site is calculated as LKR 2 million, say you are a property
developer, if you bid above residual value of site at amount of LKR 3 million, then you are
surely going to loss LKR 1 million.
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4.3) Using an example of your choice, carry out a cost-benefit analysis. Interpret the
results you obtained for practical use.
Cost benefit analysis (CBA) it is a perfect method for determine how action plan will turn out.
Evaluation technique is comparing economic benefits with economic cost of the activity. The
fundamental principle of cost benefit analysis (CBA) should provide benefit for the society
greater than its cost. When several projects promise to yield positive net benefits and when all
cannot be undertaken due to limited resources, the project that creates the greatest net benefit
to the society should be selected (ANON, n.d)
Example
There is a two house projects shown below names as X and Y to carry out cost benefit analysis
for this projects which based on comparison of cash flow.
Assumption (1LKR: 2,500 LKR)
House X
Year 0 1 2 3 4 5 6 7
Total cash
inflow (LKR) 150 200 260 330 370 385 420 430
Total cash out
flow (LKR) 115 130 155 190 210 205 225 235
Net cash flow
(LKR) 35 70 105 130 160 180 195 200
Table 07- Net cash flow for house X
House Y
Year 0 1 2 3 4 5 6 7
Total cash
inflow (LKR) 40 90 145 200 270 380 490 630
Total cash out
flow (LKR) 55 85 120 145 180 240 260 280
Net cash flow
(LKR) -15 5 25 55 90 140 230 350
Table 08- Net cash flow for house Y
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Figure 10 – Time versus Net cash flow chart
From this graph if we considering the house projects, house X is better than house Y it get the
benefit fast in first 5 years but it change after 5th
year and house Y in the early stage less profit
in 5 years and suddenly it increase after 5th
year. So these X and Y house projects are good and
we can get benefits as per this analysis. If house X also can be selected they require benefit in
the beginning, same as House Y also be selected if they can adjust less profit in the beginning
and can get greater profit after 5 years. Finally it is depends on their requirement and their
decision to choose.
-50
0
50
100
150
200
250
300
350
400
0 1 2 3 4 5 6 7
NETCASHFLOW(LKR)
YEAR
Net cash flow of X Net cash flow of Y
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4.4) Using an example of your choice, explain how income and expenditure curves
(particularly the S-curve) help contractors control the project cost. You are required to
illustrate how a contractor can forecast cost implications with the use of S-Curve.
The S-curve is a powerful project management control tool. It provides wide-ranging
evaluation and shows a clear image of a project process and its development. It is use for
observing a project process through known project phases and to monitor stages of each phase,
and also it shows the resources connections in term of different variables which are scaled as
percentages (% costs) in relation to the time variable, this relationships draw the future path to
meet the project objectives and the final target goal, There are many different kinds of S-curves
which are used for project management applications, such as: - Actual S-curve, Baseline S-
curve, , Target S-curve, Man Hours versus Time S-curve, Costs versus Time S-curve ,Value
and Percentage S-curves. Therefore analyses of S-curves allow project managers to easily
recognize project growth, slippage, and potential problems which would impact the project.
Figure 11 – S-curve (Time versus Cost)
As per the above mentioned example, S-curve indicate that the project is behind the schedule
and over cost at the point of T1. At the point T1 we can clearly identify that actual cost work
performed (ACWP) is greater than budgeted cost of work performed (BCWP), therefore Cost
Variance (CV) is unfavorable for the contractor, and also we can identify that budgeted cost of
work scheduled (BCWS) is greater than budgeted cost of work performed (BCWP) therefore
Schedule Variance (SV) is unfavorable for the contractor. From these we can understand there
is an impact on cash flow. If we considering cost variance (CV) it is unfavorable for the
contractors, it may happen by the price fluctuation or wastage of resources or variations or over
expenses or fast working process. If the price fluctuation and variation occurred during the
project period the contractor can claim those extra money of actual expenditure but the
additional money is lesser than the actual expenditure finally the contractor have to face the
financial problem. (For an example:-for a project budgeted cost for an activity is 4 million USD
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and Actual Cost is 7 million USD but variation is 1 million USD so contractors put 2 Million
USD from his pocket. It will lead him to financial problems). If we considering schedule
variance (SV) it is also unfavorable for the contractor. It may happen delay in manpower,
machineries and materials there will be chance for low workmanship &quality, because time
delay contractor have pay the penalty at end he have to face the problems and losses
Conclusion
From the S-curve analysis contractor can forecast the cost implication and he can understand
how much cost in future, and he can control cost effectively for the project. So he can control
cost of the project by employing skill labours and staffs with efficient knowledge in
management and supervision, reducing the wastage, etc. finally when the contractor did proper
forecasting cost implication and proper cost control are finished throughout whole project with
the help of S-curve he can get much benefits at completion of project.
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REFERENCES
Task 1 - References
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2. Disna Mudalige, (2012). Green rating system introduced in SL [Online]. Last accessed
18 May 2014 at: http://archives.dailynews.lk/2012/01/17/fea03.asp
3. Green building council of Sri Lanka, (2012). About Green Building Council of Sri
Lanka (GBCSL) [Online]. Last accessed 18 May 2014 at:
http://srilankagbc.org/about_gbcsl.php
4. Green Building Council of SriLanka. (2012). Green building rating system for built
environment. [Online]. Last accessed 19 May 2014at:
http://srilankagbc.org/applications/self_assesment_built.pdf
5. USGBC, (2012). About LEED [Online]. Last accessed 19 May 2014 at:
http://www.usgbc.org/articles/about-leed
6. Building green, (n.d). What is a Green Building? [Online]. Last accessed 19 May
2014 at: http://buildgreen.co.nz/definition.html
7. NRDC, (n.d). LEED Certification Information [Online]. Last accessed 19 May 2014 at:
https://www.nrdc.org/buildinggreen/leed.asp
8. Energy, (2014). How Hybrids Work [Online]. Last accessed 20 May 2014 at:
http://www.fueleconomy.gov/feg/hybridtech.shtml
9. Chris Baskind, (2010). 5 ways you can reduce light pollution [Online]. Last accessed
20 May 2014 at: http://www.mnn.com/your-home/remodeling-design/stories/5-ways-
you-can-reduce-light-pollution
10. Sri Lanka Sustainable Energy Authority, (2010). Save energy now [Online]. Last
accessed 20 May 2014 at: http://www.energy.gov.lk/sub_pgs/save_energy.html
11. Green Space International (n.d). Natural Refrigerants: The Solutions [Online]. Last
accessed 20 May 2014 at:
http://www.greenpeace.org/international/Global/international/planet-
2/report/2009/5/natural-refigerants.pdf
INTEGRATED PROJECT
BSc (Hons) in Quantity Surveying & Construction Management Page 46
Task 2 - References
1. Ministry of Defense, (2014). Metro Colombo Urban Development Project [Online].
Last accessed Last accessed 21 May 2014 at:
http://defence.lk/news/pdf/Colombo_to_be_transformed_01.pdf
2. ZKI, (2010). Colombo District Flood Map [Online]. Last accessed Last accessed 21
May 2014 at:
http://www.zki.dlr.de/system/files/media/filefield/map/low/DLR_20100522_srilanka_
flood_detail_map3_low.jpg
3. World weather online, (2014). Colombo Monthly Climate Average, Sri Lanka
[Online]. Last accessed Last accessed 22 May 2014 at:
http://www.worldweatheronline.com/Colombo-weather-averages/Western/LK.aspx
4. James A. LaGro Jr, (n.d). Site analysis. [Online]. Last accessed 22 May 2014 at:
http://books.google.lk/books?id=F0PNMKek-
1AC&printsec=frontcover#v=onepage&q&f=fals
Task 3 - References
1. Kohwee Liang, (2003). Cost control in construction project of the site. [Online]. Last
accessed 23 May 2014 at: http://www.efka.utm.my/thesis/images/3PSM/2005/1JSB/P-
Part%201/kohweeliangaa000217d05ttt.pdf
2. ANON (n.d). Cost Control, Monitoring and Accounting. [Online]. Last accessed 26
May 2014 at:
http://pmbook.ce.cmu.edu/12_Cost_Control,_Monitoring,_and_Accounting.html
3. Ashworth, Allan (2010). Cost Studies of Buildings. 5 ed., Prentice Hall.
4. Otim, Nakacwa and Kyakula, (n.d). Cost Control Techniques Used On Building
Construction Sites in Uganda [Online]. Last accessed 23 May 2014 at:
http://news.mak.ac.ug/documents/Makfiles/aet2011/Otim-2.pdf
Task 4 - References
1. David Garland, (n.d). Using S-curves [Online]. Last accessed 25 May 2014 at:
http://www.maxwideman.com/guests/s-curve/using.htm
2. Mai Tawfeq, (2011). What is the S-Curve, and how do calculate the work progress
[Online]. Last accessed 25 May 2014 at:
http://www.planningplanet.com/forums/planning-scheduling-programming-
discussion/502846/what-s-curve-and-how-do-calculate-work-prog
3. David Garland, (n.d). Progress S-curves (output) [Online]. Last accessed 25 May
2014 at: http://www.maxwideman.com/papers/resource/s-curves.htm
INTEGRATED PROJECT
BSc (Hons) in Quantity Surveying & Construction Management Page 47
4. RICS, (n.d). S-Curve [Online]. Last accessed 25 May 2014 at:
https://consultations.rics.org/consult.ti/global_cff/viewCompoundDoc?docid=286130
0&partId=2862516&sessionid=&voteid
5. ANON, (2014). Variations in construction contracts [Online]. Last accessed 25 May
2014 at:
http://www.designingbuildings.co.uk/wiki/Variations_in_construction_contracts
6. RICS, (n.d). Comparison in all valuation methods [Online]. Last accessed 26 May
2014 at:
https://consultations.rics.org/consult.ti/comparable_evidence/viewCompoundDoc?doc
id=836980&partid=837332&sessionid=&voteid
7. Hyde, (n.d). Valuation Methods [Online]. Last accessed 26 May 2014 at:
http://www.hydeproperty.com/property-articles/30-valuation-methods
8. Jordan lee & Jaafar, (2014). Methods of Valuation [Online]. Last accessed 26 May
2014
at:http://www.jlj.com.my/index.php?option=com_content&view=article&id=80&Ite
mid=126
9. ANON, (n.d). Comparison Method [Online]. Last accessed 26 May 2014 at:
http://valuer.com.my/PVFAQ/Property%20Valuation%20Methods/Comparison%20
Method.htm
10. De Claron, (n.d). Contractor's (Cost) Method [Online]. Last accessed 26 May 2014 at:
http://www.claron.com/help/help.php?ID=21
11. ANON, (2014). Residual Method Of Valuation [Online]. Last accessed 26 May 2014
at: http://realestatedefined.com/blog/residual-method-of-valuation/
12. HKIS, (2014). Valuation for Interim Payment Certificates [Online]. Last accessed 26
May 2014 at: http://www.hkis.org.hk/ufiles/QS-IPC.pdf
13. ANON, (n.d). Cost Benefit Analysis [Online]. Last accessed 27 May 2014 at:
http://www.law.uh.edu/faculty/jmantel/health-regulatory-
process/PetersAmericanPublicPolicyChapter16.pdf
14. Gerald Shively and Marta Galopin, (n.d). An Overview of Benefit-Cost Analysis
[Online]. Last accessed 27 May 2014 at:
http://www.agecon.purdue.edu/staff/shively/COURSES/AGEC406/reviews/bca.htm

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Integrated project

  • 1. INTEGRATED PROJECT BSc. (Hons) in Quantity Surveying & Construction Management RAJENDRA SASIRAJ STUDENT ID: - 23047795
  • 2. INTEGRATED PROJECT BSc (Hons) in Quantity Surveying & Construction Management Page 1 ACKNOWLEDGEMENT First of all I would like to thank the Almighty Lord Shiva and I convey thanks to our Integrated Project Lecturer Mr. Ashan Asmone who gave me enormous guidance and support me continuously. It was really helpful to me to complete this assignment successfully in a scheduled time. Further extending my gratitude to ICBT for giving me a chance to study this degree program offered by SHU (Sheffield Hallam University) and I express my sincere thanks to the Director, Lecturers and Staffs of ICBT. I express my gratitude to my senior students clearing my doubts and also I never forget my beloved parents at this time for allowing me to study and participate in this degree program to improve my status in the society. Finally, I would like to thank my friends for incorporating with me to complete my assignment
  • 3. INTEGRATED PROJECT BSc (Hons) in Quantity Surveying & Construction Management Page 2 CONTENTS Page Number 1. Acknowledgement 01 2. Contents 02 3. Figure content 03 4. Table content 03 5. Introduction 04 6. Task 01 Fly Sheet 05 1.1 Dairy food processing &packing factory - Green project 06 7. Task 02 Fly Sheet 16 2.1 Preliminary site & location analysis of hotel project 17 8. Task 03 Fly Sheet 28 3.1 Elemental cost control method 29 3.2 Allowable building costs calculation 32 9. Task 04 Fly Sheet 35 4.1 Interim Valuation 36 4.2 Valuation Methods 38 4.3 Cost Benefit Analysis Method 41 4.4 Contractor’s cost control with S- Curve 43 10. References 45
  • 4. INTEGRATED PROJECT BSc (Hons) in Quantity Surveying & Construction Management Page 3 FIGURE CONTENTS Page Number 1. Site location map for factory project 10 2. Flooding map of Colombo district 20 3. Average temperature for Colombo 21 4. Average Rainfall for Colombo 21 5. DS Division of Sri Lanka, affected by Tsunami 22 6. Site location map for hotel project 23 7. Area Location map for hotel project 25 8. Proposed building density 26 9. Interim valuation of building project 36 10. Time versus Net cash flow chart 42 11. S-curve(Time versus Cost) 43 TABLE CONTENTS Page Number 1. GBCSL Point system by categories 08 2. GBCSL Rating by required points 08 3. USGBC Point system by categories 09 4. USGBC Rating by required points 09 5. Initial budget for each element 30 6. Elementary cost control process 30 7. Net cash flow for house X 41 8. Net cash flow for house Y 41
  • 5. INTEGRATED PROJECT BSc (Hons) in Quantity Surveying & Construction Management Page 4 INTRODUCTION This assignment involves a submission of professional report, which is contained four tasks. In the first task I explain about a dairy food processing and packing factory in the Eastern Province of Sri Lanka under Board of Investment (BOI). The factory had to construct with building concept and to achieve LEED and GBCSL platinum ratings by getting minimum 80 and 70 points respectively, and consider some key points such as 1000% hygienic & safe working environment, minimum 50% of energy requirement should be met by bio gas & solar power, waste water treatment and solid waste management, minimum disturbance of existing ecology and also I add some essential factors to obtain a platinum rating from the accredited professional organization. Further, I have given some recommendation to this project. In the second task I explain about the hotel project in the Colombo area, by identifying the potential of the site in terms of capturing potential customers and shape and size of the site, further considering zoning and planning regulations with preliminary site analysis and location analysis. In the third task I explain elementary cost control process for a building project with an example, also did allowable building cost calculations with assumption, based on the results advice the client on his investment decision. Finally, in the fourth task I explain about interim valuations in the post contract stage with an example, and explain about valuation methods application of those methods. Explained the cost benefit analysis with an example finally explanation for income and expenditure curves (Particularly the S-curve) help contractors control the project cost and he forecasts the cost implication with the use of S-curve with an example. I prepare this assignment with my knowledge gathered during lecture session, references given from lecturer and sources collected from myself such as internet, magazine and books.
  • 6. INTEGRATED PROJECT BSc (Hons) in Quantity Surveying & Construction Management Page 5 Task 1
  • 7. INTEGRATED PROJECT BSc (Hons) in Quantity Surveying & Construction Management Page 6 EXECUTIVE SUMMARY In the construction industry consultants one of the responsibilities is advising the client. Currently the construction of green building becomes very popular, it mentions as structure and using a process which is resource efficient and environmentally responsible and throughout a building's life cycle. From green building construction can gain environmental, economic and social benefits. In the report I have explained the green building concepts and how LEED (Leadership in Energy & Environmental Design) and GBCSL (Green Building Council of Sri Lanka) how they distribute the points in category wise and their rating system respectively. The essential purpose of this report is to advise the client on the proposed dairy food processing and packing factory to implement green building concept. I have advice requirements to the client considering all required categories, prerequisite and credits of both LEED and GBCSL for achieving platinum rating including 100% hygienic & safe working environment, minimum of 50 % energy use of bio gas and solar power for operations, waste water treatment and solid waste management, minimum disturbance to the existing ecology to get certain points under each category and full fill the requirements and get a platinum rating for the building.
  • 8. INTEGRATED PROJECT BSc (Hons) in Quantity Surveying & Construction Management Page 7 INTRODUCTION In the construction industry consultants one of the responsibilities is advising the client. From the advice, the client takes his correct final decision whether to invest in this project or not. According to assignment task, the overseas investment company is the client for the project and planning to invest in a dairy food processing and packing factory in the eastern province of Sri Lanka under Board of Investment (BOI). The site extents approximately ten acres and faces a river and have to implement green building concepts for this project to obtain a platinum rating from LEED and GBCSL. For this project I act as LEED consultant and prepare a comprehensive report to advise the client for obtaining a platinum rating from LEED and GBCSL for his project.
  • 9. INTEGRATED PROJECT BSc (Hons) in Quantity Surveying & Construction Management Page 8 GREEN BUILDING It is an environmentally sustainable building, which designed, constructed and operated to reduce the total environmental impacts. For the users it will save money and create healthier environments. They can feel the comfort in the building. (Build Green, n.d) The concept of the green building has increased the efficiency of energy, water and materials which used in buildings, even though decrease the negative impact of buildings on human health and the surrounding environment through appropriate designing, construction, operation, maintenance and the removal and recycling of waste. (Disna Mudalige, 2012) Green Building Council of Sri Lanka (GBCSL) It is a national organization, it conducts activities for the benefit of the general public without profit motive based on its nonprofit agreement and the aim of the organization is to change the national construction industry with green building practices. (GBCSL, 2012) Categories Points at GBCSL Sustainable Sites 25 Water Efficiency 14 Energy and Atmosphere 21 Materials and Resources 21 Indoor Environmental Quality 13 Innovation and Design Process 4 Management 4 Social and Cultural Awareness 3 Table 01- GBCSL Point system by categories (GBCSL, 2011) GBCSL Ratings Certified Silver Gold Platinum Points 40–49 points 50–59 points 60–69 points 70 and above points Table 02- GBCSL Rating by required points (GBCSL, 2011)
  • 10. INTEGRATED PROJECT BSc (Hons) in Quantity Surveying & Construction Management Page 9 Leadership in Energy and Environmental Design (LEED) It is internationally recognized organization which created and managed United States Green Building Council (USGBC), it is an independent, third party green building certification program that identifies best-in-class building practices and strategies. (USGBC, 2012) Categories Points at LEED Sustainable Sites 26 Water Efficiency 10 Energy and Atmosphere 35 Materials and Resources 14 Indoor Environmental Quality 15 Innovation and Design Process 6 Regional priority 4 Table 03- USGBC Point system by categories (USGBC, 2012) GBCSL Ratings Certified Silver Gold Platinum Points 40–49 points 50–59 points 60–79 points 80 and above points Table 04- USGBC Rating by required points (USGBC, 2012) Requirements for project to obtain platinum ratings Dairy food processing and packing factory must get a platinum rating from LEED and GBCSL by getting minimum 80 and 70 points respectively. As a consultant, I advised the client that to consider some important factors to gain platinum rating.
  • 11. INTEGRATED PROJECT BSc (Hons) in Quantity Surveying & Construction Management Page 10 1) Sustainable Sites Figure 01- Site location map for factor project (Google Map, 2013) The proposed site is located in Mutur, western province of Sri Lanka, and the land is nearly 10 acres facing a lake, and A15 Trincomale highway and Trincomale harbor are near by the site there will be no transport problem, and emergency services also available. There is a two temporary store available at the site because last year there was some repair on A15 highway so the people used this storage and left it on the site without dismantling. During the construction period to prevent soil erosion, stock piling and erosion control blankets must be used. The company should implement transportation facilities and parking facilities, office staffs and workers, the company can provide staff with hybrid vehicles to reduce the fuel consumption and cost. As alternative transportation some people can use public transportation like bus because there is bus stand is near by the site. They can divide the parking slots with shaded canopy for 2 wheelers and 4 wheelers separately to minimize parking area. If possible they can construct an underground parking facility to all the staffs and workers. Maximize the open spaces for the development in future. The site is near to the sea, so salt wind can damage the metal find the best method for parking facilities to prevent the vehicles from corrosion. As considering the building structure and weather conditions, I advise that the solar panels should be fixed on the rooftops as shade to reduce the heat and gain solar energy from this solar power for can reduce electricity bills. I suggested the client to do soft landscaping & Irrigation works in project such as planting trees on the land. Because of this factory environment will look beautiful & pleasant, heat absorption is reduced by the trees and people can breathe fresh air. Minimize the deforestation to reduce the disturbance of surrounding ecology. Further I recommended to reduce the light pollution in such ways like; replace conventional high-energy bulbs with efficient CFLs and LED A Proposed Site
  • 12. INTEGRATED PROJECT BSc (Hons) in Quantity Surveying & Construction Management Page 11 floodlights because they are reducing the heat, light pollution and also energy efficient too, fix motion sensors on essential outdoor lamps and replacing outdoor lights with intelligently designed, low-glare fixtures to reduce the light pollution. And I also advise the client construct waste water tanks in this project, these tanks helps to store the storm water this storm water use for non-potable uses also such as toilet & urinal flushing, soft landscaping and irrigation works 2) Water efficiency In the project water should be efficiently managed by staffs and worker, for the factory’s function high amount of water consumed for drinking, flushing in urinal and toilets and other various activities. I advise that water treatment plant with high-efficiency filtration systems (aerobic or anaerobic) which should be built near to the waste water tanks at the site for collecting water from the nearby lake and collecting storm water and use for portable & non- potable uses also such as toilet & urinal flushing, soft landscaping and irrigation works. As the river water, apply the treatment methods and use it for the live stocks for drinking and other purposes, To reduce the potable water demand, high-efficiency fixtures should be installed (urinals and water closets) and dry fixtures, such as toilets attached to composting systems. Install the automatic sensors and detectors, during the constructing period contractor should take a little more concentration on plumbing & drainage works to prevent leakage in the future. And try to get maximum benefit from alternative resources as described in above. These activities can increase the water efficiency, save water more than 40% for daily uses. 3) Energy and Atmosphere This is going to be a big factor, for its operations & functions, it requires high energy, and we are going to apply bio gas and solar power energy techniques to full fill minimum 50% energy requirements for factory’s operations and functions. To get a bio gas energy I recommended the client to build a bio gas plant at the site. This bio gas is produced from organic wastes, it is a dairy food processing and packing factory, so he can raise live stocks in the land area and collect animal dungs daily in large quantity and also can collect other organic wastes from surrounding areas. All these organic wastes can efficiently produce CFC free bio gas. It is a renewable energy source which is not impacting the environment harmfully, creates a good atmosphere, reducing the organic wastes and reducing the cost for the functions and operations. As a second energy source is solar energy it is also a renewable energy source, according to the weather condition and location of the site I recommended the client to install solar panel on the roof top of the building to absorb sunlight and heat, and increase the solar cell batteries to save energy in future needs. Save the energy by use CFL bulbs for lighting instead of other light bulbs it will reduce the light pollution and energy savings, turn off the unwanted blobs, take benefit by using the maximum of daylight, use infrared sensors in a security lighting system because they are cheap comparing to other products, Use motion sensors or other sensors to automatically turn on and off the lighting fixtures as required.
  • 13. INTEGRATED PROJECT BSc (Hons) in Quantity Surveying & Construction Management Page 12 HVAC system and refrigeration operation and functions, these are affecting the ozone layer so I advised the client to reduce the operation or use an alternative method such as instead of CFC & HCFC refrigerators use HFC eco-friendly refrigerators because HFCs are not ozone- depleting gases. Use the fire suppression systems in the project, which do not contain ozone damaging harmful substance alike CFC, HCFCs, etc. Considering refrigerators advice the staff and workers that not open the doors frequently, store things properly so it's easy to pick them as required, and for the ACs advise them when it is on close all doors & windows and seal all air leaks, and also I suggested instead of ceiling fan, Pedestal fans and table fans are more efficient and energy savings also I advised the client plant some trees surround the office which will reduce the indoor temperature by 2 ºC. Finally I suggested that provide staff and worker company transportation with hybrid vehicles which will reduce fuel consumption, CO2 out flow, environmentally friendly and reduce the cost 4) Material and resources As I already mentioned that there are two stores available in the land, Depends on the factory requirements it can be renovated and reuse for future purposes. In the storage we saw some paper, corrugated cardboard, glasses, and metals. Some of them can be reused and the rest of them can be recycled and use for need. Further, I advise the client for proper waste management plan in this factory solid waste & waste water are major problem it has to be managed properly. And we can’t through directly to environments, it affects the surroundings. As we consider solid waste, it will form during the execution period of the project and operation of the factory. During the excavation and site clearance period there some unwanted trees and bushes were removed from the site. Here some of the trees are turns into wood and used for formwork, temporary fencing even used for carpentry works remaining solid organic parts of the trees use for livestock (animal) food & use it for bio gas. Another factor also he has considered in his mind that is waste water, the client should build some water treatment plant with high-efficiency filtration systems (aerobic or anaerobic) which should be built near to the waste water tanks at the site for collecting water from the nearby lake and collecting storm water and use for portable & non-potable uses also such as toilet & urinal flushing, soft landscaping and irrigation works. During construction period client should get confirm that salvage material which taken from the old storages are reuse and recycle. Find out the local material suppliers, use locally sourced material and check the quantity of local materials specified for the project. Further I suggested the client to use renewable materials like cotton, bamboo, straw board, etc which can be used for office floor mats, shaded structures, wall finishes. Finally, he should get a certification from third party people to check the quantity of certified wood products which are installed. And get the total percentage.
  • 14. INTEGRATED PROJECT BSc (Hons) in Quantity Surveying & Construction Management Page 13 5) Indoor environmental quality Working environment should be safe and hygienic in the factory which influence the production line and operation line. This factory is facing a lake and near to sea, so it is easy to get clean & fresh from the environment, staffs and workers should breathe clean air properly so I advised the client to design and maintain a proper ventilation system to meet or exceed the minimum outdoor air ventilation rates and can use Fans, Split AC, Window AC or Centralize AC in the building for reduce heat and humidity. Inform the staffs and workers that prohibit smoking in the building premises except in designated smoking areas, these smoking rooms should be effectively captured, contain and remove smoke and it should construct at least twenty five feet away from operable windows and outdoor air intakes. CO2 detecting sensors should be fixed this building and identify the CO2 level in the factory. Install CO2 and airflow measurement equipment activate alarms, which will inform operators of a reasonable shortage in outdoor air delivery. During the construction period to protect the HVAC system implement an indoor air quality management plan. On working hours provide the staffs and labors with proper ventilation to breathe, clear lighting facilities to work. I advised the client that during the construction period contractor have to choose low-VOC materials, with that he have to build the factory. The contractor should use low-VOC materials to do painting & coating for floor finishes, wall finishes & ceiling fishes. Further solar panel, some plants should be placed on the rooftops to reduce heat from the sun, use the renewable and local materials such as cotton, bamboo, straw-board for floor mats, partitions and special finishes. To maximize daylight use and avoid light pollution, the contractor should design the building with more windows, concerning exterior and interior shade, insulated daylighting panels, building integrated photovoltaic technology, shallow floor plates and increase the perimeter Finally I suggested the company to provide Health and Safety Environmental (HSE) training to workers and they have supervised by some HSE officers in the working time because operating machineries are not an easy task, workers should be alert every time, further company should provide suitable clothes, face mask, gloves and foot wear for the workers to increase the quality of work, and also I suggested them for construct separate female and male bath room, before entering the production line they should clean themselves because it is a dairy product and it will get contaminated quickly, therefore factory will produce quality output to market.
  • 15. INTEGRATED PROJECT BSc (Hons) in Quantity Surveying & Construction Management Page 14 6) Innovation and Design Process I advised the client include some innovations based on green building concepts such as energy monitoring devices, insulated daylighting panels, building integrated photovoltaic technology, shallow floor plates, green roofs, Light-Emitting Diodes (LEDs), rain collection and wastewater systems, etc. 7) Regional priority & Social and Cultural Awareness Social and cultural awareness are coming under GBCSL, so I advise to do site and location analyze before starting construction activity, and find out whether the site is archaeologically sensitive sites or is there is any heritage building located on the site, social and cultural details of people living in that area. Regional priority is coming under LEED, it is to encourage projects to pursue credits with regional environmental importance and LEED offers four bonus Regional priority points for each project. According to this project no need to concern itself because it is not applicable in this country. 8) Management Management is an essential factor, it should be in considered in the following phases such as initiating, planning, executing, monitoring &controlling and closing out. It is coming under GBCSL. As I explain above client can increase his productivity by using less energy consuming plants & equipment, reduce the parking area and maximize the open space for future purposes, proper transportation methods use energy efficient vehicles such as hybrid vehicles and use alternative, transportation and public transportation, fix the solar panels on the rooftops to reduce the heat and gain solar energy. Use energy efficient CFLs and LED floodlights to reduce the heat, light pollution, construct waste water tanks in this project, it helps to store the storm water this storm water use for non- potable uses also such as toilet & urinal flushing, soft landscaping and irrigation works, use bio gas and solar power to save the energy consumption, there should be proper waste management for wastewater and solid waste, use proper HVAC management in the building to reduce heat and humidity for the occupants. Install CO2 and airflow measurement equipment with the HVAC system. Use low- VOC materials in the building, use the renewable and local materials, to maximize daylight use and avoid light pollution. Finally company should employ 1 accredited professional with GBCSL to guide and manage the project team and let the team members understand the green building concept.
  • 16. INTEGRATED PROJECT BSc (Hons) in Quantity Surveying & Construction Management Page 15 CONCLUSION & RECCOMENDATIONS As per the report, this factory is going to build with green building concept. I have advice requirements to the client considering all required categories, prerequisite and credits of both LEED and GBCSL for achieving platinum rating by getting minimum 80 and 70 points respectively. Including 100% hygienic & safe working environment, minimum of 50 % energy use of bio gas and solar power for operations, waste water treatment and solid waste management, minimum disturbance to the existing ecology to get certain points under each category and full fill the requirements and get a platinum rating for the building. This proposed site is located in Mutur, Western province of Sri Lanka, and it is near to lake and face the river. As per the site condition and location, contractor should prepare contingency plan for the future. Flood can be happen by rain, river and coastal waves so the contractor has to prepare himself and face the problem boldly in the future. This area highly experiences the two monsoon rains in May to August and another one is October to January, special cases like tornado also affecting the place. So contractor should monitor the weather reports and start the construction activities in proper time, he should prevent the site from soil erosion by using stock piling and erosion control blankets. Salt air can corrugate the metal so during the construction time store the reinforcement bars and other metal item properly and apply the anti- corrosion material on metal items and prevent from corrosion. Use an energy efficient plant & equipment, use proper HVAC management in the building to reduce heat and humidity for the occupants, Use low- VOC materials in the building, use the renewable and local materials, to maximize daylight use and avoid light pollution. Finally company should employ 1 accredited professional with GBCSL to guide and manage the project team and let the team members understand the green building concept.
  • 17. INTEGRATED PROJECT BSc (Hons) in Quantity Surveying & Construction Management Page 16 Task 2
  • 18. INTEGRATED PROJECT BSc (Hons) in Quantity Surveying & Construction Management Page 17 EXECUTIVE SUMMARY Before investing funds in projects we have to do site and location analysis to identify the suitability of function according to the type and amount of the investments. This comprehensive report contains analysis of all important factors which relates to new five star hotel which contains with approximately six hundred and fifty rooms and land extents approximately three acres, and it is located at P. O. Box 606, Kollupitiya, Colombo 03. For this project site analysis and location analysis has been done very perfectly, because it is going to become very big five star hotel so it has to satisfy everyone. As per analysis, I have found that there is barren land which is suitable for the client requirements and also there is an existing building in the land is not successful for the owner so it has to be demolish finally the land will come nearly four acres is more than enough for the project. Further, I have given my recommendation for Mr. Niroshanan Baleswaran (Client/End User) to construct a new five star hotel based on current market research, environmental factors, needs and demand of that place. Further, existing buildings and significant features in relation to demolition also took place in this report. Further
  • 19. INTEGRATED PROJECT BSc (Hons) in Quantity Surveying & Construction Management Page 18 INTRODUCTION Mr. Niroshanan Baleswaran, He is the client for this project and he is planning to construct a five star hotel in modern style which contains with approximately six hundred and fifty rooms and the proposed site located at, Kollupitiya, Colombo. And the hotel in going to be constructed on the barren flat land. As a consultant, I have been requested to provide preliminary site and location analysis properly on behalf of Mr. Niroshanan Baleswaran and the main objective of this report is to advise client about the suitability of the site and location of his requirements. Further, I have given my suggestion/recommendation on appropriate function of proposed five star hotel. I hope that I have referred appropriate information such as statistics, data, news, etc., To accomplish this report properly in a given time. Therefore, I included all required details as much as conceivable to be more effective. So I hope that it will be more sufficient and helpful for Mr. Niroshanan Baleswaran to make his final decision which can become fruitful outcome.
  • 20. INTEGRATED PROJECT BSc (Hons) in Quantity Surveying & Construction Management Page 19 A. SITE ANALYSIS Site analysis is considered as an important factor in the construction industry. It is used to collect important information about particular sites and helps to identify and estimate numerous features of particular sight. It has to be done before designing process of a project. From this client/end user can get overall knowledge such as; determine what type of construction, can identify the strength and weakness of site, which type of construction methods can apply, which type of investment methods is suitable for this project. From this client/end user can make a final conclusion. Further here client is Mr. Niroshanan Baleswaran is recommended about the suitability of the site and location for the purpose. Important factors in Site analysis There are some considerable significant factors I have included in this site analysis to be more effective and get maximum benefit out of it. 1) Old maps Old maps help to get past details which give more information about particular land, such as street name, type of land, past uses, changes in topography, sewer and drainage system, etc. According to a detailed study of this area with many old maps it is not a shanty area and water stagnant land, further there is no topographic changes happened in the past thirty years. 2) Flood potential The proposed site located just 185m away from the sea and 1.80m above mean sea level, there are no other water resources such as river, dam, lake, etc. Which are not close to proposed site that could cause flooding, further land could suck consider amount rain water and it helps to reduce water which stagnated in the site. But this site can be challenged by other methods of flooding such as coastal water/sea water (Tsunami). But according to analyzed flooding maps for the past two decades, this proposed site was affected once by flooding due to Tsunami in 26th of December 2004 and then flood level was also very little. Further this matter is also to be considered in the primary stage of designing. Metro Colombo Urban Development Project (MCUDP) its aim is to compliment the ongoing urban redevelopment programs of the Government of Sri Lanka by giving importance to improving local infra-structure and services & reducing the social, economic and physical impacts of flooding in the Metro Colombo Region. Metro Colombo Urban Development Project (MCUDP) is managed by project management unit of the Ministry of Defence and Urban Development. Project area will be include four local authorities and the total cost for this project worth of US$ 223 million and it is funded by Government of Sri Lanka and International Bank for Reconstruction and Development of the World Bank. (Ministry of Defence, n.d) Therefore the hotel project is located in Colombo area and it will not get affect by flooding in the future.
  • 21. INTEGRATED PROJECT BSc (Hons) in Quantity Surveying & Construction Management Page 20 Figure 02- Flooding map of Colombo district (ZKI, 2010) Rainfall and Temperature charts Colombo is located in the western province of Sri Lanka and it has a tropical climate condition due to its topography and also it is experienced by dry season and two monsoon seasons. (World Weather Online, 2014) a) Monsoon Seasons There are two monsoon season it falls on two different time period one is May to August and another one is October to January. Colombo gets highest rainfall in May, 28 ºC is the average temperature in Colombo. In the day time temperature is normally 28 ºC to 29 ºC but average daily minimum falls only to 25 ºC to 26 ºC. (World Weather Online, 2014) b) Dry Season During the December to March time period in Colombo area feels hot and humid climate condition average temperature is 27 ºC. Especially in the February month if we observed the rain fall it is very less and temperature is rise up to 36 ºC. (World Weather Online, 2014)
  • 22. INTEGRATED PROJECT BSc (Hons) in Quantity Surveying & Construction Management Page 21 Figure 03- Average temperature for Colombo (World Weather Online, 2014) Figure 04- Average Rainfall for Colombo (World Weather Online, 2014)
  • 23. INTEGRATED PROJECT BSc (Hons) in Quantity Surveying & Construction Management Page 22 3) Natural Disaster Earthquake In Sri Lanka, many slight earth quakes occurred in recent times. Prof. C.B. Dissanayake, Sr Geologist of Peradeniya University told the daily news that there are twelve plate boundaries on Earth which travels around. Our country is located beneath the Indo Australian plate, some geologists have proved that a new plate is developing in south part, as an outcome the Indo Sri Lanka plate is cracking right nearby south part. So we can observe and get experience more earth quakes in future. (Walking the World, 2014). Therefore this the hotel should stand firmly and against the earth quakes so it should be design properly for the future purposes. Tsunami In 26th of December 2004, Sri Lanka face a massive disaster from coastal tidal waves that is called Tsunami, it impact several places in which are very near to sea, even though this proposed site is very little affected by this waves because this proposed site located just 185m away from the sea and 1.80m above mean sea level. This Tsunami wave speed is very low in Kollupitiya area compared to other coastal places. Therefore this the hotel should stand firmly and against this kind of coastal waves so it should be design properly for the future purposes. Figure 05- DS Division of Sri Lanka, affected by Tsunami (Department of Census and Statistics, 2005)
  • 24. INTEGRATED PROJECT BSc (Hons) in Quantity Surveying & Construction Management Page 23 4) Flora and Fauna From this figure 05 we can see the site location we can see a tree, bushes and grasses also it has animals like dogs, cats, local birds (Pigens &Crows) especially at night time bats. There is no endangered rare species or wild animal problem. Figure 06 – Site Location map for hotel project (Google Map, 2013) 5) Cultural and man-made features This site is located in Kollupitiya area which in Colombo city. There are all different culture people living and working in this area because it is very popular area in Sri Lanka and well known by everyone. There is no problem arise for utility connection such as electrical, water, telecommunication, internet, sanitary, drainage, sewerage, etc. further there so many facilities also there such as education facilities, health care facilities, banking and shopping facilities, security facilities. Proposed hotel project is coming under development zone as considering size and type of the land we can go 10 or more 10 story building, as per UDA Building & Planning Regulation. But it is depends on clients scope and budget. Site
  • 25. INTEGRATED PROJECT BSc (Hons) in Quantity Surveying & Construction Management Page 24 Current situation and features of existing building, construction and demolition activities in the project As shown in the figure 05 there is 2 story old commercial building in the proposed site. This old building is now not in a good condition to use. Very old style building also, the building used as spare parts shop and currently it is not doing business because building is unstable, is we see the building there many severe damages on major building elements such as internal and external walls have many severe cracks big holes, some columns, slabs & beam severely damaged and in rainy seasons water league in the building. Water penetrating from the building internally and externally. Sanitary and waste disposal systems in the buildings are in bad shape, electrical wire and cable are sorting and it is difficult to handle. Finally owner is this building not getting profit doing business in this building, and also no benefit maintain this building Moreover to construct a 5 star hotel in a modern style it require some space also if we demolish the existing old building we can extend the land as total four acres. Clearing this building give a good perspective view for the customers who can see from the road. And finally hotel demand also increase. While constructing high rise hotel like this contractor should be aware on external stake holders (Public & Government authorities) while doing construction and demolition contractor should take little concern access, loud noise, traffic management in peak hours, dust, safety of the people, working hours and disposal of waste material, etc. because the project is in the development zone and site is surrounded with many residential, commercial and public buildings. So the contractor is very careful and avoid the disputes during project.
  • 26. INTEGRATED PROJECT BSc (Hons) in Quantity Surveying & Construction Management Page 25 B. LOCATION ANALYSIS The purpose of location analysis is to identify the characteristics of several locations that affect the demand and the value of the property. Like site analysis it is most important factor affecting the investment and it should considered in the preliminary stage of construction. From this we can identify what are the special features and available resources around the location. Location analysis benefits and objective  Analyzing the impact of the environment  Providing sufficient and relevant information on location for the client  To evaluate the important factors affecting the feasibility  Can understand the zoning and planning rules and regulation  Helping the client to gain more profit Figure 07 – Area Location map for hotel project (Google Map, 2013) Site
  • 27. INTEGRATED PROJECT BSc (Hons) in Quantity Surveying & Construction Management Page 26 1) Location Details As per the figure 06, I have marked in the proposed site, P.O.Box No.606, Kollupitiya, Colombo-03 site area is approximately 4 acreas rectangular shape land. There is a 2 story old existing building in the land, proposed site is opposite to TNT Express and Hemas Pharmaceuticals on the right side there is a petrol filling station also there and also the site near to A2 Highway. Project is in the development zone and site is surrounded with many residential commercial and public buildings. 2) Zone of the area Proposed site is located in Kollupitiya development zone. As per figure 07, the proposed building density by Urban Development Authority (Building & Planning Regulation 39) most building which constructed 10 or more than 10 floors, from this data we can construct a multi- story building depending on client scope, budget and also the rules and regulations of the government authorities Figure 08 – Proposed building density (Build Sri Lanka, n.d)
  • 28. INTEGRATED PROJECT BSc (Hons) in Quantity Surveying & Construction Management Page 27 3) Analysis on accessibility There are some good transport facilities available around the site such as railway station, A2 highway. So many people around the area using such these transport getting maximum benefit out of it, there is no traffic jam in peak hours also in this area because of proper traffic control by the authorities. As per figure 06, people who are travelling by two wheeler or three wheelers or other vehicles can use the Colombo plan road or Galle road. Materials and machines can be transported to the site quickly. While doing construction there should maintain be proper transport management plan to reduce the disputes. 4) Analysis on commercial functions The propped site located in Kollupitiya area which coming under development zone. There is no political, economic and social barriers in this place and several different cultural people living and working in this area, after the civil war ended many tourists are coming from different countries to this area so the hotel and tourism industries are growing so it is a big advantage and the land suitable for constructing the hotel. CONCLUSION & RECOMMENDATION According analysis I consider the flood potential by evaluating rain fall and temperature chart, geological surface of the land, flood maps and also described the natural features and topography, cultural and man-made features in the site in site analysis and further consider shape and size of the site, zoning & planning regulation, accessibility and commercial functions from location analysis. Mainly I describe the demolition of old existing building and its characteristics of that building. Finally with these information I recommend the client that proposed site is very suitable for constructing a hotel.Further I recommend some matters for the client to do effective construction of the hotel project and gain benefit out of it, which are listed below;  Before starting the construction check the weather chart because during May month high rain fall is recorded so have to start the work in suitable month.  Site is located in development zone so the project should be well managed by the project manager to reduce the disputes and he should be aware of all factors which impacting the project.  Construct the hotel in a modern style with all facilities and to get the customer satisfaction increase the suitable facilities.  Construct the building structure with metal/aluminum & glass features.  There should be proper waste management system and recycling system to reduce the cost.
  • 29. INTEGRATED PROJECT BSc (Hons) in Quantity Surveying & Construction Management Page 28 Task 3
  • 30. INTEGRATED PROJECT BSc (Hons) in Quantity Surveying & Construction Management Page 29 3.1) Using an example of your choice (not necessarily an actual project) illustrates elementary cost control process for a building construction project. State all necessary steps and measures In the construction industry, all the clients/end users are interested to obtain a fully functional output, which have to complete at the scheduled time, estimated cost, and good quality within the exact scope. Cost control is a process which should be continued through the whole construction period to confirm that the cost of the project is kept within the fixed amount. This process can be dived into two main areas; cost control during the design stage and cost control by the contractors once the construction of project has started. It involves collecting and measuring the cost record of a project and he work progress and also comparison of actual progress with the planning. Its main objective is gain maximum profit within the scheduled time and satisfactory of work. (Kohwee Liang, 2003) Elementary cost control process Elementary Cost control process is very easiest and extensively used method in building construction projects at post contract stage. As cost controlling by each element is easier than cost controlling considering whole building project. Whole construction is divided into many elements. In the beginning whole project can be divided into major sections including sub structure, super structure, finishes and services, etc. These each major section further divided into many single elements, then these elements are estimated by direct and indirect costs, from this complexity reduced and it provides clear path and good background to control cost. Followings factors can affect the initial budget:-  Price inflation  Improper resource management (material, machinery, money & manpower)  Improper coordination and supervision  Too much waste  Variation  Delay, etc.
  • 31. INTEGRATED PROJECT BSc (Hons) in Quantity Surveying & Construction Management Page 30 Building project details (Assumption) This is a two story house project currently it is under construction and project duration estimated for twelve months. Total initial budget was LKR. 6.4 million. To manage cost control for this project the contractor has choosed elementary cost control method. Here total building dived into major sections, these each major section further divided into many single elements, and then these elements are estimated by direct and indirect costs. Major Sections Elements Budget (LKR) Substructure Foundation 420,000.00 Substructure Columns 475,000.00 Walls (Including Internal & External) 535,000.00 Beams & Slab 1,325,000.00 Staircases 70,000.00 Doors & Windows (Including All Types) 520,000.00 Roof 950,000.00 Finishes Floor finishes 400,000.00 Wall finishes 450,000.00 Ceiling finishes 300,000.00 Services Sanitary and Disposal system 215,000.00 Water installation 95,000.00 HVAC system 175,000.00 Electrical installation 225,000.00 Security system installation 215,000.00 Table 05- Initial budget for each element Currently, beams and slab (element) part is under construction in this house project and initial budgeted cost for Beams and Slab part is LKR 1,325,000.00 below mentioned chart explains the elementary cost control procedure Elements – Beams and Slab Item Budget (LKR) Cost to date (LKR) Cost committed (LKR) Cost exposure (LKR) Over & (under) (LKR) Material 625,000.00 315,000.00 260,000.00 90,000.00 40,000.00 Plant 170,000.00 110,000.00 35,000.00 45,000.00 (10,000.00) Labor 220,000.00 135,000.00 65,000.00 55,000.00 (35,000.00) Supplier 150,000.00 85,000.00 45,000.00 35,000.00 (15,000.00) Over head 160,000.00 87,000.00 47,500.00 33,500.00 (8,000.00) Total 1,325,000.00 (28,000.00) Table 06– Elementary cost control process
  • 32. INTEGRATED PROJECT BSc (Hons) in Quantity Surveying & Construction Management Page 31 According to above mentioned analysis, present status of this cost forecast is LKR 28,000, the element (beams and slab) is below the budget and it is positive for the contractor. Further contractor can deeply concern about cost of material, therefore contractor can take immediate action and find out the best solution to avoid the unnecessary expenditures which will lead him to losses. As a solution contractor should avoid or minimize the material wastage, find a suitable place for storing materials, recruit some skilled labours and the same time he should more cautious and improve the supervision and applying efficient management techniques. Finally it will help to reduce the cost exposure for the future works of beams and slabs, and also analyzing this method for every single element in the major section of this building the cost of total construction will be controlled with profit.
  • 33. INTEGRATED PROJECT BSc (Hons) in Quantity Surveying & Construction Management Page 32 3.2) A speculative developer has provided the following details of a proposed speculative shopping complex development Followings are given details  Gross floor area  Non – lettable area 15%  Estimated rent £ 80/m2  Capitalization of rent 8%  Building contract details  Period 24 months  Professional fees 10%  Short term finance 17%  Developer’s profit 15% of GDV  Land cost (including all fees) £ 155,000 You are requested to calculate the allowable building costs. Mention all the assumptions made. Based on the results you obtain, advise the client on his investment. Following assumptions are considered for this calculations  Service charges are taken from tenants  Total floor area is 20,000m2  Short term finance duration is 2 years Rental received Gross floor area = 20,000m2  [J] Non-lettable floor area percentage = 15%  [K] Lettable floor area percentage = (100-15) % = 85%  [L] Lettable floor area = 20,000x0.85  [M] = [J] x [L] = 17,000 m2 Estimated rent = £ 80/m2  [N] Net income per year = 17,000 m2 x£ 80/m2  [O] = [M] x [N] = £ 1,360,000 Capitalization of rent = 8%  [P]
  • 34. INTEGRATED PROJECT BSc (Hons) in Quantity Surveying & Construction Management Page 33 Year's Purchase (YP) = 1 /i = = 1/ (8/100)  [Q] = 12.5 Gross Development Value Gross Development Value = £ 1,360,000x 12.5  [R] = [O] x [Q] = £ 17,000,000 Developer’s Profit Developer's profit 15% of GDV = 15% x £ 17,000,000  [S] = [0.17] x [R] = £ 2,550,000 Land cost Short term finance at 17% for 2 Year = £ 155,000 x (17/100) x 2 = £ 52,700 The land cost [T] = £ 155,000 +£ 52,700  [T] = £ 207,700 Summary of calculated details Gross development value = £ 17,000,000  [R] Developer’s profit = £ 2,550,000  [S] Land cost = £ 207,700  [T] Total allowable building cost = Gross development value - (Developer’s profit + Land cost) = £ 17,000,000 – (£ 2,550,000+£ 207,700) = £ 17,000,000 – (£ 2,757,700) = £ 14,242,300 Construction cost Take ‘A’ is the construction cost and Finance will be required at interest of 17% for 2 Years construction period. Construction cost = A Professional fees = A x 0.10 = 0.1A Finance = A x 0.17x 2 = 0.28A Allowable building cost = Construction cost + Professional fees + Finance £ 14,242,300 = A+ 0.1A + 0.28A 1.38 A = £ 14,242,300 A = £ 10,320,507.25
  • 35. INTEGRATED PROJECT BSc (Hons) in Quantity Surveying & Construction Management Page 34 ADVICE/RECOMMENDATION As per the above calculation, total allowable building cost is £ 11,098,619.625 and construction cost is £ 10,320,507.25. Form these calculations, cost consulting engineers can make a decision whether this much amount is fit or unfit for his financial background and lifetime profitable benefits to invest in this proposed shopping complex. Further, he can save his money by following methods;  Interest rate is high for this land, so can go for other financing companies for low amount of interest.  He can deduct interest by buying the land by his own money.  If the land price is high he can buy a land with the same type of characteristics and features in other places for low amounts.
  • 36. INTEGRATED PROJECT BSc (Hons) in Quantity Surveying & Construction Management Page 35 Task 4
  • 37. INTEGRATED PROJECT BSc (Hons) in Quantity Surveying & Construction Management Page 36 4.1) Using an example of your choice, explain how interim valuations in the post contract phase were successfully implemented. Identify the difficulties faced during the process. In the post contract stage interim valuation is an important process and this valuation generally used on large project to ease the contractor cash flow. It is a detail breakdown prepared by contractor quantity surveyor and checked by consultant quantity surveyor. The main purpose is to get money required for carrying out works, it is the bill which includes the cost spent on works that are completed in construction progress. Monthly interim valuation done as accurately for interim certification. (ANON , n.d) When preparing an interim valuation as depending on the contract terms following mentioned items may be included;- Preliminaries, Works carried out, Variations, Works carried out by Nominated Sub-contractors and Nominated Suppliers, Materials on site, Materials off site (if allowed by the terms of contract), Remeasured items of works, Fluctuations, Assessed loss and expense claims (HKIS, 2014) Example Here is a sample an Interim payment certificate from a contracting company in Dubai for the large scale building project. Figure 09 - Interim valuation of building project PROJECT : New Head Office Complex, At Al Quoz Proje ct No. : 07/97 Dubai. Invoice Ref. No. ANC/078/07/97-03 CLIENT : M r. Tayeb Baker Contract Type : Remeasured CONSULTANT : Dubai Consultant. X Lump Sum CONTRACTOR : Al Nekhreh Contracting Co. LLC. Contract Value (Dhs.) : Commencement Date : Total of Variations (Dhs.) : Completion Date : Adjusted Contract Value (Dhs.) : Extended Completion Date : Amount of Performance Bond (Dhs.) : Valid Till : Issued by : DHS. DHS. Value of work done up to : 13,850,739.14 Advance Payment 0.00 Variations 0.00 Materials on site 0.00 SUB-TOTAL 13,850,739.14 13,850,739.14 DEDUCTIONS Retention (10%) On Works (1,385,073.91) Retention (25%) On Materials on site 0.00 Recovery of Advance Payment 0.00 Amount of Previous Payment Certificate No. 0.00 SUB-TOTAL (1,385,073.91) (1,385,073.91) ADDITIONS Release of Retention (10%) 1,385,073.91 SUB-TOTAL 1,385,073.91 1,385,073.91 Net Amount to be Paid This Certificate 13,850,739.14 In W ords : (Dirhams Forteen M illion Two Hundred fifty Thousand Thre Hundred seven & fils 0/20 only) Q.S. ............... G.M. ............. Date : September 30, 2001 PAYMENT APPLICATION NO. 01
  • 38. INTEGRATED PROJECT BSc (Hons) in Quantity Surveying & Construction Management Page 37 Preparing interim valuation is little complicated matter and have to face some difficulties during the process such as:-.  Price fluctuation affecting the initial budget agreed in the contract, if the current market prices increases suddenly, contractor has face the problems.  Finding difficulties taking approval for bills it takes time due consultant’s disagreement and argument on the amount  Delay in submission of interim bills due to some wrong measurements and calculation from contractor side so re-measure and re-calculate again so it take more time  Contractual claims are risky during the period contractor may forget or the unknown of how to make claims finally it him led for money losses  Inefficiency of manpower, machinery, material and money management
  • 39. INTEGRATED PROJECT BSc (Hons) in Quantity Surveying & Construction Management Page 38 4.2) Identify four different valuation methods and compare the different applications of those methods. Use examples to illustrate your answer. The valuation methods are carried out in the preliminary stages, during, and at the end of a project. There are many methods of valuing property, also each of the methods has its benefits and disadvantages. It changes depending on purposes and requirement of the property. For real estate valuation there are five methods are generally accepted and each includes the use of comparison to a lesser or greater range. Following methods are generally accepted in real estate valuation  Comparative method  Contractor's method  Investment method  Residual method  Profits method (RICS, n.d) Comparative method This valuation method is accepted and commonly used method, from this we can find out the market price of the properties. The main task is to systematically collect data on similar properties in the same location, find out the factors which influencing value and it should be evaluated against each other, both asset and transaction characteristics considered under this method. (Jordan lee & Jaffar, 2014). Example Mr. Peter is going to sell his 10 perches house which located at Havelock Street, Wellawata, Colombo - 06, using transaction characteristics method by searching datas, that indicated that four similar houses on the same terrace are sold for an amount between LKR 1,725,000.00 per perch and LKR 1,735,000.00 per perch while the end of terrace house sold for LKR 1,750,000.00 per perch. All happened within the last four months. Another search using assets characteristics method would show there were also four similar terrace houses sold on the parallel to Havelock Street for an amount between LKR 1,722,500.00 per perch and LKR 1,740,000.00 per perch. With this information, Mr. Peter can confidently assume that his house price should be no less than LKR 1,722,000.00 and could possibly fetch LKR 1,740,000.00
  • 40. INTEGRATED PROJECT BSc (Hons) in Quantity Surveying & Construction Management Page 39 Contractor’s method The contractor's method is used for some properties a like: - Public Sectors, Town Councils, Healthcare Providers, etc. which having unique and specialized purposes. Because of their unique nature which prevents them from valuing for commercial use. (De Carlon, n.d). Below mentioned equation is the basic for the contractor's method of valuation Value of Existing Property = [(Cost of Building + Cost of Site) - Depreciation and Obsolescence Allowances] (De Carlon, n.d). Example Value of Existing Property = [(Cost of Building + Cost of Site) - Depreciation and Obsolescence Allowances] = [(LKR 3, 500,000.00 + LKR 7, 500,000.00) - LKR 2, 300,000.00] = LKR 8, 700, 000.00 Investment method Investment method is commonly used by investor for estimating the investment properties which are used to produce income from sales, rents, etc. to calculate the value of the property on the current market is knowing the net income is which produced by the property. This is done combination with assessing the condition of the property for possible renovation expenses or future repair. (De Carlon, n.d). This investment method of valuation is calculated by using the yield from the property, if the higher value of the yield means return investment also higher. (Padraig Hyde & Sons, n.d) Example When there is a property in market which has requesting price of $ 300,000 and $ 700 of monthly rental income. So yield of property will be 2.8%. [($ 700 x 12) 100/$300,000 =2.8 %] (Padraig Hyde & Sons, n.d) In the market there is a property which asking for a price of LKR 3, 500,000.00 and the monthly rental income is LKR 35,000.00, therefore yield of property is calculated by below mentioned method; Yield of the property = [(LKR 35,000.00 x 12)/ LKR 3, 500,000.00] x 100 = 12 %
  • 41. INTEGRATED PROJECT BSc (Hons) in Quantity Surveying & Construction Management Page 40 Residual method Residual method of valuation is used to estimate the amount for buildings or land, which is to be developed or renovated. From the estimated amount investor can come to a conclusion that it is worth investing for or not. (ANON, 2014). Below mentioned equation is the basic for the residual method of valuation;- Value of property in its present condition = Value of completed project – Total development cost. (Padraig Hyde & Sons, n.d) To get more perfect value, it would be essential to include all expected depreciation and appreciation cost in development once finish deduct total development costs such as taxes, financing and interest cost and even the builder’s profit margin that could would permit for exact residual value of site to be obtained. (Padraig Hyde & Sons, n.d) Example There is a newly constructed property which located at Havelock Street, Wellawata, Colombo -06, estimated sale price for the property is LKR 10 million and the total building cost is LKR 8 million, from this residual value of site is calculated as LKR 2 million, say you are a property developer, if you bid above residual value of site at amount of LKR 3 million, then you are surely going to loss LKR 1 million.
  • 42. INTEGRATED PROJECT BSc (Hons) in Quantity Surveying & Construction Management Page 41 4.3) Using an example of your choice, carry out a cost-benefit analysis. Interpret the results you obtained for practical use. Cost benefit analysis (CBA) it is a perfect method for determine how action plan will turn out. Evaluation technique is comparing economic benefits with economic cost of the activity. The fundamental principle of cost benefit analysis (CBA) should provide benefit for the society greater than its cost. When several projects promise to yield positive net benefits and when all cannot be undertaken due to limited resources, the project that creates the greatest net benefit to the society should be selected (ANON, n.d) Example There is a two house projects shown below names as X and Y to carry out cost benefit analysis for this projects which based on comparison of cash flow. Assumption (1LKR: 2,500 LKR) House X Year 0 1 2 3 4 5 6 7 Total cash inflow (LKR) 150 200 260 330 370 385 420 430 Total cash out flow (LKR) 115 130 155 190 210 205 225 235 Net cash flow (LKR) 35 70 105 130 160 180 195 200 Table 07- Net cash flow for house X House Y Year 0 1 2 3 4 5 6 7 Total cash inflow (LKR) 40 90 145 200 270 380 490 630 Total cash out flow (LKR) 55 85 120 145 180 240 260 280 Net cash flow (LKR) -15 5 25 55 90 140 230 350 Table 08- Net cash flow for house Y
  • 43. INTEGRATED PROJECT BSc (Hons) in Quantity Surveying & Construction Management Page 42 Figure 10 – Time versus Net cash flow chart From this graph if we considering the house projects, house X is better than house Y it get the benefit fast in first 5 years but it change after 5th year and house Y in the early stage less profit in 5 years and suddenly it increase after 5th year. So these X and Y house projects are good and we can get benefits as per this analysis. If house X also can be selected they require benefit in the beginning, same as House Y also be selected if they can adjust less profit in the beginning and can get greater profit after 5 years. Finally it is depends on their requirement and their decision to choose. -50 0 50 100 150 200 250 300 350 400 0 1 2 3 4 5 6 7 NETCASHFLOW(LKR) YEAR Net cash flow of X Net cash flow of Y
  • 44. INTEGRATED PROJECT BSc (Hons) in Quantity Surveying & Construction Management Page 43 4.4) Using an example of your choice, explain how income and expenditure curves (particularly the S-curve) help contractors control the project cost. You are required to illustrate how a contractor can forecast cost implications with the use of S-Curve. The S-curve is a powerful project management control tool. It provides wide-ranging evaluation and shows a clear image of a project process and its development. It is use for observing a project process through known project phases and to monitor stages of each phase, and also it shows the resources connections in term of different variables which are scaled as percentages (% costs) in relation to the time variable, this relationships draw the future path to meet the project objectives and the final target goal, There are many different kinds of S-curves which are used for project management applications, such as: - Actual S-curve, Baseline S- curve, , Target S-curve, Man Hours versus Time S-curve, Costs versus Time S-curve ,Value and Percentage S-curves. Therefore analyses of S-curves allow project managers to easily recognize project growth, slippage, and potential problems which would impact the project. Figure 11 – S-curve (Time versus Cost) As per the above mentioned example, S-curve indicate that the project is behind the schedule and over cost at the point of T1. At the point T1 we can clearly identify that actual cost work performed (ACWP) is greater than budgeted cost of work performed (BCWP), therefore Cost Variance (CV) is unfavorable for the contractor, and also we can identify that budgeted cost of work scheduled (BCWS) is greater than budgeted cost of work performed (BCWP) therefore Schedule Variance (SV) is unfavorable for the contractor. From these we can understand there is an impact on cash flow. If we considering cost variance (CV) it is unfavorable for the contractors, it may happen by the price fluctuation or wastage of resources or variations or over expenses or fast working process. If the price fluctuation and variation occurred during the project period the contractor can claim those extra money of actual expenditure but the additional money is lesser than the actual expenditure finally the contractor have to face the financial problem. (For an example:-for a project budgeted cost for an activity is 4 million USD
  • 45. INTEGRATED PROJECT BSc (Hons) in Quantity Surveying & Construction Management Page 44 and Actual Cost is 7 million USD but variation is 1 million USD so contractors put 2 Million USD from his pocket. It will lead him to financial problems). If we considering schedule variance (SV) it is also unfavorable for the contractor. It may happen delay in manpower, machineries and materials there will be chance for low workmanship &quality, because time delay contractor have pay the penalty at end he have to face the problems and losses Conclusion From the S-curve analysis contractor can forecast the cost implication and he can understand how much cost in future, and he can control cost effectively for the project. So he can control cost of the project by employing skill labours and staffs with efficient knowledge in management and supervision, reducing the wastage, etc. finally when the contractor did proper forecasting cost implication and proper cost control are finished throughout whole project with the help of S-curve he can get much benefits at completion of project.
  • 46. INTEGRATED PROJECT BSc (Hons) in Quantity Surveying & Construction Management Page 45 REFERENCES Task 1 - References 1. LEED, (2009). Score card [Online]. Last accessed 17 May 2014 at: http://leadingleed.com/wp-content/uploads/2011/05/LEED-SCORECARD.png 2. Disna Mudalige, (2012). Green rating system introduced in SL [Online]. Last accessed 18 May 2014 at: http://archives.dailynews.lk/2012/01/17/fea03.asp 3. Green building council of Sri Lanka, (2012). About Green Building Council of Sri Lanka (GBCSL) [Online]. Last accessed 18 May 2014 at: http://srilankagbc.org/about_gbcsl.php 4. Green Building Council of SriLanka. (2012). Green building rating system for built environment. [Online]. Last accessed 19 May 2014at: http://srilankagbc.org/applications/self_assesment_built.pdf 5. USGBC, (2012). About LEED [Online]. Last accessed 19 May 2014 at: http://www.usgbc.org/articles/about-leed 6. Building green, (n.d). What is a Green Building? [Online]. Last accessed 19 May 2014 at: http://buildgreen.co.nz/definition.html 7. NRDC, (n.d). LEED Certification Information [Online]. Last accessed 19 May 2014 at: https://www.nrdc.org/buildinggreen/leed.asp 8. Energy, (2014). How Hybrids Work [Online]. Last accessed 20 May 2014 at: http://www.fueleconomy.gov/feg/hybridtech.shtml 9. Chris Baskind, (2010). 5 ways you can reduce light pollution [Online]. Last accessed 20 May 2014 at: http://www.mnn.com/your-home/remodeling-design/stories/5-ways- you-can-reduce-light-pollution 10. Sri Lanka Sustainable Energy Authority, (2010). Save energy now [Online]. Last accessed 20 May 2014 at: http://www.energy.gov.lk/sub_pgs/save_energy.html 11. Green Space International (n.d). Natural Refrigerants: The Solutions [Online]. Last accessed 20 May 2014 at: http://www.greenpeace.org/international/Global/international/planet- 2/report/2009/5/natural-refigerants.pdf
  • 47. INTEGRATED PROJECT BSc (Hons) in Quantity Surveying & Construction Management Page 46 Task 2 - References 1. Ministry of Defense, (2014). Metro Colombo Urban Development Project [Online]. Last accessed Last accessed 21 May 2014 at: http://defence.lk/news/pdf/Colombo_to_be_transformed_01.pdf 2. ZKI, (2010). Colombo District Flood Map [Online]. Last accessed Last accessed 21 May 2014 at: http://www.zki.dlr.de/system/files/media/filefield/map/low/DLR_20100522_srilanka_ flood_detail_map3_low.jpg 3. World weather online, (2014). Colombo Monthly Climate Average, Sri Lanka [Online]. Last accessed Last accessed 22 May 2014 at: http://www.worldweatheronline.com/Colombo-weather-averages/Western/LK.aspx 4. James A. LaGro Jr, (n.d). Site analysis. [Online]. Last accessed 22 May 2014 at: http://books.google.lk/books?id=F0PNMKek- 1AC&printsec=frontcover#v=onepage&q&f=fals Task 3 - References 1. Kohwee Liang, (2003). Cost control in construction project of the site. [Online]. Last accessed 23 May 2014 at: http://www.efka.utm.my/thesis/images/3PSM/2005/1JSB/P- Part%201/kohweeliangaa000217d05ttt.pdf 2. ANON (n.d). Cost Control, Monitoring and Accounting. [Online]. Last accessed 26 May 2014 at: http://pmbook.ce.cmu.edu/12_Cost_Control,_Monitoring,_and_Accounting.html 3. Ashworth, Allan (2010). Cost Studies of Buildings. 5 ed., Prentice Hall. 4. Otim, Nakacwa and Kyakula, (n.d). Cost Control Techniques Used On Building Construction Sites in Uganda [Online]. Last accessed 23 May 2014 at: http://news.mak.ac.ug/documents/Makfiles/aet2011/Otim-2.pdf Task 4 - References 1. David Garland, (n.d). Using S-curves [Online]. Last accessed 25 May 2014 at: http://www.maxwideman.com/guests/s-curve/using.htm 2. Mai Tawfeq, (2011). What is the S-Curve, and how do calculate the work progress [Online]. Last accessed 25 May 2014 at: http://www.planningplanet.com/forums/planning-scheduling-programming- discussion/502846/what-s-curve-and-how-do-calculate-work-prog 3. David Garland, (n.d). Progress S-curves (output) [Online]. Last accessed 25 May 2014 at: http://www.maxwideman.com/papers/resource/s-curves.htm
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