Saturday, 2 August 2014

Week 8: Property Economic and Valuation

There are two ways to appraise the cash flow; Traditional Methods and Modern Methods. It is important to carry out before commencing of construction works because 'Quantitative Data' is provided to help in decision making; whether to invest on this project. 

Traditional methods are including payback period and the Average Annual Percentage Rate of Return (AA%RR). Modern methods are including Discounted Cash Flow (DCF), Net Present Value (NPV), and Internal Rate of return (IRR).
(source: Society for economic research and management, 2013)

I have learnt and apply in my assessment. In order to determine the profit and benefit made by developing the property, appropriate assumption on capital invested and income are made in the development plan.

In short, the way of calculation is easy and simple, it is helpful in the future; where I work on feasibility study for a development project or I invest for a property for myself. Other than this, I will also learn the modern method: Discounted cash flow to improve myself. 


Reference:
Society for economic research and management (2013) Theory of management [online]. Available from: http://quantri.vn/dict/details/268-thoi-gian-hoan-von-du-an-pp--payback-period [Accessed 21 July 2014]

Friday, 18 July 2014

Week 7: Risk Management

Cannot be denied, there must be risks while planning, constructing development. We have been taught by San Liew on few steps taken on risk management:
  • Risk identification
  • Analyse how the risks possible to happen and how serious can it be
  • Risk handling: Receive, Transfer, Reduce, Quit
  • Risk prevention / mitigation
I have learnt how to analyse the risks and I have used it in module assessment. One of the examples given is flood risk:

Risk Identification
First of all, identify the possible risk happened. flood is considered happened in low possibility because it happened once in 10 years ago; 

Risk Analyse and impact
it might be happened due to the water level in river raising, or the rainfall increase suddenly. If flood really happened, the completed building will be damaged. It can be more serious, disease and illness may be happened. So, it is considered as High impact. Although it is low in happening possibility, but if it really happened, it brings high effects.

Risk Prevention 
There are two ways to overcome this issue:
  • Risk Transfer to insurance company - Insurance pay the damage.
  • Risk Avoidance - Deeper trench / river / drain to mitigate the happening of flood.
Another common risk always happened in construction work is cash flow problem. According to RICS, the cash flow problem come from mismatch of cash flow forecast in the case of unexpected situation for example effects of inflation, variation and so on (RICS, 2012). Therefore, cash flow forecasting shall make allowance for risk spend, variation, provisional sums to avoid the risk of bankruptcy or abandonment of project.


Risk management is useful no matter now or future; assessment or other sector. It is because human cannot 100% expected the risks happened and the effect of it. The only thing can be done is prevent and reduce it happened. By managing them properly, I can prepare and take action on it if really happened.

Reference:
RICS (2012) Cash flow forecasting [online]. Available from http://www.joinricsineurope.eu/uploads/files/Part2RICSCashflowforecastingglobalBlackBook.pdf [Accessed 2 August 2014].

Week 6: Sustainable development

All sustainable development and its planning system is required to meet the following:
  • Economic
  • Ecological or environmental
  • Neighborhood and communities
  • Movement and inclusion
  • Quality of design and construction
(source: The sustainable leader, 2014)

Local economy can be enhanced through the success development where increase the local employment rate. Ecological or environmental here is referring to the contaminants, pollution etc. Good impact will be brought by the sustainable development to neighborhood and communities  Lastly, elevators and ramps will be provided for disabled in sustainable development. Sustainable development will consider on safety of environment. 

During site investigation, I found that the existing building is lack of ramp and elevator for disabled. In order to turn it become more sustainable, escalator is designed in the college. Then, the existing project site can be accessed easily by walking where reduce pollution. Being more sustainable, college will be designed with more windows to accept natural ventilation and lighting, save the electricity.

Reference:
The sustainable leader (2014) Sustainable Development [online]. Available from: http://www.thesustainableleader.org/sustainable-development/ [Accessed 23 July 2014]

Week 5: SWOT and PESTLE

We have been taught on SWOT and PESTLE on this week. It helps in analysing the Matilda Street project site.

(source: dreamstime, 2000)

The SWOT analysis is important to help us analysis the strength, weakness, threat and opportunity of the proposed development. 

(source: Slideworld, 2014)

Survey on the city and area of the construction area is required in the beginning of the development. PESTLE can help on analyse the economic, political, social, legislative, environment and technology of Matilda Street and Sheffield. 

I found that SWOT and PESTLE analysis is useful in deciding the type of development. I am using SWOT analysis in developing college on Matilda Street. As comparison between partnering college and gym. Partnering college brings more strength as it creates win-win situation, and nearby the student accommodation. It just require 2 min to get to college, sustainable is reflected in terms of low pollution. Meanwhile, I am using PESTLE to analyse the living life and their needs in Sheffield.

Both methods can help us complete the task faster. It seems brainstorming on pointing out the key points which very useful in completing the future task. 

Reference:
Dreamstime (2000) SWOT [online]. Available from: http://www.dreamstime.com/photos-images/swot.html [Accessed 1 August 2014]

Slideworld (2014) Pest analysis powerpoint template powerpoint template #08572 [online]. Available from: http://www.slideworld.com/ppt_templates/Download-charts-and-diagrams.aspx/Pest-Analysis-Powerpoint-Template-8572 [Accessed 1 Auguest 2014]

Thursday, 26 June 2014

Week 4: Planning Permission

Planning permission can help the developer to decide what to build and what illegal to be built on the site. It was difficult for me to imagine its prior during lecture.

However, it turned clear and simple while carried out small task during seminar. We have been taught on the ways of using ‘City Council Sheffield' website with a sample - Sheaf Square. It works same in the assessment - Matilda Street. 

(Source: Sheffield City Council 2013)

According to Sheffield City Council (2013), the existing project site is under conservation - CIQ area. Trees may be protected in conservation area from being cut down. Therefore, planning permission is required to get approval for every development taken part in Conservation Area. 

Besides, the project site is categorized in yellow colour which means “Flexible Use Area”. Factory and industry is not allowed to be developed, whereas shops, restaurants, office, residential are permitted to build.

By considering elements above and week 2, an idea of partnering between University Technology College (UTC) and SHU is chosen. In short, Sheffield Hallam University (SHU) is advised to rent them the building for lecture and tutorial purpose. Then, SHU can collect extra rental cost and UTC has more space to give education; earn more money. It is a win-win scenario.

Reference:
Sheffield City Council (2013) City Policies and Sites (Pre-Submission) [online]. Available from: http://sheffield-consult.limehouse.co.uk/portal/sdfcps/presub-cps/city_policies_and_sites_pre-submission?pointId=2528514#document-2528514 [Accessed 20 July 2014].

Thursday, 19 June 2014

Week 3: Construction Technical issues

We have been lectured on site analysis and location analysis. A building proposed or constructed shall consider many causes and resources. There is only few listed following:

-Old maps & usage: I found that Matilda Street area is used to be an industrial area but now mostly focus on business purpose.

-Condition of existing building, topography, rules, size etc.: determine the ways of construction; demolition or refurbishment. During the site visit, I found some crack lines, minor defects in ground and first floor; rectification works will be taken into account. Meanwhile, I found that the second floor condition is worst! As a Quantity Surveyor, I will allow more cost in renovation and refurbishment. 


-Potential risk: I found that flood was happened in Sheffield 10 years ago. It might be happened in the project site because river is nearby the site. The impacts of flood is causing damage on building, illness and sick. As I am Quantity Surveyor, I will study on annual rainfall and allow cost in Preliminaries to prevent it happened. Besides, the Engineer and Contractor shall responsible in deeper the trench, river and drain to prevent it happened. In the case of unfortunately, the risk can be transferred to insurance company to pay damages. 







Tuesday, 10 June 2014

Week 2: Site Visit

The site is located at Matilda Street where nearby the city center. Spend 9 mins if walk from Victoria Hall, whereas 5 mins from SHU. 

Short briefing and instruments has been given. Our group has been distributed into small group by our own in order to complete our task faster. I am responsible in recording the data after the results shown. The picture taken has been posted in Padlet Wall (http://padlet.com/wall/nb5cfhwq4va1).


However, our team are lack of time on measurement due to not preparing well. In order to work efficient and effective, site layout posted in SHUBlackboard shall be downloaded one day before. By using the printed layout, dimension can be inserted directly. 

Besides, amenities surrounding is necessary to be investigated, it helps in completing the module assignment. Key consideration like topography, location analysis, condition of existing building, size and shape has to be studied on to determine the most suitable type of development constructed. 

Week 1: Blog and Padlet Wall

On week 1, we have been taught the useful of Blog and Padlet Wall. The purpose of having them is sharing information on and reflective on what I have learnt in this module. To be honest, I seldom use this kind of tools due to my laziness to organise. However, I found that Blog can be interesting and helpful in calling back our memories. 

Blog is act as a platform where we can upload pictures, information, videos easily. As refer back to those information posted, a brainstorming on what have been done will be recorded. In my opinion, it brings advantages like sharing useful knowledge to others; recorded my mistakes and prevent it happened in the future.