Investment, Procurement and Performance in Construction: The First National RICS Research Conference

Book Cover......Page 1
Half-Title......Page 2
Title......Page 4
Copyright......Page 5
Contents......Page 6
Preface......Page 9
Part One Investment......Page 11
Finance......Page 12
1 Introduction......Page 13
2.1 Listed property companies......Page 14
2.2 Exempt property unit trusts......Page 15
2.3 Authorised property unit trusts (APUTS)......Page 16
2.6 Convertible mortgages and participating mortgages......Page 17
3. Valuation differences......Page 18
4. Implications for property investment vehicles......Page 19
5. Conclusion......Page 21
6 References......Page 22
1 Introduction......Page 24
3 Eurobonds......Page 26
5 Private Placements......Page 27
7 Preference Shares......Page 28
9 Quasi Equity/Convertible Mortgages......Page 29
10 Summary......Page 30
Appendix A......Page 31
Evaluation......Page 33
1.1 Portfolio Strategies......Page 34
1.3 Data Availability......Page 35
1.4 Valuation Based Indices......Page 36
1.5 Other Data Limitations......Page 37
2.2 Fund Structure......Page 38
2.3 Measures of Performance......Page 40
2.4 Volatility of Returns......Page 42
2.6 Capital & Income Contributions......Page 45
2.7 Sources of Capital Growth......Page 46
2.8 Impact of Transactions & Developments......Page 48
2.9 Contributions of Sector Weighting to Fund Relative Return......Page 50
2.10 Simulation Techniques......Page 51
1 Introduction......Page 53
2 Valuations and Prices......Page 54
3 Selection and Sampling......Page 56
3.2 Weighting......Page 58
3.3 Averaging......Page 59
4.0 Other Methods of Calculation......Page 60
5.0 Smoothing......Page 61
6.0 Assessing Investment Advice......Page 63
7.0 Conclusions......Page 65
1.1 Implicit forecasting in the property market......Page 66
2 Principles of forecasting......Page 69
2.1 Theory-based connections to real world processes active at the relevant spatial scale......Page 70
2.3 The trust placed in modelled forecasts......Page 71
3.1 Currently available forecasting services......Page 72
3.2 Evaluation of current forecasting services......Page 73
4 The need for local area forecasting......Page 74
5 Conceptual and practical problems for local property market forecasting......Page 75
7 Reference......Page 77
Risk......Page 78
2. Context......Page 79
3.1 Risk in general......Page 80
3.3 Explicit techniques......Page 81
3.4 Probability analyses......Page 82
4.1 Surveys of practice......Page 83
4.2 Risk perception and measurement by practitioners......Page 84
5. Conclusions......Page 85
6. References......Page 87
1 Introduction......Page 88
4 Modern Portfolio Theory......Page 89
5 Indifference curves......Page 91
6 Practical applications......Page 92
7 The Capital Asset Pricing Model (CAPM)......Page 94
7.2 Risk and return......Page 95
9 Security Market Line......Page 96
10 Pricing......Page 97
11 Single index models and multi-index models......Page 98
12.2 Liabilities......Page 99
14 References......Page 100
1.1 Objectives......Page 101
1.2 The UK institutions......Page 102
2.1 Objectives and background......Page 103
2.2 Pension funds......Page 104
2.3 Insurance companies......Page 105
2.6.1 Introduction......Page 107
Institutions and property development......Page 108
Problems associated with institutional property development......Page 109
2.7 A survey of UK institutions......Page 110
2.7.4 Property shares......Page 111
2.8 The asset allocation process......Page 112
2.9.3 Liability matching......Page 113
2.9.6 Asset class size......Page 114
3.1.1 Introduction......Page 115
3.1.3 Correlations of returns......Page 116
3.1.4 Future correlations......Page 118
3.1.5 Conclusions......Page 119
3.2.1 Introduction......Page 120
3.2.3 Duration......Page 121
3.2.5 Which institutions are concerned about duration?......Page 122
Inflation and total returns......Page 124
Inflation and rent review periods......Page 125
General insurance......Page 126
3.3.2 The impact of performance measurement on asset allocation......Page 127
3.3.4 The identification of the benchmark......Page 128
Measurement method......Page 129
Fund size and type......Page 130
Mature pension funds......Page 131
3.4 Conclusions......Page 132
4.2 The case for real estate......Page 134
4.3 The case for non-domestic real estate......Page 135
4.6 Risk......Page 137
4.7 Correlations......Page 138
4.8 Liabilities......Page 139
4.10.2 Education......Page 140
4.11.2 Lack of local market knowledge......Page 141
4.11.5 Specific risk in local real estate markets......Page 142
4.12.2 European trading partners......Page 143
4.12.3 The Single European Act......Page 144
4.12.4 The impact of the single market......Page 145
4.12.6 Global business and occupier demand......Page 146
4.13 Conclusions......Page 147
5.2 Trends for the 1990’s......Page 148
5.4.1 Introduction......Page 149
5.5 Where will the equity come from?......Page 150
5.6.1 The attractions of global property......Page 151
5.6.2 The problems of global property......Page 152
References......Page 153
Part Two Procurement and Construction......Page 154
Information Technology......Page 155
1 Introduction......Page 156
2.2 The two dimensional trap......Page 157
2.3 Modelling the product not the process......Page 159
3.1 General......Page 160
3.2 Use by architects......Page 161
3.3 Use by structural engineers......Page 163
3.5 Use by constructors......Page 165
3.6 Integration......Page 168
3.7 Convergence of technology......Page 169
4.2 Developing the expert systems theme......Page 170
4.3 Areas of research and development......Page 171
5.2 A mechanism to simulate construction......Page 172
5.4 Intelligent interrogation of CAD......Page 173
7 Conclusions......Page 174
8 References......Page 175
1 Introduction......Page 176
2 Mechanistic Nature......Page 177
3 Black Box Nature......Page 178
4 Value Assessment......Page 179
5 Risk Assessment: Aversion or Seeking?......Page 180
7 Expert Systems......Page 181
8 Nature of Expert Systems......Page 182
9 Nature of Problem Solving......Page 183
10 Expert Systems Domains......Page 185
11 Property and Construction Applications......Page 187
12 Problems and Limitations of Expert Systems......Page 188
13 An Example......Page 189
14 Future Developments......Page 191
15 REFERENCES......Page 193
MULTI-MEDIA INFORMING TECHNOLOGIES TO SUPPORT BUILDING DESIGN AND CONSTRUCTION PROFESSIONALS......Page 196
1 Context......Page 197
2 The Role of Informing Technology......Page 198
3.1 Talking to the System—Voice Recognition......Page 200
3.2 Networking to Enhance Communication and Knowledge Base......Page 201
3.4 Optical Disc Storage......Page 204
4 Conclusions—Management Responsibility for Implementation of IT......Page 209
6 References......Page 210
Management......Page 212
2 Definition and scope......Page 213
2.2 Scope......Page 214
3.1 First Principles......Page 216
4.1 The Construction Industry as an Economic Regulator......Page 217
4.2 The Emergence of the Joint Venture Vehicle......Page 219
4.3 Globalisation of Property and Construction......Page 220
5.1 Re-positioning by the Players......Page 221
5.2 The Great god “Consumerism”......Page 222
5.3 Client Preferences......Page 223
6 Other Procurement Issues......Page 224
6.2 Design and Build......Page 225
6.3 Risk—Its Management and Transference......Page 226
7 Suggestions for Further Action......Page 227
7.3 Whither the Public Sector—Meeting the Gap......Page 228
7.4 Base Education......Page 230
1 Introduction......Page 231
2 The Construction Management Forum......Page 232
3 Construction Management as a method of procurement......Page 233
4 Implications for the future......Page 235
5 Conclusion......Page 236
6 References......Page 237
1 The Construction Industry......Page 238
2 Management Decisions......Page 240
3 Planning and Control......Page 243
4 Time—Activity and Project Durations......Page 244
5 Characteristics of Construction Costs......Page 245
6 The Time Cost Relationship......Page 246
7 Construction Management—A New Profession......Page 248
8 Responsibilities of Construction Management......Page 249
9 Construction Managers Liability......Page 250
Evaluation......Page 252
1 Introduction......Page 253
2.1 Activity list......Page 255
2.3 Response list......Page 256
2.4 Secondary risks and responses......Page 257
3.2 Minor and major risks......Page 258
3.4 Simple and complex decisions......Page 259
4.2 Quantification of uncertainty......Page 260
5 Interpretation of Results......Page 261
5.1 Risk efficiency......Page 262
5.3 Distinguishing different types of estimates......Page 263
5.6 Clarifying “the big picture”......Page 264
6 Conclusion......Page 265
8 References......Page 266
1 Introduction......Page 268
2 Design economics......Page 269
3 A general model......Page 270
4.3 ‘Process’ based methods......Page 272
4.5 Rate generation......Page 273
5 Quality of estimates......Page 274
6 Reliability......Page 277
7 Automatic estimating systems......Page 278
8 Conclusion......Page 279
9 References......Page 280
Part Three Building Performance......Page 282
Evaluation......Page 283
1 Introduction......Page 284
2 Why Facilities Management?......Page 286
3 Growth of Facilities Management Internationally......Page 287
4 The Scope of Facilities Management......Page 288
5 The Scope of Data Required for Facilities Management......Page 289
6 Property Management in County Authorities......Page 291
8 References......Page 293
1 Introduction......Page 294
2 Building Maintenance Defined......Page 295
3 The Maintenance Policy......Page 296
3.1 Time Frame......Page 297
3.2 Objectives......Page 298
Problems with existing buildings......Page 300
3.3 Costs......Page 301
4.1 Establishment of Priorities......Page 303
4.3 Planning......Page 304
5 Conclusions......Page 305
6 References......Page 306
1 Environmental Considerations......Page 307
3 Defining Environment......Page 308
4 Health Impact......Page 309
6 BREEAM......Page 310
8 Site Contamination......Page 311
10 Suitability of Context......Page 312
12 Liability and Legislation......Page 313
14 Eco-Labelling for Products......Page 314
15 Climatic Processes......Page 315
16 Research......Page 316
17 Conclusions......Page 317
Information Technology......Page 319
1 Introduction......Page 320
2 Interactive video and surrogate travel......Page 321
3 The ROBUST advice system......Page 322
4 Exploiting visual interactive models......Page 323
6 The surveyor as a problem solver......Page 324
7 Computer based advice......Page 325
References......Page 327
1 Introduction......Page 329
3.1 The origins of home systems......Page 330
3.3 Subsystems, energy, telecoms and commercial systems......Page 331
3.4 Intelligent homes in Japan and the US......Page 332
3.5 European initiatives......Page 333
4.2 Housebuilders......Page 334
4.4 Image......Page 335
5 Conclusion......Page 336
6 References......Page 337
1 Introduction......Page 338
2 Intelligent building technologies......Page 339
2.2 Office automation......Page 340
2.4 The need for standards......Page 341
4 Construction......Page 342
4.2 The need for new skills......Page 343
References......Page 344
1 Introduction......Page 345
2.1 The problems of automation......Page 346
2.2 The benefits of automation......Page 347
2.4 Portable data collection devices......Page 348
3.1 Housebuyers reports and valuations......Page 349
3.3 Mass condition surveys......Page 350
3.4 Measured surveys......Page 351
4.1 Definitions......Page 352
4.2 Principal advantages of computer aided drafting......Page 353
4.4 Drawing quality......Page 354
4.6 Automation......Page 355
4.8 Surface rendering......Page 356
5.3 Cad techniques for existing buildings......Page 357
5.6 Accurisation......Page 358
7 References......Page 359
Technology......Page 360
1 Introduction......Page 361
2.1 Non-project information......Page 362
2.2 Project information......Page 364
3 The role of BRE in providing and doing research into technical information......Page 365
4 The future for construction information......Page 366
6 References......Page 367
1 Introduction......Page 369
4 The Envelope: Roofs......Page 371
4 The Envelope: Walls......Page 372
5 Engineering Systems......Page 373
7 Image......Page 374
1 Introduction......Page 377
3 Naturally Occurring Ground Problems......Page 378
4 Chemical Contamination......Page 379
5 Mineral Activity, past, present and future......Page 381
6 Sources of Information......Page 382
Reclamation—Modes and Philosophies......Page 383
Conclusions......Page 385
Index......Page 386