21002034-4 - APPRAISAL AND ECONOMIC EVALUATION

The design studio’s goals for the building construction design are to increase the students awareness of the complex transformation process of an architectural idea in a real building. The student competence to create coherence regarding content and design subject is our main aims.

Canali

teacher profile | teaching materials

Programme

The Course of Real Estate Evaluation (REE) will be developed in parallel with the Course of Urban Markets and Real Estate Operators (UM&REO), of which, although it is not to be considered a constraint, the frequency is recommended. The context in which costs and prices of architecture are formed as a market product will be studied in depth during the UM&REO’s Course. In consideration of the specificity of the REE’s Course - specialist contribution to the work of Architectural Design Laboratories 2M - the contents of can be summarized as follows.
The Course is structured in four main conceptual sections:
i. The first section – Understanding the Project Development Process – simply explains the stages in the project development cycle, and the roles of the key players in the construction process.
ii. The second section – Initial Project Costs and Cost Varying Factors – explains the main elements in the initial cost estimate for a project as well as reviewing some of the many factors which lead to changes to the original estimate.
iii. The third section – Methods of Controlling Costs – discusses the way in which cost and time control of infrastructure projects can be improved by risk management and more realistic estimation of contingency budgets.
iv. The final section – An Approach to Cost Appraisal and Monitoring – provides a step-by-step guide to improved monitoring of the costs of architectural projects.
The first section – Understanding the Project Development Process – simply explains the stages in the project development cycle, and the roles of the key players in the construction process. The second section – Initial Project Costs and Cost Varying Factors – explains the main elements in the initial cost estimate for a project as well as reviewing some of the many factors which lead to changes to the original estimate. The third section – Methods of Controlling Costs – discusses the way in which cost and time control of architectural projects can be improved by risk management and more realistic estimation of contingency budgets. The final section – An Approach to Cost Appraisal and Monitoring – provides to the students a step-by-step guide to improved monitoring of the costs of the project developed inside the Laboratory.
In parallel with the in-depth analysis related to the formation of intervention costs, elements useful for estimating the real estate value of the designed works will be provided. With this second data family we will proceed with the development of the economic and financial feasibility study, verifying the plausibility and sustainability of the project in the market conditions characteristic of the time and place in which it takes shape.


Core Documentation

Main References:
L. Gaeta, Il mercato immobiliare. Beni, diritti, valori, Carocci, 2009.
D.C. Ling, W.R. Archer, Real Estate Principles. A value approach, Mcgraw-Hill/Irwin, 2008 (chapters 1, 2, 6-9, 17, 18, 24).
M. Grillenzoni, G. Grittani, Estimo, Edizioni Agricole, 1990, (o altro manuale di estimo, di livello universitario, a scelta dello studente).
Collegio Ingegneri Architetti Milano, Prezzi Tipologie Edilizie, DEI, 2010.
A. Bassi, Costi per tipologie edilizie, Maggioli Editore, 2011.

Reference Bibliography

General References: Gastone Ave, Città e strategie. Urbanistica e rigenerazione economica delle città, Maggioli editore, 2004. Fausto Curti, Lo scambio leale. Negoziazione urbanistica e offerta privata di spazi e servizi pubblici, Officina, 2006. Carlo Alberini, Urbanistica e real estate. Il ruolo della finanza nei processi di trasformazione urbana, Franco Angeli, 2010.

Type of delivery of the course

Since from the first lessons, examples of the exam paper are shown (and delivered) to the participants of the Estimo course. Taken from the works of previous years, the examples are used above all to clarify, right from the start, what the conceptual frame is within which to give meaning and concrete purpose to the concepts, methods and tools presented and discussed at the Course. Concepts and references, stories and references to current events, even when not explicitly stated as such, are always to be considered contributions to the progressive and revocable formation of knowledge for action. Along with the technical contents of the project, during the semester, in the three Laboratories are also formed, with an overall outcome of conceptual and operational clarification, also the layers of meaning of which the architectural project is allegory. Even before the methods and tools, the research questions are subjected to peculiar declinations. The contents of the project - distinguished for the three Laboratories - modify the systems of action, the number and nature of the relevant actors, the interests mobilized, the presumable impacts on the pre-existing economic and social geography of the urban space in which the intervention takes place, the models of production of value, the criteria for the re-distribution of the generated income. Given this background of meaning, the student is accompanied in the development of the revenue cost analysis of the project being developed within the three Laboratories, differentiated according to the thematic specificity of each Laboratory. This happens through the integration between frontal lessons and application exercises on the project being developed. The aim is to give the student, through a learning by doing approach, the awareness of the economy as a project material, in constant co-evolution with the other project contents. In particular, it is highlighted how the cash flow plan (cash flow - CF) forecast, fundamental tool of the ACR, exclusively considers the revenues and monetary expenses that derive from the management of the investment project, highlighting the capacity of the initiative to support the planned exits and the existence of monetary balance in relation to both the construction and management phases. Outcome of the work is a Report in which the student must demonstrate that he has understood not just the basic concepts (what are the indicators of profitability of a project, for example), the functioning and use of the ecofin assessment models or not. the use of price lists for the purpose of calculating the estimated costs. The real theme to be developed is the cogency of the quantitative analysis with respect to the measurement and distribution of the wealth generated by each project. The questions to which the Report must give an adequate answer are: who is inside and who is outside the project, understood as a collective system of action? Within what contractual framework the actors - those "inside" the project! - do they meet and therefore have "exchanges" between them, economic but not only? Who pays? Who earns? How much? With what level of satisfaction with respect to expectations, data for known market benchmarks? And finally, given all this and considered, is the project feasible or not?

Attendance

Attendance is required for at least 75% of the lessons

Type of evaluation

Learning assessment procedures Oral examination on the bibliography and lessons. The general economic and financial feasibility study will be conducted on the Laboratory project, making use of the course general and specific bibliography.

teacher profile | teaching materials

Mutuazione: 21002034-4 ESTIMO in Architettura - Progettazione architettonica LM-4 CANALE I NIGRIS ENRICO

Programme

The Course of Real Estate Evaluation (REE) will be developed in parallel with the Course of Urban Markets and Real Estate Operators (UM&REO), of which, although it is not to be considered a constraint, the frequency is recommended. The context in which costs and prices of architecture are formed as a market product will be studied in depth during the UM&REO’s Course. In consideration of the specificity of the REE’s Course - specialist contribution to the work of Architectural Design Laboratories 2M - the contents of can be summarized as follows.
The Course is structured in four main conceptual sections:
i. The first section – Understanding the Project Development Process – simply explains the stages in the project development cycle, and the roles of the key players in the construction process.
ii. The second section – Initial Project Costs and Cost Varying Factors – explains the main elements in the initial cost estimate for a project as well as reviewing some of the many factors which lead to changes to the original estimate.
iii. The third section – Methods of Controlling Costs – discusses the way in which cost and time control of infrastructure projects can be improved by risk management and more realistic estimation of contingency budgets.
iv. The final section – An Approach to Cost Appraisal and Monitoring – provides a step-by-step guide to improved monitoring of the costs of architectural projects.
The first section – Understanding the Project Development Process – simply explains the stages in the project development cycle, and the roles of the key players in the construction process. The second section – Initial Project Costs and Cost Varying Factors – explains the main elements in the initial cost estimate for a project as well as reviewing some of the many factors which lead to changes to the original estimate. The third section – Methods of Controlling Costs – discusses the way in which cost and time control of architectural projects can be improved by risk management and more realistic estimation of contingency budgets. The final section – An Approach to Cost Appraisal and Monitoring – provides to the students a step-by-step guide to improved monitoring of the costs of the project developed inside the Laboratory.
In parallel with the in-depth analysis related to the formation of intervention costs, elements useful for estimating the real estate value of the designed works will be provided. With this second data family we will proceed with the development of the economic and financial feasibility study, verifying the plausibility and sustainability of the project in the market conditions characteristic of the time and place in which it takes shape.


Core Documentation

Main References:
L. Gaeta, Il mercato immobiliare. Beni, diritti, valori, Carocci, 2009.
D.C. Ling, W.R. Archer, Real Estate Principles. A value approach, Mcgraw-Hill/Irwin, 2008 (chapters 1, 2, 6-9, 17, 18, 24).
M. Grillenzoni, G. Grittani, Estimo, Edizioni Agricole, 1990, (o altro manuale di estimo, di livello universitario, a scelta dello studente).
Collegio Ingegneri Architetti Milano, Prezzi Tipologie Edilizie, DEI, 2010.
A. Bassi, Costi per tipologie edilizie, Maggioli Editore, 2011.

Reference Bibliography

General References: Gastone Ave, Città e strategie. Urbanistica e rigenerazione economica delle città, Maggioli editore, 2004. Fausto Curti, Lo scambio leale. Negoziazione urbanistica e offerta privata di spazi e servizi pubblici, Officina, 2006. Carlo Alberini, Urbanistica e real estate. Il ruolo della finanza nei processi di trasformazione urbana, Franco Angeli, 2010.

Type of delivery of the course

Since from the first lessons, examples of the exam paper are shown (and delivered) to the participants of the Estimo course. Taken from the works of previous years, the examples are used above all to clarify, right from the start, what the conceptual frame is within which to give meaning and concrete purpose to the concepts, methods and tools presented and discussed at the Course. Concepts and references, stories and references to current events, even when not explicitly stated as such, are always to be considered contributions to the progressive and revocable formation of knowledge for action. Along with the technical contents of the project, during the semester, in the three Laboratories are also formed, with an overall outcome of conceptual and operational clarification, also the layers of meaning of which the architectural project is allegory. Even before the methods and tools, the research questions are subjected to peculiar declinations. The contents of the project - distinguished for the three Laboratories - modify the systems of action, the number and nature of the relevant actors, the interests mobilized, the presumable impacts on the pre-existing economic and social geography of the urban space in which the intervention takes place, the models of production of value, the criteria for the re-distribution of the generated income. Given this background of meaning, the student is accompanied in the development of the revenue cost analysis of the project being developed within the three Laboratories, differentiated according to the thematic specificity of each Laboratory. This happens through the integration between frontal lessons and application exercises on the project being developed. The aim is to give the student, through a learning by doing approach, the awareness of the economy as a project material, in constant co-evolution with the other project contents. In particular, it is highlighted how the cash flow plan (cash flow - CF) forecast, fundamental tool of the ACR, exclusively considers the revenues and monetary expenses that derive from the management of the investment project, highlighting the capacity of the initiative to support the planned exits and the existence of monetary balance in relation to both the construction and management phases. Outcome of the work is a Report in which the student must demonstrate that he has understood not just the basic concepts (what are the indicators of profitability of a project, for example), the functioning and use of the ecofin assessment models or not. the use of price lists for the purpose of calculating the estimated costs. The real theme to be developed is the cogency of the quantitative analysis with respect to the measurement and distribution of the wealth generated by each project. The questions to which the Report must give an adequate answer are: who is inside and who is outside the project, understood as a collective system of action? Within what contractual framework the actors - those "inside" the project! - do they meet and therefore have "exchanges" between them, economic but not only? Who pays? Who earns? How much? With what level of satisfaction with respect to expectations, data for known market benchmarks? And finally, given all this and considered, is the project feasible or not?

Attendance

Attendance is required for at least 75% of the lessons

Type of evaluation

Learning assessment procedures Oral examination on the bibliography and lessons. The general economic and financial feasibility study will be conducted on the Laboratory project, making use of the course general and specific bibliography.