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8 The Role of Construction in the Economy - Coggle Diagram
8 The Role of Construction in the Economy
The DiPasquale–Wheaton (DiPW) model
Distinct features of the construction industryA
takes long to answer demand
mosth products costum made
products often sold before they are produces
segregation of design from production
prototypes unusual due to high costs
RE can be sold abroad
production takes place at one specific location
prone to bad weather conditions leading to uncertanties
labour intensive
slow process of automaion
Specific market characteristics
barrier to entry
information availability
possibility of integration
competition
institutional framework
Construction industry in Hong Kong
Construction industry covers:
new engineering & building projects,
maintenance, refurbishment, renovation & decoration works (collectively called “retro-fitting” works)
Connected businesses:
material trading (imports & exports)
equipment sale, rental & maintenance
professional services
Provides
shelpter
Infrastructure
places for production and social needs
Boosts economy multiplier effect
investment oppurtunutuies
Demand and supply
If supply of private residential properties exceeds effective demand, stagnancy or fall in prices occurs, leading to negative equity cases.
Yet, demand for public housing far exceeds supply, with average waiting time being 2 years
Role of government: a controversial issue?
Demand & supply conditions may be affected by factors other than demographics, e.g., surge in property prices caused by influx of liquidity as a result of capital flight from other markets
Surveyors
General Practise surveyors
Development Consultancy (e.g., enhancement of development potential)
2 types
Private
Property Consultants
In-house staff of Developers
Property Manager
Public
Valuation Surveyor (Rating & Valuation Dept./Lands Dept.)
Estate Surveyor (Housing Dept.)
Sale and Letting
Planning matters (e.g., premium negotiation)
Urban Renewal proposal
Real Estate Management
Valuation of land & buildings
Quantity surveyors
pre-contract services
Preliminary cost advice
Cost Planning
Value Management
Procurement Methods
Tendering
Documentation
post-contract services
Valuation of construction works
Cost control
Contractual advice
Assessment of claims
Final accounts
Dispute resolution (related to contracts)
Life cycle costing
Building Surveyors
public
building control
maintanance of public byildings
private
Project planning and design
Building surveys
Project revitalization (A & A works)
Building/Property management
Facility management
Dispute resolution (related to defects)
Building maintenance
Land Surveyors
For Building works
Site boundary survey
Setting out
Cartography
For Civil Engineering works
Engineering survey
Topographical survey
Hydrographic survey
Photogrammetric survey, etc.
Managers
Property/Housing Managers
engaged in the co-ordination and execution of housing services incorporating the design, provision, improvement, rehabilitation, management and administration of all types of housing.
About 30% work in the Housing Dept., and majority work in the private sector
Property Management Tasks
Tenant Evaluation & Mix Design
Tenancy Management and Rent Collection
Lease Renewals
Government Rates and Property Tax
Repair and Maintenance
Facility Management and Upgrading
Security
Fire Prevention and Safety
Property Insurance
Compliance with the Deed of Mutual Covenant and Building Management Ordinance
project managers
differrent professional backgrounds
architects, engeneers etc