Property cash flow studies : focusing on model consistency and data accuracy

The high degree of variability and inconsistency in cash flow study usage by property professionals demands improvement in knowledge and processes. Until recently limited research was being undertaken on the use of cash flow studies in property valuations but the growing acceptance of this approach for major investment valuations has resulted in renewed interest in this topic. Studies on valuation variations identify data accuracy, model consistency and bias as major concerns. In cash flow studies there are practical problems with the input data and the consistency of the models. This study will refer to the recent literature and identify the major factors in model inconsistency and data selection. A detailed case study will be used to examine the effects of changes in structure and inputs. The key variable inputs will be identified and proposals developed to improve the selection process for these key variables. The variables will be selected with the aid of sensitivity studies and alternative ways of quantifying the key variables explained. The paper recommends, with reservations, the use of probability profiles of the variables and the incorporation of this data in simulation exercises. The use of Monte Carlo simulation is demonstrated and the factors influencing the structure of the probability distributions of the key variables are outline. This study relates to ongoing research into functional performance of commercial property within an Australian Cooperative Research Centre.

The Design, Implementation and Outcomes of a Mentoring Program

This paper reports on the design, implementation and outcomes of a mentoring program involving 18 employees in the IT Division of WorkCover Queensland. The paper provides some background information to the development of the program and the design and implementation phases including recruitment and matching of participants, orientation and training, and the mentoring process including transition and/or termination. The paper also outlines the quantitative and qualitative evaluation processes that occurred and the outcomes of that evaluation. Results indicated a wealth of positive individual, mentoring, and organisational outcomes. The organisation and semi-structured processes provided in the program are considered as major contributing factors to the successful outcomes of the program. These outcomes are likely to have long-term benefits for the individuals involved, the IT Division, and the broader organisation

Occupant health and productivity : an Australian perspective

The issue of whether improved building services such as air quality, provision of daylight, thermal comfort etc, have a positive impact on the health and productivity of building occupants is still an open question. There is significant anecdotal evidence supporting the notion that health and productivity of building occupants can be improved by improving the quality of the indoor environment, but there are actually few published quantitative studies to substantiate this contention. This paper reports on a comprehensive review of the worldwide literature which relates health of building occupants with the different aspects of the indoor environment which are believed to impact of these issues, with a particular focus on studies in Australia, The paper analyses the existing research and identifies the key deficiencies in our existing understanding of this problem. The key focus of this research is office and school buildings, but the scope of the literature surveyed includes all commercial buildings, including industrial buildings. There is a notable absence of detailed studies on this link in Australian buildings, although there are studies on thermal comfort, and a number of studies on indoor air quality in Australia, which do not make the connection to health and productivity. Many international studies have focused on improved lighting, and in particular the provision of daylight in buildings, but again there are few studies in Australia which focus in this area.

Subtropical subdivisions : toward a lot-rating methodology for subtropical climates

What role can climatically appropriate subdivision design play in decreasing the use of energy required to cool premises by maximising access to natural ventilation? How can this design be achieved? The subdivision design stage is critical to urban and suburban sustainability outcomes, as significant changes after development are constrained by the configuration of the subdivision, and then by the construction of the dwellings. Existing Australian lot rating methodologies for energy efficiency, such as that by the Sustainable Energy Development Authority (SEDA), focus on reducing heating needs by increasing solar access, a key need in Australia’s temperate zone. A recent CRC CI project, Sustainable Subdivisions: Energy (Miller and Ambrose 2005) examined these guidelines to see if they could be adapted for use in subtropical South East Queensland (SEQ). Correlating the lot ratings with dwelling ratings, the project found that the SEDA guidelines would need to be modified for use to make allowance for natural ventilation. In SEQ, solar access for heating is less important than access to natural ventilation, and there is a need to reduce energy used to cool dwellings. In Queensland, the incidence of residential air-conditioning was predicted to reach 50 per cent by the end of 2005 (Mickel 2004). The CRC-CI, Sustainable Subdivisions: Ventilation Project (CRC-CI, in progress), aims to verify and quantify the role natural ventilation has in cooling residences in subtropical climates and develop a lot rating methodology for SEQ. This paper reviews results from an industry workshop that explored the current attitudes and methodologies used by a range of professionals involved in subdivision design and development in SEQ. Analysis of the workshop reveals that a key challenge for sustainability is that land development in subtropical SEQ is commonly a separate process from house design and siting. Finally, the paper highlights some of the issues that regulators and industry face in adopting a lot rating methodology for subdivisions offering improved ventilation access, including continuing disagreement between professionals over the desirability of rating tools.

The future of office property

The following paper considers the question, where to office property? In doing so, it focuses, in the first instance, on identifying and describing a selection of key forces for change present within the contemporary operating environment in which office property functions. Given the increasingly complex, dynamic and multi-faceted character of this environment, the paper seeks to identify only the primary forces for change, within the context of the future of office property. These core drivers of change have, for the purposes of this discussion, been characterised as including a range of economic, demographic and socio-cultural factors, together with developments in information and communication technology. Having established this foundation, the paper proceeds to consider the manner in which these forces may, in the future, be manifested within the office property market. Comment is offered regarding the potential future implications of these forces for change together with their likely influence on the nature and management of the physical asset itself. Whilst no explicit time horizon has been envisioned in the preparation of this paper particular attention has been accorded short to medium term trends, that is, those likely to emerge in the office property marketplace over the coming two decades. Further, the paper considers the question posed, in respect of the future of office property, in the context of developed western nations. The degree of commonality seen in these mature markets is such that generalisations may more appropriately and robustly be applied. Whilst some of the comments offered with respect to the target market may find application in other arenas, it is beyond the scope of this paper to explicitly consider highly heterogeneous markets. Given also the wide scope of this paper key drivers for change and their likely implications for the commercial office property market are identified at a global level (within the above established parameters). Accordingly, the focus is necessarily such that it serves to reflect overarching directions at a universal level (with the effect being that direct applicability to individual markets - when viewed in isolation on a geographic or property type specific basis – may not be fitting in all instances)

Success factors in an alliancing contract : a case study in Australia

Many studies have been carried out in relation to construction procurement methods. Evidence shows that there needs to be a change of culture and attitude in the construction industry, moving away from traditional adversarial relationship into cooperative and collaborative relationship. At the same time there is also an increasing concern and discussion on alternative procurement methods, drifting away from traditional procurement systems. Relational contracting approaches have become more popular in recent years, and have appeared in common forms such as partnering, alliancing and relationship management contracts. This paper reports the findings of a survey undertaken with a private organisation based on an alliance project during its design stage, identifying the critical factors that influence the success of the alliance project. Legal aspects focusing on dispute resolution in alliancing are also highlighted.

Program Annotations: Feedback for Students Learning to Program

This paper presents a novel program annotation mechanism which enables students to obtain feedback from tutors on their programs in a far simpler and more efficient way than is possible with, for example, email. A common scenario with beginning students is to email tutors with copies of their malfunctioning programs. Unfortunately the emailed program often bears little resemblance to the program the student has been trying to make work; often it is incomplete, a different version and corrupted. We propose an annotation mechanism enabling students to simply and easily annotate their programs with comments asking for help. Similarly our mechanism enables tutors to view students’ programs and to reply to their comments in a simple and structured fashion. This means students can get frequent and timely feedback on their programs; tutors can provide such feedback efficiently, and hence students’ learning is greatly improved.

A model for assessing and correcting construction project health

Abstract Maintaining the health of a construction project can help to achieve the desired outcomes of the project. An analogy is drawn to the medical process of a human health check where it is possible to broadly diagnose health in terms of a number of key areas such as blood pressure or cholesterol level. Similarly it appears possible to diagnose the current health of a construction project in terms of a number of Critical Success Factors (CSFs) and key performance indicators (KPIs). The medical analogy continues into the detailed investigation phase where a number of contributing factors are evaluated to identify possible causes of ill health and through the identification of potential remedies to return the project to the desired level of health. This paper presents the development of a model that diagnoses the immediate health of a construction project, investigates the factors which appear to be causing the ill health and proposes a remedy to return the project to good health. The proposed model uses the well-established continuous improvement management model (Deming, 1986) to adapt the process of human physical health checking to construction project health.