Current speculation in costing approach for Malaysian residential construction

The construction industry has been under pressure for many years to produce economical buildings which offer value for money, not only during the construction phase, but more importantly, during the full life of the building. Whole Life Cycle Costing (WLCC) is a relatively new concept for the construction industry especially on residential development and particularly for Malaysia. Discussing the speculation in using WLCC for the Malaysian residential constructions is the aim for this paper and it is one of the research questions on my research. This paper also wants to gather more speculation that may involve through others experienced. Basically, this paper is written to facilitate the current or future individual which will involve in residential property development sector with a new sensible approach to what at times seems impressively confusing especially in simplifying the operations and maintenance services and rehabilitation as well.

Gated and Guarded Community (GACOS) in Malaysia : worth or not?

A 'Gated and Guarded Community' has become a popular trend in the recent years, particularly for housing areas. The increasing in population and income has lead to the increase in housing demand. The 1991 Population Census Report showed that Malaysian population has increased with an average yearly rate of 2.7% per year, that is, from 13.74 million people in 1980 to 19.35 million in 1991, followed by 20.69 million in 1995 and increase to 23.27 in year 2000. This is followed by consistent increase in the average population monthly income. Started from 1995 to 1999, the average annual growth rate of mean monthly income in Malaysia is about 5.2 %, from RM2,020.00 in 1995 to RM2,472.00 in 1999 and increasing constantly. This shows that the human growth usually have correlation between demand, income and housing. This paper presents the factors that involved in determined the Gated and Guarded Community Investment in Malaysia either it is worth to invest or otherwise. Hopefully, the results will also indicate that there may be other factors affecting their investment decision besides security and privacy. This paper is actually to draw attention to some practitioner and collect more information in establishing my research analysis.

Re-use of domain knowledge to provide confidence for adoption of off-site manufacturing for construction in Australia

Many construction industry decision-makers believe there is a lack of off-site manufacture (OSM) adoption for non-residential construction in Australia. Identification of construction business process was considered imperative in order to assist decision-makers to increase OSM utilisation. The premise that domain knowledge can be re-used to provide an intervention point in the construction process led a team of researchers to construct simple base-line process models for the complete construction process, segmented into six phases. Sixteen domain knowledge industry experts were asked to review the construction phase base-line models to answer the question “Where in the process illustrated by this base-line model phase is an OSM task?”. Through an iterative and generative process a number of off-site manufacture intervention points were identified and integrated into the process models. The re-use of industry expert domain knowledge provided suggestions for new ways to do basic tasks thus facilitating changes to current practice. It is expected that implementation of the new processes will lead to systemic industry change and thus a growth in productivity due to increased adoption of OSM.

Assessment of the application of contingent valuation theory to bio-sequestered carbon

The issue of carbon sequestration rights has become topical following the United Nations Convention on Climate Change (United Nations 1992 at page 1414) and the subsequent Kyoto Protocol (United Nations Climate Change Secretariat 1998) which identified emissions trading as one of the mechanisms to reduce greenhouse gas emissions. Australian states have responded by creating a legal framework for the recognition of rights to bio-sequestered carbon. There is a lack of uniformity in the approach of each state to the recognition of these rights, which vary from the creation of new and novel interests in land to the adoption of more traditional rights such as a profit a prendre. Rights to bio-sequestered carbon are likely to have an impact on the utility, marketability, value and financing of rural land holdings. Despite the creation of the legal framework for recognition of rights to sequestrated carbon, there has been a delay in the introduction of a formalised carbon trading scheme in Australia. In the absence of an established carbon market, this paper addresses the applicability of contingent valuation theory to assess the value of bio-sequestered carbon rights to a rural land holder. Limitations and potential controversies associated with this application of contingent valuation theory are also addressed in this paper.

Assessing the long term viability of leasehold rural land in Queensland

Rural land holdings in a number of states in Australia can be freehold or leasehold. The actual type and tenure of the leasehold varies according to each state, but the underlying principles of ownership, transferability and farming and grazing rights are reasonably similar. There are rural areas that are all leasehold title such as the western lands in NSW, while rural land in some states and areas can be a mix of both freehold and lease hold rural property. Over the years many rural farming areas that were originally developed or granted as leasehold land have been converted to freehold title. In many instances the cost of purchasing perpetual leasehold property is similar to the equivalent freehold property despite the fact that an additional rental charge is applied to this form of ownership. Many of the current leasehold rural holdings are located in the more arid regions of the state and the prevailing agricultural farming system is either cattle or sheep grazing.

Defining sustainability requirements for design-build (DB) contractor selection in public sector projects

The design-build (DB) delivery system is an effective means of delivering a green construction project and selecting an appropriate contractor is critical to project success. Moreover, the delivery of green buildings requires specific design, construction and operation and maintenance considerations not generally encountered in the procurement of conventional buildings. Specifying clear sustainability requirements to potential contractors is particularly important in achieving sustainable project goals. However, many client/owners either do not explicitly specify sustainability requirements or do so in a prescriptive manner during the project procurement process. This paper investigates the current state-of-the-art procurement process used in specifying the sustainability requirements of the public sector in the USA construction market by means of a robust content analysis of 40 design-build requests for proposals (RFPs). The results of the content analysis indicate that the sustainability requirement is one of the most important dimensions in the best-value evaluation of DB contractors. Client/owners predominantly specify the LEED certification levels (e.g. LEED Certified, Silver, Gold, and Platinum) for a particular facility, and include the sustainability requirements as selection criteria (with specific importance weightings) for contractor evolution. Additionally, larger size projects tend to allocate higher importance weightings to sustainability requirements.This study provides public DB client/owners with a number of practical implications for selecting appropriate design-builders for sustainable DB projects.

Sustainability reporting in construction contractors : a case study

Construction activities have significant impacts on the environment, economy and society. As a result, sustainability has become an agenda in construction related business. This is evidenced by an increasingly number of construction related companies adopting sustainability reporting practice. Construction contractors are no exception. This study aims to investigate the sustainability reporting practices adopted by top Chinese contractors active in the international arena. The focus is placed on those Chinese contractors ranked top 50 by the Engineering News Record (ENR) top 225 international contractors. The results showed that the sustainability reporting practices of these top Chinese contractors, in terms of both approaches and the depth, varied significantly however there is a clear trend of growing level of disclosure of sustainability related information. Similarly, environmental sustainability seems the predominate focus of sustainability reporting exercises of top international contractors from China. These findings help to assist senior management of construction contractors to form business strategies to facilitate disclosure and other sustainability related practices.

The effectiveness of public sector asset management in Malaysia

Property is an important factor in all businesses production in order to function. Nourse (1990) quoted ¡°some businesses are real estate, all businesses use real estate¡±. In recent years, the management of property assets has become the focus of many organisations, including the non-real estate businesses. Good asset management is concerned with the effective utilisation of a property owner.s assets. It is the management process of ensuring that the portfolio of properties held meets the overall requirements of the users. In short, it is the process of identifying the user.s requirement and the rationalisation of property holdings to match that requirement best, followed by a monitoring and ongoing review of practice. In Malaysia, federal agencies and local authorities are among the largest property asset owners. Recently the federal government has released a Total Asset Management Manual (TAMM). It is at the preliminary stage of implementation. This thesis will study the international practices of asset management of public sector assets and assess the effectiveness of TAMM. This research will focus on current international practices for the effective management of public sector property assets. The current application in Malaysia will be highlighted, to determine the awareness and understanding of the current practices to the recently released TAMM. This research is an exploratory research. The basis of this research relies on the combination of qualitative and quantitative approach, whereby the qualitative approach focuses on the international practices and its application to the management of public sector property assets. Questionnaires survey will be conducted among the Malaysian public property assets managers and users in the quantitative approach to gauge the collective opinion on the current practices of TAMM and its implementation

Climate change adaptation for public buildings management : stakeholder roles and responsibilities

Climate change is expected to increase earth’s temperatures and consequently result in more frequent extreme weather events such as cyclones, storms, droughts and floods and rising global sea levels. This phenomenon will affect all assets. This paper discusses the impact of climate change and its consequences on public buildings. Public building management encompasses the building life cycle from planning, procurement, operation, repair and maintenance and building disposal. This paper recommends climate change adaptation strategies to be integrated into public building management. The roles and responsibilities of asset managers and users are discussed within the framework of planning and implementation of public building management and the integration of climate change adaptation strategies. A key point is that climate change can induce premature obsolescence of public buildings and services, which will increase the maintenance and refurbishment costs. This in turn will affect the life cycle cost of the building. Furthermore, a business continuity plan is essential for public building management in the context of disasters. The paper also highlights the significant role that the occupants of public buildings can play in the development and implementation of climate change adaptation strategies.

Property case competition : multi-stakeholder reflection

Pacific Rim Real Estate Society has conducted four property case competitions from 2009 to 2012. The competition provides opportunities for undergraduate students to present their proposal on a given case study. All students were locked down with their four team members for five hours without external help to ensure a level playing field across participants. Students prepared their presentation and defended their arguments in front of experts in property industry and academia. The aim of this paper is reflecting on the feedback received from stakeholders involved in the case competition. Besides exploring what students have gained from the competitions, this paper provides an insight on the opportunities and challenges for the new format of competition to be introduced in 2013. Over the last four competitions, there were three universities participated in all the four consecutive events, four universities partook in two events and another four universities only competed once. Some universities had a great advantage by having previous experiences by participating in similar international business competitions. Findings show that the students have benefited greatly from the event including improving their ability in problem solving and other non-technical skills. Despite the aforementioned benefits, the PRRES closed-book case competition is proven not viable thus future competition needs to minimise the travel and logistic cost.

Urban consolidation : reality or fantasy

Urban consolidation has been a policy objective of many local and state governments in Australia for the past decade. Densification of city centres and other identified activity centres is a sensible solution to a plethora of policy objectives including: growth management, housing affordability, housing choice and infrastructure utilisation etc whilst preserving the fabric of existing neighbourhoods. However despite the plethora of supportive policies and ripe redevelopment sites, urban sprawl continues to permeate city fringes and affordable urban densification in the post GFC environment slips into the “too hard” basket. This article discusses current issues facing the development industry, highlighting factors contributing to the disequilibrium between demand and supply in the medium to high density residential markets.

Brand value of property in Bangkok Metropolitan Region (BMR), Thailand

This paper aims to evaluate the brand value of property in subdivision developments in the Bangkok Metropolitan Region (BMR), Thailand. The result has been determined by the application of a hedonic price model. The development of the model is developed based on a sample of 1,755 property sales during the period of 1992-2010 in eight zones of the BMR. The results indicate that the use of a semi-logarithmic model has stronger explanatory power and is more reliable. Property price increases 12.90% from the branding. Meanwhile, the price annually increases 2.96%; lot size and dwelling area have positive impacts on the price. In contrast, duplexes and townhouses have a negative impact on the price compared to single detached houses. Moreover, the price of properties which are located outside the Bangkok inner city area is reduced by 21.26% to 43.19%. These findings also contribute towards a new understanding of the positive impact of branding on the property price in the BMR. The result is useful for setting selling prices for branded and unbranded properties, and the model could provide a reference for setting property prices in subdivision developments in the BMR.

The valuation of long life mines : current issues and methodologies

The past decade has seen an increasing focus on the mining and extractive industries in Australia. The significant increases in both new mines, commodity prices and employment opportunities has lead to considerable discussion on the value of this industry and the contribution that the industry makes to exports, GDP and the public in general. This debate has resulted in the introduction of the Mineral Resources Rent Tax being introduced in 2012. An issue that follows from the introduction of these taxes is the current exposure of property valuers to mine and extractive industry valuations and the most appropriate method that should be employed for valuing long life mines for rating and taxing purposes, finance and accounting purposes. This paper will provide a detailed review of past and current valuation methods for long life mines and will highlight the current issues and problem facing valuers who are currently working in or intend to carry out valuation work in this industry.