[CONSTRUCTION ECONOMICS I (QSD 236)]

ACKNOWLEDGEMENT

First and foremost, I would like to thank to my member group of this presentation for
the valuable guidance and cooperation. We work together very close as a team to complete
our presentation. They inspired me greatly to work in this group. Also I would like to thank to
our classmate, they willingness to motivate me contributed tremendously to our assignment. I
also would like to thank them for teaching me some example that related to the topic of our
presentation.
In addition, I would like to take this opportunity to thank to our lecturer, Pn Izatul
Farrita Binti Mohd Kamar for offering this topic presentation, Commercial Building. It gave
us an opportunity to participate and learn about the definition, properties, necessary and many
more knowledge. Finally, an honourable mention goes to our families and friends for their
understandings and supports on us in completing this presentation. Without helps of the
particular that mentioned above, we would face many difficulties while doing this.

Page | 1

[CONSTRUCTION ECONOMICS I (QSD 236)]

INTRODUCTION

Construction industry is indeed by far the largest industry available in this country
and also in other countries too. Provides a huge amount of employment throughout every
sectors. More than one quarters of the population approximately. Inside the construction
industries lies a wide variety of parties involved; among many are Architects, Engineers and
also Quantity Surveyor. The most accurate term for these parties is called the Design Team.
Hence, the industry has immense potential in generating more employment
opportunities in particular for the forthcoming ten major infrastructure projects and provides
a good platform for dedicated people to contribute to the development for the future of the
community. Construction Industry work covers work on new or existing commercial,
industrial or domestic buildings or structures.
In this scheme, construction industry means:

the construction or erection of a building or structure that is or is to be fixed to the

ground and wholly or partially fabricated on-site;

any preliminary site preparation work (including pile driving) for the construction or
erection of any such building or structure;

the alteration, maintenance, repair or demolition of any building or structure,

excluding electrical or metal trades maintenance or repair work;

the laying of pipes and other prefabricated materials in the ground, and any associated
excavation work;

the construction, erection, installation, extension, alteration or dismantling of a

transmission or distribution line, or plant, plant facility or equipment used in
connection with the supply of electricity; or an air-conditioning, ventilation or
refrigeration system;

the construction, erection, installation, extension, alteration, service, repair,

replacement of parts or dismantlement of a lift or escalator;

Page | 2

[CONSTRUCTION ECONOMICS I (QSD 236)]

electrical or metal work associated with other engineering projects

COMMERCIAL BUILDING

DEFINITION
Commercial buildings are buildings that have at least 50 per cent of their space
devoted to commercial use. These buildings essentially are any buildings where people don't
live. They can include warehouses, offices, department stores, schools and even churches.
Most commercial buildings have the same set of general functions despite the wide range of
commercial building types. Local authorities commonly maintain strict regulations on
commercial zoning, and have the authority to designate any zoned area as such. A business
must be located in a commercial area or area zoned at least partially for commerce.

COMMERCIAL - BUSSINESS
While commercial architects perform many of the same tasks as the residential
architect, their responsibilities are increased many-fold by the size of the building envelope,
its location and the myriad infrastructure services it must provide to the tenants.
A commercial office tower may look like a condominium, but it has significantly
different infrastructure needs, such as passenger and freight elevators, loading docks,
washrooms, meeting rooms, cafeterias, and parking garages, among many others. Only after
all these are in place does the commercial interior designer join the team. Commercial
architects must also work with engineers and trades specialists on factory construction,
meeting needs for security, safety and cleanliness to the point of sterility, in addition to all the
issues mentioned above.

Commercial Design - Community Infrastructure

Page | 3

[CONSTRUCTION ECONOMICS I (QSD 236)]

Still other commercial architects and designers specialize in health care facilities like
hospitals, clinics and rehabilitation facilities. Their knowledge of materials that are easy to
keep clean and sterile is a key factor in creating health care environments that help people get
well faster. Government is another major employer of commercial architects and interior
designers, on secondary infrastructure projects such as public transit systems, libraries.
Commercial Design - Hospitality and Retail
Hospitality and tourism architecture and design promotes not just comfort but luxury
in entertainment premises, whether on land, on the water or in the air. Modern dance clubs,
hotels and casinos showcase the teamwork of commercial architects, interior designers, and
lighting and sound technicians.
Retail architecture has seen a 180-degree turn in the 21st century from the enclosed
multi-story megamall to the smaller, more open rectangular mall with plenty of outdoor
parking, more typical of the 1950s than the 1990s. The other phenomenon of contemporary
retail design is the "big box" store, which has not yet yielded to the online retail experience.

Page | 4

[CONSTRUCTION ECONOMICS I (QSD 236)]

WHAT IS DEVELOPMENTS?
Development is the systematic use of scientific and technical knowledge to meet
specific objectives or requirements. Development also an extension of the theoretical or
practical aspects of a concept, design, discovery, or invention.
Development can be defined as the process of economical and social transformation
that is based on complex cultural and environmental factors and their interactions. The
process of adding improvements to a parcel of the land such as grading, subdivisions,
drainage, access, roads, utilities.

TYPE OF DEVELOPMENT
1) Traditional/ RIBA Plan
Traditional considers that the project commences of inception and ends at completion
of the construction or the handing over the project to the client. The cost control only
be considered for the construction of the project.

MAIN PARTIES INVOLVED DURING BUILDING PROCESS

1. INCEPTION
Client sees consultants
2. FESIBILITY STUDY & CONCEPTUAL DESIGN PROPOSAL
Consultants make proposal & check viability of project
3. DETAIL DESIGN
Consultants make detail design for documentations and local authorities approval and
construction purposes
4. TENDER AND CONTRACT DOCUMENTATION
Consultants prepare document for tendering process and selection of the most
appropriate contractor
5. CONSTRUCTION PROCESS
Main contractor (with supports from NSC and DSC) constructs the building
6. HAND OVER COMPLETION
Page | 5

[CONSTRUCTION ECONOMICS I (QSD 236)]

Project hand over to Client
DEVELOPMENT CYCLE
PRE CONTRACT STAGE
1. Stage

: Inception

Phase

: Brief Feasibility Viability

Duration

:1

Task

: Look for suitable site, Analysis of market potentials, objectives for the project
established

2. Stage
Phase

: Design & Costing

: Outline proposal, sketch design, detail design, contract
Documentation, Procurement

Duration

:1

Task

: Proposal for approval, initial cost budget prepared,

employment of consultants, quality & standard of construction agreed

3. Stage
Phase
Duration
Task
4. Stage
Phase
Duration
Task

: Construction
: Project Planning, Installation, commissioning
:3
: Project completed on time within budget & specified quantity
: In-use
: Maintenance, repair, modification
: 80
: Feedback from project appraisal in practice will help to
reduce possible defects
Page | 6

[CONSTRUCTION ECONOMICS I (QSD 236)]

5. Stage

: Demolition

Phase

: Replacement

Duration

Task

: Through decay & obsolescence

POST CONTRACT STAGE

1) Project information
Providing the owner with guidance about building maintenance will allow
them to manage the building to achieve ongoing weather tightness and pass
maintenance information on to successive owners. Warranties, guarantees, compliance
certificates, technical data sheets and other manufacturers' information on installed
materials and components should be collected by the consultant on behalf of the
owner. A list of names and contact details for the contractor, subcontractors and
suppliers involved in the project can also be included. Additional information can be
added to provide more detailed maintenance and monitoring guidance, if appropriate
to the scale and complexity of the building.
2) Site operation
Once the contract has been signed the contractor can start on site. The Project
Manager should agree operational procedure and site administration issues, for
example, Clarify site boundaries, survey adjacent properties.
Note: a party wall surveyor may be required to agree any restrictions and or awards.
Security, means of escape
Accommodation and site welfare facilities
Health and safety issues
3) Completion
Handover to client and user occupation, correction of defects, completion of
contract requirements and settlement of the final account.
4)

Feedback
Lessons for the next project and for the future.

Page | 7

[CONSTRUCTION ECONOMICS I (QSD 236)]

DEVELOPMENT PROCESS
NATURE OF DEVELOPMENT

Developer any construction must have developer or client

Types of development either modern or traditional way

The process the team involvement and procedures

DEVELOPER
Developer is one person or a firm that improves raw land with labor and capital, and arranges
for utilities and essential services, in order to sell subdivided parcels of land or to build
structures for rent and or sale. An individual or organization that responsible to develop a
construction and has sufficient budget to cater the construction works. Any construction must
have developer or client to construct. The developers have public agencies that public
developers, in addition there is also a private developer, an organization private. Example
developers in Malaysia are SIME Property, YTL Corporation, Guthrie, Lebar Daun
Properties, PKNS, Worldwide.

DEVELOPERS ROLE
1.

To define the potential of development

2.

To obtain the development site

3.

To obtain the authorities for development

4.

To prepare the development finance

5.

To ensure that the process of construction is in the right flow

Page | 8

[CONSTRUCTION ECONOMICS I (QSD 236)]

OWNING AND FINANCING

Owning
Owning is a developer, or private customers and governments. The owner is the person
responsible for developing the project. Divided into two, namely the government and private
sectors and also for get the profit. It is also exposed to the risk of managing the project.
Financing
Financing a loan to get the money to build the project. No offer of credit to finance the
project and the financial system has many important for roles .For example financing is
banks, mutual funds, insurance companies, individuals and grant funding.

DESIGN PROCESS
Design process is prepared for the layout of the project area, first step is site benchmarking.
After this prepare the design of building project example design of building project such as
Page | 9

[CONSTRUCTION ECONOMICS I (QSD 236)]

architectural and structural. Also have a feasibility studies, and then advice client on cost
target and implications for construct the buildings. Design process must also prepare tender
documents and tender report before start the project and also have done the tender
recommendation. After that, design process also supervises works during construction and
then owning must have cost checking against and design before the construct the project.

APPROVAL PROCESS
When a new construction product is ready for market, the manufacturer must take certain
steps to ensure its acceptance in the marketplace. The product must be tested to confirm its
specifications. Those specifications must meet minimum quality standards. This process is
critically important for new recycled-content construction products.
Local authorities

Approve scheme of works and design.

Approve building plans

Approve plan for internal and external services

Approve plan for infrastructure works

State and federal

Approve application for land and distribution

Approval for drainage & sewerage system

Page | 10

[CONSTRUCTION ECONOMICS I (QSD 236)]

CONSTRUCTION PROCESS
In the fields of architecture and civil engineering, construction is a process that consists of the
building or assembling of infrastructure. Far from being a single activity, large scale
construction is a feat of human multitasking. Normally, the job is managed by a project
manager, and supervised by a construction manager, design engineer, construction engineer
or architect. For the successful execution of a project, effective planning is essential. Those
involved with the design and execution of the infrastructure in question must consider the
environmental impact of the job, the successful scheduling, budgeting, construction site
safety, availability of materials, logistics, inconvenience to the public caused by construction
delays and bidding
Contractor is responsible for enforcing building diligent and work hard .Contractor also
having a contractual relationship with the customer. Besides the contractor must also obey
any orders arising from customers and contractors also wants customer. Process bounded to
the terms of the agreement in the contract. Perfecting also work according to the
specifications will also getting payment from customers based on the amount offered in the
tender document pre-project.

Page | 11

[CONSTRUCTION ECONOMICS I (QSD 236)]

COMPARISON BETWEEN COMMERCIAL BUILDING AND RESIDENTIAL
BUILDING

Commercial building is buildings that have at least 50 per cent of their space devoted
to commercial use. Residential building is called houses or homes, though buildings
containing large numbers of separate dwelling units are often called apartment buildings or
apartment blocks to differentiate them from 'individual' houses.
There are many comparisons between commercial building and residential building
such as their type of building, number of unit and building, financial and period of
construction. First, the type of building of commercial building is mosque, office building
and shopping complex. However the type of residential building is house for example
apartment and condominium.
Next, the number of units. A commercial building has one building and has a lot of
units. Compared to residential building, there has a lot building and units. Third, their
financial. The cost to construct residential building is high than commercial building. This is
because the uses of labour to construct residential building are more than the uses of labour to
construct commercial building. Forth, the period of building construction.
The commercial building period of building construction is more fast than period of
residential building construction. This is because the affect from number of labour. The
conclusion is, commercial building is better than residential building because commercial
building can save their financial to build the building.

Page | 12

[CONSTRUCTION ECONOMICS I (QSD 236)]

ANALYSIS OF COMMERCIAL BUILDING DESIGNS

Many methods and tools are available to perform an energy analysis. Energy
modelling is among the most robust. No matter which method is used, its important to
consider all fuel sources and uses of the building, as well as its intended operating patterns.
The energy analysis report must include all relevant inputs for the building fabric, the airconditioning and ventilation systems, the lighting and power systems, the vertical transport
systems and the supply hot water systems.
Inputs and outputs must be detailed on the energy analysis report produced in order to
demonstrate compliance with the chosen verification method so that in conjunction with the
relevant plans and specifications and any supplementary regulatory information. The goal is
not to model the perfect building, but to model a realistic building. The "perfect building
scenario could receive a high 1 100 energy star score, but may not accurately reflect reallife activity and energy use of the building. Its better for the design team to use a realistic
simulation to gain confidence that the design can achieve designed to earn the energy star
recognition and other goals.
Other technical inputs for calculating the annual energy consumption of services in a
building must be in accordance with specification. The verification method sets out the
standard procedure for calculating annual energy consumption. It specifies the parameters
that must be used in the assessment. The parameters include total annual energy use from all
fuel sources such as electricity, natural gas, steam, chilled water, wood, propane, and so on. It
also regulated load assumptions, such as equipment and systems. Non-regulated load
assumptions, such as plug loads and process loads. It also include the size of building,
number of workers, hours of operation, location of construction, HVAC design for example
air-conditioning and the operating schedules, lighting systems and operating schedules,
equipment efficiency data from the manufacturer, right-sizing systems and passive design
strategies.

Page | 13

[CONSTRUCTION ECONOMICS I (QSD 236)]

Not all modelling programs calculate additional energy uses required for domestic hot
water, exterior lighting, elevators, and similar systems, but these elements should also be
included in the simulation model. Although the values used within specification may not be
those that might actually be achieved in the building, as the building may change occupancies
over time, they are considered to be the most likely.
It is not the responsibility of the relevant building surveyor to provide the technical
input data details of specification as design advice. It is the responsibility of the designers,
engineers and energy raters to ensure that the appropriate inputs have been used prior to
providing the information to the relevant building surveyor. Therefore designers, engineers
and energy raters should fully understand specification. The relevant building surveyor
should simply be familiar with specification so they can ensure that any report provided as
part of an application for a building permit includes the relevant inputs required by the tables
in specification.

Page | 14

[CONSTRUCTION ECONOMICS I (QSD 236)]

CONCLUSION

Commercial builders, including general contractors and specialty subcontractors, can

profit from applying project management techniques to control their operations. Projects may
range from small kiosks to giant supermarkets, malls, and specialty buildings, such as hotels,
hospitals and airports.
The process used for commercial construction is methodical and relatively standard
for broad categories of structures. This building process is readily modelled by a critical path
method schedule. That statement is key of the schedule is a model of the builder's plan for the
project.
This template includes the basic tasks required to construct a multiple-story
commercial space and shows the relationships between those tasks. It can use the template
strictly as a training tool or to guide development of custom schedules for projects or modify
it and use it as the basis for an initial project schedule.

Page | 15

[CONSTRUCTION ECONOMICS I (QSD 236)]

APPENDIX

Page | 16

[CONSTRUCTION ECONOMICS I (QSD 236)]

REFERENCES

Building Design Process: Pre-contract and post-contract stages. (n.d.). Retrieved from
http://design-of-building.blogspot.com/2010/01/pre-contract-and-post-contractstages.html
Design guidance - Process - Construction - Post contract construction - Post Contract
Construction. (n.d.). Retrieved from
http://designguidance.skillsfundingagency.bis.gov.uk/process/construction/post-contractconstruction/

Page | 17

[CONSTRUCTION ECONOMICS I (QSD 236)]

External moisture - A guide to weathertightness remediation: Post - Department of Building

and Housing. (n.d.). Retrieved from http://www.dbh.govt.nz/external-moisture-postconstruction-stage
What is development? definition and meaning. (n.d.). Retrieved from
http://www.businessdictionary.com/definition/development.html

Page | 18