Estimation and Cost Appraisal

SYLLABUS

The aim of the course is to provide students with the fundamentals of the discipline and to make them able to appraise the construction cost of a project.

Contents
- Fundamental principles of Estimation Theory.
- Real estate Market Value, Cost appraisal, Transformation Value (Highest and Best Use Value), Synergistic Value, Depreciated Replacement Cost.
- Elements of financial mathematics: income capitalization, accumulation factor, depreciation rate.
-Assessment procedures of real estate market value.
-Assessment procedures of cost value.
-An outline of European Valuation Standards.
-Total Economic Value and Complex Social Value
-Elements of Microeconomics: market, supply and demand, profit maximization, company profits, consumer’s surplus and producer’s surplus.

Organization of the course
The course is organized in two parts:
-theoretical lessons
-practical application regarding construction cost.
Assessment is by written examination during the course and a final exam on construction cost estimate of the project (or part of it) developed during the workshop.

Bibliography
Forte C., de Rossi B., Principi di economia ed estimo, Etas libri, Milano.
Fusco Girard L., Njikamp P., Le valutazioni per lo sviluppo sostenibile della città e del territorio, Angeli, Milano.