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Economics of the Building I

Course developer

Prior knowledge

BūvZ4098, Supervission and Management of Construction I

BūvZ4099, Supervission and Management of Construction II

BūvZ4100, Supervission and Management of Construction III

Replaced course

BūvZB028 [GBUVB028] Economics of the Building I

Course abstract

The aim of the study course is to explain to the students the basic concepts of construction industry economics, peculiarities of creation and realization of construction products, to learn the basics of pricing of construction products, to acquaint students with construction production costs and their accounting.

Learning outcomes and their assessment

• Knowledge and understanding of the place of the construction industry in the national economy, the trends of the industry. Basic knowledge of construction company production costs, their accounting, self-cost, profit, profitability, production process related taxes. • Students understand the principles of construction product price formation, acquire the methodology of compiling construction works estimates, and are guided by the principles of organization of procurement of construction products. Knowledge and skills are assessed in the exam.
• Upon completion of the study course, students are competent in issues related to the economic problems of construction.

Course Content(Calendar)

Lectures
1 The role of construction in the economy. Relation of construction with other industries. Lectures
0,5 h
2 The concept of construction products, peculiarities of creation of construction products. Lectures
0,5h
3 Sales of construction products. Construction company contracts for the execution of construction works. Lectures 0,5 h
4 Public Procurement Law. Organizing competitions for the right to build. Lectures 1 h
5 Development of construction output prices in market conditions. Regulatory and informative basis for the preparation of works estimates. Lectures 0,5 h
6 Composition of the documentation for the estimation. Basic principles of compilation of the thesis. Lectures 0,5 h
7 General requirements for job descriptions. Calculations of the volume of construction works. Lectures 1 h
8 Cost Elements. Direct costs. Lectures 0,5h
9 Calculation of wages in estimates. Lectures 1 h
10 Calculation of costs of construction products and mechanisms in estimates. Lectures1 h
11 Overheads, expected profits. Other cost estimates. Lectures 0,5 h
12 Technical and economic indicators. Industry news. Lectures 0,5 h
Practical works
- Presentations and discussions on the economic issues of the construction industry. Industry news. - Practical works 8 h

Requirements for awarding credit points

Type of test - written exam.

Description of the organization and tasks of students’ independent work

• Knowledge and understanding of the place of the construction industry in the national economy, the trends of the industry.
• Students understand the principles of construction product price formation, acquire the methodology of compiling construction works estimates, and are oriented to the principles of organization of procurement of construction products.
• Upon completion of the study course, students are competent in issues related to the economic problems of construction.

Criteria for Evaluating Learning Outcomes

At the end of the course, the students take a written examination for the whole course Exam questions are divided into two parts: Part One - Questions about course 1 to 4, second part on topics 5 to 12 A student can get a successful mark on the exam if at least 50% of questions are answered correctly.

Compulsory reading

1. Būvniecības likums, LR likums . Pieņemts: 09.07.2013.Stājas spēkā: 01.10.2014.
2.Vispārīgie būvnoteikumi, LR likums. . Pieņemts: 19.08.2014.Stājas spēkā: 01.10.2014.
3. Publisko iepirkumu likums. LR likums [tiešsaiste]. Pieņemts 06.04.2006. Stājas spēkā 01.05.2006. [Skatīts 16.02.2015.]. Pieejams: http://likumi.lv/doc.php?id=133536
4. LBN 501-17 Būvizmaksu noteikšanas kārtība Nav LLU FB.
5. Kjells Gunnars Hofs Biznesa ekonomika Rīga 2002.

Further reading

1. Būvdarbu izcenojumu katalogs (BIK). Rīga, 2005.-2010.

Periodicals and other sources

1. www.em.gov.lv
2. www.csb.gov.lv
3.www.bis.gov.lv
4.www.iub.gov.lv

Notes

Compulsory Course for the First level professional higher educational programme “Civil Engineering”