Study Guide

Objectives (course unit)

After completing the course, the student is able to explain the progress of a construction project in the main phases, to classify the parties to the construction project and to explain their role during the various stages of the project. The student will be able to define different forms of construction project and identify general principles of contract practice in construction. The student knows the basic costing methods of construction and can calculate simple investment calculations. The student is able to identify entrepreneurship as one of the career paths and, if necessary, can search for additional information and help in starting his / her own business. The student is able to identify research problems and questions related to the field of construction production and economics and to find a solution using the methods of knowledge construction and innovation as well as the research approach.

Content (course unit)

Flow of the construction project, parties, forms and contract technology
Fundamentals of construction economy, basic methods of cost and investment calculations
Entrepreneurship and innovation in the construction sector

Assessment criteria, satisfactory (1-2) (course unit)

The student knows one method of investment calculation and understands the basic concepts of construction economics and is able to use it.
The student identifies the main phases and main parties of a construction project and identifies the basic implementation forms.

Assessment criteria, good (3-4) (course unit)

the student knows all methods of investment calculation
-the student can find out the economic situation of construction with the help of various information sources
- the student can use the basic concepts of construction economics in working life
- the student identifies the parties to the building project and knows the stages of the building project and their rough content
- the student is familiar with the implementation of construction

Assessment criteria, excellent (5) (course unit)

the student can apply the methods of investment calculation to practical situations
-the student is able to visualize the economic situation in construction
- the student can use the basic concepts of construction economics in working life
- the student identifies the parties to the building project and knows the stages of the building project and their rough content
- the student is familiar with the implementation of construction

Location and time

weekly total 3h lessons and formative activities:
If there is at timetable lessons CET 12am-15am => lesson start precise 12.15 am

Classroom B3-19 cource starts 27th January monday 12 am .. 3 pm (3h)

Exam schedules

Exam during April 2025 2h
Precise time will be informed later

Assessment methods and criteria

Must achieve minimum requirement in each part A-D
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A: Lecture attendance from 0 to 10 marks, minimum requirement
40% attendance = 1 mark,
90% attendance = 10 marks
B: Exam from 0 to 40 marks,
minimum requirement 40% requirements in the exam marks
C: All summative activities are compulsory and any missed summative activities must be compensated with an additional assignment (contact your lecturer)
D: Business plan from 0 to 30 marks, minimum requirement 10 marks

Marks = Grade
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0-26 = 0
27-38 = 1
39-49 = 2
50-59 = 3
60-69 = 4
70- 80 = 5

Assessment scale

0-5

Teaching methods

- Lectures
- Summative and formative activities
- Group assignment
- Readings

Learning materials

- Lecture material in TAMK TUNImoodle
- Gruneberg, S. & Francis, N. (2018). The Economics of Construction. Agenda Publishing
- YSE 1998 General conditions for building contracts
- KSE2013 General conditions for consulting
- Public tendering rules in EU, https://europa.eu/youreurope/business/selling-in-eu/public-contracts/public-tendering-rules/index_en.htm
- Entrepreneurship and business management resources as advised at the start of Part B

Student workload

Small parts of Part A and B are to be studied independently as advised by the lecturers during the course.

Study load includes:
- lecture attendance
- summative and formative activities
- readings
- exam preparation and exam
- group work in the Business management group assignment

Content scheduling

Part A Construction economics content
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A0 Introduction to the course
A1 Parties in a construction project
A2 Construction economics concepts and terminology, business cycles
A3 Procurement and delivery methods
A4 Investment calculations + Summative activity #1 Investment calculations (in class)
A5 Summative activity #1 continues, Basics of cost estimation
A6 Project stages- inception
A7 Project stages - feasibility
A8 Project stages - design
A9 Project stages – pre-construction
A10 Project stages - construction
A11 Project stages – common forms of contracts, Summative activity #3 YSE and Summative activity #4 KSE (both independently)
A12 Project stages – commissioning and handover

Part B Entrepreneurship and innovation - Business Plan content
B1 Entrepreneurship and Innovations in Construction sector- Mission, vision, and purpose.
B2 Business Description
B3 Customers
B4 Competitors and SWOT
B5 Operations and staff
B6 Business management
B7 Sales & Marketing
B8 Financy

Completion alternatives

TAMK AHOT system:
= An oral examination of the whole course content, to be agreed with the course coordinator.

Practical training and working life cooperation

Students may use real company information as guidance in the Business management assignment.

International connections

Foreign countries students

Further information

Part D
You will find detailed content list of the Business management plan in
TUNIMoodel of this course

Business Plan, rough table of contents
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The 8 Step Business Plan

1. Executive Summary. This is your entire business plan in a nutshell: Mission, vision, and purpose.

2. Business Description. Which needs in the market your business fulfills and how? How will your business make a profit and become a success?

3. Target Market. Who are your customers and what is the location of your market? Will it be B2C or B2B?

4. Competition. When you have made your SWOT analysis, you can use it as inspiration to describe strengths and weaknesses and determine your competitive advantages.

5. Operations. How you operate, where’s your office, do you have a staff? Every expense related to your business is relevant.

6. Management. Are you managing everything yourself? Do you have a board or staff? Describe the management hierarchy.

7. Sales & Marketing. Describe how you plan to market your business. What channels are suited to reach your target group and target market?

8. Financial Summary. t’s a record of the financial dealings within your company, i.e. current or future funding and investments as well as your current financial status.

Assessment criteria - fail (0) (Not in use, Look at the Assessment criteria above)

The result is a fail if the student has not achieved the minimum requirement in one or more parts of the course. Failed results are:
- attendance <40% or
- exam <40% or
- a summative activity is missing or
- the business plan is missing