Property Development 6 th Edition Publisher Routledge wwwroutledgecom Authors Professor RG Reed and Dr S Sims 9 1 INTRODUCTION The emergence ID: 658676
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Slide1
Chapter
9
Computer
Technology
Property Development
(
6
th
Edition)
Publisher
:
Routledge
www.routledge.com
Authors
: Professor R.G
.
Reed and Dr
S
. SimsSlide2
9
.1 INTRODUCTION
The
emergence
of software packages designed to meet the full spectrum of
property development requirements
together with the increased portability of this technology
means
that the developer now has many tools available both ‘in office’ and ‘in the field’ to assist in the complex task of managing a development.
Although most development appraisals start off as a fairly simple cost/benefit
analysis,
they inevitably become more complex due to the interaction between the individual elements within the
scheme.
Property
development software provides the developer with the ability to model the consequences of foreseeable changes in different variables to enable contingencies to be built into the
plan,
thus reducing risk by ensuring that any 'knock-on' effect is taken into account.
The financial analysis of a real estate development was substantially advanced in the late 20
th
century with the widespread availability of computer hardware and software
. Prior
to these advancements, complex calculations over extended time value of money were undertaken using pen and paper. A
rguably
the single largest benefit is the ease of conducting a sensitivity adjustment if there is a change in
any
variable. Slide3
9
.2 COMPUTER SPREADSHEETS
A
spreadsheet
(e.g.
Microsoft Excel
) still
remains the most suitable software package available for examining a real estate development
due to the widespread use of electronic
spreadsheets
.
The property profession now has a choice of spreadsheet-based software specifically tailored towards the property
industry,
depending on whether the focus is on management or development.
For
the developer some computer software offers a
spreadsheet
with a standardised format that can be adapted for a range of different development projects. These programs are designed for ease of use and require minimal user training.
The flexibility of such programs means that it is an ideal tool for tracking changes or scoping out the viability of a development. Slide4
9.3
PROPERTY DEVELOPMENT APPRAISAL SOFTWARE
There are specialised software packages available which are specifically designed for development appraisal.
These programs can be used for valuing residential, commercial and mixed use building plots in addition to managing the project costs once a development has commenced.
This type of software can be used
when obtaining
bank finance or managing development costs, income and profit.
EXAMPLE 1:
Estate Master
DF
calculates
key investment performance indicators, such as Residual Land Value, Profit, Margin, Net Present Value (NPV) and Internal Rate of Return (IRR). The user can also conduct multi-option scenario analysis to achieve the best financial outcome for
their development
site.
EXAMPLE
2:
Caldes
Development
Software
i
s
a
property development appraisal software program
. The
software is used by developers, banks, funds, agents and surveyors for valuing developments, land and building plots
. The
software can be used for appraising residential, commercial and mixed use building
plots/sites
. Once a project is on-site then it can also be used to manage the on-going project and view budget against actual
figures
. Slide5
9.4
PROPERTY MANAGEMENT SOFTWARE
Some software
packages have
the ability to support the management of the entire development process by helping to plan,
organise
, and manage resource pools and develop resource estimates for any given development
.
Project
management software packages requires the developer to
break down
the individual stages of the development process
and
enter this information into a spreadsheet or interactive Gantt chart
.
This type of software is typically used throughout the scheme because it can adapt the entire development schedule in response to
change,
e.g.
an unforeseen delay in the delivery of materials for a particular
process.
There are many available project management software packages in existence and their features will generally fall into two
categories:
t
hose
which focus on ‘Scheduling’ and those which provide ‘Information’ to the user/s.
Scheduling
tools
are
designed to sequence project activities by assigning dates and resources to each task.
Information
t
ools
can
also provide information to the developer, stakeholder or anyone else involved with the project. Slide6
9.5
(REAL) ESTATE AGENT, REALTOR OR LETTING AGENT SOFTWARE
If a developer intends to manage the sale of the completed development
then
he should be familiar with at least one of the software systems that have been introduced into the property market.
They are
available as web or internet packages, often on a monthly subscription, or can be installed onto individual
PCs
or servers.
9.6 3D
MODELLING/DESIGN
SOFTWARE
R
ecent
software developments have focused on 3D modelling and it is now possible for a developer or project manager, with
limited knowledge
of 3D drawing software, to create a model of a prospective development very easily.
The
developer
can
upload an ordnance survey map or aerial image of the site they wish to develop and produce an accurate 3D model of the proposed development
.
The benefit to the developer is that any number
of development
options can be explored before the architect is called
in
to draw up the plans. Slide7
9.7 4D
MODELLING
This type of modelling is now widely used in the construction
industry, for
example
linking a project portfolio management program to a BIM model to facilitate construction
scheduling.
Linking with geographic
information systems (GIS
)
will assist to
understand change that has already occurred and
to
enable predictive modelling of future
trends.
9.8 MOBILE COMPUTING
The use of laptops, tablets and smart phones and associated high speed technology
allows property developers and professionals to
be more productive.
It is possible to obtain obtain
current real estate information by accessing multiple listing services, either from home, office or car when out
in the built environment. Slide8
9.9 EMERGING
TECHNOLOGIES FOR PROPERTY DEVELOPMENT
Building Information Model (BIM
)
is
a digital representation of physical and functional characteristics of a development or building
. It
provides
a shared knowledge resource for information about a development and forms a reliable basis for decisions during its life-cycle (from cradle to grave
),
BIM can
be used
to produce virtual 3D models from 2D
architect’s
drawings to help understand how a development will function when complete.
Benefits to clients include a better understanding of energy use, building maintenance and informed decision-making processes
. Benefits
to developers includes closer scrutiny of purchases, reduction in human error in design vs. construction and reduced information requests.
BIM and
3D
laser
scanning
have offered new opportunities for capturing, mapping and analysing building information.
The integration of BIM and 3D laser scanning is likely to provide a significant change in the accuracy and speediness of building surveying in contrast to conventional surveying techniques
. Slide9
9.10
FUTURE TRENDS
Emerging technology is focusing on developing ways to link data from different sources together so that it becomes more useful.
Since the adoption of BIM by the construction industry, new programs are being developed to combine BIM with
other programs.
C
ombining
such data presents significant challenges that need to be overcome.
9.11
SOFTWARE PACKAGE OPTIONS
S
oftware can
be expensive although arguably any outlay in purchasing or using this type of software is recovered through improvements in
efficiency,
thus reducing financial outlay during the development process.
Each developer will have their own system requirements and there are a number of different options available from access to a web-based program
to installation
onto a desktop
PC or laptop. Slide10
Chapter
9 Computer Technology
Property Development
(
6
th
Edition)
Publisher
:
Routledge
www.routledge.com
Authors
: Professor R.G
.
Reed and Dr
S
. Sims