Objective

These notes are for reference only by the TAQEEM trainees. The objective of this
publication is to provide knowledge on cost approach of Valuation and construction
material, technology and services in relation to cost approach in valuation.

DISCLAIMER

The publisher makes every reasonable effort to ensure the accuracy and completeness of
the information in this book. Due to the dynamic nature of the material and the possibility
of human or mechanical error, the reader is encouraged to refer to original sources as the
ultimate authority on this subject. Please keep in mind that the examples presented in this
text are for demonstration purposes only. Actual values may vary greatly in different
regions, countries/states, and cities.

For further information, please contact:

TAQEEM Academy
Saudi Authority of Accredited Valuers (TAQEEM)
Level 3, Alamani Centre, Al-Sahafa Area
13321, Riyadh, Saudi Arabia
www.taqeem.gov.sa
 TRAINING PROGRAMME SCHEDULE

TRAINING PROGRAMME : COST APPROACH

DAYS : 1 DAY

Date/ DAY 1
Time

0730 - 0800 Registration and briefing

Session 1
• Introduction
0800 - 0945
• Definition
• Underlying principles

0945 - 1000 BREAK

Session 2
1000 – 1115 • Approach to Cost Method
• Steps in Applying Cost Method

1115 – 1130 BREAK

1130 – 1245 Session 3

Application of Cost Method

1245 – 1315 SOLAT

1315 – 1500 Session 4

Advantages and Disadvantages

1500 – 1600 Questions & Answers

 TRAINING PROGRAMME SCHEDULE

TRAINING PROGRAMME : CONSTRUCTION MATERIAL & SERVICES

DAYS : 2 DAYS

Date/ DAY 1 DAY 2

Time

0730 - 0800

Session 1 Session 3

0800 - 0945 Building Construction and Building Services

Technology

0945 - 1000 BREAK

Continuation Session 1 Continuation Session 3

1000 - 1115

1115 - 1130 BREAK

Session 2
Session 4

1130 - 1245 Building Material and

Construction Cost Analysis
Finishes

1245 - 1315 BREAK

Session 5
Continuation Session 2
1315 - 1500
Property Management and
Maintenance

1500 – 1600 Questions & Answers

 TRAINING PROGRAMME SCHEDULE

TRAINING PROGRAMME : HEALTH AND SAFETY PRINCIPAL

DAYS : 1 DAY

Date/ DAY 4 DAY 5

Time (Exam)

0730 - 0800
Session 1

0800 - 0945 Introduction to Health and

Safety

0945 - 1000 BREAK

Session 2

1000 - 1115 Examination

Health and Safety
(1000 – 1130)
Requirements for Valuers

1115 - 1130 BREAK

Session 2

1130 - 1245 Continuation Session 2

1245 - 1315 BREAK

Session 3
1315 - 1500
Practice of Health and
Safety in Property and
Construction Sector in Saudi
Arabia

1500 – 1600 Questions & Answers

 104

VALUATION/COST APPROACH

CONTENTS OF THIS MODULE ARE

• COST APPROACH
• CONSTRUCTION MATERIAL & SERVICES
• HEALTH AND SAFETY PRINCIPAL (HSP)
 Module 104: Valuation/Cost Approach – Subject: Cost Approach

MODULE 104: VALUATION/COST APPROACH

SUBJECT: COST APPROACH

Objective

At the end of the programme the participants will gain knowledge on the basic principles and
application of the Cost Method of valuation.

Contents

• Introduction

• Definition

• Underlying Principles

• Approach to the Cost Method

• Steps in Applying Cost Method

• Application of Cost Method

• Advantages and disadvantages of Cost Method

Methodology

• Lecture

• Discussion
• Examination

Duration

• 1 day
 Module 104: Valuation/Cost Approach – Subject: Cost Approach

SESSION PLAN

TRAINING PROGRAMME : COST APPROACH

DAY : 1 DAY

OBJECTIVE : At the end of the programme the participants will gain knowledge on the basic
principles and application of the Cost Method of valuation

Date/ Session Session Objective Session Contents

Time

Session 1
Day 1 At the end of the session, • Introduction
0800 - 0945 • Introduction participants are expose • Definition
• Definition introduction to cost method o Price
• Underlying and its definition and the o Cost
principles principles o Value
• Principles of Cost Method

Day 1 Session 2 At the end of the session, • Land Value

1000 - 1115 participants will gain o Comparable sales and market evidence
Approach to Cost knowledge on basic o Normative approach
Method approach of Cost Method • Building Value or Replacement Costs
o The comparative unit method
o The unit-in-place method
o The quantity survey method
• Depreciation
o Market based assessment
o Assumption based assessment
o Breakdown method
 Module 104: Valuation/Cost Approach – Subject: Cost Approach

Date/ Session Session Objective Session Contents

Time

Day 1 Session 2 At the end of the session, • Determining the Site or Land Value
1000 - 1115 participants will gain • Determining the Building Value
Steps in Applying knowledge on the steps in o Newly Constructed Buildings
Cost Method applying the Cost Method o Older Buildings
• Determine depreciation

Day 1 Session 4 At the end of the session, • Calculation on Newly Constructed Building
1130 - 1245 participants will gain • Calculation on Older Building
Application of Cost knowledge the application of • Calculation on Specialised Property
Method Cost Method in valuation

Day 1 Session 5 At the end of the session, • Advantages

1315 – 1500 participants will gain • Disadvantages
Advantages and knowledge on the • Conclusion
Disadvantages of advantages and
Cost Method disadvantages using Cost
Method in valuation
 Module 104: Valuation/Cost Approach – Subject: Cost Approach

TABLE OF CONTENTS

Chapter Page

1.0 INTRODUCTION 1

2.0 DEFINITION 3

3.0 UNDERLYING PRINCIPLES 4

4.0 APPROACH TO THE COST METHOD 5

4.1 Land Value 5
4.2 Building Value or Replacement Costs 7
4.3 Depreciation 10

5.0 STEPS IN APPLYING COST METHOD 12

5.1 Determining the Site or Land Value 13
5.2 Determining the Building Value 13
5.3 Determine Depreciation 16

6.0 APPLICATION OF COST METHOD 17

6.1 Calculation on Newly Constructed Building 18
6.2 Calculation on Older Building 21
6.3 Calculation on Specialised Property 25

7.0 ADVANTAGES AND DISADVANTAGES OF COST METHOD 27

7.1 Advantages 27
7.2 Disadvantages 28

8.0 CONCLUSION 29
 Module 104: Valuation/Cost Approach – Subject: Cost Approach

1.0 INTRODUCTION

Cost Method can be defined as a method of valuation

whereby the capital or market value of a particular
property is derived by adding the site value of the
property to the value of the building(s) found or
constructed on the site of the property.

The cost approach which is sometimes known as the contractor's

method
Establishes value by estimating the cost of acquiring land and
building a new property with equal utility or adapting an old
property to the same use with no undue expense resulting from
delay.
The cost of land is added to the total cost of construction. Where
applicable, an estimate of entrepreneurial incentive, or
developer's profit/loss, is commonly added to construction costs.

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 Module 104: Valuation/Cost Approach – Subject: Cost Approach

The cost approach is very useful in estimating the

Market Value of proposed construction,
specialised properties that are rarely sold in the
open market where there are insufficient sales
Usage of Cost Approach comparables of similar properties and other
properties that are not frequently exchanged in
the market.

In countries where property investment is less

prevalent and where owner-occupation is the
favoured method of property utilisation, it is not
only specialised properties which are valued by
the contractor's method.

When cost approach is adopted to assess the

value of specialised property for financial
reporting purposes, it is also known as the
Depreciated Replacement Cost (DRC).

The International Valuation Standards 2013 has

defined Depreciated Replacement Cost (DRC) as a
method of valuation which is based on an estimate of the
current market value of land for its existing use plus the
current gross replacement (or reproduction) costs of
improvements less allowances for physical deterioration
and all relevant forms of obsolescence and optimization.

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 Module 104: Valuation/Cost Approach – Subject: Cost Approach
2.0 DEFINITION

Before proceeding with the explanation on Cost Method, it is necessary

to first understand or differentiate the concept of price, cost and value.
The International Valuation Standards Council, United Kingdom has
defined these items as follows:

2.1 Price
Price is the amount asked, offered or paid for an asset.
Because of the financial capabilities, motivations or special
interests of a given buyer or sell, the price paid may be different
form the value which might be ascribed to the asset by others.

2.2 Cost
Cos t is the amount required to acquire or create the asset. When
that asset has been acquired or created, its cost is a fact. Price is
related to cost because the price paid for an asset becomes its
cost to the buyer.

2.3 Value
Value is not s fact but an opinion of either:

(a) The most probable price to be paid for an asset in an

exchange, or

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 Module 104: Valuation/Cost Approach – Subject: Cost Approach

(b) The economic benefits of owning an asset.

A value in exchange is a hypothetical price and the hypothesis on
which the value is estimated is determined by the purpose of the
valuation. A value to the owner is an estimate of the benefits that
would accrue to a particular party from ownership.

3.0 UNDERLYING PRINCIPLES

Principle of Substitution
• No prudent purchaser would pay more for a property than it
would cost him to purchase a site and reproduce a building of
similar utility.
• This means a prospective purchaser would be prepared to pay
only what it would cost him to provide a similar
accommodation elsewhere.
• This approach establishes the upper limit of what the market
would normally pay for a given property when it is new.
• For an older property, some allowance for various forms of
accrued depreciation, that is, physical deterioration;
functional or technical obsolescence; and economic or
external obsolescence is deducted to estimate a price that
approximates Market Value.

Exercise 1
1. What is Cost Method?
2. Define the followings:
a. Price
b. Cost
c. Value
3. What is Principle of Substitution?

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 Module 104: Valuation/Cost Approach – Subject: Cost Approach

4.0 APPROACH TO THE COST METHOD

In cost method or the depreciated replacement cost method, the Valuer

will assess the market value of the raw land (by reference to
comparable land values in an appropriate alternative use), add to this
value the cost of rebuilding a new building which could perform the
function of the existing structure after making subjective adjustments to
allow for the obsolescence and depreciation of the existing building
relative to the new hypothetical unit. Therefore, the three main
elements in Cost Method are:

a. Land Value
b. Building Value or The Replacement Cost
c. Depreciation

4.1 Land Value

In determining the market value of the land, one must recognise
the constraints, if any, on the use of the land imposed by existing
improvements or the Existing Use Value (EUV) of the site.

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 Module 104: Valuation/Cost Approach – Subject: Cost Approach

(i) If there is a focal market in the subject and, use market evidence or
comparable sales.
(ii) Consider what likely planning consent might emerge in the locality
and use the market evidence for that planning use. ·
(iii) Consider a notional site in the same locality with similar characteristic.
(iv) Consider the use carried on a notional site in a different locality.

Existing use value of the site can be arrived by using one of the two
approaches below.

i) Comparable sales and market evidence

In estimating site value, the improvements are to be completely

disregarded but all other features of the neighbourhood are taken as
they exist. Given it as vacant, the site’s productivity is analysed
taking into consideration its most probable use, the identity of the
most probable buyer (or class of buyer) and a price inferred from this.
In the absence of recent sales of vacant comparable land in the
vicinity, sales of vacant land in similar neighbourhoods can be sought
too.

ii) Normative approach - the Residual Method

When no comparable sales are available, some authorities advocate

the use of the traditional residual method or the 'method of
hypothetical development'. This approach assumes that land value
can be derived from the traditional developers' equation below.

Market Value = Land Cost + Development Cost +

Finance Cost + Profit

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 Module 104: Valuation/Cost Approach – Subject: Cost Approach

The critical components of this approach are assessments of the

most probable use for the particular site, cost estimation and the
most probable selling price of the completed product.

4.2 Building Value or Replacement Costs

Building value is assumed to be the cost of construction, new or the net

replacement cost of the building i.e. the cost of constructing the same
building today and allowing for disabilities, obsolescence and surplus. In
short, it means current cost of construction less depreciation. A cost
estimate for a property may be based on either an estimate of
reproduction cost or replacement cost.

Reproduction Cost is the cost to create a virtual replica of the existing

structure, employing the same design and similar building materials.
However, the Replacement Cost is the estimated cost to construct, at
current prices, a building with equivalent utility, using materials and
standards, design and layout that are currently used in the market.

There are two possibilities to ascertain building costs. If the building is a

generic replacement, it is acceptable and normal practice to rely on
standard published building cost data. If the building is complex or an
actual replacement is to be priced, one may need to consult building cost
expert in relation to cost. However, if the building is recently constructed
and recent actual cost evidence is available; such cost data should be
used.

In general, th e r e are three methods to be adopted for estimating the

cost of buildings. The three methods are: ·

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 Module 104: Valuation/Cost Approach – Subject: Cost Approach

a) 'The comparative unit m ethod

b) The unit-in-place method
c) The quantity survey method

i) The comparative unit method

This is the simplest of the three methods and the most widely used.
First, ascertain the area of the building being assessed. If a plan .i s
available, it needs to be verified by inspection.
·
Secondly, ascertain the cost per square metre to construct this
building, that is, the one which is of similar floor area, perimeter,
design, finishes and quality of construction. The rate must include
builder’s profit and overheads.

Thirdly, multiply the area of the subject property by the appropriate

rate to give a preliminary estimate of the current cost of construction.

Fourthly, make cost adjustments for features not common between

the building being assessed and the model building from which the
cost per square metre was derived. This is usually done using the
unit-in-place method outlined below. ·

Sources of building cost information are contractors, analysis of

recent contracts for similar buildings, professional cost estimators,
building consultants and reference to cost manuals.

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 Module 104: Valuation/Cost Approach – Subject: Cost Approach

ii) The unit-in-place method

This is a more detailed approach to cost estimation than the unit

area method. In this method, the whole building is subdivided into
parts which are measured and costed on a per-unit basis. As an
example, roofs of the type concerned may have their cost broken
down into constituent elements. Each element is measured and
multiplied by the related unit rate to supply and fix. The rate must
include builder's profit and overheads.

iii) The quantity survey method

This method is used by professional quantity surveyors and is far

more detailed than the unit-in-place method. Here a bill of quantities
is measured from building plans and priced accordingly to the
specifications.

Exercise 2

1. Name three (3) element in the cost method or depreciated replacement

cost (DRC) approach?
2. Give two (2) measures in determining Effective Use Value of a site.
3. Define building value.
4. Give three (3) methods to determine the building cost.

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 Module 104: Valuation/Cost Approach – Subject: Cost Approach

4.3 Depreciation

Depreciation occurs when an improvement has a value less than the

cost to replace it or to reproduce it. There are three kinds of depreciation
or obsolescence i.e. physical, functional and economic.

Physical depreciation results from wear and tear over the life of the item
or loss in value caused by inadequate maintenance. Different valuation
methods may be used to estimate the amount required to rectify the
physical condition of the improvements.

Functional depreciation or obsolescence occurs when a new building

would fulfill the purpose of the existing one more efficiently. Functional
obsolescence occurs either because the original design is faulty or
because there is a shift in market requirements for certain space
standards. Functional and technical obsolescence can be caused by
advances in technology that create new assets capable of delivering
goods and services more efficiently thus making existing assets fully or
partially obsolete in terms of current cost equivalency,

Economic obsolescence is loss in value caused by influences external

to the property. It is sometimes referred to as "external" or locational
obsolescence. The major causes of economic obsolescence are
changes in the locational characteristics of the property and
neighbourhood influences which may be physical or sociological in origin.
External factors include change of economic conditions, which affect the
demand for goods and services and the profitability of business entities.

There are three ways to determine depreciation, namely

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 Module 104: Valuation/Cost Approach – Subject: Cost Approach

• Market-based assessment
• Assumption-based assessment:
• Breakdown method

i) Market-based assessment

The extent of depreciation can be easily assessed if a land value can

be reliably ascertained. Sale price minus land value gives the
contribution to price of the improvements. The difference, compared
with reproduction cost is a measure of depreciation arising from all
sources. The quantum of depreciation per square metre is then
applied to the subject property.

ii) Assumption-based assessment

In the absence of market data on depreciation, one may have to make

assumptions as to how.it occurs over time. In some countries,
depreciation is usually assumed to be set according to the straight-line
hypothesis or the declining balance assumption.

The straight-line depreciation method is the most common method

adopted to assess age-related depreciation. This method assumes a
constant rate of depreciation of an asset from new to the end of its life.
For example, taking a building with an estimated future life of 30 years
and an established age of 30 years, the straight-line fraction to be
applied is 30/60, that is, 50 per cent of the initial cost.

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 Module 104: Valuation/Cost Approach – Subject: Cost Approach

iii) Breakdown method

In this method, the valuer identifies the sources of depreciation and

estimates each of them.

Exercise 3
1. What is depreciation
2. Explain three (3) type of depreciation / obsolescence
3. Give three (3) ways to determine depreciation

5.0 STEPS IN APPLYING COST METHOD

In this method the following process is involved:

(i) · Estimate the value of the land.

This is done by reference to the cost of acquiring a similar land. Recourse

will have to be made to the steps outlined in the comparison method i.e.
in determining the sales per unit area of similar land to determine the
value of this land.

(ii) Determine the current cost of erecting the building based on:
a) The dimensions of the building
b) The accommodation and size of the accommodation
c) The type and quality of building materials and the quality
of workmanship
d) The type and quality of floor and other finishes
e) The type, nature and quality of other finishes
f) The contractor's profit margin

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 Module 104: Valuation/Cost Approach – Subject: Cost Approach

(iii) The amount of depreciation should be deducted from the cost

as determined in (ii) to adjust the cost new to its present condition.

(iv) Market value is then equal to (i) + (ii) - ( iii) i.e. Land value and
cost of new construction - depreciation

5.1 Determining the Site or Land Value

i) Determine the category of land use of the site as well as its

size, shape, location and physical features of the subject
property.

ii) Find suitable comparables in the neighbourhood to derive at

the site value. Make necessary adjustments and analysis if
necessary, to allow for differences between the comparables
and the subject property.

iii) Form an opinion of site value on per unit basis and multiply it
by the land area of the subject property to arrive at the site
value.

5.2 Determining the Building Value

Techniques used in determination of building cost are as follows:

· (i) Quantity Survey:

This is an elaborate and accurate method usually undertaken by
quantity surveyors and contractors. A careful study of architectural
and engineering plans is necessary to arrive at an accurate
estimate.

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 Module 104: Valuation/Cost Approach – Subject: Cost Approach

(ii) Lump Sum:

This method calls for considerable amount of experience and
extensive knowledge of building methods systems and costs. This
method is often employed by experienced "Tukang Kayu" in the
villages and contractors with extensive building experience.

(iii) By Unit Area or Volume:

This is the most common method and is widely used by Valuers,
architects, engineers and contractors. The cost of the building is
determined by multiplying the area or volume of the building by its
unit area per square metre or per cubic metre.

It is necessary to point out that care should be taken to see that

the standard of measurement used remain the same for both the
subject building and the comparable unit and any differences
allowed for.

A. Newly Constructed Bu i l d i n g s

i) Determine the type of construction i.e. permanent, semi-

permanent or temporary, finishes and structure.

ii) From the building plan, determine the gross external floor
area.

iii) If the cost of construction is available, analyse the cost of

construction on per unit basis and compare the product with
analysis of similar type of buildings for validation and check. If
acceptable, proceed to multiply the unit cost with the total gross

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 Module 104: Valuation/Cost Approach – Subject: Cost Approach

external floor area to arrive at the building cost which is assumed

to be equal building value.

iv) If result of analysis is unacceptable, recheck the contract

documents to search for abnormalities or other external
agreements and make necessary adjustment to arrive at
reasonable cost of construction.

For newly constructed buildings, property value can be expressed

as:
CV = SV+BV

Where, CV = Capital Value

SV = Site Value
BV = Building Value
Assuming, BV = BC+others
Where, BC = Building Cost

B. Older Buildings

i) · Similar as in 6.2A(i)
ii) Similar as in 6 .2A(ii)
iii) Determine the current cost of construction of similar building.
This can be derived by analysing the construction cost of
similar buildings in the neighbourhood if available or consult
Quantity Surveyor or Engineer for the cost of construction
using the specification of the subject building.
iv) Determine the level of obsolescence of the building
i. Physical obsolescence
ii. Functional obsolescence
iii. Economic obsolescence
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 Module 104: Valuation/Cost Approach – Subject: Cost Approach

For older buildings, it can be expressed as:

CV = SV+BV

Assuming, BV = NRC

NRC = (BC – Dep.)

Where, NRC = Net Replacement Cost

BC = Current Building Cost

Dep. = Depreciation or
Obsolescence

Or CV = SV + (BC -
Dep.)

Or CV = SV + NRC

5.3 Determine depreciation

Determine depreciation rate of the building based on the level
of obsolescence. Depreciation rate can be determined using 2
methods as follows:

A. Subjective assessment - this is based on the experience

of the Valuer in judging the level of obsolescence of the
building.

B. Straight-line·Depreciation Method using the formula

Current Age of Building

X 100%
Economic Life Span of Building

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 Module 104: Valuation/Cost Approach – Subject: Cost Approach

6.0 APPLICATION OF COST METHOD

The cost method is mainly used to determine the capital value of landed
properties in the following circumstances:

a. When there is virtually no direct evidence of value to be derived

from transaction of similar type of property, or

b. When there is no indirect evidence which can be adduced from other

valuation or source of information e.g. accounts, rental values, or

c. Special type or specialised properties that seldom change hands in

the property market e.g. purpose-built factories, schools, hospitals,
airports, ports, dockyard, private sector oil-refineries or steel-works,
and public sector· courthouses and older Government buildings
particularly those of historic significance, or

d. Used as a check method in support of the main method of valuation

in order to provide a conclusive opinion of value.

Listed below are three examples of the cost method application for
newly constructed building, older building and specialised property.

6.1 Calculation on Newly Constructed Building

You. are required to determine the market value of L o t No 785,

Ju b a i l I n d u st r i a l A r e a , an industrial property that is being uses
as a telephone exchange by STC for asset purposes.

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 Module 104: Valuation/Cost Approach – Subject: Cost Approach

The site is 12,077 sq. metres in area occupied by four new buildings,
an underground cable tunnel and a cable yard.

The buildings are:

1. A four storey exchange building with basement and

lift.
2. A poser plant house
3. A store
4. A guard house

Recent transactions of industrial lands in the open market in the

neighborhood indicated that the market value of industrial land is
SAR129.00 per sq. metre. It is pertinent to note that the use of
the land has to be duly approved by the state authority.

1. 4 Storey Exchange Building SAR 517/- p.m.s

2. Lift SAR 12,000/-per opening
3. Plant house SAR 323/-p.m.s.
4. Store SAR· 323/- p.m.s.
5. Tunnel SAR 3,280/-p.m.r.
6. Guard House SAR 300/- p.m.s.
7. Tarmac SAR 15/- p.m.s.
8. Fencing SAR 30/- p.m.r.

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 Module 104: Valuation/Cost Approach – Subject: Cost Approach

Land (Site Value)

(*see note)
12,077.4m.s.@SAR102/-p.m.s - SAR1,231,895 say SAR1,232,000

Site Improvements
1. Tarmac area
11,000m.s. @SAR15/-p.m.s - SAR 165,000
2. Fencing
471 m @ SAR30/-p.m.r - SAR 14,130
SAR 179,130 say SAR179,000
Building Value
1. 4 Storey Telephone Exchange Building
Main Building
2546.38 m.s@ SAR517 p.m.s. SAR1,316,478
Lift-4 Floor openings @
SAR12, 000 per opening SAR 48.000
SAR1,364,478
2. Store
Main Building
255.50m.s. @ SAR323 p.m.s. SAR 82,552
Car Park Shed•
50.73 m.s. @ SAR129 p.m.s SAR 6.544
SAR 89,096
3. Power Plant House
129.35 m.s. @SAR323 p.m.s. SAR 45,010

4. Tunnel
37.02m.r @SAR 3,280p.m.r SAR 121,426

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 Module 104: Valuation/Cost Approach – Subject: Cost Approach

5. Guardhouse
5.95 m.s. @ SAR300 p.m.s SAR 1,785
SAR1,621,795 say SAR1,622,000
Market Value say SAR3,033,000

Note :

Determination of Land Value

Base Value (Freehold industrial land) - SAR 129 p.m.s.

Less – Restricted user – telephone exchange on say 20% X 0.8

SAR103.20

Say SAR102.00 p.m.s

or
SAR 9.50 p.f.s

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 Module 104: Valuation/Cost Approach – Subject: Cost Approach

6.2 Calculation on Older Building

Building 'A'

Bat h
Kitchen Bedroom
12.192 m

Bath Master Bedroom

15.240 m
Bedroom
3.048 m

Porch Living

4.572 m

Gross External Floor Area

Main Building :
9.144 m x 12.192m ......... 111.480 m.s
4.572 m x 3.048m ............ 13.935 m.s
124.415 m.s
Building 'A: was recently constructed at the cost of SAR42,000/-.
The finishes for the buildings are as follows:
Roof - Cement Tiles
Ceiling - Asbestos Plastered
Wall – Brick
Floor - Plain Cement

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 Module 104: Valuation/Cost Approach – Subject: Cost Approach

Analysis of Building Cost

SAR42,000
= SAR430.56 p.m.s
125.415 m.s + 1/3 ( 13.935 m.s.)

The analysis of building cost for Building “A” above is used to

determine the capital value of Lot 1009, in the locality of Al-Qassim by
using the cost method. Lot 1009 is 650.321 m.s. in size with a single
storey detached house constructed in 1978. The building
specifications and finishes are similar to Building A except for the
flooring which is as following:

Bedrooms – Parquet (83.61 ms)

Living – Marble (46.45 m.s)

Kitchen – Mosaic (27.87 m.s)

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 Module 104: Valuation/Cost Approach – Subject: Cost Approach

Single Storey Detached House On Lot 1009, Al-Qassim

15.239 m 2.438 m
12.192 m

Bedroom

10.668 m 4.572 m

Gross External Floor Area

Main Building
10.668 x 12.192 …….. 130.064 m.s.
4.572 x 6.096 ……… 27.871 m.s.
2.438 x 2.438 ………. 5.944 m.s.
163.879 m.s.

Porch
6.096 x 4.572 ……………. 27.871m.s.

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 Module 104: Valuation/Cost Approach – Subject: Cost Approach

Valuation:

A. Land (Site Value)

(* see note 1 )
650.3 m.s. @ SAR107.64 pms - SAR70,000

B. Building Value

Main Building
163.879 m.s. @SAR322.92pms - SAR 52,920

Porch
27.87m.s. @SAR107.64prns - SAR 3,000

Additional Works
Flooring-(* See note 2)
Parquet : 83.61 m.s. @ SAR53.82 pms SAR4,500
Marble : 46.45 m.s. @ SAR86.11 pms SAR4,000
Mosaic : 27.87m.s. @SAR43.10pms SAR1,200
SAR 65,620
Less

Depreciation @ 20% (* see note 3) SAR 13,124

SAR 52,496
SAR 12,496
Capital Value say SAR122,500

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 Module 104: Valuation/Cost Approach – Subject: Cost Approach

Note
1. Site value of SAR 107.64 pms was derived from sales analysis
of vacant residential lands in the neighbourhood of
approximately the same size and characteristics.
2. The cost of floor finishes pms was derived based on quotations
given by contractors.
3. Depreciation of 20% is based on the straight line method i.e.

Age of building
X 100
Economic life span of building

12
= X 100 = 20%
60

6.3 Calculation on Specialised Property

Specialised properties are those properties that are rarely sold in the
open market, where there are insufficient market data to value them by
the comparison method. Similarly, lack of rental and income evidence,
the investment and profit methods of valuation are not applicable. Thus,
the most appropriate way to determine the market value of such property
is by reference to cost or depreciated replacement cost method.

Some of the specialised properties that are valued by the cost or

c ontractor's method include:

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 Module 104: Valuation/Cost Approach – Subject: Cost Approach

• Leisure properties (public) owned by local or municipal

authorities
• Public care/nursing homes which are non-income generating
• Public Hospitals
• Churches, and
• Other charitable institutions
• Public sector assets like swimming pools, leisure centres, town
halls, educational buildings, sports buildings and crematoria.

Example:
A modern crematorium built by a District Council; at the time of
valuation there are some 2,750 cremations annually but the
premises has a full working capacity of some 7,500 cremations
annually; thus some of the facilities provided are surplus to
requirements.

Estimated present day building cost of crematorium SAR 135,000

Cremators (furnaces)(1) SAR 25,000
Site works SAR 10,500
Land SAR 5,000
SAR175,500
Deduct for surplus accommodation say@ 40% (2) SAR 70,200
Effective capital value SAR 105,300

N.A.V (Net Annual Value) at 3.75 % SAR 3,948

N.A.V = R.V (Rental Value) say SAR 4,000

26
 (1) Such items are rateable as plant even though they do not
occur in industrial premises, as here
(2) This item is estimated, inter alia, by reference to the ratio
between actual use and potential cremation capacity

Exercise 4

1. Please provide steps in using Cost Method

2. How do you calculate depreciation?
3. Give reasons to use cost approach
4. What is specialised property?

7.0 STRENGTH AND WEAKNESS OF COST METHOD

7.1 Advantages

The assumptions. used in cost method is simple and logical i.e. the
seller will as much as possible try to sell the property at the
minimum what it cost him to construct the buildings on the property
site and the purchaser would be prepared to pay for the property
what it would cost him to provide similar buildings elsewhere.

Cost method is easy to comprehend as it separates the site value,

building value as well as any improvements or additional works that
are available.

Another good point about cost method is that building costs

information are easily available from analysis of building
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 Module 104: Valuation/Cost Approach – Subject: Cost Approach

contracts, quotations from building contractors, quantity surveyors

and also in some countries, from the Building Cost Information
Service or Centre (BCIS).

7.2 Disadvantages

The major weakness of the cost method is that it assumes building

cost equals building value. This is however not necessarily true at
all times. A building may cost several millions of ringgit to construct
due to excessive ornamentation or finishes as well as distinctive
design to provide extravagant and elegant view of the building.
However, it may not worth as much as it cost in terms of return of
investment and functionality.

Secondly, it does not take into consideration the developer's profit

and risk in the determination of building value. This is consistent
with the principle that the building would be used for owner
occupation; It only considers the cost of constructing the subject
building without much consideration to the fact that if the developer
were to sell those constructed buildings, he would then add to the
cost of construction his element of profit and risk. In principle,
building value should consist of the following elements:

i Building materials
ii. Labour costs
Building
iii Contractor’s profit and charges value
iv. Developer’s profit and risk

Thirdly, it assumes that the modern substitute building would be

completed and available for use as at the date of valuation.
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 Module 104: Valuation/Cost Approach – Subject: Cost Approach

However, the construction period of many specialised buildings is

long; therefore, backdating the cost is difficult and might be
inconsistent with the date of valuation for the land.

Fourthly, in a DRC valuation the building to be valued is normally

not new where actual building costs are not available. In such
cases, one must assess how the estimated replacement cost
should be depreciated to reflect age and obsolescence. Assessing
the rate of depreciation is essentially a matter of value judgement
eventhough there is guidance on how depreciation can be
ascertained.

8.0 CONCLUSION·

Despite the strengths and weaknesses of the Cost Method, it is

considered the easiest amongst the five methods of valuation. Due to
this reason, the cost method is commonly used by Valuers next to the
widely accepted comparison method of valuation.

Nevertheless, the five methods of valuation are just tools in assisting

Valuers to estimate the value of a particular property. It is the Valuer
himself who has to decide whether the value derived from the method
of valuation used arrives at the best estimate of market value of the
subject property.

Exercise 5

1. What are cost method strength?

2. What are cost method weaknesses?

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 Module 104: Valuation/Cost Approach – Subject: Cost Approach

Extra Exercise

Answer ALL TRUE/FALSE Questions.

Choose the correct answer.

1. The cost method/approach is also known as the contractor’s method.

(TRUE/ FALSE)

2. Functional depreciation results from wear and tear over the life of the item or
loss in value caused by inadequate maintenance.

(TRUE/ FALSE)

3. Cost is the price paid for goods or services, or amount required to create or
produce the goods or services.

(TRUE/ FALSE)

4. The principle used in cost method is the economic principle of substitution.

(TRUE/ FALSE)

5. In the cost approach, land value is determined by taking into consideration the
existing improvements.

(TRUE/ FALSE)

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 Module 104: Valuation/Cost Approach – Subject: Cost Approach

6. This approach is useful when the property being appraised is a type of property
that is not frequently sold and is not an income-producing property.

(TRUE/ FALSE)

7. The replacement cost is the cost of building a similar structure, but using
modern construction methods and materials.

(TRUE/ FALSE)

8. In estimating property value using the cost approach, depreciation is

subtracted from the land value.

(TRUE/ FALSE)

9. The International Valuation Standards Council, United Kingdom defines cost

as the amount asked, offered or paid for an asset.

(TRUE/ FALSE)

10. This approach establishes the upper limit of what the market would normally
pay for a given property when it is new.

(TRUE/ FALSE)

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 Module 104: Valuation/Cost Approach – Subject: Construction Material & Services

MODULE 104: VALUATION/COST APPROACH

SUBJECT: CONSTRUCTION MATERIAL & SERVICES

Objective

At the end of the programme the participants will be able to gain knowledge on construction
material, technology and services in relation the Cost Approach in valuation.

Contents

• Building Construction Technology

• Building Materials and Finishes
• Building Services
• Construction Cost Analysis
• Property Management and Maintenance

Methodology

• Lecture
• Discussion
• Examination

Duration

• 2 days
 Module 104: Valuation/Cost Approach – Subject: Construction Material & Services

SESSION PLAN

TRAINING PROGRAMME : CONSTRUCTION MATERIAL & SEVICES

DAY : 2 DAYS

OBJECTIVE : At the end of the programme the participants will be able to gain knowledge
on construction material, technology and services in relation the cost
approach in valuation.

Date/ Session Session Objective Session Contents

Time

Session 1
Day 1 At the end of the session, • Introduction to Building Construction and Technology
0800 – 0945 Building participants will be able to • Building Classification
& Construction understand the basics of • Building Functional Requirements
1000 - 1115 Technology building construction and • Building Legislation
technology • Building Team
• Development Process

Day 1 Session 2 At the end of the session, • Building Components

1130 – 1245 participants will be able to gain • Types of Building Materials and Finishes
& Building Materials knowledge on building o Floor
1315 - 1500 and Finishes components and differentiate o Wall
building materials and finishes o Window
o Door
o Roof

Day 2 Session 3 At the end of the session, • Introduction to Building Services

0800 – 0945 participants will be able to o Water Supplies
& Building Services understand the workings of o Electricity
1000 - 1115 building services towards o Sewerage System
building functionality o Ventilation and Air-conditioning System
 Module 104: Valuation/Cost Approach – Subject: Construction Material & Services

Date/ Session Session Objective Session Contents

Time

o Fire Fighting
o Building Security and Mechanical Transportation
o Telecommunication System
o Refuse Disposal

At the end of the session, • Availability of Construction Cost Data

Day 2 Session 4 participants will be able to get o Construction Cost Handbook Malaysia by JUBM
1130 - 1245 the idea on finding and Langdon Seah
Construction Cost construction cost data for o KPK Research Digest by KPK Research
Analysis analysis o Building Cost Analysis by National Institute of
Valuation (INSPEN), Malaysia

Session 5 At the end of the session, • Introduction

Day 2 participants will be able to • Building Maintenance Plan
1315 - 1500 Property understand the importance of • Categories of Maintenance Programme/Plan
Management and property management and • Building Maintenance Operation
Maintenance prepare property • Impact of Property Management and Maintenance to
Construction Cost maintenance plans Property Value
Analysis

Session 6
Day 3
Exercises & Examination
 Module 104: Valuation/Cost Approach – Subject: Construction Material & Services

TABLE OF CONTENTS

Chapter Page

1.0 BUILDING CONSTRUCTION TECHNOLOGY 1

1.1 Introduction to Building Construction and Technology 1
1.2 Building Classification, Functional Requirements, Legislation 2
and Building Team
1.3 Development Process 21

2.0 BUILDING MATERIALS AND FINISHES 45

2.1 Building Components 45
2.2 Types of Building Materials and Finishes 51

3.0 BUILDING SERVICES 72

3.1 Introduction to Building Services 72
3.2 Building Services Technology 76

4.0 CONSTRUCTION COST ANALYSIS 133

4.1 Availability of Construction Cost Data 135
4.2 Construction Cost Handbook Malaysia by JUBM and Langdon 135
and Seah

4.3 KPK Research Digest by KPK Research 138

4.4 Building Cost Analysis 139

5.0 PROPERTY MANAGEMENT AND MAINTENANCE 139

5.1 Introduction to Property Management and Maintenance 139
5.2 Managing Maintenance of a Property 143
5.3 Building Maintenance Plan 156
5.4 Building Maintenance Operation 161
5.5 Impact of Property Management and Maintenance to Property 167
Value
 Module 104: Valuation/Cost Approach – Subject: Construction Material & Services

1.0 BUILDING CONSTRUCTION TECHNOLOGY

1.1 Introduction to Building Construction and Technology

Building Technology is the application, structures

or attachment made to the building.

This chapter examines the general principles of

building construction and applies them to
practical examples of constructional work
throughout all parts of simple domestic buildings.

LEARNING OBJECTIVES

The learning objectives of Building Construction

Technology are:
i. To understand the building construction
classification, functional requirements,
legislations and building team (refer to para
1.2);
ii. To understand the development process
consists of five stages:
• Stage 1: Planning Stage
• Stage 2: Analysis and Design Stage
• Stage 3: Management Stage
• Stage 4: Construction Stage
• Stage 5: Handing Over Stage
(refer to subchapter 1.3)

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 Module 104: Valuation/Cost Approach – Subject: Construction Material & Services

1.2 Building Classification, Functional Requirements, Legislation and

Building Team

1.2.1 Building Construction Classification

CONSTRUCTION CATEGORY CONSTRUCTION TYPES

Light Construction Engineering 1. House

(Building construction work) 2. Office
3. Shopping complex
4. Factory
5. School
6. Mosque

Heavy construction Engineering 1. Port

(Civil engineering work) 2. Airport
3. Bridge
4. Dam
5. Road
6. Tunnel

LIGHT CONSTRUCTION ENGINEERING

House Office Factory

HEAVY CONSTRUCTION ENGINEERING

Airport Bridge Seaport

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 Module 104: Valuation/Cost Approach – Subject: Construction Material & Services

1.2.2 Building Functional Requirement

Functional requirement of a building can be divided into seven

types:
i. Strength and load bearing.
ii. Stability.
iii. Comfort and convenience.
iv. Resistance to moisture penetration (or damp prevention).
v. Fire protection (or safety against fire).
vi. Heat/Thermal Insulation.
vii. Day lighting.

The explanations of building functional requirement are as the

followings:

i. Strength and Load Bearing

The strength of a material refers to the capacity of the

material to withstand stresses. Alternatively, it is the
capacity of the structure to support the loads coming over
it, safely.
The stability of a structure or structural elements refers to
its resistance to large overall deformation such as the over-
turning of a wall.

According to the Building By-Laws, buildings must be

constructed so that load bearing elements, foundations,
walls, floors, and roofs have adequate strength and
stability to support the dead loads of the construction and
anticipated loads on roofs, floors and walls without undue
deflection or deformation that would have a bad effect on
the strength and stability of parts or whole of the building.

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 Module 104: Valuation/Cost Approach – Subject: Construction Material & Services

The loads in a building are commonly classified into three

types:
• Dead load
The dead load includes loads that are relatively
constant over time, including the weight of the
structure itself, and immovable fixtures such as
walls, plasterboard or carpet. The roof is also a dead
load. Dead loads are also known as permanent or
static loads.
• Superimposed or live loads
Live loads are either movable or moving loads
without any acceleration or impact. There are
assumed to be produced by the intended use or
occupancy of the building including weights of
movable partitions or furniture etc.
• Wind loads
Wind load is primarily horizontal load caused by the
movement of air relative to earth. For low rise
building say up to four to five storey, the wind load
is not critical because the moment of resistance
provided by the continuity of floor system to column
connection and walls provided between columns
are sufficient to accommodate the effect of these
forces.

Illustrations below show the loads of a building:

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 Module 104: Valuation/Cost Approach – Subject: Construction Material & Services

Figure 1.1: Types of Loads

ii. Stability

This stability refers to the resistance to dimensional

changes in building materials and structures, caused due
to the following:
• Elastic and plastic deformation due to applied loads.
• Expansions and contractions due to changes in
temperature.
• Expansions and contractions due to changes in
more moisture content.
• Movements due to chemical reaction between
building materials in contact or between building
materials and moist air.
• Avoiding the use of such materials which deform
when unrestrained cause of moisture or
temperature changes.
• Providing unnecessary restraint to shrinkage or
expansion of the material.

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 Module 104: Valuation/Cost Approach – Subject: Construction Material & Services

iii. Comfort and Convenience

Grouping of the rooms should be so planned as to ensure
better circulation, optimum utilisation of space and
maximum efficiency in a building.

From comfort and aesthetics point of view, a building

should provide enough light during day as well as in night,
for clear and easy vision without giving glare effect.

The orientation of the building as a whole and its units

should be made in such a way as to make the maximum
use of natural gifts such as light, breeze, etc.

Figure 1.2: Optimum Utilization of Space and Maximum

Efficiency in a Building
iv. Resistance to Moisture Penetration (Damp Prevention)

This moisture or dampness in buildings is generally due to

bad design, faulty construction and use of poor materials.

The moisture gets into the building due to rain penetration

through external walls, the rise of moisture from the ground
through foundation walls, rain penetration through the
roofs, or from sides.

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 Module 104: Valuation/Cost Approach – Subject: Construction Material & Services

A sub-soil through which water can easily pass as firm

gravel, sandy soil or soil containing light clay, will usually
keep the foundations fairly dry.

Figure 1.3: Sources of Moisture Penetration

v. Fire Protection (Safety Against Fire)

A building should provide means for the occupants to leave

the building safely and quickly in the event of fire.

To meet the above requirements, the availability of the fire

brigades and the provision of automatic and manual
extinguishing and alarm equipment inside the building may
have to be taken into account.

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 Module 104: Valuation/Cost Approach – Subject: Construction Material & Services

Figure 1.4: Fire Protection System

vi. Heat/Thermal Insulation

The use of thicker exterior walls, increase strength as well

as provide insulation against heat and cold.

The use of shading devices such as projecting roofs, trees

balconies, courtyards, etc. the proper orientation of
buildings, also, helps in achieving heat insulation
requirements.

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 Module 104: Valuation/Cost Approach – Subject: Construction Material & Services

Figure 1.5: Heat/Thermal Insulation

vii. Day Lighting

To promote the activities carried within the building,

particularly industrial buildings. To create a pleasing
environment, good lighting can be achieved by admitting
enough light for good seeing or as per the requirements of
room and by controlling direct and reflected glare from light
sources to eliminate visual discomfort.

Figure 1.6: Day Lighting Illustration

Exercise 1
1. What is building technology?
2. What are five (5) stages in development process?
3. Provide two (2) classification of building construction?
4. List seven (7) building functional requirement.

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 Module 104: Valuation/Cost Approach – Subject: Construction Material & Services

1.2.3 Building Legislation

The Great Fire of London in 1666 was the single most significant
event to have shaped today’s legislation. The rapid growth of the
fire through timber buildings built next to each other highlighted
the need for builders to consider the possible spread of fire
between properties when rebuilding work commenced. This
resulted in the first building construction legislation that required
all buildings to have some form of fire resistance.

During the Industrial Revolution (200 years later) poor living and
working conditions in ever expanding, densely populated urban
area caused outbreaks of cholera and other serious diseases.
Poor sanitation, damp conditions and lack of ventilation forced the
government to take action and building control took on the greater
role of health and safety through the first Public Health Act of
1875. This Act had two major revisions in 1936 and 1961 and led
to the first set of national building standards – the Building
Regulations 1965. Over the years these regulations have been
amended and updated, and the current document used in
England and Wales is the Building Regulations 2000 (Tricker &
Algar, 2007).

The function of Building Legislation is:

• To ensure the quality and construction have features of
safety, comfort, health, and the materials/component used
are comply with the standard.
• To control construction work according to the policy of the
country planning and development. The policy will be a
guidelines or limit to the construction.

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 Module 104: Valuation/Cost Approach – Subject: Construction Material & Services

In countries such as United Kingdom and Malaysia, the Building

Legislations are legal requirements laid down by Parliament,
based on the Building Act 1984.

Building Legislation covers of the followings:

Country/Province Act Regulations Implementation
England and Building Act 1984 Building Approved
Wales Regulations 2000 Documents
Scotland Building Building (Scotland) Technical
(Scotland) Act Regulations 2004 Handbooks
2003
Northern Ireland Building Building ‘Deemed to satisfy’
Regulations Regulations by meeting
(Northern (Northern Ireland) supporting
Ireland) Order 2000 publications
1979
Malaysia Uniform Building Local Plan and Approved
By Law 1984 Building Documents
Regulations
according to the
respective local
authority
requirements.

• Functions of Building Act

Tricker & Algar, 2007 stated that the Act is responsible for
ensuring that the health, welfare and convenience of persons
living in or working in (or nearby) buildings is secured. One of
its prime purposes is to assist in the conservation of fuel and
power, prevent waste, undue consumption, and the
misuse/contamination of water.

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 Module 104: Valuation/Cost Approach – Subject: Construction Material & Services

It imposes on owners and occupiers of buildings a set of

requirements concerning the design and construction of
buildings and the provision of services, fittings and equipment
used in (or in connection with) buildings. These involve and
cover:
• a method of controlling (inspecting and reporting)
buildings;
• how services, fittings and equipment may be used;
• the inspection and maintenance of any service,
fitting or equipment used.

The Building Act 1984 consists of five parts:

Part 1 : The Building Regulations
Part 2 : Supervision of Building Work etc. other
than by a local authority
Part 3 : Other provisions about buildings
Part 4 : General
Part 5 : Supplementary

Please refer to Appendix A for Example of Building Act

1984 Contents.

• Functions of Building Regulations

They are a set of minimum requirements and basic

performance standards designed to secure the health, safety
and welfare of people in and around buildings.

Building Regulations are legal requirements laid down by

parliament and based on the Building Act 1984. The features
of Building Regulations are:

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 Module 104: Valuation/Cost Approach – Subject: Construction Material & Services

• Deal with the minimum standards of design and

building work for the construction of domestic,
commercial and industrial buildings;
• Set out the procedure for ensuring that building
work meets the standards laid down;
• Are designed to ensure structural stability;
• Promote the use of suitable materials to provide
adequate durability, fire and weather resistance,
and the prevention of damp;
• Stipulate the minimum amount of ventilation and
natural lights to be provided for habitable rooms;
• Ensure the health and safety of people in and
around buildings (by providing functional
requirements for building design and construction);
• Promote energy efficiency in buildings;
• Contribute to meeting the needs of disabled people.

The level of safety standards acceptable are set out as

guidance in the Approved Documents. Compliance with the
detailed guidance of the Approved Documents is usually
considered as evidence that the Building Regulations
themselves have been complied with.

• Functions of Approved Documents

The Building Regulations are supported by separate

documents which correspond to the different areas covered
by the regulations. These are called ‘Approved Documents’
and they contain practical and technical guidance.

Each Approved Documents reproduces the actual

requirements contained in the Building Regulations relevant to

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 Module 104: Valuation/Cost Approach – Subject: Construction Material & Services

the subject area. This is then followed by practical and

technical guidance showing how the requirements can be met
in some of the more common building situations. The current
sets of approved documents are in 13 parts, A to P (less ‘I’)
and consist of:

A Structural
B Fire safety
C Site preparation and resistance to moisture
D Toxic substances
E Resistance to the passage of sound
F Ventilation
G Hygiene
H Drainage and waste disposal
J Combustion appliances and fuel storage systems
K Protection from falling, collision and impact
L Conservation of fuel and power
M Access and facilities for disabled people
N Glazing – safety in relation to impact, opening and
cleaning
P Electrical safety

• Other Legislation and Regulation in Construction

Industry

In Malaysia scenario, besides Building Act and Regulations,

there are other aspects of legislations to comply such as:

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 Module 104: Valuation/Cost Approach – Subject: Construction Material & Services

According to Section 9 of the Act, any

structure above a height specified in such
Civil Aviation Act 1969 order may be prohibited. This may cause
to obstruction for aerodome area.

To ensure uniformity of law and policy to

make a law with regard to local
Street & Drainage Act government matters relating to street,
1974 drainage and building.

Provisions made to confer executive

authority on the Federation over certain
Town & Country matters in relation to the control and
Planning Act 1976 regulation of town and country planning.

Exercise 2
1. Please provide the functions of building regulations in UK law?
2. What are approved documents in UK’s building statute?

1.2.4 Building Team

Projects to design and construct buildings can involve large

numbers of people and on major projects many thousands of
people. The structure and composition of the project team tends
to change through the duration of the project; some team
members might only have a very brief involvement, brining
specialist knowledge or supplying specialist components during a
particular phase, whilst others, such as client sponsors, project
managers or lead consultants may be involved for many years.

It is crucial that project teams are structured properly from the

outset, and that team members are selected carefully to give the
project the best prospects for success. However, as there is often
some doubt about whether a project will actually proceed during

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 Module 104: Valuation/Cost Approach – Subject: Construction Material & Services

the initial stages of business justification and feasibility studies,

proper attention is not always given to defining the project team.

PROJECT

Figure 1.7: Relationship in Building Team

The composition of the project team may change through the

duration of a project and may include many members, but an
indicative, outline structure for a traditional project is shown
below:

Figure 1.8: Building Team

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 Module 104: Valuation/Cost Approach – Subject: Construction Material & Services

1.2.4.1 Role and Function of Traditional Building Team

Organisation Job Description

Client/Owner/Board • Organisation/individual owns the

of Directors project.
• Client will appoint a consultant &
contractor to manage and construct the
project.
• Financial contributor.

Project Board The Project Board provides direction and

management for the project. The Project
Board is the overall authority for the
project and is accountable for its success
or failure. Members must have sufficient
authority to carry out their responsibilities
effectively.
The collective responsibilities of the Project
Board members include:
• Accepting and demonstrating
ownership for the project
• Working as a team to provide
collective and unified direction
• Effective delegation with appropriate
project tolerances and exception
management processes
• Facilitating cross functional working
ensuring that the project structure is
recognised and respected by line
management
• Committing all of the resources
required to successfully complete the
project

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 Module 104: Valuation/Cost Approach – Subject: Construction Material & Services

• Effective decision making including

risk, issue and change management
• Project assurance and quality control
• Ensuring timely and effective
communication within the project and
with external stakeholders
• Ensuring that the project deliverables
are reliable, sustainable and can be
maintained efficiently.

All projects require an effective

governance structure. As a minimum the
Project Board should include the Project
Sponsor, Senior User(s), Senior
Supplier(s) and Project Manager. Other
staff such as the Programme Manager
can provide support to the Project
Manager as required.

Project Sponsor The Project Sponsor is ultimately

accountable for the success or failure of
the project and has to ensure that the
project is focused on achieving its
business objectives and delivering the
forecast benefits. The Project Sponsor
has to ensure that the project gives value
for money and adopts a cost effective
approach which balances the demands of
the business, users and suppliers.
Throughout the project the Project
Sponsor is responsible for the business
case and needs to be able to take a

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 Module 104: Valuation/Cost Approach – Subject: Construction Material & Services

balanced view of the project on behalf of

the wider organisation.

This role will normally be undertaken by

someone operating at a senior level
within the business organisation with
significant executive and natural
authority. The responsibilities of the
Project Sponsor include:

• Securing budgets and ensuring

appropriate financial controls are
in place
• Appointing the project
management team including other
members of the Project Board
• Advocating the project both
internally and externally
• Supporting the project manager to
successfully deliver the project
• Signing off project deliverables.

Project Manager The Project Manager runs the project

from day to day on behalf of the Project
Sponsor. The Project Manager ensures
that the project deliverables are of the
required quality, i.e. are capable of
delivering the benefits defined in the
business case, and produced within the
agreed time and cost.
The responsibilities of the Project
Manager include:
• directing the project team

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 Module 104: Valuation/Cost Approach – Subject: Construction Material & Services

• managing the project plan

• maintaining the risk register, issue
and change control logs
• reporting on progress to the
Project Sponsor and other
stakeholders

Consultant A professional individual or a professional

company who is involved in the design &
monitoring the project on behalf of the
owner.

Contractor A group of people who responsible to

carry out matters that relating to the
construction.

Engineer Prepares the engineering design, solves

problems regarding construction
technology

Architect Prepares building or project designs from

the architectural aspect

Quantity surveyor Prepares assessment or cost estimation

Project for a project or a stage of the project

Land Surveyor Carries out various land surveying works

Technical Assistant An assistant to the engineer, architect,

QS or LS in any related work

Technician Carries out supervising and monitoring

work, design for small scope of work

Draftsman Draws plan from various views

Administration staff Carries out various works to help the

administration of the organisation.

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 Module 104: Valuation/Cost Approach – Subject: Construction Material & Services

Administration staff includes clerks &

typists

Construction Carries out work at the construction site

worker such as brick laying, plastering, concrete
work & wood work

1.3 Development Process

Development process can be divided into five stages:

Stage 1: Stage 2: Stage 3: Stage 4: Stage 5:

Planning Analysis & Management Construction Handing
Stage Design Stage Stage Stage Over Stage

Figure 1.9: Development Process

1.3.1 Stage 1: Planning Stage

Planning stage of a construction starts when a client- individual,

government body or private sector plans to build a construction
project. Initially, the client has a vague idea of what the design of
the construction project to be. Therefore, an architect will be
engaged to produce conceptual drawings. Assigned a quantity
surveyor is to make the cost estimation of the project based on
the conceptual drawings and the budget allocated by the client.

Three processes involved in planning stage are:

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 Module 104: Valuation/Cost Approach – Subject: Construction Material & Services

b.
Preparing
a. Budget
Feasibility Study
c.
Appoint
Consultant
Planning
Stage

Figure 1.10: Process in Planning Stage

(a) Feasibility Study

Feasibility study is conducted to assure that a construction

project is viable. The objective of this study is to determine the
suitability of the project from the aspects of engineering,
economy and its impact to the environment (EIA). Data and
information need to be first analysed before site investigation
work can be carried out. Data and information that required
are as follows:
• Topographic map (contour plan)
• Geological map
• Mining record
• Weather report
• Previous construction site plans, etc.
• Marketability of the proposed project. In Malaysia
context, the feasibility and marketability study will be
conducted by a property consultant such as valuer.

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 Module 104: Valuation/Cost Approach – Subject: Construction Material & Services

(b) Budget Preparation

The budget or capital for construction project is funded by the

client. There are three financial sources for a client, which are:
• From own saving/money
• Loan from financial institution
• Combination of both = Own Saving + Loan from
Financial Institution

(c) Appointment of Consultant

The appointed architect will act as the consultant. Other

consultants involved are civil engineer, mechanical and
electrical engineers, quantity surveyor and land surveyor.
Consultant will then coordinate works at all stages of the
construction process.

Summary of a planning stage can be illustrated as follows:

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 Module 104: Valuation/Cost Approach – Subject: Construction Material & Services

Client-individual, government, private plans to build a construction project

At this stage client has an unclear idea of the design

Client engaged the architect to produce a conceptual drawing

Assigned a QS to make the cost estimation based on the conceptual drawing

& budget by the client

Financial sources for the construction by client from own money, loan or
combination of both

Appointed architect will act as the consultant and then coordinate at all stage
of the construction process

Consultants consist of Engineers, Quantity Surveyors, Land Surveyor

1.3.2 Stage 2: Analysis and Design Stage

Factors to be considered during this stage:

(a) Site Analysis And • Flat land? hilly? forest? near to factory?
Selection Of Site Seashore?

(b) Site Surveying • Carry out by whom?

(c) Soil Investigation • How? Why?

(d) Construction Design • Responsible person or team?

(e) Prepare Drawings And • preparation of detail drawings and work

Work Specifications schedules to estimate the project cost.

(f) Cost Estimation • How? Bill of quatities..

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 Module 104: Valuation/Cost Approach – Subject: Construction Material & Services

(a) Site Analysis and Selection of Site

Information need to be analysed, studied and obtained before

making any selection of the construction site. All consultants
involved have to inspect the construction site in order to
choose and decide the suitable orientation for the project.

Five factors influenced on selection of site are:

i. Climate
Varies widely through the country – heavy rain at
catchment areas and others.

ii. Prospect
Ideally a site should command pleasant views and the
adjoining land uses should be compatible. The site itself
will be more attractive if it is gently undulating and contains
some mature trees. But if the trees are too close to the
building they will restrict light and air and cause settlement.

iii. Available facilities

Housing site should ideally have ready access to schools,
shop, parks, sports facilities, swimming pool, libraries,
good public transport services and other facilities.

iv. Services
Adequate and accessible water mains, electricity cables
and sewerage system. In rural area it may be necessary to
provide septic tank installations.

v. Subsoil
• Type of soil will effect on the building work.

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 Module 104: Valuation/Cost Approach – Subject: Construction Material & Services

• Hard rock provides a good foundation but increase

excavation costs.
• Gravel is probably the ideal subsoil, durable and
easily drained.
• Clay often has a good bearing capacity but does not
drain well; with the shrinkable varieties it is
necessary to take the foundation down to at least
one meter below ground level because of the
variations that occur with differing climatic
conditions.
• Made ground is where soil or other fill has been
deposited to make up level. Lengthy periods are
needed for settlement; it may be necessary to use
raft or piled foundations for building construction.

(b) Site Surveying

The location of a construction site is identified from data

obtained by surveyors after site inspection is done. Data
and information from survey and geological maps
produced by the Survey and Mapping Department
(JUPEM) is also being used as reference.

Survey work is carried out to determine the actual location

of the site’s boundary markers. Based on the boundary
markers, the area of the site, ground level and grid level of
the site can be identified to determine the ground profile of
the site. Information gathered from the survey work is used
to prepare the formation level of the construction site.

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 Module 104: Valuation/Cost Approach – Subject: Construction Material & Services

A B

C D

Figure 1.11: Picture A to C showing Land Surveying

Equipment. Picture D shows Boundary Markers.

(c) Soil Investigation

The functions of soil investigation process are:
i. Determine the suitability of the site for proposed
project.
ii. Determine an adequate and economic foundation
design.
iii. Determine the difficulties which may arise during the
construction process and period.
iv. Determine the occurrence and/or cause of all changes
in subsoil conditions.

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 Module 104: Valuation/Cost Approach – Subject: Construction Material & Services

Things that need to be done during soil investigations are:

i. Obtain information on the condition of every soil layer
including types of soil and properties of soil, bearing
strength, description and depth of bedrock at various
locations and depth of proposed base for the designs
of foundation.
i. Determine the ground water level in the soil, water
pressure at the area and identify suitable techniques to
decrease the ground water level.

Figure 1.12: Factors to be Considered in Soil Investigation: Type of Soil

and Ground Water Level

Methods of soil investigation:

• For simple residential building on reasonable site:
i. Hand Auger:
Drilling holes up to 2 metres or 2.5 metres depth
ii. Machine:
Driving a pointed steel bar about 1.5 metres into
the ground

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 Module 104: Valuation/Cost Approach – Subject: Construction Material & Services

A B C

Figure 1.13: Method of Soil Investigation for Simple Residential Building.

Picture A & B: Hand Auger Method, Picture C: Machine Method

• For larger building or more difficult site

i. Excavating total holes about 1.5m deep outside
the perimeter of the building.
ii. Drilling boreholes by rotary methods.

A B

Figure 1.14: Picture A – Drilling Boreholes by Rotary Method. Picture B –

Example of Soil Collected After Excavating Works

(d) Construction Design

During the construction design, it involves three stages:

i. Architectural design consists of arrangement of site
plan and building plan with an emphasis on aesthetic
and space requirement of a construction. In this design

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 Module 104: Valuation/Cost Approach – Subject: Construction Material & Services

stage, detail drawings are prepared for work items

required in the structural design.
ii. Structural design is prepared based on architectural
site plan and building plan. The purpose is to determine
the size and type of foundation for the substructure and
the superstructure of the construction.
iii. Civil engineering design is prepared based on the
site plan to determine the path for water supply,
sewerage, road, drain and infrastructure facilities. The
design must meet the requirements of the Fire and
Rescue Department and the Uniform Building By-laws
1984. At the same time, electrical and mechanical
designs are prepared based on the architectural site
and building plan.

A B

Figure 1.15: Picture A – Structural Design of a House. Picture B – Architectural Design

of a House

(e) Prepare Drawings and Work Specifications

Information obtained from the construction design is used to

prepare working drawings. The working drawings consist of

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 Module 104: Valuation/Cost Approach – Subject: Construction Material & Services

design, structural, and service drawings. At the same time,

standard specifications for construction work are prepared.

Building specifications include construction materials, type

and grade of materials used.

If there are any changes or amendments to the Standard

Specifications, it must be done through Addendum in the
specification.

(f) Cost Estimation

Project cost estimation is prepared based on working
drawings and standard specifications, whether in the form of
bill of quantities or lump sum.

1.3.3 Stage 3: Management Stage

A systematic project management in a construction sector is

required especially in the aspects of time management, quality of
work and the implementation cost.

At this stage, the quantity surveyor gathers information for the

preparation of tender document and to call to tender.

The contract terms and conditions based on the aspects of the

project management qualities are included in the tender
document. The process flows of management stage are:

i. Gathering Information
When all work in the analysis and design stage completed,
information such as standard work specification, addendum
specification, work drawing list, instruction and check list for

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 Module 104: Valuation/Cost Approach – Subject: Construction Material & Services

tenderers, tender brief and contract form are gathered and

compiled together in the tender document. Based on the
provided tender document, the contractor priced for the
respective tender.

ii. Tender Award

Tender offering is advertised after the preparation of tender
document completed. The type of tender depends on the
nature of the work. Developers or contractors who are
interested to participate in the tender are required to purchase
the tender document from the management body of the
project.

When the tender offer is closed, quantity surveyor makes an

evaluation to choose the qualified contractor to receive the
contract. Once the contractor is appointed, `Acceptance
Letter’ is handed to the client. Then, the contract or agreement
is signed. The contract made between the contractor and
client must follow the terms and conditions specified in the
tender document.

Upon acceptance of the construction contract, the contractor

shall obtain insurance coverage in the form of performance
bond, shall comply with all By-Law and obtain permission to
enter the construction site. Thereafter, the contractor has to
prepare cost projection and project work schedule.

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 Module 104: Valuation/Cost Approach – Subject: Construction Material & Services

Figure 1.16: Example of Tender Advertisement in Local

Newspaper.

iii. Employing Workers

The contractor who has been awarded the project is
responsible for all the construction work involved at the
construction site including the appointment of subcontractors.

The subcontractors appointed will attempt to employ workers

to carry out the work at the construction site.

The appointment of workers varies depending on the work

stages involved such as foundation, structure building,
finishing, electrical and machinery works.

Figure 1.17: Picture of Construction Site Worker

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 Module 104: Valuation/Cost Approach – Subject: Construction Material & Services

iv. Procurement of Material and Equipment

Adequate supply of materials and proper time schedule are
important to ensure the construction project proceed as
planned.

1.3.4 Stage 4: Construction Stage

Construction stage consists of:

• Phase 1: Site preparation
• Phase 2: Structural work:
a. Earthwork
b. Substructure
c. Superstructure
• Phase 3: Provides basic amenities work

Explanation about the construction stages are as of the

followings:

Phase 1: Site Preparation

i. Acquiring Permit & permission
ii. Before the structure construction works is commence:
o The consultant has to get the development order from
local authority regarding construction site and related
detailed drawing.
o The contractor has to apply for temporary permit to start
the construction works.
iii. Site clearing
o Demolition of existing building by manual or
mechanical means.
o Root out of bushes and trees
o Remove soil to reduce levels

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 Module 104: Valuation/Cost Approach – Subject: Construction Material & Services

o The topsoil about 300mm is easily compressed and

would be unsuitable for foundation. Topsoil is valuable
for gardening

A B

Figure 1.18: Site Clearing Process.

Picture A: Demolition by Pusher Arm Machine. Picture B: Clearing Out
Bushes and Trees using Logfisher Timber Harvester. Picture C:
Removing Topsoil by Backhoe

iv. Setting out the building

o Before construction of a building begin, we have to:
a. identified the site
b. determined boundary
c. cleared building site.
o Work to mark the actual building site is known as
planning setting out. The following are common terms
used in planning site markings:

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 Module 104: Valuation/Cost Approach – Subject: Construction Material & Services

a. Building line – is a line that envelopes the

building.
b. Datum Level – to guide the level of the building
to be built. The datum level can be constructed
of a temporary brick column or a marking on a
nearby building or structure. (datum = point
set/benchmark)
c. Foundation line – a line that demarcate the
extent of the building foundation that will be
excavated.

A B

Figure 1.19: Setting Out Process.

Picture A: Drawings of setting process. Picture B: Setting out works at
actual construction site. Picture C: Excavation Process Based on Boundary
Line.

v. Boundary stones:
o Small column made of concrete buried by Survey
Department to demarcate the boundary of any lot.

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 Module 104: Valuation/Cost Approach – Subject: Construction Material & Services

vi. Lot Number is a number allocated to a lot that has been

surveyed by the Survey Department. (as stated in title)

Phase 2: Structural Work

Consists of 3 phases as of followings:
a. Earthwork
b. Substructure
c. Superstructure

(a) Earthwork
o Process of preparation of required formation level
as in the working drawing.
o Cut & fill work carried out with reference to base
level line & datum that had been set up via levelling
process.
o Area that higher ground level than the site formation
level-cutting is carried out.
o Earth filling is carried out to the area when the
ground level is lower than formation level.

Figure 1.20: Earthwork Process.

Picture A: Cut & Fill Based on Datum and Level Line. Picture B:
Cut and Fill Process

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 Module 104: Valuation/Cost Approach – Subject: Construction Material & Services

(b) Substructure
The functions of substructure are:
o Every structural work needs to begin with the
construction of substructure. The lowest division of a
building or other construction, partly or wholly below
the surface of the ground as the base on which
building rests.
o Designed to support and anchor the superstructure.
The substructure functions are to safely sustain and
transmit the building loads such as dead load, wind
load and imposed load to the ground so as not to
cause any settlement or other movement in any part
of the building or of any adjoining building as it will
weaken the stability.
o To be capable of resisting the attack from damaging
material such as sulphates in the subsoil and other
factors such as swelling and shrinkage of the subsoil.
o Substructure works are consisting of foundation,
pilling and work below water proofing layer.

There are two categories of foundation:

• Shallow foundations: Those which transfer the
loads to subsoil at a point near to the ground floor of
the building. Example:

NOS. TYPE OF SHALLOW FEATURES

FOUNDATION
1 Strip Foundation • Normally suitable for buildings
up to 4-storey in height.
• Used to support and transmit
the loads from heavy walls.
• A continuous strip concrete
provides a continuous ground

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 Module 104: Valuation/Cost Approach – Subject: Construction Material & Services

bearing under the load bearing

walls.
• Strip foundation can be divided
into 3 types:
o Common strip foundation
o Wide strip foundation
o Deep strip foundation
• It is placed centrally under the
walls.
• Composed of plain concrete
often to a mix of 1:3:6 by
volume. (cement: sand:
aggregate)

• The thickness not less than

150mm

2 Pad Foundation • These are isolated foundation

to support and transmit the
loads from piers & columns.
• Suitable for framed structure
building.
• The thickness of the foundation
must not less than 150mm. The
size of the foundation can be
reduced by providing steel
reinforcement towards the
bottom of the foundation
running in both directions.
• Suitable on made up ground
and ground with poor bearing
capacity where a firm, natural
bed for example gravel or sand

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 Module 104: Valuation/Cost Approach – Subject: Construction Material & Services

is some few meters below the

surface.
• The pier will be built at the
angles, intersection of wall and
under the more heavily loaded
wall such as between windows.

NOS. TYPE OF SHALLOW FEATURES

FOUNDATION
3 Raft Foundation • A raft foundation is a large slab
foundation covering the whole
building area, through which all
the loads from the building are
transmitted to the soil.
• Best suited for use on soft
natural ground or fill, or on
ground that is liable to
subsidence as in mining areas.
• This type of raft may be used
under small buildings such as
bungalow and two storey
houses.
• The reinforcement is often in
the form of two layers of fabric
reinforcement, one being near
the top and other near the
bottom of the slab.
• There are 3 types of raft
foundation such as:
o Flat slab rafts
o Beam and slab rafts
o Cellular rafts

Figure 1.21: Type of Shallow Foundations

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 Module 104: Valuation/Cost Approach – Subject: Construction Material & Services

• Deep foundations: Those which transfer the loads to

subsoil some distance below the ground floor of the building.
NO. TYPE OF DEEP FEATURES
FOUNDATION
1 Raft Foundation • Piles foundation can be defined as a
series of columns constructed or
inserted into the ground to transmit the
load of a structure to a lower level of
subsoil.
• Piles are usually driven to a depth of
20m. In swampy area piles are driven
deeper up to 40m, depending on soil
condition, type of pile and loading.
• Materials for piles are wood
(Mangrove/Bakau), concrete or steel.

Factors Determine The Use of Pile

Foundation
• When raft foundation is not suitable due
to uneven building load and weak load
bearing soil.
• Where the soil load bearing stratum is
located in depth exceeding 3m which
make strip foundation or pad foundation
uneconomical.
• When base of building is water logged
for a long period under swampy
condition or coastal location.
• When building is too tall and high wind
speed can cause negative effect on
building.

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 Module 104: Valuation/Cost Approach – Subject: Construction Material & Services

Classification of Pile Foundation

Piles may be classified by their basic design function or by their method of
construction:
i. End bearing piles (point bearing piles)
o Piles are driven into the earth till it reach firm strata or base rock which
capable of carrying the load.
o Building loads are distributed direct to the firm strata or rocks supporting the
base.
o Spaces between piles are based on size of pile and material of pile used.
ii. Friction piles (cohesion piles)
o This pile is supported by the friction between the soil and the surface of the
pile
o Base on the friction principle piles are usually made from materials that have
coarse surface and the distance between piles should be closer based on soil
condition and type of piles.

Figure 1.22: Type of Deep Foundations

A B

Grou nd level

Figure 1.23: Types of Foundation

Picture A: Deep Foundations, Picture B: Shallow Foundations

(c) Superstructure
o Consists of all parts of structure that are built above
the substructure;

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 Module 104: Valuation/Cost Approach – Subject: Construction Material & Services

o such as column, ground beam, first floor beam, solid

ground floor, upper floor beams, and roof frame.
o followed by members such as wall, door, window,
stair, ceiling, roof covering and finishing work.
o Foundation and part of building which are
underground are called substructure. Parts of
buildings which are above ground are called super
structure.

A B

Figure 1.24: Examples of Superstructure built on:

Picture A: Low rise building, Picture B: High rise building

Phase 3: Provides Basic Amenities Work

• Basic building facilities such as mechanical & electrical
work for plumbing system, clean water supply, electrical
supply, communication & telecommunication, air
conditioning, fire prevention system are to be prepared.
• Cleaning work of the construction site must be done before
handing over the project to the client.
• Installation amenities works on a building system begins
after the construction of the superstructure is completed.
• Basic amenities works: such as mechanical & electrical
work for plumbing system, clean water supply, electrical

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 Module 104: Valuation/Cost Approach – Subject: Construction Material & Services

supply, telecommunication, air conditioning, fire prevention

system.

Figure 1.25: Saudi Arabia Public Amenities Provider

1.3.5 Stage 5: Handing Over

On completion of construction project;
• Certificate of Fitness for occupation shall be applied from
the local authority by the Architect of the project. (now
known as CCC – Certificate of Completion and
Compliance)
• The contractor will hand over the project and keys to the
owner.
• 5% from the overall building project cost is retained as
retention money by client for a year. This period of time is
known as Defect Liability Period.

Exercise 3
1. Please provide components in Stage 1: Planning Stage of Development
Process.
2. What factors to be considered in Stage 2: Analysis and Design Stage.
3. Explain the components in Stage 3: Management Stage.
4. Name 3 stages in Stage 3 of Development Process: Construction Stage.
5. What is Handing Over in Stage 5 of Development Process?

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 Module 104 Training Kit: Valuation/Cost Approach – Subject: Construction Material & Services

2.0 BUILDING MATERIALS AND FINISHES

2.1 Building Components

Building components consist of ten major parts such as:

Figure 2.1: Building Components

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 Module 104 Training Kit: Valuation/Cost Approach – Subject: Construction Material & Services

PART STRUCTURAL FUNCTIONS GRAPHIC ILLUSTRATION

COMPONENTS
A Column Carry load from beam & transfer it to
Column
foundation

B Ground Beam / Carry direct applied load and transfer it to

Floor Slab beam

C Foundation The lowest part of the building which Please refer to Phase 2: Structural Work as further
transmits the load of the building to the explanation have been elaborated.
under lying earth.

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 Module 104 Training Kit: Valuation/Cost Approach – Subject: Construction Material & Services

PART STRUCTURAL FUNCTIONS GRAPHIC ILLUSTRATION

COMPONENTS
D Beam Carry load from floor slab and transfer it to
column
COLUMN

BEAM

E Fascia Mounted at the point where the roof meets

the outer walls of the house and is often
called the roofline

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 Module 104 Training Kit: Valuation/Cost Approach – Subject: Construction Material & Services

PART STRUCTURAL FUNCTIONS GRAPHIC ILLUSTRATION

COMPONENTS
F Strut Structural component of a roof truss and is
an integral part of the load bearing,
designed to resist longitudinal
compression. Struts provide outwards-
facing support in their lengthwise direction,
which can be used to keep two other
components separate, performing the
opposite function of a tie.

G Rafter A rafter is one of a series of sloped

structural members (beams) that extend
from the ridge or hip to the wall plate,
downslope perimeter or eave, and that are
designed to support the roof deck and its
associated loads.

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 Module 104 Training Kit: Valuation/Cost Approach – Subject: Construction Material & Services

PART STRUCTURAL FUNCTIONS GRAPHIC ILLUSTRATION

COMPONENTS
H Ceiling Joist A joist is one of the horizontal supporting
members that run between foundations,
walls, or beams to support a ceiling or floor.
They may be made of wood, engineered
wood, steel, or concrete. Typically a joist
has the cross section of a plank, while a
beam is bigger than a joist. Joists are often
supported by beams laid out in
repetitive patterns.
I Ridge A ridge vent is a type of vent installed at
the peak of a sloped roof which allows
warm, humid air to escape a building's attic.
Ridge vents are most common on shingled
residential buildings

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 Module 104 Training Kit: Valuation/Cost Approach – Subject: Construction Material & Services

Exercise 4

Name the followings:

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 Module 104: Valuation/Cost Approach – Subject: Construction Material & Services

2.2 Types of Building Material and Finishes

This chapter describes and illustrates the constructional process,

materials, components and type of finishes used in the erection of
superstructure part of fairly simple domestic and associated buildings.

Its primary aim is to meet the needs to understand the notion and
fabrication of building components plus finishes of:
• floor • door
• wall • roof
• window

2.2.1 Types of Floor Material and Finishes

Floor is a horizontal component of a building. It is supported by

beams that are in turn, connected to the columns that are the
frameworks of the building.

Functional requirements of floor are:

i) Strength and stability

According to the Building By-Laws, building must be
constructed so that load bearing elements, foundations,
walls, floors and roofs have adequate strength and stability
to support the dead loads of the construction and projected
load on roofs, floors and walls without undue deflection or
deformation that would have a bad effect on the strength
and stability of parts or whole of the building.

ii) Fire safety

To provide reasonable standard of safety in case of fire
and to allow the building occupants to escape from the
building in case of fire.

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 Module 104: Valuation/Cost Approach – Subject: Construction Material & Services

iii) Durability and freedom from maintenance

Depend on the internal conditions of the building. A dry and
heated interior of a building will ensure floors are durable
and free from maintenance.

iv) Resistance to the passage of sound

• Structural frame of a multi-storey building provides
a ready path for the transmission of impact sound
over a long distance.
• A sudden disturbing sound such as the slamming of
a heavy door can cause discomfort.
• The sound absorption of a floor can be improved by
introducing a soft absorbent material such as carpet
or felt.

v) Resistance to weather and ground moisture

• A damp-proof membrane (D.P.M) on, in, or under
the .5
• Surface of the floor.

Type of Floor can be classified as the followings:

TYPE OF FLOOR

GROUND FLOOR UPPER FLOOR

1. Solid Ground Floor 1.Timber Upper Floor
2. Suspended Timber
Ground Floor

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 Module 104: Valuation/Cost Approach – Subject: Construction Material & Services

• Elements of Solid Ground Floor

4. Damp
1. 3.
2. Blinding proof
Hardcore Concrete
membrane

1. Hardcore
• Materials - fairly larges particles (crushed rock, gravels, broken brick and coarse
sands)
• Particles- hard, durable, chemically inert
• Thickness between 100-300mm
• Functions of hardcore:
o To fill hollows
o To raise the finished level
o Provide a firm working surface- On wet sites
o To prevent contamination during placing and compaction
o Reduce the amount of rising ground moisture

The hardcore moved onto the

excavated slab, levelled and
compacted

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 Module 104: Valuation/Cost Approach – Subject: Construction Material & Services

2. Blinding
• A blinding layer of coarse sand
• Thickness = 50 mm
• Functions:
o To fill in any weak pockets.
o To prevent the wet concrete
running down
between the lumps
o To provide a true and compact
Sand blinding went down,
level before everything was

3. Concrete oversite
• Providing the solid level surface Concrete + reinforcement mesh
to apply finishes
• The mixture of concrete is 1:3:6
(1 cement, 3 fine
aggregates/sand, 6 course
aggregates)
• Thickness between 100-150
mm depending on the type of
soil and load.
• In Malaysia, BRC
(reinforcement mesh) is laid on
blinding before concrete is
poured. concrete reinforced mesh

4. Damp Proof Membrane (DPM)

• DPM is an impervious layer of
material sandwiched in the floor
either on top of blinding or on
top of concrete slab.

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 Module 104: Valuation/Cost Approach – Subject: Construction Material & Services

• Function of DPM is to resist the

passage of moisture or water to
the inside of building.
• Materials:
i) polythene sheeting
ii) bitumen and latex–based
solutions. Application is by Damp proof
membraneWet concrete being poured
brushing. from a chute onto a damp proof
membrane with three builders
• Only sheet material can be laid in attendance.

on top of blinding. Laying of

DPM must be linked with DPC
on walls to ensure water-
tightness.

Figure 2.2: Cross Section of Solid Ground Floor Figure 2.3: Cross Section of Suspended
Timber Floor

• Elements of Suspended Timber Floor

This type of floor is more expensive than solid ground floors in terms of
material used and time taken.

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 Module 104: Valuation/Cost Approach – Subject: Construction Material & Services

• Element consist of:

F G
i) surface concrete
ii) sleeper walls and ventilation
systems
iii) timber floor construction and
insulation

Surface construction:
This is the base for the construction A. Hardcore E. Wall Plate
B. Site concrete F. Floor finished
and is constructed in the same way as
C. Sleeper wall G. Floor joist
a solid ground floor. D. Damp Proof Course H. Skirting

The surface concrete should be laid

higher than the ground level to ensure
rising damp will not collect on its
surface.

• Elements of Timber Upper Floor

Small span (4.5-5.0) can be built in timber, which is lightweight, requires

simple equipment and is a dry construction. For large spans, a cross
beam may be necessary if timber is to be used.

Totally, timber floor have disadvantages such as lower fire resistance

and sound insulation.

There are five elements to be considered constructing the timber upper

floor:
i. Floor joist

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 Module 104: Valuation/Cost Approach – Subject: Construction Material & Services

ii. Strutting between joist

iii. Floor board/finishes
iv. Wall plate
v. Skirting

1. Floor Joist
• Purpose: To support floor board skirting

• End of joist may rest on a wall plate

finishes
located of the wall.

Floor
joist
Wall plate

Floor joist

Front elevation Cross section of

a wall

Floor joist

2. Strutting between joist

• Purpose: to maintain joist in vertical
position

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 Module 104: Valuation/Cost Approach – Subject: Construction Material & Services

3. Floor board / finishes

• Purpose: to cover the joist and as
finishing

4. Wall Plate and 5. Skirting

• Purpose of wall plate: to support floor
joist
• Purpose of skirting: to cover and
Finishes
finishing the end of floor board
Floor joist
Wall plate

• Factors to be considered when selecting floor finishes.

There are five factors to be considered:

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 Module 104: Valuation/Cost Approach – Subject: Construction Material & Services

• Reasonable initial and maintenance costs.

• Initial Costs: the selection of type of floor and floor covering varies for different types.
The floor coverings, of marble, rubber tiles and special clay tiles are considered to be
most expensive whereas the floorings, Terazzo, tile, etc. are moderately expensive.
1. • Maintenance costs should be as low as possible as factors such as frequency and
Economy cost of maintenance should be taken into account.

• The flooring materia should offer resistance to wear and tear, temperature, chemical
action etc. so as to provide long life to the floors.
2. • Flooring should be strong enough to withstand the effects of anticipated traffic and
Resistance to wear other substances witout undue deterioration.
& tear

• Being the sanitation property, a floor should be non-absorbent and capable of being
easily and effectively cleaned.
• Greasy and oily substances should neither spoil the appearances nor should have a
destroying effect on the flooring materials.
3. • From the viewpoint of cleanliness, floorings of terrazzo, marble, tiles and slates are
Cleanliness generally used.

• Important in domestic kitchens, bathrooms, entrance passages and halls and in some
industrial buildings.
• Normally the floor of clay, tiles, terrazzo, concrete etc. are preferred for use where the
4. floors are subjected to dampness and floor material like wood, rubber shoud be
Resistance to avoided.
moisture

• A flooring should produce a desired colour effect and architectural beauty in

conformity with the use of building.
• Generally floorings of terrazzo, tiles, marble and cement mortar, provide a good
5. appearance whereas the asphalt covering gives an ugly appearance.
Appearance

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• Common Floor Finishes

Listed below are the types of floor finishes:

1. Terrazzo

2. Ceramic
Tiles

3. Marble

4. Parquet and
Timber Strip

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5. Cement
render / cement
screed

6. Mosaic

• Carpeted Floor

Functions of Carpet:
Acoustical:
• Carpet have close and ventilate structure, can absorb and
isolated sound, so it has good sound-proofing effects.
• Absorbs ten times more airborne noise than any other flooring
material.
Beauty:
• Carpet has a wealth of patterns, brilliant colours; varieties of
shapes that can beautify your decor reflect and reflect your
personality.
Atmosphere:
• Enhances the feeling of quality in interior design – a major
consideration in hotels and motels.

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• Carpet surface can capture and absorb floating dust particles in

the air, improve indoor air quality.
Safety:
• Carpet’s ability to cushion falls and prevent serious injuries means
savings in medical costs.
Comfort:
• Carpet reduces “floor fatigue” ….
• This characteristic is important to salespeople, teachers, nurses,
waiters – all those who spend many hours on their feet during the
course of their work.
Thermal Insulation:
• Physically, the construction of carpet is a highly efficient thermal.

• Performance factors to be considered:

i. Ease of maintenance
ii. Stain resistance - durable
iii. Resistance to cigarette burns
iv. Resistance to excessive wear
v. Very firm – for ease of rolling objects
vi. Superior sound absorption
vii. Low moisture absorbency
viii. Luxurious appearance

2.2.2 Types Of Wall Material and Finishes

Definition of Wall
A wall is define as a continuous, vertical, solid structure of brick, stone, concrete,
timber or metal, thin in proportion to its length and height which encloses and
protects a building or serves to divide buildings into compartments or rooms.

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Types of Wall

i. Solid Wall (Masonry Wall) ii. Frame Wall

• Constructed either brick, blocks of • Constructed from a frame of small sections
stone, or concrete laid in mortar of timber, reinforced concrete or metal.
• Load bearing wall • Non loadbearing wall
• Carries imposed loads & dead load

Functional Requirement
i. Strength • Bear the wind load, dead & imposed load from floor & roof
• Strength depends by the material used, wall thickness & the
way material are put together.
ii. Stability
• The stability of wall may be affected by foundation movement,
lateral forces -wind & expansion due to temperature &
iii. Resistance to moisture change.
weather and
ground • Building regulation- adequately resist the passage of moisture
moisture to the inside of the building.
• Moisture may penetrate a wall by absorption of water from the
iv. Fire safety ground that is in contact with foundation walls or through rain
falling on the wall

• Building regulation set standard for provide means of escape,

limitation of fire spread, provide access & facilities for the fire
service

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v. Resistance to the • Window & door may be used as a means of escape.

passage of
sound • Sound is transmitted as airborne sound & impact sound.
• Airborne sound i.e.; a radio. The vibration in the air caused by
the sound source.
• Impact sound is caused by contact with a surface, i.e.:
slamming of a door or footsteps on a floor which set up
vibration in walls and floor.
Types of Wall

Brick Wall Vinyl Wall Cladding

Powder coated aluminium sheet /

Glass Panel Wall Cladding
composite panel building

2.2.3 Types Of Window Material and Finishes

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Window
• Is an opening formed in a wall to admit daylight through some transparent material.
• Windows should resist wind loadings, be easy to clean and provide safety and
security.
Types of Window
• Classified in two different ways or a combination of them.
• The method of opening
o Casement which are side hung, top hung, bottom hung
o Pivot hung either horizontal (reversible), vertical or louvre
o Sliding, either vertical or horizontal
o Miscellaneous: Projected side hung, Projected top hung, Sliding folding
• The materials from which they are made: steel; aluminium; timber; PVC

Hinged window
• Side hung
• Top hung
• Bottom hung

Pivoted window
• Horizontally
pivoted
• Vertically pivoted

Louvre sliding window

• Vertically sliding
• Horizontally sliding

Composite action
• Projected side
hung
• Projected top hung
• Sliding folding

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Functional Requirement
i. Provision of daylight • The amount and quality of daylight entering a room depends
on:
a) size and shape of windows
b) size and distribution of members of the window frame
c) position of the window in relation to the room (orientation)
ii. Provision of d) effects of internal and external light reflection.
ventilation

• Windows provide ventilation by use of openable panels.

• According to the Building By-Laws, ventilation of room must
be achieved by providing openable panels equivalent to 1/20th
of the room floor area.
• Critical accommodations requiring ventilation are kitchens,
bathrooms and other sanitary accommodations.
Problems in Fulfilling Functional Requirements

1.Weather resistance • It is crucial that rainwater do not pass to the inside of frame.

2.Heat and sound • Walls provide very good heat and sound insulation but when
insulation opening such as windows are made, this ability is breached.

3.Security • Windows should be suitably fitted with latches, catches, or

stays to prevent them from being opened from outside.

4 Maintenance • The means in which windows are opened are very much affect
their maintenance.
• The outside surfaces of windows are more easily cleaned than
the inside.
• Windows that are located in a high position such as above a
staircase are more difficult to clean.

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2.2.4 Types Of Door Material and Finishes

General Principles of Timber Doors Design

• Timber should be dry and well seasoned.
• Timber should be free from serious defects- decay and insect attack
• Suitable timber for particular situation; e.g: Balau and Cengal suitable for door
• The joint between timber should permit movement- variations in temperature or
humidity without exposing open joints
• The faces of members joined shall be level (selari) with one another unless the
design requires otherwise
• The haunch in a *tenon joint or in *dowel joint shall be a push fit in its mortise.
• Standard Size:
o External door 1981mm high X 762 or 838mm wide X 45mm thick
o Generally internal door are thinner than their external door
Factors to be considered when deciding on the type of door
1. Size of door
2. Adequate strength and durability and stability- well constructed and hung on
adequate butt hinges.
3. Attractive appearance; design of door including mouldings and door furniture.
4. Weatherproofing qualities
5. Type of timber and finish: painted softwood or polished hardwood
6. Adequate frame to support door and nature
7. Head of opening: consider various alternatives, provision of arch
Door Terminology

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Type of Door

Paneled Door Match boarded Door Timber Flushed Door

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Tempered Glass Door

Functional Requirements
i. Means of access • A door opening should be sufficiently wide and high for
comfortable access of people.
• Double leaf doors- access to grand, large spaces or rooms for
appearance, and for convenience in busy corridors.

ii. Privacy • Doors should serve to maintain privacy inside rooms to the
same extent that the enclosing walls or partitions do.

iii. Strength and • A door must have adequate strength to support its own weight
stability and minor abuses in service.

iv. Fire safety • Doors may serve two functions:

o firstly as a barrier to limit the spread of smoke and fire
o Secondly to protect escape routes.

v. Resistance to the • A door should afford reduction of sound for the sake of privacy

passage of sound e.g.: such as lecture rooms, where the noise level is of
importance.

vi. Weather • As a component part of an external wall a door should serve

resistance to exclude wind and rain.

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vii. Durability& • Depends on the material of the door and the usage of the door
freedom from
maintenance
• Glazing and thin panels of wood invite breakage with a view to
viii. Security opening bolts and latches.
• Solid hinges, locks and the use of solid frame door are the best
security.

2.2.5 Types Of Roof Material and Finishes

Roof

• Roof is one of the element in superstructure.

• Provide a shelter from various factors such as weather.
• Roof also represent the aesthetic value of the property.
• There are various functions of roofs and factors contributes to the selection of roof.

Terminology for Pitched Roof

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Type of Roof

Pitched Roof Flat Roof

Factors Influencing the Choice of Roof

i. Size of the building • Pitched roof suitable for small size building (residential &
school)
• Flat roof suitable for large building ( shopping complexes &
school)

ii. Shaped of the Pitched roof suitable for rectangular building

building • Flat roof suitable for complicated shape

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iii. Aesthetic Value • Pitched roof considered to have higher aesthetic value
compared to flat roof. (National Library)

iv. Economics • Both capital and maintenance costs should be considered in

selecting a roof type.
• Some coverings such as zinc will not last the life of the
building and replacement costs must be included in the
calculations.

v. Other considerations • Ease with which services can be accommodated in roof

space; lighting, duration of construction, weatherproofing;
maintenance.

3.0 BUILDING SERVICES

3.1 Introduction to Building Services

Building services are the systems installed in buildings to make them

comfortable, functional, efficient and safe.

The building services industry is based on engineering principles that are

applied to the construction of buildings and the built environment. In
many respects, building services are responsible for the artificial
environment in which we live and work, and associated with that the
environmental condition of our planet.

The capital and installation costs of building services in modern buildings

can take up 50% of the total construction budget. For highly serviced
building such as sport centres, this figure can easily exceed 75%.
Services can also take up 15% of a building’s volume. Therefore,
building services cannot be ignored. Architects have learnt to accept and

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accommodate the increased needs of pipes, ducts and cabling

encroaching on to their designs.

Progress has been affected through government legislation formulated

from consultation with the industry professional bodies and research
organisations. Advances have also been made by product
manufacturers’ research and development in response to market
competition.

The industry is generally divided between design and installation. Design

is undertaken by specialist consultancies and installation undertaken by
specialist contractors. The latter sub-contracted on site under the overall
administration of a construction management main contractor. Some
design and installation practice exist, which simplifies contractual and
communication relationships. (Hall & Greno, 2009)

Inter-relationship between various parties to a typical housing

development is illustrated as the followings:

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Diagram 3.1: Inter-relationship between the Various Parties in Typical

Housing Development (Hall & Greno, 2009)

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Exercise 5

1. Give five (5) functional requirements of floor.

2. Name two (2) types of floor.
3. Name elements within solid ground floor.
4. Provide factors to be considered when choosing floor.
5. Define wall.
6. Name two (2) types of walls.
7. Give wall functional requirements.
8. What is window?
9. Give explanation on type of window.
10. What are the functional requirement of window?
11. Give functional requirements of door.
12. What is roof?
13. Please define building services.

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3.2 Building Services Technology

Building services are the dynamics in a static structure, providing

movement, communications, facilities and comfort.

Building services can be divided into several types such as:

i. Water supplies.
ii. Electricity.
iii. Sewerage System.
iv. Ventilation, air conditioner and fire-fighting system.
v. Building security and mechanical transportation.
vi. Refuse Disposal.
vii. Telecommunication system

3.2.1 Water Supplies

Water is essential to all households. Water is used to:

• Domestic purposes, i.e. drinking, cooking, washing and
bathing, etc.
• Public purposes i.e. fire-fighting, maintenance of public
garden, etc.
• Industrial purposes, i.e. industries like iron, steel, paper,
require plenty of water.
• Agriculture purposes, i.e. watering plants and fertilizing,
etc.
• Estimations of water usage are summarised as below:

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Figure 3.2: Water Cycle

There are several water resources. The main water resources can
be divided into two which are:
i. Surface water
• Water exists on the earth surface such as lakes,
man-made lakes, rivers & ponds.
• Water is sometimes polluted by activities carried by
human being. For this reason water must be treated
before it can be consumed.
• Water resources which are not polluted such as at
upstream sources or in the mountain, such water
can be consumed with minimum treatment

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ii. Underground water

• Water exists in the ground either close to the earth
surface or deep underground. Ground water can be
drawn out and treated to be consumed.
• Ground water can easily be contaminated it the
surface is contaminated with toxic materials. These
toxic materials can seep into the ground and
eventually contaminate the water
• It is important to conserve the ground water
resource so that it can be used as an alternative
resource especially during dry season.

Figure 3.3: Water Treatment before Distribution

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Methods of water distributions to consumers are:

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Water system for domestic use:

A Main Pipe
B Water Meter
C Stopper
D Service Pipe
E Water tank
F Overflow Pipe
G
H Water Closet
I Shower
J
K Basin
L Service Pipe
M Sink

There are two (2) categories of water supplies which are:

i) Direct Water Supply System
ii) Indirect Water Supply System

Figure 3.4: Direct Water Supply System

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Figure 3.5: Indirect Water Supply System

The difference between direct and indirect water supply

system is, indirect water system has water storage cistern
which water from water main will enter into the water cistern
first, then be distributed to all point outlet in the house, while
for direct water system, water from water main are directly
supplied through all the point outlet in the house.

3.2.2 Electricity

Electricity is the most widely used form of energy, ranging from

miniature batteries in wristwatch to large arc furnaces for melting
steel. Electricity is property of certain subatomic particles (e.g.
electrons/protons) which couples to electromagnetic fields and
causes attractive and repulsive forces between them.

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Terminology Issues for electricity:

i) Ampere (A)
ii) Volt (V)
iii) Watt (W)
iv) Ohm (Ω)

3.2.2.1 Electricity Current (Types of Electricity)

A flow of electricity called an electric current. There are two

types of electric current which are direct current (DC) and
alternating current (AC). DC is a unidirectional flow while
AC is a flow whose time average is zero.

ii) Direct Current (DC)

Direct Current is produced when electrons flow
constantly in one direction. Since DC is flow in one
direction only, its electrical pressure or voltage is
always oriented in one direction or polarity. DC is
continuous flow of electricity through a conductor
such as a wire from high to low potential. In DC, the
electric charges flow always in the same direction,
this distinguishes it from alternating current (AC).

iii) Alternating Current (AC)

It is an electrical current where the magnitude of the
current varies in a cyclical form, as opposed to
direct current, where the polarity of the current stays
constant. The usual waveform of an AC circuit is
generally that of a sine wave, as this result in the
most efficient transmission of energy.

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3.2.2.2 Equipment Malfunction/Failure and Their

Protection

i) Voltage Drop
Wires carrying current always have inherent
resistance to current flow. Voltage Drop defined as
the amount of voltage loss that occurs through all or
part of a circuit due to impendence. It will cause
lights to flicker or burn dimly. To minimize the failure
it is recommended limiting the voltage drop from to
breaker box to farthest outlet for power, heating or
lighting of the circuit voltage and done by selecting
the right size of wire.

ii) Overload
It occurs when the amount of current flowing
through the circuit exceed the rating of the
protective devices. The protection that needs to be
considered is concerned with the protection of the
actual electrical wires supplying the circuit against
an overload above their carrying capacity.

iii) Short Circuits

It happen when the electricity found and alternative
path to return to the source without going through
an appropriate load.

3.2.2.3 Types of Electric Supply

Use of higher voltage leads to more efficient

transmission of power. The power losses in the
conductor are due to the current is doubled; the
power loss will be four times greater. There are two
types of electricity supply that are commonly used.

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One Phase Electricity Supply Three Phase Electricity Supply

Voltage Supplied to consumer is Voltage Supplied to consumer is
240V 415-420V
Consist of 1 live wire (red or blue Consist of 3 live (red, blue, yellow)
or yellow) and 1 neutral wire wire and 1 neutral wire
Suitable for light duty appliances Suitable for heavy duty appliances

3.2.2.4 Components of Electricity Distribution System

The followings are the components of the electricity

distribution system for the medium to large building

Figure 3.6: Typical Electrical Building Equipment

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The components are:

i) Sub-stations
ii) Electricity Wiring
iii) Switchboards
iv) Distribution Boards
v) Risers
vi) Circuits
vii) Protective Devices
viii)Circuit Breaker

3.2.2.5 Electrical Maintenance

Maintenance is the key to achieve the highest industrial

productivity and profitability. Timely repairs, overhauls and
retrofitting are the key factor to guarantee maximum plant
efficiency at minimum costs. There are four types of
electrical maintenance:

i) Outline Inspection
This consists of visual inspection of electrical
facilities during their working periods and precise
inspection during their off-working periods.

ii) Corrective Maintenance

Take place when a sudden failure or breakdown
occurs making the equipment non-functional either
totally or partially.

iii) Preventive Maintenance

It is to prevent the possibilities to failure of any
running equipment or machinery. It will be in
planned in a specified sequence and scheduled in
pre-determined intervals.

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iv) Predictive Maintenance

To predict and foresee the impending failure which
helps to adopt a corrective action plan, well in time.

3.2.2.6 Distribution of Electricity in Building

There are 2 method of distributing electricity in buildings:

i) Ring Circuit
Commonly used for socket outlet that provides
electrical supply to portable equipment. The circuit
makes a big loop or ring from one outlet to the next,
round all the outlet and back to the consume unit.

Figure 3.7: Ring Circuit

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ii) Radial Circuit

Fed from the consumer unit and run in a loop type
formation or go directly from the source to a single
item of equipment (e.g. lighting, water heater,
cooker)

Figure 3.8: Radial Circuit

3.2.2.7 Lighting and Fittings

Lighting can be divided into two categories which are

filament lamp and fluorescent lamp.

i) Fluorescent lamp
• A tubular discharge lamp internally coated with
powder (phosphor) which absorbs the ultra violet
light and producing a white or coloured light.
• Ultra violet light emitted by energised mercury
atoms

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ii) Filament lamp

• The gas filled, filament lamp has a fine tungsten
wire sealed within a glass bulb. The wire is heated
to incandescence by the passage of an electric
current

A B

Figure 3.9: (A) Filament Lamp and (B) Fluorescent Lamp

Fittings for lighting may be considered in three categories:

1. General utility – designed to be effective, functional and
economic
2. Special – usually provided with optical arrangements
such as reflectors to give directional lighting
3. Decorative – designed to be aesthetically pleasing or to
provide a feature, rather than to be functional

3.2.3 Sewerage System

Typical Sewage Treatment Process:

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Figure 3.10: Sewage Process

Sewage and wastewater system can be divided into:

I) Discharge Pipe
II) Drainage Pipe
III) Septic Tank
IV) Treatment Plant

3.2.3.1 Discharge Pipe

There are three systems employed in the installation of

wastewater and waste discharge pipes:
Types of Discharge Pipe Explanation
1) Dual Pipe System 1. This system used two single stack
pipes; one for soil/waste and the
others is for wastewater.
2. Both of the single stack pipes have
individual ventilation system.

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3. The branching pipe from the waste

fitting is connected to the vertical
waste single stack pipe and then
connected to the drainage pipe
underneath the building

2) Single Pipe System 1. Single pipe system used only one

pipe in collecting and draining
waste/soil and wastewater.
2. In this system, all sanitary fittings are
connected to one pipe only. The
connection is made at the branching
pipe. A single stack vent pipe is
installed vertically and connected to
the waste and wastewater single
stack pipe.
3. The single stack vent pipe releases
any compressed air that may have
been trapped the base of the waste
and wastewater single stack pipe.
4. The vent branching pipe connects
the single stack vent pipe to the
sanitary fitting.

3) Single Stack System 1. Single stack system is a system

where only one pipe is required and
it does not need vent pipe as it can
functions as vent pipe.

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2. Waste and wastewater in branching

pipes from sanitary fitting are
transferred into a single stack pipe.
The flow is then drained into the
drainage pipe.

3.2.3.2 Drainage Pipe

Drainage is a system of pipe work usually installed below

ground. The purpose is to carry or convey away the
discharge from the sanitary fittings, rain water gutters and
downpipes. There are three systems applied which are:

i) Separate System
• A separated system is a system that uses
two drainage pipes to carry waste/foul/soil,
wastewater and surface water to
sewerage system. One of the sewer pipes
carries waste/foul/soil and wastewater,
while surface water pipe carries surface
water only. The diameter of the drainage
pipe in the separated system is smaller
than the one used in the combined
systems.

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• Waste/foul and wastewater from sanitary

fitting in a building are drained through the
sewer pipe installed under the ground
level. Waste and wastewater than flow into
public sewer which carries them to
sewage treatment plant. Meanwhile,
surface water is drained into surface pipe
water and flows directly into rivers or seas.

Figure 3.11: Separate System

ii) Combined System

• A combined system is a system that drains
waste, wastewater and surface water
through one set of drainage pipe into
public sewer.

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• The combined system requires large

diameter pipe as compared to other
drainage piping systems.

Figure 3.12: Combined System

iii) Partially Separate System

• Partially separated system is a system
that uses two drainage pipes. The first
drainage pipe drains waste and
wastewater from sanitary fitting into public
sewer, whereas the other drains surface
water from the surrounding of the building
to the surface water sewer.
• The uniqueness of this system is that the
surface water pipe is connected directly to
the waste and wastewater drainage pipe if
they are located closely

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Figure 3.13: Partially Separate System

3.2.3.3 Septic Tank

Septic tank usually provided to areas where no public

sewers are available, or from single house, schools, hotel
and office building. Function of septic tank is to collect all
waste material (sewage) together with water from toilet and
create an environment to permits anaerobic decomposition
by bacteria.

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Figure 3.14: Layers in Septic Tank

There are three layers in septic tank which are:

i) Scum Layer
• This layer contains waste such as foam, cooking
oil, grease and other suspended matters.
• The scum layer provides an environment for the
culture of anaerobic bacteria.

ii) Middle zone Layer

• Middle zone consists of suspended solid and
bacteria.
• The bacteria decompose the suspended solid
before it is being drained out of the septic tank
together with the effluent.

iii) Sludge Layer

• Sludge layer at the tank base consists of both
decomposable and non-decomposable solids.

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• The non-decomposable solids accumulate in the

layer and over time thicken up to the maximum
level before being removed out of the tank.
• If it is not disposed of, this layer will affect the
efficiency of the tank to treat the sewage.

3.2.4 Ventilation and Air-conditioning System

Ventilation is the process by which fresh air is introduced and

ventilated air is removed from an occupied space. The primary
aim of ventilation is to preserve the qualities of air. Sometimes,
ventilation may also be used to lower the temperature inside an
occupied area.

Purposes of ventilation are:

• Provide fresh air for respiration
• Preserve the correct level of oxygen
• Control CO2 contents
• Control moisture
• Remove excess heat
• Dispose of odours, smoke, dust and other contamination
• Relieve stagnation and provide a sense of freshness
• Requirement for an acceptable amount of fresh air supply
depends on the nature of occupation and activity in a
building.
• Air changes per hour or ventilation rate is calculated by
dividing the quantity of air by the room volume and
multiplying by the occupancy.

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There are two types of ventilation:

Natural Ventilation a. Wind Effect

Types of Ventilation

Natural ventilation is the process of supplying and removing air by b. Stack Effect
means of purpose-provided aperture (such as windows, c. Combination wind &
ventilators and shafts) and the natural forces of wind and
temperature-difference pressures. Stack

Mechanical Ventilation
Mechanical or forced ventilation is the process of supplying and
removing air by means of mechanical devices, such as fans. It may Air conditioning
be arranged to provide either supply, extract or balanced
ventilation for an occupied space. Used Whenever natural
ventilation is not well function.

3.2.4.1. Natural Ventilation

Natural ventilation is an economic means of providing
air changes in a building. It uses component integral
with construction such as air bricks and louvres or
openable windows.

Figure 3.15: Cross Flow of Natural Ventilation

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Figure 3.16: Wind Effect of natural Ventilation

Figure 3.17: Stack Effect of Natural Ventilation

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Figure 3.18: Combination of Stack Effect and Wind

Effect

Stack effect is an application of converted air currents.

Cool air will enter a building and it is heated/warmed by
the occupancy, lighting, machineries and others.

This warm air will rise and discharge through vent at

high level. The cool air will displace the warmer lighter
inside air. It must be regulated otherwise it can produce
draughts at low levels and excessive warmth on the
upper floors. Therefore, in some buildings a
supplementary system of mechanical air movement
should be considered. — mechanical ventilation

3.2.4.2. Mechanical Ventilation

These systems employ an electricity driven fan or fans

to provide necessary air movement within a building.
Air-conditioning is example of mechanical ventilation.
Reasons for providing mechanical ventilation are:

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C Inadequate air supply, quality of air and difficulty in

controlling the natural ventilation system in
densely populated space (cinema)
C Where natural ventilation system in impossible
C Removal of colours
C High heat or moisture gain from outside
C To maintain a clean atmosphere

3.2.4.3. Air-conditioning

Air conditioning for people is the control of temperature,

humidity, air movement and air cleanliness, heat
radiation sometimes [e.g. by chilled ceiling], normally
with mechanical means, to achieve human thermal
comfort.

Air conditioning systems can be categorized according

to the means by which the controllable cooling is
accomplished in the conditioned space.

Air conditioning is the process of treating air to control

simultaneously its temperature, humidity, cleanliness
and distribution to meet the design criteria for any
space in a building. The advantages of air-conditioning
are:
• In factories and offices, the working efficiency of
personnel is improved and work output is known
to increase. There is also a reduction in illness
and absenteeism.
• Shops and departmental stores have increased
sales due to customers and staff being able to
enjoy greater comfort. The cost of the plant will

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therefore be offset by extra income from

customers.

Figure 3.19: Basic Refrigerant Cycle

Basic Refrigerant Cycle can be explained as:

1) Step One – Evaporation

• Liquid refrigerant at a sufficiently low pressure is
brought into contact with the heat source.
• The refrigerant absorbs heat and boils,
producing a low-pressure vapour.
• The heat exchanger used for this process is
called the evaporator.

2) Step Two – Compression

• A motor is usually used to raise the pressure of
the vapour from the first step.
• This will raise the temperature of those vapours
and cause the condensation needed for third
step

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3) Step Three – Condensing

• The high-pressure refrigerant gas now carrying
the heat energy absorbed at the evaporator plus
the work energy from the compressor enters the
condenser.
• The refrigerant's condensing temperature is
high, heat transfer will take place, condensing
the refrigerant from a high-pressure vapour to a
high-pressure liquid

4) Step Four – Expansion

• At this stage the liquid refrigerant is passed
through the expansion valve.
• The expansion valve reduces the pressure of
the liquid refrigerant and therefore reduces the
temperature.
• The cycle is complete when the refrigerant flows
into the evaporator, from the expansion valve,
as a low-pressure, low-temperature liquid

There are various types of air conditioning systems; the

application of a particular type of system depends upon
a number of factors like area to be cooled, the total heat
generated inside the enclosed area, etc. There are 4
types of air conditioning system which are:
i. Window unit
ii. Split unit
iii. Packaged unit
iv. Central unit

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Diagram 3.20: Types of Air-conditioning

Window Unit Air-conditioning Split Unit Air-conditioning

Packaged Unit Air-conditioning Central Unit Air-conditioning

3.2.5 Fire Fighting

As a building is designed, consideration of the fire protection

system become integrally involves with the design of the
plumbing, mechanical, communication and signalling systems.

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Definition of fire - A process of combustion characterized by the

emission of heat accompanied by smoke or flame.

Fuel
Any organic materials
suitable for fire to start
- solid, liquid, gas

Heat
Correct temperature to Oxygen
promote combustion of a
particular fuel. Air is necessary to
sustain and support the
Generated deliberately or it combustion process.
can be spontaneous when
the fuel itself ignites

Figure 3.21: Triangle of Fire

3.2.5.1. Fire Protection

Elements for basic fire protection can be broken down
into two categories:
i. Passive elements
ii. Active fire protection systems

Both rely on good design and installation techniques to

provide the appropriate level of protection each system
is expected to provide.

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FIRE PROTECTION

ACTIVE PASSIVE

FIRE FIRE DESIGN STRUCTURAL

DETECTION EXTINCTION REQUIREMENT REQUIREMENT

Active fire protection systems are divided into two

categories which are fire detection and fire extinction.
Fire detection are purposely use to detect the fire
existence while fire extinction is for extinguish the fire.
Active fire protection measures are those that take direct
physical action to reduce the growth rate of fire or the
migration of smoke. Active fire protection systems are
most often fire sprinkler and smoke control systems that
receive signals, both manual and automatic, to perform
their intended function.

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ACTIVE FIRE
PROTECTION

EXTIGHUISHER SPRINKLER SYSTEM FIRE DETECTION FIRE HYDRANTS

FIRE BUCKET & HEAT DETECTOR

BLANKET DRY RISER &
SMOKE DETECTOR HOSE REEL
PORTABLE FITE WET RISER
EXTINGUISHER FLAME DETECTOR

Types of Sprinklers are as below:

Types Description

Wet Riser 1. Keep water under pressure in the pipe system

at all time.
2. When sprinkler heads are activate by heat from
a fire, the water is immediately released.
3. This is the most widely used water system.

Dry Riser 1. Pipes are maintained with compressed.

2. When sprinkler head opens due to heat from
fire, the air pressure is released, causing the dry
pipe to open.
3. The pipes fill with water, which moves on
through the open sprinkler heads.

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Figure 3.22: Types of Sprinkler System

Fire Fire Blanket Sprinkler Smoke Detector

Extinguisher

Fire Hydrant Hose Reel Fire Alarm Fire Emergency

Signals
Diagram 3.23: Types of Active Fire Protection

Passive fire protection involved the use of fire resistant

materials in the design and construction of parts of the
building to slow or prevent the spread of fire in a building
or fire spread to neighbouring buildings.
The techniques of fire-resistant materials are to contain
fire thus allow save evacuation (mean of escape) of
building occupants. Every elements of structure e.g.
load and non-load bearing walls and partition, floors,
roofs, columns, beams, suspended ceilings, staircase
etc. shall be constructed as to have fire resistance for

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not less than any periods specified in the Building

regulations.

The passive method of fire protection may involve 3

main features:
1. Compartmentation
2. Fire walls
3. Fire escape

3.2.5.2. Means of Escape

Means of escape is a structural means, whereby a safe

route is provided for persons to escape in case of fire,
from any point in a building to a safe place.

To meet the safety place without heat and gases, the

evacuation time should be shorten compare to the time
taken for the fire to spread. So the evacuation should
not take too long and complicated.

Figure 3.24: Strategy in Escaping from Fire

Strategy in escape

Exit route (Egress) Protection (Refuge)

Easy way of escape route Use of structural fire escape
Out of building when Route in the building to others
alarm ringing Safe compartment

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Figure 3.25: Example of route for means of escape (1)

Figure 3.26: Example of route for means of escape (2)

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3.2.6 Building Security & Mechanical Transportation

3.2.6.1. Building Security

Security means safety, safekeeping, precautions or
protection against social misbehaviour and disregard
for other people’s property by a minority of the
population.
A security system can begin with a simple dead-bolt
lock and expand to sophisticated electronic intrusion
and notification equipment.

1) Access Control System

Access control system regulates who is able to
enter a building through devices such as electronic
card reader and electronic locks on door.
The purposes of controlling access are:
i) To detect incursion of the building for criminal
purposes during non-working hours by means
of physical/electronic security measure
ii) To limit access to the building to authorized
personnel during working hours with a
minimum of inconvenience commensurate
with a required level of security

Types of Access Control System can be divided

into two categories which are:
i) Locks and Keys
ii) Card Access System
- Magnetic Stripe Card
- Barium Ferrite Card
- Electronic Circuit Card
- Metal embedded Card

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- Infrared Card (Bar code card)

Figure 3.27: Access control system using card access

system

Figure 3.28: The sequence of access control

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2) Intrusion Alarm System

Intrusion alarm system is designed to detect

unauthorized entry. These systems utilize detectors
and sensors to detect an intruder’s presence.

Alarm system circuits link a number of components.

The wiring arrangement can be either open circuit
or closed circuit.

Figure 3.29: Open Circuit Intruder Alarm

Figure 3.30: Closed Circuit Intruder Alarm

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Degree of protections by intrusion alarm system can

be divided into four which are:
i) Point protection
ii) Area Protection
iii) Perimeter Protection
iv) Personal Threat Protection

Suitability of the security system - Before a

security system is designed, the types of risks and
levels of security must be defined. Each building,
each types of operation and each organization must
be suit the design of its security system to protect
against perceived risks.

3) Electronic Surveillance

This system is used to view and record activity from

remote locations and consist of components based
upon the application. Typical components consist of
camera, monitors, multiplexers, switches, recorders
and video transmission systems.

Closed-circuit television (CCTV), also known as

video surveillance, is the use of video cameras to
transmit a signal to a specific place, on a limited set
of monitors. It differs from broadcast television in
that the signal is not openly transmitted, though it
may employ point to point (P2P), point to multipoint,
or mesh wireless links. Though almost all video
cameras fit this definition, the term is most often
applied to those used for surveillance in areas that
may need monitoring such as banks, casinos,
airports, military installations, and convenience

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stores. Video telephony is seldom called "CCTV"

but the use of video in distance education, where it
is an important tool.

Figure 3.31: Closed-circuit television (CCTV)

4) Human Surveillance

Even when there is equipment for security; it also

must be supported by manual security surveillance.
This manual is takes the form of patrol or
walkabouts by security personnel at scheduled time
in the property. Two systems that basically applied
are:

i) Intercom & Emergency Communication

System
This system communicates from distance
locations to a central control centre. For
example, if someone is attempting to gain
access to a secured area without access
control, the individual could activate the

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intercom system to control centre to request

entry. Emergency communication allows
individuals to signal an emergency situation to
a monitoring location. The emergency
situation includes panic, health, duress and
others.

ii) Security Patrol Monitoring

Patrols by the security personnel need to be
monitored so that the security personnel
actually do their patrols as scheduled.
Monitoring is usually by security personnel
writing down the information in the various
patrols record books which are the beat
station along his route.

This system improved by using the digital

security patrol monitoring system. By
installing system into computer, the
management can monitor the work schedule
of the personnel.

3.2.6.2. Mechanical Transportation

Mechanical transportation for building is defined as the

mechanical means of moving people and things within
a building, within a level and usually between different
levels. The objective is to enable ease and comfort to
the building users in travelling within a building and to
aid their work which involves the transportation of
things.

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The type of mechanical transportation for a building will

depend on the use of the building e.g. lift, escalator,
travellator etc.

5) Lift/Elevator

Two major lift designers of passenger lift in common

are: -

i) Electric Lift
• The size of lift shaft will depend upon the car
capacity and the space required for the
counterweight, guides and landing door.
• The shaft extends below the lowest level
served to provide a pit.
• This permits a margin for car over travel and
a location for car and counterweight buffers.
• The pit must be watertight and have
drainage facilities.
• Shaft and pit must be plumb and the internal
surfaces finished smooth and painted to
minimise dust collection.
• A smoke vent with an obstructed area of
0.1m2 is located at the top of the shaft.
• The shaft is of fire resistant construction as
defined for “protected shaft” in the Building
Regulations.
• This will be at least 30 minutes and is
determined by building function and size.
• No pipes, ventilating ducts or cables (other
than those specifically for the lift) must fit
within the shaft.

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• A clearance is required at the top of the lift

for car over travel.
• Counterweight location is at the back or side
of the car.

Figure 3.32: Details of Electric Lift Installation

ii) Hydraulic Lift

• In the oil-hydraulic system, oil is forced
under pressure into a cylinder thus raising a
ram and the lift car.
• Each lift has its own pumping unit and
controller. These units are usually sited at
the lowest level served but they may also be
sited at some distance from the lift.
• The lift is ideal where moderate speeds are
required and the travel distance is not great.
The car speed ranges from 0.12m/s and
1m/s and the maximum travel is usually

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21m. The lift is particularly suitable for

goods lifts and for hospitals and old person’
homes.
• Most oil-hydraulic lifts carry the load directly
to the ground and therefore the shaft does
not carry the lift loads.

Figure 3.33: Details of Hydraulic Lift Installation

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Figure 3.34: Machine Room

Types of Lift/Elevator

Passenger Lift Hospital Lift Service Lift

● Design to carry ● Capacity: 23 person ● Very slow as it was design to
passenger: light to (1600 kg) carry heavy-duty loads with
medium duty Ioads. It can ● Speed: 1 m/s to 1.6 carrying capacity of 1350kg
carry 6-23 persons per lift m/s for light duty and 4500kg or
car. Lift car travels at ● Door: Side opening more for heavy duty service
2.0m/s speed in lift shaft lift.
Other types of lift:

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i) Disable Lift
ii) Fireman Lift
iii) Car Lift
iv) Paternoster
v) Double Decker Lift
vi) Panoramic Lift

Factor to Consider When Choosing Lift

There are many factors that must be considered

when mechanical handling system (MHS) is use in
the building; -
• Economic - Extra cost needed for the
installation but saving in the cost of land.
• Structure - strong enough to support the
system.
• Design - The building may be large and tall.
• Space - to house the system / affect the
floor size and layout.

Types of Door Opening

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Figure 3.35: Types of Lift Door Opening

Planning of Lift Installation

Figure 3.36: Planning of Lift Installation

6) Escalator
• Escalator is used for moving people from one
floor level to another. Alternative to elevators.
Advantages, include no waiting time, no time lost
by acceleration, retardation, levelling and door
operation, or by passengers’ interferences in
getting in & out of the cars, and so on.
• Escalator has a decorative/design function; and
its open, observation characteristic is frequently

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used to expose the rider to very specific visual

panoramas.
• An escalator is a continuously running,
unidirectional vehicle. It cannot be effectively
started and stopped on demand, nor can it be
run in one direction for one trip and reversed for
the next.

Figure 3.37: How Escalators Work

Figure 3.38: Escalator Components

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Escalator’s Arrangement is divided into two

categories which are:
i) Crisscross’ is most popular in department
stores because it uses minimum floor space
& structural requirements & achieves
maximum exposure of passengers to
merchandise on the various floors.
ii) Parallel arrangement provides the most
impressive appearance to the prospective
passenger.

Figure 3.39: Escalator’s Arrangement

7) Travellator
Travellator is a horizontal escalator to move large
people from one place to another through a long
narrow corridor on the same floor/level.
The mechanism is similar as escalator except that
the steps are replaced by continuous chain of metal
plates. Travellators can be inclined from 0-15
degrees. Usually used in airports

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Figure 3.40: Example of Travellator

3.2.7 Telecommunication System

Modern telecommunication system are capable of transmitting

telephone, fax, data, radio or television signals – can transmit
large volume of information over long distance. Digital
transmission is employed in order to achieve high reliability with
minimal noise or interference and because it can transmit any
signal type, digital or analogue.

Telecommunication devices, lines or technologies that allow

communication over a wide band of frequencies especially over a
range of frequencies divided into multiple independent channels
for the simultaneous transmission of different signal.

Buildings are put into 3 categories for telephone service based

on:
i) Number of terminals require
ii) Size of incoming underground cables to the building
iii) Total floor space of the building

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Category 1 Category 2 Category 3

Type of More than 5- 5-storeys and Residential
building storeys below bungalow or
terrace house
Size of Cable with Cable with less Few lines
incoming more than 50 than 50 lines
cable lines
Floor area Less than Less than No limit
7,000 sq.ft. 7,000 sq.ft.
**The arrangement of telephone cabling and equipment will differ
based on the category of the building

Figure 3.41: Undergro

und Telephone Cable

Premises Distribution System – For large or complex building,

it requires telephone equipment system due to large number of
terminal and lines in the building. The distribution may consist of:

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i) Main telephone equipment system

ii) Riser system
iii) Floor or zone telephone equipment system
iv) Premises telephone switching system

Main telephone system – used to administer the incoming lines

from outside then distributed to various parts required, to be
located in a special room. Telephone equipment room consist of:

Equipment Function
Main Distribution • Use for distributing cables into
Frame (MDF) several lines for multi-subscribers in
a single building
• Frame that has terminals blocks
(contain internal telephone wires
which connected to incoming cable)
fixed in it
Telephone • Used as telephone exchange
Equipment system to cater various terminal
System
Backup battery • To be fitted in case of electricity
System breakdown
• Simple arrangement of lead acid
batteries
Distribution • Multicore – many wires
cables • With suitable size, taken from MDF
at the lowest floor then distribute to
all floor
Technician Work • Provided to cater complicated repair
Room & Storage work of equipment component
Room • Well lighted and ventilated

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Automatic Fire • Generally, use automatic gas fire

Extinguisher extinguisher
System
Figure 3.42: Equipment and function of Main Telephone System

Riser System – Vertical passage (enclosed by concrete/brick

walls) that carry the telephone cable to various floors. The cable
fitted to a cable tray.

Floor or Zone Telephone Equipment System – Horizontal duct

that laid cables in the floor form distributing box to secondary
boxes/ junction boxes. Junction boxes contain telephone outlet
(telephone socket or jack).

Premises Telephone Switching System – These are to cater all

communication requirements. Three (3) types of exchanges /
switching system are:
i) Private Automatic Branch Exchange (PABX)
ii) Key Telephone System (KTS)
iii) Hybrid

Terminal devices relatively maintenance-free-only required quick

wipe with damp cloth. Telephone exchange system equipment
need regular inspection to ensure no damage cable that can
cause malfunction. Easy access to the riser or telephone duct for
easier maintenance work. Security devices also should be
provided.

3.2.8 Refuse Disposal

Refuse Disposal the collection and dumping or destruction of food

waste and other discarded material. The proper disposal of such

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wastes is important because they contain matter that can

decompose quickly and create unsanitary conditions. In urban
areas, the wastes are usually picked up at least once a week for
disposal. In some cities this service is operated by private
companies in others by a department of the city government.

The most common method of disposal is to haul garbage and

refuse to a designated dumping site. The layer of earth reduces
odours from the site and keeps off such disease-carrying pests
as flies and rats. A landfill site must be carefully chosen so that
drainage from the landfill will not pollute water supplies.

3.2.8.1 Factors to be Considered in Constructing Chamber

1) Planning
C Minimum internal diameter of a refuse chute should be at
least 375 mm.
C Refuse chute should not be sited in a kitchen
C Any wall separating a refuse chute from habitable room
must thick 675 mm brick wall/210 mm of concrete.

2) Ventilation
C The ventilator or chute lining should be non-combustible
material and carried up high enough to avoid foul air
causing a nuisance

3) Materials
C Refuse chute should be non-combustible and acid
resistant materials e.g.: clay pipe, glazed stoneware
C Hoppers should also be made of non-combustible
materials & withstand to corrosion or abrasion

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4) Chamber
C Refuse storage chambers must be surrounded by floor &
wall, with at least 1 hour fire rating.
C A ½ hour fire rating lockable, dust and fume proof door
must be provided
C Floor must be laid to falls to an external trapped gully
C Refuse storage chambers constructed with a dense
impervious surface for ease of cleaning

Figure 3.43: Refuse Chute

3.2.8.2 Refuse chute with incinerator

This system has a flue to discharge incinerated gaseous

products of combustion above roof level. A large
combustion chamber receives and stores the refuse
until it is ignited by an automatic burner. The duration &

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temperature are controlled and waste gases are washed

and cleaned before discharging into flue. There is no
restriction on wet or dry material, glass, metal or plastics
may be processed.

Residue from combustion is odourless and sterile so it

no health risk. There is a fan in the discharge chute to
prevent smoke and fumes being misdirected

Figure 3.44: Refuse Chute with incinerator

Garchey System - This system has been invented by a

Frenchman, M. Louis Garchey, and has been improved
by a British company. The operation of Garchey system
is as follows:
i) Any type of refuse can be handled by the system,
including bottles and tin, provided that these will fit
inside the tube.

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ii) In the system a special sink has a grid and water

plug, which fits over the outlet and this enables the
sink to be used for normal purposes.
iii) To deposit refuse, lift off the sink grid and places
refuse inside a central tube in the sink.
iv) When the tube is raised the waste water and the
refuse are carried away down a stack or discharge
pipe to chamber at the base of the building.
v) Refuse from chamber is collected at weekly intervals
by a special equipped tanker in which the refuse is
compacted into damp, semi-solid mass that is easy
to tip.

Figure 3.45: Garchey System

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Exercise 6

1. Please name building services that are commonly known in the property
market.
2. Name two (2) type of water sources.
3. Please identify two (2) home water supply system.
4. Explain types of electricity.
5. List the components within sewerage and wastewater system
6. What is septic tank?
7. What is ventilation?
8. Identify the purpose of ventilation.
9. Name the types of ventilation.
10. Explain the Basic Refrigerant Cycle in air conditioning system.
11. List four (4) type of air conditioning system.
12. Please define the followings:
a. Active fire protection system
b. Passive fire protection system
c. Building security system
d. Access control system
e. Intrusion alarm system
f. Electronic surveillance
g. Human surveillance
13. Name types of lift.
14. Differentiate between escalator and travellator.
15. What is refutes disposal.
16. List factors to be considered in constructing chamber refuse).

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4.0 CONSTRUCTION COST ANALYSIS

The importance of cost control in the construction industry does not have to be
justified. Clients want project to be built within budget on time and to their
required standard. Contractors and specialist contractors want to build facility
to meet the client’s need within the tender figure, but also ensure they make a
reasonable profit. (Flanagan and Tate, 1997).

The function of a building is known, usually from the outset, location and
description of the site is also available. The main factors for consideration are:
• Area (the floor area of the building)
• Quality (the standard of the accommodation to be provided)
• Shape and aesthetic features
• The constraints imposed by the planning authority on the site
• The delivery time for the project (when the client wants occupation)
• The balance between initial capital cost and the long-term costs
• Cost (the likely costs)

Incorporation with valuation of a property by using information from construction

cost analysis, indication of a cost to be adopted is not only based on brick and
mortar involved, but other factors as well. Flanagan and Tate, 1997, have
mentioned about the Interpolation Method that can be a benchmark in doing
valuation works especially on estimation of building value in Cost Approach.

The interpolation method is where cost analysis of buildings of the same type
is studied. This method permits the differing sizes and standards which exist
between buildings to be examined and taken into account when considering
costs.

The total cost of each building is generally expressed in a common unit such
as cost per square metre of floor area. Thus, the total cost of the building is the
cost per square metre multiplied by the total area of the floor space.

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Interpolation Method can be illustrated as the combination of the following

factors:

Area, quality and

function information

Select cost analysis

of similar buildings

Calculate total cost of

proposed building (i.e. floor
area x unit cost)

Include allowance for

external works
where necessary

Include allowance for

special conditions

Realistic estimate or
cost limit

Example:
• Cost of Building A (quality X, floor space 5,000 sq.m.) is SR800 per sq.m.
of floor area.
• Cost of Building B (quality Y, floor space 5,500 sq.m.) is SR1,000 per
sq.m. of floor area.

Special care needs to be taken with external works as published analysis may
exclude costs associated with site works, drainage, external services and
separate minor buildings.

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Some clients who deal with buildings of identical function find ‘functional unit
cost) is a useful method of comparison. Hence, the cost of the actual building
per functional unit is given in cost analysis for such purposes.

Type of Building Functional Unit Cost

School Cost per pupil place
Hotel Cost per bedroom
Hospital Ward Cost per bed space
Office Cost per m2 usable floor area (net lettable area)
Others Depending on capacity or other units of
measurement (if necessary)

4.1 Availability of Construction Cost Data

In valuing properties, the sources of construction cost data have to be

reliable and industry based. Among the sources of data that commonly
used are:

1) Construction Cost Handbook Malaysia published yearly by

Juru Ukur Bahan Malaysia (JUBM) with collaboration of Langdon
Seah, established Quantity Surveyor firm (affiliate of Arcandis) in
Malaysia. Information can be obtainable via online at
http://www.langdonseah.com
2) KPK Research Digest published yearly by KPK Research and
now known as Davis Langdon KPK. Information can be
obtainable via online at http://www.kpkqs.com/
3) Building Cost Analysis by National Institute of Valuation
(INSPEN) published by Research & Development Unit.

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4.2 Construction Cost Handbook Malaysia by JUBM and Langdon Seah

Guide on construction cost specifications outlined in the handbook as of

the followings:

• Kuala Lumpur Construction Cost Trend from 2004 until 2014:

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• Indication of Construction Cost Data in selected Asean Cities for

2015:

• Indication of Construction Cost Data (Building + Services) in selected

Kuala Lumpur for 2015:

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4.3 KPK Research Digest by KPK Research

• Guide on construction cost specifications outlined in the handbook,

among other, as of the followings:

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4.4 Building Cost Analysis by National Institute of Valuation (INSPEN)

• Guide on construction cost specifications outlined in the handbook,

among other, as of the followings:

5.0 PROPERTY MANAGEMENT AND MAINTENANCE

5.1 Introduction to Property Management and Maintenance

Definition of property management: An activity which seeks to control

interest in property taking into consideration the short & long term
objectives of the property owner & particularly the purpose of which the
property is held.

Definition of Property Maintenance: A combination of any actions

carried out to retain an item in, or restore it to an acceptable condition or
a work undertaken to improve damages of the building and return back
to its original function required.

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Acceptable standard – construed as acceptable to the person paying for

the work (owner), to the person receiving the benefit (tenant) or to some
outside body with responsibility for enforcing minimum standards (local
authority).

• Function of Property Management & Maintenance

Property Management means the management and control of any
land, building and any interest therein, excluding the management
of property–based businesses, on behalf of the owner for a fee
and includes but is not limited to the following responsibilities:
i. monitoring outgoings for the property and making payments
out of the income from the property;
ii. preparing budgets and maintaining the financial records for
the property;
iii. enforcing the terms of leases and other agreements pertaining
to the property
iv. to maximize returns from productive life span of productive
resources
v. to prolong productive life span of property
vi. to sustain / to enhance capital value of property
vii. long term improvement on returns of the investment
viii.to maximize long term rental growth of the property

• Function of Property Maintenance are:

i. To retain the value of investment
• As per the investment theory, good physical
appearance of the building will affect the rental rates
• If the building maintained in good condition the building
will attract more tenant and hence will increase the
income
ii. Presenting a good appearance

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• The building features will present the image of the

building
• Good appearances building will attract more tenant
thus increase the value
iii. To fulfil its function
• Continuously maintained in order to fulfil its function as
required.
• E.g. function as residential, industrial, institution,
shopping mall etc.
iv. Statutory requirements
• Some building need to maintained as per the statutory
requirement
• Example: Building which fall under the Antiquity Act to
preserve the historical building value
• Some building are subjected to certain Act / policies

• Function of Property Manager& Maintenance Manager

Figure 5.1: Property Maintenance is a part of Property

Management

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Function of Property Manager and Maintenance:

• Achieve the objectives of the property owners / clients
• Preserve or increase the value of the investment property
• To ensure the condition of the building is well-maintained
• Generate income for the property owners

Figure 5.2: Duties and Responsibility of Property Manager

include Maintenance Management

Other function of Property Maintenance Personnel:

• To advise owner on all matters relating to the management
and maintenance of the property
• To engage, instruct and supervise builders, contractors or
repairers of good standing to undertake such repairs subject
to consent and approval of owner in writing
• To deal with all enquiries, complaints, reports and
correspondence relating to the property
• To inspect and recommend to the owner relating to approval
of any plans for renovation, alterations or improvements to the
property and to ensure compliances

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• Concept of Property Management& Maintenance

• Servicing
o Cleaning operation
o Prompt schedule basis (daily/monthly/yearly/etc.)
• Rectification
o Early in life of the buildings arises from shortcomings of
design
o Poor quality of workmanship
o Unsuitable component. Example: not suitable floor finishes
o The main purpose of rectification is to reduce the
maintenance cost
• Replacement
o Service condition materials to decays @ different rates
(wear & tear)
o Example: replacement of carpet
• Renovation
o Consist work done to restore a structure
o Service by major overhaul to original design & specification
o To improve on the original design & specification
o Example: extend the size of server room due to current
need

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5.2 Managing Maintenance of a Property

5.2.1 Appointing a Property Manager

The engagement of a professional Property Manager is

contractual in nature. Therefore, it is important that the Property
Manager ensures that he/she obtains a written appointment to
manage from the property owner/client followed by an agreement
or contract.

The Property Manager shall ensure that the Property

Management Agreement includes the following:

i. The scope of work in the services to be provided by the

Property Manager.
I.e. an executed agreement with the owner/client ensures all
scope of work in the services are understood and mutually
agreed upon in the interest of both parties.

ii. The professional fees, disbursements, taxes, salaries and

other payments agreed upon.
I.e. The fees, charges and disbursements chargeable by the
Property Manager are stipulated in the Seventh Schedule
(Rule 48) of Act 242 and are the basis for the computation of
professional fees and related charges.

iii. The term or period of appointment and the relevant terms

and conditions of his/her engagement.
I.e. it is the Property Manager’s obligation to perform the
agreed scope of works to a reasonable standard as per the
terms and conditions of the Property Management
Agreement.
The property Management Agreement gives the
owner/client the assurance that professional and fiduciary

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approaches are adopted by the Property Manager in the

discharge of his/her duties and responsibilities.

5.2.2 Technical Steps in Maintenance

i. Patching - involved regular replacement of small parts of

areas.
ii. Preservation - protective coating for purpose of extending
life of protected material to maintain appearance.
iii. Replacement - need to replace whole elements because
of:
• functionally unsatisfactory
• incur high maintenance or running costs
• aesthetically unacceptable
iv. Cleaning & Servicing - arresting deterioration preserving
appearance

5.2.3 Types of Maintenance & Priorities Coding

Planned Maintenance
Unplanned Maintenance
Preventive Maintenance
Corrective Maintenance
Emergency Maintenance
Condition Based Maintenance
Scheduled Maintenance

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1. Planned Maintenance
This type of maintenance is carried out with proper planning,
control and the use of records to predetermined plan.
Example: housekeeping/ repainting, etc.

2. Unplanned Maintenance
This type of maintenance is carried out to no predetermined
plan.

3. Preventive Maintenance
This type of maintenance is carried out at predetermined
intervals or corresponding to pre-described criteria and
intended to reduce the probability of failure.
Example: to test run generator set to check the working
condition/ protective coatings / water proof membranes, etc.

4. Corrective Maintenance
This type of maintenance is carried after a failure has occurred
and intended to restore an item.
Example: to replace faulty parts in lift motor room/repair of
crack/washes stain from wall. Etc.

5. Emergency Maintenance
This type of maintenance is carried which is necessary to put
in hand immediately to avoid serious consequences.

6. Condition-based Maintenance
It is initiated as a result of knowledge of the condition of an
item from routine or continuous monitoring.

7. Scheduled Maintenance
It is carried out to a predetermined interval of time, number of
operations, mileage, etc.

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Execution of maintenance work based on:

• Characteristics diversity of operations
• Nature of individual items of works
• Balanced between skilled with task.
Realistic prepositions of planned programme (in-house or
outsource workforce):
• Execute in systematic way
• Reasonable planning on sequence of operation
• Balancing of various expertises.

In the case of BOTH maintenance contractor and direct labour

organization:
• The basic problem in executing the work is to ensure that all
the various trades and materials are on site at the correct time
and that the client is inconvenienced as little as possible.
• The only way of achieving this is to ensure that the works is
properly planned beforehand and strictly controlled during its
execution.
• The planning of the work requires a thorough knowledge of
what is required in order to determine the correct sequence of
activities and a realistic estimate of the durations of these
activities.
• A programmed of work can be then drawn up giving all details
of labour, plant and material requirement, the dates that will
be required on site and the length of time that they required
on site.

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5.2.4 Priority of Maintenance Work

i. Emergency / Very Urgent Work

• Work for which reasonable requests would receive at
least essential attention within 24 hours.
• Constitutes a danger or health hazard or seriously
affects occupation or operational effectiveness or
security.

ii. Urgent Work

• Works which does not constitute danger, but which
should reasonably be completed in a week.
• Failures or wants of repair that affect amenities but not
classified as very urgent

iii. Normal / Less Urgent Work

• Work, which probably account for the major portion of
the contingency allowance for unplanned work
• Which may be included into a medium term
programmed of work, perhaps on a three-monthly basis

iv. Standby / Routine Work

• Work which is of low priority and can be held in reserve
and fed into a planned programmed at strategic
intervals
• In some cases, perhaps, to take up any slack in
programmed

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• Organisational Structure & Function To Be Considered In

Choosing Organizational Structure

The maintenance department plays important role to implement

effective & systematic maintenance works according to
organisation policy.

Maintenance works according to organisation policy i.e.:

• Organisation structure
• Work scopes & functions
• Information system
• Record system
• Operational report
• Budget

The purpose of organizational structure is to show:

• The formal allocation of responsibilities between personnel
• The relationships that should be exist between the staffs

It clearly defines matter:

• Roles & responsibilities
• Inter-relationships
• Communication channels
• Proper protocols for dealing with external organisation&
other department within the organisation
• Authorization

The types of structure appropriate to maintenance may be

described as follows:
i. Centralised Model (or functional)
ii. De-centralised Model (or territorial/geographical)

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Figure 5.4: Centralized Model of Organizational Structure

Criteria:
• Clearly defines work scopes & function
• Every staff need to understand their job description
& responsibility so action can be taken if any
problems arises

Figure 5.5: De-centralized Model of Organizational Structure

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Criteria:
• Structure was being set-up to make a simple geographical
division, based on number of areas
• Each area should have approximately the same demands,
so that resource allocations and the defining of staff
responsibilities could be simplified

The size and structure of the organisation will depend upon the
following factors:

i. The volume of the workload

This factor will determine the staff time required for
inspection, estimating requirement & etc.

ii. The nature & complexity of the work

This factor will determine whether predominantly building
or engineering will determine the desirable qualifications of
staff.

iii. The location and dispersal of work

It influences the travelling time and hence the number of
supervisors required.

iv. The timing of the work

The need for certain work to be habitably undertaken
outside normal working hours may demand some
duplication of supervisory staff.

v. The skill and reliability of operatives

This factor will determine the amount of information which
they require and the frequency of visits to check progress
and maintain quality control.

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vi. The method of executing the work

Decision has to be made whether the execution of the
works are by using direct labour or by contract labour.

vii. The responsibility of the maintenance department

For minor works or miscellaneous services

• Controlling the Maintenance Work

There are several ways in controlling the maintenance works,

including preparing the inventory list so that all the inventory are
in record, preparing the suppliers list to easier the process of
searching for suppliers and computerization maintenance
management system (CMMS). CMMS will ensure the speed of
maintenance and make the maintenance executions more
systematic and effective.

Inventory List is the list of inventory in record. The Importance of

Inventory List is:
• A detailed list of items / equipment / materials own by the
company is essential in order to keep track of the inventory /
business equipment
• The information needed included:
o descriptions of each items
o the serial number, manufacturer
o purchase price, date of purchase
o renewal / expired date, attach copies of receipt,
o photographs of the equipment & etc.
• The Inventory List must regularly update & keep it secure.
Example: If the company store a list of computer network,
restrict the access to the list with password protection and
make sure that the multiple copies are stored offsite.

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The options in preparing Inventory List:

• Direct labour - to create and maintain the inventory list using
their own staff & proper inventory software program; or
• Outsources / Contract labour - outsource the inventory list
management to the expertise

Maintenance operatives need to be backed by a steady flow of

materials and components of the right type and time - cost Most
building maintenance department have at least one small store to
hold those items that are frequent demand or difficult to obtain at
short notice.

It is advisable to keep a catalogue of the stores with each item

allocated a code number. The catalogue should ideally be
subdivided into categories of store items for ease of reference and
to assist in planning the stores layout (computerised is an
advantage).

Suppliers Record is the record of suppliers which basically we

have experience in dealing with. The objectives of having a
supplier’s record are:
• To setup a list of Suppliers with their offered products and
services.
• Setting up a list of Supplier on a minor database will allow
the Department to easily locate suppliers by product or by
service
• This list can be used to maintain a history of relationship with
the supplier evaluating their performance, prices and general
quality.

Risks if the Maintenance Department do not have a list of

products & services supplier are:

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• It would take a longer time to arrive the right choice of products

and services in the market.
• The lack of history tracking may cause the department to
purchase products and services from suppliers that it had a
problem with the past.

Standard Operating Procedure:

• Identify the major areas of products and services that the
department is interested in.
• Prepare a multilevel classification of such products and
services. - This can be used to speed up search and
cataloguing.
• Setup a minor database that contains a record for each
supplier with the following functions:
• A record for each supplier
• A list of all products and services per supplier
• A list of the history of the Department ‘s transactions with the
supplier
• The profile of the supplier: experience, typical projects, etc.
• The team in the supplier’s company that may be use to the
Department

Smart Building Computerisation System in the building

maintenance will deal effectively with the provision of information-
sorting and quantitative and chronological analysis, but it will not
solve policy and people problems.
The appropriate data can be fed into the computer which can
produce detailed based on standard specification - following
technical inspections and completion of standard inspection
reports;

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A computer system can be represented simply, as shown in the

following diagram:

Figure 4.5: Computer system

The advantages that can be gained from processing data by

computer are:
• Reduction of human errors and staff time on routine clerical
process.
• Rapid availability of comprehensive operational and
budgetary data.
• Ability to rearrange data quickly to serve various purposes.
• Overall reduction in maintenance cost

Computerized Maintenance Management System (CMMS)

What is CMMS Software?

• CMMS software is preventive maintenance management
software designed to manage a business’s building, systems
and heavy equipment.
• CMMS software enables you to automate work order,
schedule preventive maintenance tasks, track parts and work
orders, provides predictive maintenance and service requests.
CMMS Benefit & Packages

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Depending on the business needs and the CMMS Software,

several benefits can be gained from the using CMMS software
such as:
i. Increase plant & building maintenance availability
ii. Lower maintenance operating costs by keeping track of
labour and equipment costs
iii. Improved control over maintenance scheduling
iv. Access to plant or building maintenance statistics.

Refer to the following diagram for example of CMMS:

5.3 Building Maintenance Plan

Planning and scheduling is a disciplined approach for utilizing your

existing maintenance resources to reduce area downtime and minimize
the overall production costs. This is accomplished through:
• Prioritizing work
• Developing the physical steps to complete the job
• Procuring necessary tools and materials
• Scheduling the work to be done

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• Completing work
• Identifying any additional work to be completed on the equipment
• Filing written documentation for equipment history

Maintenance practitioners across industry use many maintenance terms

to mean different things. So to level the playing field, it is necessary to
explain the way in which a few of these terms have been utilized
throughout this document to ensure common understanding:
• Maintenance strategy: Next level down typically reviewed
and updated every 1 to 2 years.
• Maintenance programme: Applies to an equipment system
or work centre, describes the total package of all
maintenance requirements to care for that system.
• Maintenance checklist: List of maintenance tasks
(preventive or predictive) typically derived through some
form of analysis, generated automatically as work orders at
a predetermined frequency.

5.3.1 7 Basic Principles in Planning Maintenance Plan

i. To ensure major defects are rectified and building fabric is

maintained to defined acceptable standard, safe and legally
correct.
ii. To ensure that maintenance works is conducted in a
sensible sequence which reflects careful considerations of
priorities.
iii. To ensure that the best value for money and the best use is
being made of scarce resources
iv. To ensure that maintenance operations are carried out in the
most effective way.
v. To provide tool for financial management, in budgetary
control and bidding for financial resources.

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vi. To sustain the building condition at an acceptable standard

level and prevent undue deterioration of building fabric and
services by preventive means.
vii. To maintain the engineering and utility services in an
optimum condition to safeguard the environmental
conditions of the building and its productive capacity.

5.3.2 Categories of Maintenance Programme / Plan

5.3.2.1 Long Term Maintenance Programme

The programme will depend on type of organisation and

putting forward strategic plan of action. It is also to
evaluate alternatives strategies.
Purpose of long term maintenance programme is:
i. To determine expenditure required for
maintenance of a building over a period of time to
achieve an acceptable condition - building
inspection / survey will reveal backlog of work &
report
ii. To avoid large fluctuations in annual expenditure
by spreading works of large items & backlog over
a period
iii. To determine & schedule optimum time (date &
period) for carry out major repairs & improvement
o Did not interfere with the user / occupier
of the building
o Ample/suitable time to notify the
user/occupier
iv. To determine maintenance organisation structure
& policy
o Workforce / staff
o Tools &equipment

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o Expertise
o Outsource / in-house
v. To consider impact of proposed capital works on
maintenance organisation
o To avoid burdening building owner from
large amount of allocation cause by
unexpected unplanned maintenance work

5.3.2.2 Medium Term Maintenance Programme

To provide more accurate assessment of amount of work to be

carried out (controlling mechanism)
o A basis for financial budget
o Benefit for operational purposes

Purposes of medium term maintenance programme are:

i. To assist managers to determine the allocation of annual
budget
ii. To plan resources (money / labour / material etc.)
iii. To specified jobs or areas of work for control purposes
iv. To ensure proper time is available for preparation of
contract
v. To provide indications of quantities required of key
materials & components to developed purchasing &
storage strategy
vi. To enable maintenance work executed according to time
schedule -minimize disruption and reducing cost.

Factors Taken Into Account in Preparing Medium Term

Maintenance Programme:

i. Identification of items to be included in the programme.

o Items brought forward from the annual programme

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o Identified from inspection

o Request for items of work from occupants
o Allowance for unforeseen maintenance items
o Routine day-to-day maintenance items

ii. Identification of works content and costs.

o Feedback from previous work used for data
management system
o Decisions made to which items are to executed by
direct labour or contractors
o Break down of work content of the items enables
appropriate inputs and cost such as material and
labour

iii. Determining the sequence work.

o Computer-based systems ability to manipulate data
o Enables planner to analyse and evaluate a variety of
working methods and sequences
o Decision that will optimized programme
o Automated data management permits the
application of a range of decision making

iv. Provision of a controlling mechanism

o Essential component of a management system
o Comparing actual achievements against predicted
o To assess progress and prompt management to
take corrective action
o Progress can be recorded

5.3.2.3 Short Term Maintenance Programme

Works carried out routinely (prompt or fixed maintenance

schedule) and need directive and supervisory work.
o A basis for financial budget

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o Benefit for operational purposes

Purposes of short term maintenance programme are:

i. Analysis of performance
o Future short term planning
o Provision of feedback data (collected, compared
&analysed)
ii. Operational purposes & daily management control
o All inputs to maintenance operation are properly
identified & stated.

5.4 Building Maintenance Operation

• Maintenance Execution
The execution of maintenance work requires a thorough
knowledge of what is required in order to determine the correct
sequence of activities and a realistic estimate of the durations of
these activities. A programmed of work can be then drawn up
giving all details of labour, plant and material requirement, the
dates that will be required on site and the length of time that they
required on site.

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Figure 4.6: Flow of Maintenance Execution

Following completion of the work, the following steps must take

place:
i. An inspection work - to check that it satisfies requirement
and to authorize payment (contract or direct labour)
ii. Following a certified completion of job - the property record
will need to be updated
iii. The cost will be entered into an accounting system -
depending on the way in which cost are being recorded and
analysed.

• Maintenance Inspection
• Purpose of physical inspection and survey
Inspection in maintenance required knowledge regarding
buildings and its condition. The purposes of maintenance
inspection are:

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o Property owners or prospective purchasers can

instruct the surveyors / property manager / building
assistant to prepare a report on the condition of
property for purposes: -
- To estimate cost & resources required
- To verify information for entry in work order
- For diagnosis purposes
o The report should contain all the relevant technical
information set out in an orderly manner in terms that
can be understood by a layman.

• The equipment commonly uses in building inspection

(a) A digital camera with flash attachment
- To take photograph of subject property or
defect identification
- To provide visual evidence
(b) Powerful torchlight: needed to inspect dark spaces
(c) Plans and checklists: to write down important points
or sketches during survey
(d) Measuring tape: to measure the length of defect
(e) Electronic measuring instrument

• The Basic Requirement of Maintenance Report

i. Accuracy
A report must be accurate in all respects as errors or vague
statements will detract considerably from the value and
credibility of the report
ii. Simplicity
Freedom from technical terms as far as practicable, and
where used they need explaining

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iii. Clarity
Presentation & arrangement of information should be in a
logical order with sufficient heading & sub-headings to act as
signposts
iv. Systematic Approach
Reports normally comprise three component parts:
a) Introduction: often containing client’s brief or objects
of report
b) Main body of report or recital facts: including a full
description of conditions as they exist
c) Conclusions and recommendations: often
including an estimate cost of remedial works
v. Conciseness and completeness
The report should cover all matters coming within its scope,
yet should be kept as concise as possible.
Neatness aspects covers among others clear & legible, free
from abbreviations & contradictions plus good grammar &
correct spelling.
vi. Certainty
Advice & opinions should be definite or the reasons for any
uncertainty stated (a saving clause is advisable to cover
hidden parts).
vii. Recommendations
Advice as to action to be taken

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Figure 4.7: Maintenance Report Example (1)

Figure 4.8: Maintenance Report Example (2)

• Maintenance Evaluation
It is becoming much more commonly accepted that a new, or
newly refurbished building should be assessed / evaluate after its
completion to see how well it is performing. Post-occupancy
review studies by Leaman & Bordass, 1995 showed that many of
the buildings investigated did not function as well as had been
intended.

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The post-occupancy evaluation is recognize as a common

method of building / maintenance evaluation process & included
a range of components such as:
a. review of design intentions
b. design and construction documentation
c. walkthrough observations
d. energy surveys
e. occupant questionnaires
f. management interviews
g. designer responses

Results / recommendations from post-occupancy evaluation

included:
a. avoid complexity
b. monitor performance
c. make feedbacks routine

Maintenance feedback should be an essential part of any

maintenance evaluation & administration. Feedback may be
mainly expressed by many ways such as:
a. Telephone call from users (tenant/owner &etc.)
b. Returning of complaint card
c. Written complaint (letter / memo &etc.)
d. Directly to maintenance staffs / workers

Measures of satisfaction could relate to evaluate of the

performance in relation to time, cost and quality and include such
factors as:
a. Average time to respond to a maintenance request
b. Average time to return a defective item to required
functionality
c. Proportion of maintenance requests satisfied within target
time

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d. Maintenance expenditure against budget, or compared

with similar facility
e. Cleanliness / avoidance of disruption to satisfaction
occupant
f. Percentage (%) reduction in complaints compared with
previous years / records

5.5 Impact of Property Management and Maintenance to Property Value

House prices are determined by a wide range of factors. Although many

of these factors are relatively straightforward - such as size, location and
age - there are a number of hidden elements that could decrease the
value of a property. It is an invaluable tool when it comes to tracking the
ups and downs of the housing market.

5.5.1 Effect of Property Maintenance on Property Price

One factor which people often fail to take into account when
considering house prices is the state of the property's boiler. A
faulty boiler can lead to serious and potentially costly problems in
the future, and replacing an old boiler that has come to the end of
its life is an expense no-one wants to have to deal with. It should
also ascertain the age and state of the electrical wiring in the
property, in case rewiring is required imminently. Other factors
affecting house prices, which might not be easy to spot and could
prove costly include:
i) Problems with structural timber
ii) Subsidence
iii) Leaks
iv) Damp
v) Fungal decay (dry rot and wet rot)
vi) Broken roof tiles
vii) Plumbing problems

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viii) Condition and age of equipment and fittings - such as white

goods, flooring and double glazing

Since homes and their fixtures and fittings will decay naturally
over time, deferred maintenance and avoidance of general
upkeep is a common explanation for why some homes sell for
less than others.

For most people, buying a house is a long-term investment that

they expect to be committed to for an extended period of time.
Therefore, when considering house prices in the chosen area, do
not just think about the location only, but the property conditions
too.

5.5.2 Increase Property Value with Regular Maintenance and

Repairs

For residential high-rise buildings, as well as other landed

residential, commercial and institutional facilities, predictive
maintenance plays a key role in maintaining property value and
reducing risk for the building owner. Whereas higher property
value is often perceived as a result of attractive building
appearance or amenities, the building systems behind the façade
have the greatest impact on value.

Unbeknownst to many high-rise building residents, not all building

owners and property managers keep well-maintained building
systems. This often results in equipment failure and expenses for
the building owner, as well as inconvenience, discomfort, and
unexpected costs to residents. Unless building equipment is
maintained in accordance with manufacturers’ specifications,
warranties can become null and void, and property values can
plummet.

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Because predictive maintenance keeps building systems running

and in good condition, the equipment operates more efficiently
and unnecessarily high utility costs are reduced. The life
expectancy of the equipment also is extended, and expensive
replacement costs can be deferred for longer periods of time

Here are 4 areas to focus on which will increase the value and
serviceability of a building.

1) Exterior Envelope

This includes several systems:

o Roof System: Have the roof inspected annually to insure
the roof is fully functional. Close inspections will allow
monitoring the aging of the roof system, so it can avoid
further damage to the structure and interior of the building
due to water leakage. The cost of maintenance is much
lower than major roof repairs and ultimately allows the
roof to last longer. In addition to a sealed roof, fully
functioning drain systems are another important part of
regular maintenance.
o Vertical Surfaces: Walls can allow moisture through them
as well. These surfaces should be checked for cracks
and repaired in a timely manner. Exterior joints also need
to be checked. Caulking can shrink over time allowing
moisture to enter the building. Re-caulking is much less
expensive than treating for mould.
o Doors and Windows: It is essential these areas be
checked for tight fits so that moisture does not enter the
building or energy lost through them. Upgraded doors
and windows can become a major energy savings for
you.

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2) Mechanical Systems

Repairing mechanical systems can be one of the more

expensive components of your building. Emergency
repairs are costly and can result in lost revenue for your
business. For instance, regularly maintaining your heating
and air conditioning units will keep them running well.
Normal maintenance includes changing filters and
cleaning internal components.

Maintaining mechanical systems is an area that can have

a major impact on the value of your property. Future
owners will want to know the mechanical systems have
been routinely maintained.

3) Interior

Keeping the interior paint, flooring, windows, doors, and

security systems updated and in order is an ongoing
benefit. Through regular maintenance, it will have higher
yearly cash flow since it won’t have to do major overhauls
on interior design.

4) Exterior and Landscaping

That first impression sends a message about the kind of

business the building run. The building and trim should be
painted. In addition, having a healthy green lawn, trimmed
shrubs, and colourful flowers gives the impression of
responsibility and will build confidence in your customers
and future buyers. It should also prevent hazards and
injuries due to negligence on their part by maintaining

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parking areas, sidewalks, irrigation systems, external

lighting, fences, external drain systems, and signage.

5.5.2 Decline in Property Value: Property Management and

Maintenance Perspective

Property values are unpredictable and a variety of underlying

factors can lead to a sharp decline in a property's value. Some of
the factors from the property management and maintenance’s
point of view are:

i) Lack of Maintenance
A property's value can drop quickly if it is not properly
maintained. A host of hazards such as winter weather,
storms, leaky roofing and general wear and tear can lead
to serious problems like water damage, burst pipes, mould
and infestations if they are not addressed. Problems
caused by lack of maintenance can cost thousands of
dollars to remedy, and buyers may factor the extra cost into
the amount that they are willing to pay for a home. Even
cosmetic issues such as unkempt landscaping can
decrease a property's value.

ii) Property Deterioration

Lack of upkeep on a piece of property is detrimental to the
property value. Allowing a home to fall apart or fixing only
the bare minimum will decrease the value of a property
quickly. Not taking proper care of a property can have bad
effects when it comes to trying to sell that property.

iii) Sick Building Syndrome

Sick building syndrome (SBS) is used to describe
situations in which building occupants experience acute

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health and comfort effects that appear to be linked to time

spent in a building, but no specific illness or cause can be
identified. Sick building causes are frequently pinned down
to flaws in the heating, ventilation, and air conditioning
(HVAC) systems. Other causes have been attributed to
contaminants produced by outgassing of some types of
building materials, volatile organic compounds (VOC),
moulds (see mould health issues), improper exhaust
ventilation of ozone (by-product of some office machinery),
light industrial chemicals used within, or lack of adequate
fresh-air intake/air filtration.

Exercise 7

1. What is property management

2. Define property maintenance.
3. What are the functions of property management & maintenance?
4. What are the concept behind property management & maintenance?
5. List down seven (7) type of property maintenance.
6. Name categories of maintenance plan.
7. Elaborate on the decline of property value from property management and
maintenance perspectives.

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Extra Exercise

Answer ALL TRUE/FALSE Questions.

Choose the correct answer.

1. Chalking often results from slow erosion on lengthy exposure.

(TRUE/ FALSE)

2. Cracking occurs when undercoat has not hardened sufficiently before finishing coat
applied, and/or stresses within coating film.

(TRUE/ FALSE)

3. Pile foundation is used when raft foundation is not suitable due to uneven building
load and weak load bearing soil.

(TRUE/ FALSE)

4. Fungal attack will cause defect in steel framed windows.

(TRUE/ FALSE)

5. Facing bricks have a pleasant appearance.

(TRUE/ FALSE)

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6. The mixture of concrete is 1:3:6 (1cement, 3 fine aggregates/ sand, 6 course

aggregates).

(TRUE/ FALSE)

7. Foundation is the lowest part of a building which transmits the load of the building
to the under lying earth.

(TRUE/ FALSE)

8. Travelator is used for moving people from one floor level to another.

(TRUE/ FALSE)

9. Septic tank is a sewage and waste water system.

(TRUE/ FALSE)

10. Earthwork is a process to prepare the required formation level as in the working
drawing.

(TRUE/ FALSE)

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 Module 104: Valuation/Cost Approach – Subject: Health and Safety Principles

MODULE 104: VALUATION/COST APPROACH

SUBJECT: HEALTH AND SAFETY PRINCIPLES

Objective

At the end of the programme the participants will be able to gain knowledge on health and
safety principles in valuation profession.

Contents

• Introduction to Health and Safety

• Health and Safety for Valuers
o Internal work places
o External work places
• Practice of Health of Health and Safety in Property and Construction Sector in Saudi Arabia

Methodology

• Lecture
• Discussion
• Examination

Duration

• 1 day
 Module 104 Training Kit: Valuation/Cost Approach – Subject: Health and Safety Principles

SESSION PLAN

TRAINING PROGRAMME : HEALTH AND SAFETY PRINCIPLES

DAY : 1 DAY

OBJECTIVE : At the end of the programme the participants will be able to gain knowledge
on health and safety in valuation profession.

Date/ Session Session Objective Session Contents

Time

Session 1
Day 1 At the end of the session, • Introduction to Health and Safety
0800 – 0945 Introduction participants will be able to • The commitments of Employers
to Health understand the introduction of • Changing the culture for Health and Safety
and Safety health and safety • Risk and risk assessment
• The risk management organization

Day 1 Session 2 At the end of the session, • Organisational Responsibility

1000 – 1115 participants will be able to gain • Internal work places
& Health and Safety knowledge on Health and • External work places
1130 –1245 Requirements for Safety Requirements for
Valuers Valuers

Day 1 Session 3 At the end of the session, • Emergency and emergency situations
1315 - 1500 participants will be able to • Tools that must be worn or used
Practice of Health understand the practice of • Important behavior in plants and sites
and Safety in Health and Safety in Property • Working safely with transport vehicles
Property and and Construction In Saudi •
Construction in Arabia
Saudi Arabia
 TABLE OF CONTENTS

Chapter Page

1.0 INTRODUCTION TO HEALTH AND SAFETY 4

1.1 The commitments of Employers 6
1.2 Changing the culture for Health and Safety 6
1.3 Risk and risk assessment 7
1.4 The risk management organization 7

2.0 HEALTH AND SAFETY REQUIREMENTS FOR VALUERS 11

2.1 Internal work place 11
2.2 External work place 13

3.0 PRACTICE OF HEALTH AND SAFETY IN PROPERTY AND 22

CONSTRUCTION SECTOR IN SAUDI ARABIA
3.1 Emergency and Emergency Situations 22
3.2 Tools that must be worn or used 23
3.3 Important behavior in plants and sites 24
3.4 Working safely with transport vehicles 24
3.5 Plunging precautions and risk elimination 24
 Module 104 Training Kit: Valuation/Cost Approach – Subject: Health and Safety Principles

Definitions
Accident
Eventuality at workplace that was not planned or predefined which resulted to harm,
illness, loss, property disintegration, or environmental damage.

Control measure
The approach to eliminate the risk.

Environmental Protection
These are the arrangements to cover those activities in the workplace which affect the
environment, possibly, the health and safety of employees and others. Such activities
include waste and effluent disposal and atmospheric pollution.

Evacuation
It is the process of evicting a place under emergency situation such as fire from its
occupiers and moving them into safe location

Hazard
A probable source that may set out in a predefined context which potentially causes,
an injury, illness, property disintegration or environmental damage.

Health
The protection of bodies and minds of human being from illness coming from materials,
processes and procedures in the work place. (Hughs & Ferrentt, 2015).
HS Responsible
A person assigned by the organization with certain level and experience, responsible
for safety and health procedures.

Incident
An event in the workplace that might cause injury, illness, death, or damage when the
surrounding environment is little deviated.

Means of Egress
They are specially located pathways for evacuation of the place under emergency that
guaranteed reaching to the open air outside the building or at any other space.

Near Miss:
Any incident that would have resulted to an accident. (Hughs & Ferrentt, 2015)

Occupant Load
It is the gross load of a building or total floor area which implies the maximum number
of people and movables to this area.

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 Module 104 Training Kit: Valuation/Cost Approach – Subject: Health and Safety Principles

Occupational or Work-Related ill Health

This is concerned with those illnesses or physical and mental disorders that are either
caused or triggered by workplace activities.

Refuge Area
It is a well isolated area that can segregate the site under emergency from the rest of
the sight to be as a refuge for not less than an hour (i.e. in case of fire).

Risk
It is a compilation of hazards that may cause harm, illness, disorder, malfunction or
loss with probability of massive degree.

Risk Assessment
It is predefining the possibility of risk occurrence and its effect.

Risk Management
It is the process of prioritizing risk associated with predefined procedures to eliminate
it and mitigate its effect.

Safety
The protection of people from physical injuries. (Hughs & Ferrentt, 2015).

Welfare
The provision of facilities that maintain health and safety wellbeing to people in the
workplace. (Hughs & Ferrentt, 2015).

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 Module 104 Training Kit: Valuation/Cost Approach – Subject: Health and Safety Principles

1.0 Introduction to Health and Safety

This note is prepared for a good practice principals and guide on health and
safety for TAQEEM members. TAQEEM members also need to consider the
local act and guidelines for occupational health and safety in work place in Saudi
Arabia.

In Saudi Arabia, the government has for many years been of the view that
occupational health and safety should be synchronized and deliver by the
government in the same approach as any other health and safety related issue.
The Saudi occupational health and safety system have developed over last
decades, by focus on health interventions to ensure that workers have suitable
work-related health support, helping them adapt the psychological and physical
demands which workplaces put on them specially as they get older.

This guidance note sets out principles for health and safety practices for those
engaged in the built environment as property professionals and includes health
and safety responsibilities:

• at a corporate level
• at the level of the individual.

The profession of valuers is an activity that lays under the professional services
sector. The Valuation practice is predominant by the private sector. However,
the valuer could be an independent or dependent professional. The commitment
of valuers as professional individual or business firm still within the framework of
workplace operations when approaching health and safety concepts. Therefore,
the factors implementing HSP in many disciplines applies to the professional
practice of the valuation industry. In this section we will highlight the
commitments by valuers as an independent business entity toward HSP
framework.

This guidance note sets out principles for health and safety practices for those
engaged in the built environment as property professionals and includes health
and safety responsibilities: • at a corporate level (whether the RICS-regulated
firm is large or small) and • at the level of the individual RICS member.

1.1 The commitments of Employers:

Inevitably, every workplace and every industry must have its own
regulation concerning the health and safety regulations and
implementation. It is difficult to generalize one rule to all of them. Hence
organizations and worker’s representatives are concerned to put bold
guide lines for commitment of health and safety in the workplace
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 Module 104 Training Kit: Valuation/Cost Approach – Subject: Health and Safety Principles

environment.

Jobs are the main reason for creating workplace, it may be dangerous in
some or have some risk, therefore, health and safety concept must be
taken into consideration from the design stage. Ergonomics helps to
design the job with health and safety features. Ergonomics is the science
of matching equipment and machines to man rather than the averse
(Hughs & Ferrentt, 2015).

According to the European Occupational Safety and Health Agency (EU-

OSHA), it is the potential for automation to remove humans from
hazardous environment, but also to introduce new risks, particularly
influenced by transparency of the underlying algorithms and by human
machine interfaces.

An ergonomically designed machine will associate the use of dials,

switches, levers and all other equipment’s are suited at the convenience
of the user. The physical matching of the job will insure the minimum
human error within the experience or after taking proper training if
needed.

A job safety analysis should be undertaken especially for those with high
risk of injury, checking all necessary safeguards are in place, a job
description with safe system of work for high-risk jobs needs to be
produced.

Employers need to ensure the principal elements of health and safety are
considered in the job design the following checklist:

1. Analysis of the critical parts of the job

2. The balance between human and automatic systems been
evaluated
3. The ergonomic design of the equipment has been applied
4. Employees decision of needs on job safety has been evaluated
5. Each person on job is supported with procedures and guidance of
the work environment
6. Are all the tools and equipment provided correctly?

Personal factors need to be addressed on job, studies have shown that

personal factors are important to health and safety in the workplace. They
are not concerned with the personality of the person because it is difficult
to change, they are concerned with attitude motivation, training and
human error and their interaction with physical, mental and perceptual
capability with the individual. These human factors can be changed
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 Module 104 Training Kit: Valuation/Cost Approach – Subject: Health and Safety Principles

through continuous training and monitoring.

1.2 The commitments of Employees

The commitments of employees for health and safety is very important.

Employees must have a direct responsibility to ensure that corporate
health and safety policies and procedures are practiced effectively and
competently.

Therefore, the important that employees must have the necessary skills,
knowledge, training and experience to carry out these tasks. An
individual’s ability to deal with and respond appropriately to an incident
will come from competence (skills, knowledge and experience) and the
availability of clear information. Therefore, it is important that individuals
are adequately prepared to deal with and respond to the circumstances
they are likely to encounter. Individuals should also be prepared to
recognise when matters are beyond their competence (skills, knowledge
and experience). Individuals are responsible for knowing and
understanding the health and safety risks appropriate to the tasks they
undertake. This knowledge may be gained through:

• appropriate training
• keeping up to date with relevant information and
• personal experience

Therefore, many organizations recognize the importance of personal

responsibility for safety performance, and some even go so far as to have
employees sign a statement of personal safety commitment.

1.3 Changing the culture for Health and Safety

By law, employers are committed to provide health and safety measures

at workplace, but this cannot be achieved disregarding the role of workers
participation from the very beginning. The process of participation is
simply a two-way communication between both, on aspects of what is
needed to be protected and what are the procedures, it comes through
meetings, listen to concerns, respect one another opinions and take
prompt actions when needed. Also, workers must be guided and trained
not only this, they must also participate in decision making.

Formation of a health and safety committee is a good tool for cooperation

between employers, workers and worker’s representatives to discuss and

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 Module 104 Training Kit: Valuation/Cost Approach – Subject: Health and Safety Principles

acknowledge the framework of health and safety culture in the workplace.

Worker’s representatives could be from outside the organization that play
a significant role in implementing, regulating and training of workers to
enhance the culture of health and safety, such as trade unions, regulation
bodies and health and safety advisors.

To promote a positive health and safety environment everyone in the

organization need to understand the standards of health and safety within
the organization. Hugh and Ferret suggest it covers the following aspects:

1. The design and selection of premises, plant, substances.

2. The recruitment of employees and contractors.
3. The control of work activities.
4. Risk assessment, competence, maintenance and supervision.
5. The transport of products, and its servicing.
6. Emergency planning and training.
7. Competence of health and safety responsible person and
employees
8. Consideration to external influencers such as society, trade unions,
legislation, insurance companies and stakeholders.

1.4 Risk and risk assessment:

Hazard is the main source of risk, identifying each hazard and examining
its suitability in the workplace is the process of risk assessment. There’s
no risk assessment method that can be generalized for all workplaces
and types of risk. The International institutions are collaborating with each
other to introduce standards on risk assessment in the health and safety,
International standards organization (ISO) has introduced a new standard
for Occupational Health and Safety management requirements ISO
45001 and ISO 31000:2018, Risk management ISO 31010:2009. The
objective of risk assessment in the health and safety industry is to ensure
the protection and interest of occupiers of the workplace from visitors,
users and stakeholders. The risk assessment process consists of 4
phases.

1. Identifying hazards
2. Assessing associated risks
3. Taking action to mitigate risks
4. Monitoring the effectiveness

1. Identifying Hazards

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 Module 104 Training Kit: Valuation/Cost Approach – Subject: Health and Safety Principles

A hazard is anything that is a threat to health and safety in an

organisation. Therefore, it is linked to the people of the organisation and
it immediately becomes clear that everybody has to contribute to finding
hazards at his or her workplace. It is a legal requirement in some countries
that employers have to consult their employees. A hazard is not just linked
to a technical equipment or a material used at a workplace but has to
include processes and procedures that determine the work at the
workplace.

➢ Sources for hazard identification can be:

➢ Past incidents and accidents.
➢ Input by employees.
➢ Examining workplaces or work areas.
➢ Review of safety instruction for equipment and materials.
➢ Any kind of creative thinking such as brainstorming
➢ Advice from legislation, standards, checklists or external
consultants.

2. Assessing risk associated with Hazard

Prior to assessing risks these risks associated to the identified hazards

have to be determined. Mind the gap and clearly understand that hazards
and risks resulting from hazards are something different. Risk
assessment itself is very much the same as with risk assessment in other
management systems. Typically, a risk is assessed by its likelihood and
its consequence. Risk assessment will provide you with an insight in your
risks and allow to prioritise risks for taking mitigating actions. A risk matrix
serves well to define and classify likelihood and consequences of a risk.
A risk matrix makes use of descriptors to define levels of both likelihood
(from almost certain to rare) and consequence (from insignificant to
catastrophic).

The following aspects may be helpful to determine the likelihood of a risk:

➢ Other risks that add to the increase of likelihood.

➢ Frequency of occurrence.
➢ Duration of risk occurrence.
➢ Number of people being exposed.
➢ Likely dose of exposure Required exposure levels.

Risk assessment will be completed with 7rioritization of risks and

assigned risk factors to understand the scope of mitigating actions
required.

3. Taking actions to mitigate actions.

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 Module 104 Training Kit: Valuation/Cost Approach – Subject: Health and Safety Principles

Mitigating actions focus on reducing the likelihood and/or consequence.

There is a hierarchy in different solutions whereby the most effective
usually is also the most difficult and sometimes most expensive to realise:

➢ Actions that remove the hazard and eliminate the risk.

➢ Actions that replace the hazard by a less dangerous one.
➢ Actions that modify the product or process design.
➢ Actions that isolate the hazard from people.
➢ Actions that use engineering solutions such as a new machinery
or plant.
➢ Actions that use administrative controls, e.g. new procedures.
➢ Actions that protect through personal equipment from hazards.

4. Monitoring the effectiveness.

The outcome of each risk mitigating action has to be reviewed on two

levels:

➢ To ensure that the actions taken are effective and continue to be

effective.
➢ To ensure that no new hazard/risk was introduced by the actions
taken.

Any control measures have to be maintained in order to ensure that they

are kept in working order. As well procedures have to be audited to ensure
they are being followed as intended.

After completing one entire cycle of risk management the next has to be
scheduled to ensure that always the best actions are taken and new
hazards are included into risk management.

1.4.1 Important indicators in health and safety measure

Organizations must monitor the performance of health and safety in the

workplace, there are two forms of assessing risk the qualitative and
quantitative and in some cases hybrid methods may be used. In most
situations a qualitative risk assessment will be enough to apply, by
investigating the hazard, record of the causes and taking needed
procedures to prevent the re-occurrence of similar one. The quantitative
risk assessment is likely be used in higher likelihood and severity1.

1It is the intervals of quantifying risk in occupational health and safety, the higher the likelihood of an incident
the higher the severity
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 Module 104 Training Kit: Valuation/Cost Approach – Subject: Health and Safety Principles

Primarily, management must use certain indicators such as number of

accidents, near misses and occupational ill-health occurring within the
organization or on site.

𝑁𝑢𝑚𝑏𝑒𝑟 𝑜𝑓 𝑎𝑐𝑐𝑖𝑑𝑒𝑛𝑡𝑠
𝑛𝑢𝑚𝑏𝑒𝑟 𝑜𝑓 𝑤𝑜𝑟𝑘𝑒𝑟𝑠
x 1000

Another indicator that measure health and safety is Henrich’s

accident/incident ratio, while this indicator has been debated but going
further by many studies for this indicator has concluded that ignoring near
misses must eventually lead to an accident. The HSE accident prevention
unit suggests that the human factor is the main factor for accidents where
90% are due and 70% of t could be avoided by proactive precaution by
the management, the HSE has defined human factor as environmental,
organizational and job factor (Hughs & Ferrentt, 2015).

1.5 The risk management organization

It is an entity or a department that distribute the roles of health and safety

for labor and visitors. As first step and because of the dissimilarity in
workplace activities, health and safety roles can be distributed on
everyone according to the required level of contribution. This role
distribution helps in levering the efficacy of health and safety with effect
on work efficiency. The contribution starts from the highest hierarchy of
the organization and depends on the level of the incident or accident. The
Henrich accident rate is the simplest and it can be defined by the following
matrix:
Role/Task Responsibility
Owners (management) Affirmation of health and safety Confirm that all health and
procedures safety process and procedures
and roles are followed.
Affirmation of workers and
civilian’s safety surrounding
workplace
OHS Responsible Risk assessment and risk Putting together the all-risk
management process, procedures and
control
Reporting of any incident or Planning lead and control of all
accident at the workplace risk management activities
Workers Cooperate with owners and
management in implementation
of workplace health and safety.

Contribute with OSH

responsible in mitigating risk
according to instructions

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 Module 104 Training Kit: Valuation/Cost Approach – Subject: Health and Safety Principles

2.0 Health and Safety Requirements for Valuers

Merely the practice of the valuation profession concluded through the

establishment of a valuation entity that runs through a workplace. Valuers might
work in the office or outside of the office in time when they need to inspect the
property. In both cases the valuers must be aware of the requirements of health
and safety process, also they must commit to the rules and regulations of risk
assessment and control which is provided by worker’s representatives, such as
government bodies, confederations, trade unions.

2.1 Internal work place

This is related to the workplace building and office, for the building it is
required that the valuer must allocate his office to be thoroughly in an
environmentally compliant building with health and safety regulations
from the design to management. The provision of work place is also
important where employers need to provide comfortable space for
employees with adequate office space, lighting systems, air conditioning
system, ventilation system and adequate office equipment.

All stakeholders must commit to provide manuals of procedures, training

to correspondents and users, machines that are ergonomic. For example,
emergency arrangements, it is very important to have an appropriate
procedure in the work place to ensure all the valuers have a knowledge,
understanding and evacuated to a safe place in the emergency situation
such as fire or earthquake.

2.1.1 Organisational Responsibility

Employers must protect the health and safety of employees and others
who might be affected by their work activities. Health and safety is about
sensible, proportionate actions that protect people – not unnecessary
bureaucracy and paperwork. This 10-point list shows some of the key
actions required by law that apply to nearly every organization:

1. Obtain Employers’ Liability Compulsory Insurance and display

the certificate.
2. Ensure that the organization has competent health and safety
advice available. This does not have to be an external consultant.
3. Develop a health and safety policy that outlines the health and
safety management system.

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 Module 104 Training Kit: Valuation/Cost Approach – Subject: Health and Safety Principles

4. Undertake risk assessments on the business activities that

includes details of the required control measures.
5. Ensure that relevant actions are taken following the risk
assessment to prevent accidents and ill-health.
6. Provide basic welfare facilities, such as toilets, washing facilities
and drinking water.
7. Provide free health and safety training for workers.
8. Consult workers on health and safety.
9. Display the health and safety law poster or give workers a leaflet
with the information.
10. Report certain work-related accidents, diseases and dangerous
occurrences.

In RICS guidance note, surveying safely: health and safety principles for
property professional2 stated, organisational responsibilities include:

i) Selection
Everyone having, or being capable of developing, the job skills and
competence to meet the demands of their work activities.

ii) Training
Including providing knowledge about the potential hazards in a
working environment.

iii) Information
Providing staff with information about the risks and control
measures associated with their working environment. This
information may be generic in nature or it may relate to specific
sites.

iv) Equipment
Providing staff with equipment that is suitable for the purposes for
which it is intended, and everyone understanding its use and
limitations.

v) Safe systems of work

These ensure that work activities are undertaken safely.

vi) Instruction
Individuals must receive clear instructions, and receive supervision
and expert support where necessary, relating to:
• the work activities required
• the operation of any equipment and

2 RICS guidance note, surveying safely: health and safety principles for property professional
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 Module 104 Training Kit: Valuation/Cost Approach – Subject: Health and Safety Principles

• appropriate safe systems of work.

vii) Supervision
Supporting staff with clearly defined lines of communication

viii) Personal protective equipment (PPE)

Providing individuals with appropriate personal protective
equipment that meets appropriate specifications.

2.1.2 Individual Responsibility

Every employees or individuals needs to be aware of and responsible for

occupational health and safety in workplace.

In RICS guidance note, surveying safely: health and safety principles for
property professional3 stated, individual responsibilities include:

i) Performance: being competent to perform their work safely (including

understanding the limits of their competence (skills, knowledge and
experience)).
ii) Control: being able and prepared to work within accepted or
designated systems of work.
iii) Adaptability: being able to recognise and adapt to changing
circumstances at all times.
iv) Vigilance: remaining vigilant, at all times, for their own safety and that
of colleagues and others.
v) Awareness: being able to recognise their own abilities and limitations.
vi) Teamwork: being an effective member of a team.

2.2 External work place:

TAQEEM regulated firms and TAQEEM members must have procedures

for site inspection or visiting the premises. The procedures or regulations
for any site inspection will depend on the type of property or site and the
reason for and nature of the visit.

It is difficult to produce a generalized procedure for health and safety,

each industry has its own manual which may be even subdivided into
regional or local bases. Management of a valuation office must be aware
of the procedures of health and safety of the property they are willing to
inspect, in some cases there might be need for a pre-inspection training.
The valuer committing such a job needs to be fully aware of how to safely

3 RICS guidance note, surveying safely: health and safety principles for property professional
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 Module 104 Training Kit: Valuation/Cost Approach – Subject: Health and Safety Principles

investigate a property site, it may be better to be an expert in special work

plants which envoys harmful industries.

Valuers need to have health and safety procedures for inspection

process. Health and safety will involve prior to inspection and during
inspection process.

Before inspection, survey or site investigation of land or building, valuers

should carry out site pre assessment of hazards and risk to be
encountered on the inspection. At pre assessment stage, valuers should
have a checklist to ensure all safety aspects has been taken into account.

In RICS guidance note, surveying safely: health and safety principles for
property professional4 listed the matters to consider in the checklist as
follows:

i) Transportation and travelling to and from the property

• Will it be safer to use public transport or use your own transport?
• Has the journey been planned to avoid driving too fast, for too
long or when tired?
• Be aware of where to park (clear, secure, well lit, easy to exit and
not locked before you leave).

ii) Lone working

• Does the firm or office have specific requirements or procedures
for lone working (whether in the office or other building, on a
construction site, on open land, or while driving at work) that they
require employees to follow?
• Is lone working a safe option and, if so, what provisions are made
for communications in an emergency?
• Does the RICS-regulated firm have a record of employees’ mobile
phone numbers and would the lone worker have a good signal at
the premises or site?
• Who has a record of where the lone worker is and when to expect
them back in the office or at home?
• Have arrangements been made for regular ‘check-in’ calls?
• How would rescue be achieved, including access?
• Does the lone worker suffer from any medical condition that could
affect personal safety, such as epilepsy, diabetes, etc.?

4 RICS guidance note, surveying safely: health and safety principles for property professional
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 Module 104 Training Kit: Valuation/Cost Approach – Subject: Health and Safety Principles

• Finally, ask the question ‘if I did not come back from the property,
who would know that I was missing and how would they be able
to find me?’.

iii) Condition of the property

• Are the premises known to be derelict or in poor condition, and if
so what is the extent and nature of the damage?
• Are any areas defined as unsafe for access?
• Are security measures in force and how is access to be gained?
• If the site is a construction site, what stage has been reached?
• What are the site rules?
• Is protective clothing (including perhaps personal protective
equipment (PPE)) or any other special equipment needed?

iv) Occupation status of the Property

• Are the premises or site occupied? If so, do the occupants know a
visit is being made and have they made any special access
arrangements, including any safeguarding matters?
• Who is likely to be encountered on the premises or site (e.g.
members of the public, children, squatters, trespassers, vagrants,
animals)?
• Are the occupants or neighbours likely to be aggressive or
threatening?

v) Property activity
If the premises or site is occupied, what is the nature of that
occupation? For example:
• residential
• retail
• offices
• transport hub
• manufacturing
• warehousing
• agricultural, forestry, etc. or
• construction/refurbishment site.

The hazards should be considered; for example, environmental or

process/activity such as noise, fumes, vehicle movements, vehicle
exhaust, electronic equipment, mechanical plant or machinery,
animals, etc.

vi) Property rules and welfare

• Does the occupier have house or site rules?
• What are the emergency arrangements?
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 Module 104 Training Kit: Valuation/Cost Approach – Subject: Health and Safety Principles

• Are there ‘permit to work/enter’ procedures to follow?

• Are there site-induction procedures to follow?
• Are toilets, wash and first aid facilities available and, if so, what
are the arrangements?

vii) Roofs
• Is it necessary to go on to the roof or can inspection be
undertaken from elsewhere (e.g. neighbouring buildings, with
binoculars, CCTV, drone)?
• If it is necessary to go on to the roof, is a safe means of access
provided and is there a safe route once on the roof?
• Does the roof have appropriate guarding or edge protection?

viii) Property structure (if the property is in high structure)

• If a scaffold exists, has a competent person checked that it is safe
for use?
• Are towers, masts, etc. to be visited, and if so how will they be
accessed?
• Is a ‘cherry picker’ or other special access equipment/ mobile
elevating work platform (MEWP) needed? If so, it should be
managed by a competent supplier and checked to confirm it has
been certified as safe for use.

ix) Dangerous substances

• Are there likely to be any hazardous substances such as
chemicals, radiation, asbestos, gas or other noxious atmosphere,
explosives, etc. at the site? What safety precautions are needed?
Seek specialist advice as necessary.
• Are records such as a register of asbestos containing materials
(ACMs) or environmental reports available? What do they reveal
and what special precautions need to be taken?

x) Diseases
• Could the site be contaminated with any form of clinical waste?
• Are there likely to be any used hypodermic syringes or needles,
condoms, razor blades, etc.?
• Could legionella bacteria be present in disused water storage
systems? • What hazards might arise from the presence of vermin
(e.g. Weil’s disease and psittacosis)? • Do any biosecurity
procedures need to be followed (e.g. hygiene procedures for pig
and poultry farms)? • Does food preparation, storage and
distribution take place and what hygiene restrictions or
procedures are necessary?
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 Module 104 Training Kit: Valuation/Cost Approach – Subject: Health and Safety Principles

xi) Special access

• Are special access arrangements required (e.g. underground,
abseiling) and who will provide it and manage it safely?
• Is special training needed?
• Are emergency rescue arrangements in place?

xii) Special risks

Specialist advice should be obtained if any of the following hazards
exist:

• Does the building or site present special hazards (e.g. railway

premises, security establishments, plant rooms, rooftop
telecoms equipment (microwave radiation from satellite
dishes and other transmission equipment), old hospital
premises (radiation in former x-ray units), excavations
(unsupported sides, unventilated atmosphere), etc.)?
• Are there confined spaces? These are not just narrow or small
spaces but poorly ventilated or enclosed spaces where the
atmosphere may be toxic, lacking in oxygen or where
flammable/explosive special precautions are required.
• Nanotechnology is used increasingly in many fields,
especially engineering. These nanomaterials can present a
risk to health and safety due to their miniscule size, and
nanotechnology remains a highly specialised field. If the RICS
member becomes involved with nanomaterials due to
customers’/ clients’ instructions, it is highly recommended that
fully competent advisers are sought and consulted in regard
to the materials and their method of deployment, and any
potential effect to the health and safety of people or the
environment.

xiii) Access equipment

Do you need to take access equipment or arrange for it to be provided
at the premises or site? For example:
• a ladder or
• a mobile elevating work platform (MEWP).

xiv) Safety equipment

Sometimes need to wear safety helmet, safety boots, ear plug, face
mask, gloves, eye protection, appropriate attire, etc.

xv) Environmental matters

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• Will weather conditions and/or light levels increase risk? For

example, snowstorms on the journey or windy conditions on high
structures.
• Will extreme temperatures present a hazard (both hot and cold
extremes)?

xvi) Personal matters

• Does physical ability have any bearing on the hazards that have
been identified? Pregnant or nursing women need special
consideration. Would lack of fitness present a hazard in itself?
• Will phobias (e.g. vertigo or claustrophobia) or issues (e.g. a medical
condition) impair judgement or affect personal safety?

The next stage of health and safety aspects is during the inspection of
the property. At property, valuers should review the original risk
assessment of the hazards. If the valuers feel uncomfortable or are not
competent to manage the risks at any time during inspection, they should
stop all the inspection immediately and obtain the assistance of a
competent person.

In RICS guidance note, surveying safely: health and safety principles for
property professional5 mentioned when inspecting the building, the valuers
should always be cautious and careful on some elements such as:

i) Structural stability
Be aware of the chance of partial or total collapse of:
• chimney stacks, gable walls or parapets
• leaning, bulged and unrestrained walls (including boundary walls)
• rotten or corroded beams and columns
• roofs and floors and
• corroded metal fire escapes, platforms, balconies and walkways.

ii) Timbers, glass and sharp objects

Look out for:
• rotten and broken floors and staircases (flimsy cellar flaps and
broken pavement lights, floorboards, joists and buried timbers
weakened by age, decay or insect attack)
• projecting nails and screws, broken glass

5 RICS guidance note, surveying safely : health and safety principles for property professional
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 Module 104 Training Kit: Valuation/Cost Approach – Subject: Health and Safety Principles

• glazing in windows and partitions that may be loose; hinges and

sash cords that may be weak or broken; and glass panels in
doors and walls that may be painted over and
• sharp edges and projecting objects

iii) Roofs condition and material

Do not go onto roof surfaces unless it is safe to do so. Hazards are
likely to include some of the following:
• fragile asbestos cement and plastic coverings
• fragile roof lights (often obscured by dirt or temporary coverings)
• unprotected openings
• low parapets or unguarded roof edges, loose copings
• risks from lone working – consider all aspects beforehand
• rusted, rotten or moss-covered fire escapes, access ladders and
guard rails
• rotten roof decking and joists
• slippery roof coverings (slates, moss- or algae-covered slopes)
• broken access hatches
• mineral wool dust, mortar droppings and bird-nesting material and
excrement in roof voids
• cornered birds and vermin
• insects, including bee and wasp colonies
• water cooling plant that may contain legionella bacteria
• unguarded flat roofs
• broken, loose, rotten and slippery crawling boards and escape
ladders
• weak flat roofs
• high winds during roof access
• ill-secured or flimsy, collapsible, sectional or fixed loft ladders
• projecting ceiling joists and low purlins
• badly lit roof voids and
• unboarded or unsupported insulation in roof voids

iv) Unsafe atmospheres

Be aware of and take appropriate precautions against risks
associated with the following, all of which are likely to exclude any
opportunity for lone working:
• confined spaces with insufficient oxygen including manholes, roof
voids, cellars, vaults, ducts, sealed rooms and silos, sewers and
slurry stores
• rotting vegetation, which may consume oxygen and give off
poisonous fumes
• accumulation of poisonous and flammable gases in buildings on
contaminated land

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 Module 104 Training Kit: Valuation/Cost Approach – Subject: Health and Safety Principles

• stores containing flammable materials such as paint, adhesives,

fuel and cleaning fluids
• rooms/buildings that have excessive mould or fungi growth
present within them
• hazardous substances, including toxic insecticides, herbicides
and fungicides and
• gas build-up in subfloor voids.

v) Danger from live or unsecure

Look out for:
• electricity, gas, water and steam supplies
• high voltage rooms, substations and fuel stores
• temporary lighting installations: mains connections and
generators
• hidden cables and pipes (beware intrusive investigations) and
• overhead/hidden electrical cables and similar utility supplies.

vi) Radio frequency (RF) hazards

Be aware of:
• microwave dishes
• mobile phone transmission masts and
• electro magnets.

vii) Slip and trip hazards

Be careful of:
• slippery surfaces
• overgrown vegetation
• changes in level
• obstacles and
• trailing cables.

viii) Falls from height

Assess the risk of work including:
• using ladders, step ups, etc.
• working near unprotected edges
• use of MEWPs, scaffolds and access towers and
• working near excavations or shafts.

ix) Hidden traps, ducts and openings

Look out for:
• lift and service shafts, stairwells and other unguarded openings
• unsecured, corroded or missing covers to underground chambers
• manholes, including those obscured by vegetation
• cesspools, wells and septic tanks
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 Module 104 Training Kit: Valuation/Cost Approach – Subject: Health and Safety Principles

• surfaces concealed by debris or standing water and

• badly lit areas

x) Impact of other people or animals on the property

Be aware of:
• physical dangers from squatters and trespassers or dogs
• disease risks from discarded syringes and condoms, etc.
• structures weakened by vandalism or arson
• aggressive tenants or property owners and
• the presence of homeless people and rough sleepers.

xi) Contamination
Review the site or premises for hazards such as:
• asbestos, lead and other substances hazardous to health
• chemicals in storage or that have leaked
• contaminated water supplies and
• contaminated air-conditioning systems (legionella bacteria).

xii) Rural environments

Review rural sites or premises for hazards such as:
• hazardous operations such as tree felling or tractor work
• shafts, holes, pits, ditches, etc.
• farm animals
• chemicals in storage or in use and
• unstable ground conditions (waterlogging, flooding, etc.).

xiii) Adverse weather conditions

Be aware of hazards posed by weather conditions such as:
• heavy rain
• ice/snow
• extreme cold
• extreme heat/sun and
• high winds (falling slates/tiles, falling tree branches, risks
of being blown from high structures).

xiv) Vermin and birds

Review the site or premises for hazards such as:
• rats and mice (Weil’s and other diseases)
• bird droppings (psittacosis)
• lice and fleas that may be present in bedding, soft
furnishings, furniture upholstery and carpets
• Lyme disease from ticks present in vegetation or birds’ nests
and

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 Module 104 Training Kit: Valuation/Cost Approach – Subject: Health and Safety Principles

• harmful insects, for example mosquitoes and spiders.

After completing an inspection, the property or site should be left secure
and any occupier or manager, property owner or supervisor who is
present at the premises or site should be informed that you are leaving.
Similarly, it is recommended that someone in the office or at home knows
where you are and when you are due to return.

3.0 Practice of Health and Safety in Property and Construction Sector in Saudi
Arabia6

Health and Safety Principle (HSP) is an important aspect that impeccably

considered in Saudi Arabia. Since more than two decades and because of the
intensive practice in the oil and refinery and petrochemical industries which are
harmful to health and safety if not well designed and management from the start.
Followed by other industries that the government procuring according to an
ambitious plan for economic reform and the expansion of main cities. Numerous
manuals are produced, and the commitment of the health and safety procedures
became litigated. In this section we will highlight on the main aspects of
commitment of general procedures for health and safety (HSP) in Saudi Arabia.

3.1 Emergency and Emergency Situations

• Explosion
• Fire extinguishing
• Bomb threat
• Leakage of harmful substances such as chemicals
• Air pollution inside the building
• Building and construction defects
• Bullying and Aggressive activities
• Health reasons (virus, microbes;)

6 The following manuals are used:

• The application and culture for health and safety procedures: Ministry of labour and Social Development
• The design of health and safety in the private sector: Ministry of labour and Social Development
• The regulation of high-rise buildings: Association of Civil Defense, Ministry of Interior Affairs
• The regulation of Health and safety Procedures for sites under Construction: Association of Civil Defense, Ministry of
Interior Affairs
• The regulation of protection and safety for housing and commercial buildings: Association of Civil Defense, Ministry
of Interior Affairs

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 Module 104 Training Kit: Valuation/Cost Approach – Subject: Health and Safety Principles

• Natural incidents such as tornados and earthquakes

3.1.1 Reporting Emergency Procedures:

• There must be an alarm system in the building that alerts in case of

emergency to start evacuation process
• In the case of no emergency alarm system exists or prior to the start of it or
it is disintegrated the following procedures must be done
• If the system is manual it must be generated immediately
• Call or report to the emergency responsible outside the building or the
authority
3.1.2 Channels of Emergency Announcement:

• Alarms
• Sound Magnifiers
• Telephones

3.2 Tools That Must Be Worn or Used

On site visitors, professionals and workers must be provided by the following

tools as a procedure for protection and safety during their usage and existence
for any reasons:

1. Goggles.
To protects from eye injuries where 70% of it is caused by objects fall,
flames.

2. Masks.
To protects from dust and paint problems.

3. Welding shields.
To protects from intensive light beams generated by welding process, it
might cause serious harm to the eyes.

4. Boots and Shoes.

They are specially manufactured for work site and manufacturing plants.
They protect the workers legs from injuries, tears, twisting or fall over.

5. Helmets.
They are protective from any injuries or harm to the head, over 80% of it
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 Module 104 Training Kit: Valuation/Cost Approach – Subject: Health and Safety Principles

are threat behind not wearing them on work plant or site.

6. The head sound proof.

It protects from cerebral deafness caused by ultra sound pollution.

7. Reflective vest.

It enables distance visionary when exposed to light which eliminates

accidents specially in the dark.

8. Gloves.

It is made to protect the hands from different work environments and

substances.

3.3 Important behavior in plants and sites

1. Don’t jog or jump behind safety barriers and lines.

2. Report any risks you have notices to the OHS Responsible
3. Don’t start a job unless you know how to handle it safely.
4. Always assure that the road is clean of cables, solid waste and substances.

3.4 Working safely with transport vehicles

1. Don’t cross unless the driver is foreseeing you

2. Make sure that you lay in the vision path of the driver
3. Be cautious while you cross before the vehicle

3.5 Plunging precautions and risk elimination

Beware of slippery and tumble by following procedures and signs of health and
safety in the site and plants. Plunging and falling can be eliminated through
commitment to work with procedures of health and safety in sites through the
following:

• Ground work: it aims to avoid working on heights as possible and if it is

required to work or inspect on precast walls, use of mobile controls and tools
extensions.
• The usage of ladders in the safest way and with strict instructions
• Stand on tightened and solid surfaces
• The usage of anti-plunge systems

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4.0 Conclusion

Health and Safety principles is very important for valuers and firms to
understand and apply the procedures and guidelines. Employers must have
a clear guidelines and procedures regarding health and safety principals
meanwhile employees (valuers) must have the necessary skills, knowledge,
training and experience to carry out inspection tasks (external work place) or
occupational health and safety (internal work place).

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References
European Union for Health and Safety at Work. (2011). Worker Participation in Occupational
Safety and Health. Luxembourg: Luxembourg Publications.

Gul, M., & Faith AK, M. (2018, Feb 14). Journal of Cleaner Production. A periodical outline for
quantifying ratings in ocupationl health and safety risk assessment.

Hughs, P., & Ferrentt, E. (2015). Introduction to Health and safety in construction. London:
Butterworth-Heinemann.

RICS COBRA 2018. (2018). BIM Enabled H&S Coordination in the UK Construction Industry:
Role of the Principal Designer. London: Royal Institute of Chartered Surveyors.

Royal Institute of Chartered Surveyors . (2019). Survyiing Safely. London: RICS.

Ministry of labor and social development; Health and Safety Professional Practice: (2019)
Control of Job Injuries & levelling up the Health and Safety.
Ministry of labor and social development: (2017), Health and Safety Procedures.
The application and culture for health and safety procedures: Ministry of labour and Social
Development
The design of health and safety in the private sector: Ministry of labour and Social
Development
The regulation of high-rise buildings: Association of Civil Defense, Ministry of Interior Affairs
The regulation of Health and safety Procedures for sites under Construction: Association of
Civil Defense, Ministry of Interior Affairs
The regulation of protection and safety for housing and commercial buildings: Association of
Civil Defense, Ministry of Interior Affairs
RICS professional standards and guidance, global Surveying safely: health and safety
principles for property professionals 2nd edition, November 2018

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