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General remarks:

Use schemes / sketches:

*build. process phases

*project life-cycle

*elemental cost formula (unit price structure, hourly rates)

*build process participants

*income statement (L/P account)

*programming methods with mutual links (CPM vs BKM vs Bar Chart)

*contract types (purchase, service, work, concession DBO)


1.Position of an architect in each particular stage phase of scheduling and implementation in the building

Orientation of a future graduate from the Faculty of Architecture in the environment of market economy
and in the phases of the projects life cycle, basic economic problem, macroeconomic cycle. Building market,
its basic characteristics, and specific properties of structural engineering. Contractors system, mechanism of
building market, offer and demand. Organization of the investment process, participation of the architect,
investor, contractor and further subjects in the scheduling and implementation in the building process

The architect is responsible for everything. He is responsible for the design, civil enginering works, and the
whole projet itself. He has to know evertrhing about the design, economy, environment, economy, building
market. The architect should insure the contractor for, all costs, damages, losses, fees and expenses .

All the stages and the role of architect are written and explained in the contract made between the client
appointed as Owner or Employer , the Architect and the Contractor.

The participants of contract there are :

1. client / owner
2. architect
3. contractor

The types of contracts :

1. traditional contract is contract made between owner and architect, and the documentation should be
all ready and finish so that the owner can make the deal with the contractor separately so that all
contraction works can start after the documentation is ready.


2. DaB ( Design and Build ) contract- is the contract between the owner and architect who work together
and the architect is one who has to finish documentation with the contractor so that the contraction
works can start before the documentation is ready .

B A+C+…………
3. DBO ( Design Build Operate ) contract made between the contractor , the architect and the operator.
After the project is ready the special unique body B operates all activities (documetation…….)

3.1 PFI ( Private Finance Initaitive )-if the owner has no money nobody is able to sign the contract so
that the owner can find some private finance funding. It is a method of providing funds for major
public infrastructures funding with private capital of private firms. Under a private finance
initiative, the private company, instead of the government, handles the costs.

The building Process phases :

1. predesign phase
2. design phase
3. construction phase
4. occupancy phase


Contractor should finish all labor and materials necessary to construct a building upon the following
described property within the dates/milestones.The warranty period is 36 months after successful
completion and acceptance of the work.
Contractor shall construct the structure in conformance with the submitted project documentation (plans,
specifications, and breakdown and binder receipt ) signed by Contractor and Owner. Contractor is not
responsible for furnishing any improvements other than the structure, such as landscaping, grading,
walkways, painting, sewer or water systems, steps, driveways, patios unless they are specifically stated in
the breakdown on the List of Construction Works .

In the chapter payment the owner/ architect should pay the contractor the particular sum in 3 equal
parts.In the event any installment is not paid when due, contractor may stop work until payment is made. In
the event any installment is not paid within ten (10) days after it is due, contractor may take such action as
may be necessary, including legal proceedings, to enforce its rights. The remaining retained 10 % is paid
after the warranty period of 3 ( three ) years expires or / and all occurred defects have been improved.The
payment milestones are noted in Bar Chart.

In first stage of preparation works the architect should prepare all things mentioned in statement iat the
begining , preparing a clear and accessible building site, correctly zoned for the structures.In further stages
ar architect is also obligated to provide the site with the road, temporary shelters, cran, trucks, depos,
workshops, electricity, water, gas, sewage, canalisation, telephone line.

2. Setting the total project costs, architects and engineering works (prof services/fees) as a part of
architectural studies and designs.

The structure of the carried out design and engineering activities in the scheduling and implementation of
buildings. Hourly rates. Setting the demand factor expressing the character, function, significance and
purpose of the building (commission). The way of setting the price, composition of the bidding price, its
calculation, costs, price negotiation, price contract. The bidding budget in the preliminary project

scheduling, background papers and instruments for the working out of the budget for the building costs

Setting the total project costs is written in project budget document which is important for any futher
activities in the building process. Note : Take the project with you and explain all contents of project budget

This is estimating!

The individual elemental unit price = cost of particulary element + profit

a. direct (scope of work related) cost

1. material
2. labour (wages, social+ fringe contrib....)
3. other direct ( machines, elem. subs, site transport)
b. indirect (time related fixed) cost
1. site overhead (field management and equipment)
2. headquarters (administrative) overhead
c. risk + profit

Pricing generally can be based on:

1- administrative prices and price regulations

2- comparative market analysis (supply x demand)
3- competition (bidders x price leaders)
4- standard unit rates/costs/prices (minimal or average standard anonymous unit costs
5- producer's/product costs (full cost x marginal cost)

consumer price (inc. taxes)……………………………...

tax (VAT, sales fuel…) unit price

profit + risk before tax

administrative cost (contribution)

indirect costs
site overhead
full cost
other direct (subcontr…) cost of
direct labour direct cost
(wage + social contrib..)
direct material + fuel+
energy, semiproducts

Elemental Individual Cost Formula (full-cost formula)

Setting the cost for construction works is contained in Bare Cost estimated by the scope of work . The unit
cost of some construction works are written in some specific booklet by the quantity of works. The main
activites included into the basic cost contain the rough landcaping, building construction, outdoor
pavements, sewage, water, electricity, telephone, fencing, soft landcaping. But it is not the end, it also
includes some incidental costs if :

1. the Site is in the big city centre / 15 %

2. the Site is extraordinary remote to the potential contractor´s base
3. the Site altitude is more than 700 m above sea level

And some ancillary costs of :

1. the Site does not offer existing premises/facilities suitable for site accommodation /
1. the Job is relatively small for a medium and large construction company 20%
2. the Job is formed by some handmade trades and elements
3. the Job is within the limits of a factory 35%
4. job mark up

Hourly rate/price = for non-measured works (repairs, artworks and monumentas…)

There is also estimating soft cost prof. Services. which is important for setting the total project cost. It is
based on hourly rates and it contains soft cost of design, creative, manag. works ( structural engineering,job
menager+ contractor, designer,building services, fire services,..) , hard cost ( journeys to site,
documentations, model) , contribution to administrative overhead+ risk (fixed cost) + profit, architect’s site
inspection, site testing and investigation ( geology, hidrology, archaeology) and engineering services for

It also includes 50% of contingency for all unexptected thing that can happen on site.

3. Total costs of the project, their purpose and content necessary for the process of decision and the
evaluation of the investment building-up.

The estimation of total costs of the building in the scheduling stage of the investment cycle as one of the
important background papers for the decision on further phases of the investment. The characteristics of
essential component parts of the building with regard to its future utilization and necessary costs. The role
of depreciation quota on project efficiency.

Total project cost is defined as all costs specific to a project incurred through startup of a facility, but prior
to the operation of facility. It includes all total estimated costs defined as all engineering design costs,
facility construction costs, and other costs related to the project , including as well all professional,
engineering fees, equipment, construction works, long term inventory, contingency ( 30 % - 50 % percent of
equipment + construction works, all unexpected works ) , land , which is before estimated in project budget
as important paper for the decision on further stages of the investment.

Total Initial Project Cost is depending on the scope of the project, the effort estimate and the project
schedule, and its purpose is to estimate the total cost of the project . In the context of investments, total
cost is the total amount spent on a particular investment, including the price of the investment itself, plus
commissions, fees, other transaction costs, and taxes.

What is important is efficiency – how long it takes to return the money ?

Efficiency measures how well and productively a project menager uses his resources to achieve goals.
Project management places heavy focus on how to acquire the right project team to perform project tasks
and to close project successfully . Also it can happen that the total project cost is changed due to many
factors during the building process, as some unexpected climate conditions, design changes, inflation
(relative price change), exchange rate, shortaged of materials and plants, funding problem and many others.
So the essential elements with its regard to its future utilization and costs are :

1. control cost-menaging the design and construction processes , so that the final cost not exceed the
budget, you have to choose which materials you will use in the begining in pre-design phase so that
you will have efficient cost of the project
2. time constrol- menaging the design and construction processes so that the project is completed on
or before the completion date
3. quality control- ensuring the quality and performance of completed project meet all project’s
original objectives
4. change control- ensuring that any changes that are necessary are achieved within the approved

4. Investments, capital expenses, economic efficiency.

Characteristics of investments, their forms, the meaning of “to invest“. Investment, its constituents and their
importance for economic efficiency. Economic opportunities and criteria for their evaluation. Principles of
the economic efficiency measurement. Basic quantities entering into the investment evaluation, costs, sales,
revenues, interests, creation of profit, labour productivity. Indicators of economization – efficiency, their
purpose and significance. Economic efficiency of a project and its criteria.

What means to ’invest’ ? You have some free money which you want to put on something to get some more
money or to get something important, it is about decision making . Investment is an amount of money
invested in something.

An investment project is a set of documents in which the objectives of an investment project are defined, its
results are analysed, its efficiency is appraised, and a detailed implementation plan is described. Project life
cycle is another important factor in the investment projects’ analysis.

Economic efficiency implies an economic state in which every resource is optimally allocated to serve each
individual or entity in the best way while minimizing waste and inefficiency. Economic efficiency is defined
as the ratio of the value of output to the value of input.

Ef = output / input < 1



Economic Indicators of project efficiency:

1. Return on investment ( ROI) based on :


TIPC – Total Initial Cost

NOC – Net operating cash
Net operating cash includes the sum of PAT( Profit after taxation) + Financial cost
+ Tax depreciation

But before calcultaing the Net operating cash it is important to calculate as well :
turnover ( sales, revenues ) , operating consumption ( materials, uttilities), staff
( payroll ) wages + salaries, taxes+ charges( insurance), financial cost( only loan
interest), allowances+ provisions (replacement, heavy repairs),tax depreciation,
manufacturing cost, PBT ( Profit before taxation) , income tax, PAT( Profit after

Note : Show these calculatiosn in your book from Building Economics

2. Yield capitalization converts future benefits (net oper. income) into present value
(= how much value V do I need in deposits to obtain interests equal to the NOP of
my Development )


where CR is the capitalization rate or the interest rate earned on bank deposits.
If YV > TPC then your Project is effective.

3. NPV ( Net Present Value ) of a project is the single most important metrics of the
project's worth, based on the discounted cash flow (DCF) principle. This method
enables the decision making when more than one variant (of the project solution)
are available

i t
(1+ ) −1 1
NPV = - I + t x NOC + RV x i t
i i (1+ )
(1+ )x 100
100 100
Loan amortization by means of the annuity:


A is annuity

L bank commercial loan i interest rate in %

t No of a period (1, 2, 3, etc)
α annuity coefficient or capital recovery factor 0,197

4. Profitability = PBT (profit before taxation) / turnover x 100

5. Labour productivity = Turnover / number of employers

How to express the input/output data of our Development/Project for assessment and decision making:

1. the only single denominator of all human activities is the price expressed in financial units (= in money),
in other words costs . Actually no money exists on the world (therefore the printing of)

2. each particular economic entity (family, company, state) can model its financial position and activity in 3
financial statements:

2.1 the balance (sheet) – it reflects the assets A (what we have on stock ) to the given date, and the
liabilities L (whom does the assets belong to); Important for company owners


2.2 the loss / profit account, which reflects the consumption of inputs (costs) and outputs (earnings)
generated within a period (year). Important for company managers.

2.3 the cash flow review (+ / - real money movement) within the period –crucial for assessment of our

Graph "The River and the Dam":

LOSS / PROFIT account

inflow (sales)


outflow (business activity input paid)

Crucial problems related to the issue

Time span – could anybody foresee the expected life cycle of the project (technology progress, political
and economic stability)

Time factor - in today´s long term crisis impossible to quantify

When an investor purchases an interest in property, he is tying up a certain amount of capital in property
and will expect reasonable return comparable with what he might have invested. The amount of yield or
rate of interest will vary with the degree of security ,regularity of payment, period of investment and others.

Interest formula ( % )

i = ( 1 + p /100 ) t

i= interest

t = periode (year)

Discount = 1 / ( 1+p/100)t = ( 1 + p / 100 ) –t 5 % = 0,05 each year

5. Techno-economic study within project phases (feasibility study). Formulation of commercial,

technological, financial and economic requirements for the project (opportunity study, PEST anal.). The
position of the architect in the relationship: client (customer), public concern, environment, within the
observation of safety regulations during the performance, utilization, hygienic requirements and purposeful
(EIA, IPPC), expenditure of financial means (EIA, IPPC). Principles of variant solution. Setting the project
objectives, size and location. Basic characteristics of marketing and its strategies. Financial and economic
aspects of the project. Initial – in use – manufacturing – decommissioning – disposal cost.

Decision making?????????????????????? Sketch eg “What a lift?”
The aim

Popular at the Faculty = pair-comparison of variabnts………..

Feasibility study

The feasibility study seeks to analyze the economic, organizational, and technical feasibility of the project.

During the opportunity study phase, the general needs of the client must be identified. It is necessary to
make sure that these needs correspond to expectations of all target users and that they take into account
the probable developments in needs.

The Business Opportunity study includes all initial studies of existing business models, cash flow and
product flows. The Business Opportunity Study will deliver:

 Enabling factories: location, infrastructure and other resources

 Proposal of suitable growing method, visualization

 Proposal of possible market size

 Business model

 Preliminary economics

 SWOT analysis

 Draft of project plan

 Recommended steps to move forward in the process

PEST Analysis is a simple, useful and widely-used tool that helps you understand the "big picture" of your
Political, Economic, Socio-Cultural and Technological environment. As such, it is used by business leaders
worldwide to build their vision of the future.
It is important for these reasons:
• First, by making effective use of PEST Analysis, you ensure that what you are doing is aligned
positively with the powerful forces of change that are affecting our world. By taking advantage of change,
you are much more likely to be successful than if your activities oppose it;
• Second, good use of PEST Analysis helps you avoid taking action that is doomed to failure from the
outset, for reasons beyond your control; and
• Third, PEST is useful when you start operating in a new country or region. Use of PEST helps you
break free of unconscious assumptions, and helps you quickly adapt to the realities of the new
It consits of:
Technological Environment

Position of the architect:

Architect is responsible for the project in all.
Architects need to do following in order to make environmentally buildings:
1. To produce energy efficient buildings with a minimum need to burn fossil fuels or use expensive
2. To ensure that materials used for buildings are environmentally friendly
3. To ensure that buildings are managed so they continue to have a low environmental impact.

The architect advices on building designs and the quantity surveyor on building costs. Together they can
supply all the information necessary to prepare the complete budget before the land is purchuased by
the client.

The clients usually want the best possible quality but are not ready to pay for it. This frequently results to
be the major problem . The main requirements of the client are the following ones:

1.The building must satisfy his needs, otherwise the architect has failed in his design function

2. the building should be available for occupation on the specific date .

3. the final cost should be close to the original estimation

4. the building should be maintable on the reasanable cost

The Architect should not have control over or be responsible for safety precautions since these are
Contractors responsibilities.

The Architect should be providing special surveys and environmental studies required for approval for
govermental authorities. They should be also in charge of providing assitance in the utilization of equipment
or systems such as testing, adjusting and balancing.

Environmental Impact Assessment. Authority + Non-Governmental Organization. Environmental impacts
can be identified, evaluated and mitigated.

At a minimum, an EIA report should contain:

1) an introduction;
2) a project description;
3) a detailed description of the environment;
4) an assessment of environmental impacts and mitigation measures;
5) an environmental management plan; and
6) an environmental monitoring plan.

IPPC- Integrated pollution prevention and control for factories

Cost - amount paid / spend (or to be paid) by a purchaser for material, product, service, or completed work
cost in use appraisal – financial appraisal of a design by the summation of the capital, maintenance and
operation costs.
Initial cost is often based on functional unit costs, elemental costs analyses or some similar

7. Methods of network analysis as a help for the solution to complicated links with
time and capacity demands in the project and engineering activities of a graduate from a
faculty of architecture. The significance and utilization during planning and management of the scheduling
and implementation of the building-up projects. The organizational aspects of the processes – activities,
current methods and their features. The methods of a critical path – CPM. Basic elements and rules, nods,
arrows - activities, BKM activities in precedence diagrams, scheduling activities and conditions, links
between activities. Balance of resources: evaluation of time, material sources, financial needs, costs and the
workers´ needs. Advantages and disadvantages of CPM method.

Network analyses

Programming methods
1. Bar chart
2. Network – CPM &
3. BKM (Precedence diagram Microsoft Project SW)
4. Space time diagram

Nonsense!!!! Rubbish!!

BKM in the precedence diagram method is a tool for scheduling activities in a project plan. It is a method of
constructing a project schedule network diagram that uses boxes, referred to as nodes, to represent
activities and connects them with arrows that show the dependencies.
Instead The critical path method (CPM) or Critical Path Method is an algorithm for scheduling a set of
project activities. The essential technique for using CPM is to construct a model of the project that includes
the following:

1.A list of all activities required to complete the project

2.The time (duration) that each activity will take to complete
3.The dependencies between the activities and,
4.Logical end points such as milestones or deliverable items.

CPM calculates the longest path of planned activities to logical end points or to the end of the project, and
the earliest and latest that each activity can start and finish without making the project longer. This process
determines which activities are "critical" (i.e., on the longest path) and which have "total float" (i.e., can be
delayed without making the project longer).

-Dummy activity vs distance activity (CPM)

Dummy=used in network diagram to show dependency relationship to other activities, instead Distance= It
has its name, duration and resources

I) Programming (scheduling, timing)

The purpose of programming: time is money (yesterday was already late) + precedence management (how
to organize building activities effectively). There are two types of depicting the timing of the development:

1. bar/Gantt charts are easy to interpret and understand. To construct a bar chart schedule, the planner
first divides the work (project, development) into its activities (development elements, construction works…
as stated sub Ia1). Although simple, bar charts do not show the independencies (mutual impact and links) of
its particular activities (components).

2. time – space diagram is a document regularly used in the construction process in terms of effective co-
ordination of particular construction activities (gangs, trades) within the building site both horizontally
(time) and vertically (building storeys/levels, buildings/constr. works). The construction progress lines form
so called “a/rhythmical streams”. Originally (19 th century) used for railway timetables - see Attach. BT.

3. network analysis (invented in USA in 50ties, used by NASA projects) enables

* to determine critical activities

* to identify the moments (dates) of (sub)contractor's involvements

* to computerize the whole schedule included the levelling and constrained scheduling of resources (money,
material, equipment…)The two basic formats of network diagram methods are

 Activity on Arrow = Arrow Diagram Method (ADM) – sophisticated due to multiplying of

activities. As a subspecies: Project Evaluation + Review Technique.

 Activity on Node = Precedence Diagram Method (PDM, or its German mode BKM = Baukasten
met hode) – easy to construct, however no control of
the network logic (cross compliance).

Key terms of ADM:

activity (set by the author of the project)

It has its name, duration and resources (set by the author)

dummy "act." (neither resources, nor duration)

describes the independence to other activities (set up by the

author - extremely important!)

distance dummy (its duration is fixed by law,

technology, etc.)

activity name node

event /milestone/node

late (must) finish (LF)

8. Graphic methods of building-up scheduling
Types of building-up scheduling methods, their principle and characteristics, advantages and
disadvantages, mutual comparison of methods;
 Gant diagram
 Time-Space diagram
 Network analysis
continuous method – rhythmical and rhythm less streams, calculation and drawing in a space- time
implementation of methods during the construction of building ensembles and buildings; influences of
building up methods on urban, architectural and construction solution; optimization of continuity and
distances of activities and streams among themselves.
The most widely used scheduling technique is the critical path method (CPM) for scheduling, often
referred to as critical path scheduling. This method calculates the minimum completion time for a
project along with the possible start and finish times for the project activities.
The critical path itself represents the set or sequence of predecessor/successor activities which will
take the longest time to complete. The duration of the critical path is the sum of the activities'
durations along the path. Thus, the critical path can be defined as the longest possible path through
the "network" of project activities. The duration of the critical path represents the minimum time
required to complete a project.
There may be more than one critical path among all the project activities , so completion of the entire
project could be delayed by delaying activities along any one of the critical paths. For example, a
project consisting of two activities performed in parallel that each require three days would have
each activity critical for a completion in three days.
Dummy activity is assumed to have no time duration and can be graphically represented by a dashed
line in a network.
The essential technique for using CPM is to construct a model of the project that includes the
1. A list of all activities required to complete the project
2. The time (duration) that each activity will take to complete,
3. The dependencies between the activities and,
4. Logical end points such as milestones or deliverable items.

Gant chart

Another useful graphical representation tool is a bar or Gantt chart illustrating the scheduled time for
each activity. The bar chart lists activities and shows their scheduled start, finish and duration.
Activities are listed in the vertical axis of this figure, while time is shown along the horizontal axis.
During the course of monitoring a project, useful additions to the basic bar chart include a vertical
line to indicate the current time plus small marks to indicate the current state of work on each
Bar charts are particularly helpful for communicating the current state and schedule of activities on a
project. As such, they have found wide acceptance as a project representation tool in the field. For
planning purposes, bar charts are not as useful since they do not indicate the precedence
relationships among activities. Planner must remember or record separately that a change in one
activity's schedule may require changes to successor activities.

Time and space graphs are extremely useful in portraying the current status of a project as well as the
existence of activity float.

The precedence diagram method is a tool for scheduling activities in a project plan. It is a method of
constructing a project schedule network diagram that uses boxes, referred to as nodes, to represent
activities and connects them with arrows that show the dependencies.

10. Exercise of a profession (professional regulations and professional documents)
- Constitutional framework for the exercise of a profession and the structure of the law on the exercise
of a profession; sphere of action of the professional self-administration; sphere of action of
authorized persons
The authorized persons shall be
a) Authorized architect,
b) Authorized engineer,
c) Authorized technician.

Authorized architect shall be a person granted authorization pursuant to this Act and shall be
registered on the list of authorized architects maintained by the Czech Chamber of Architects. The
Czech Chamber of Architects shall grant authorization to the persons for the fields of
a) building engineering structures,
b) land-use and town/city/urban planning,
c) garden lay-out and landscaping.

An authorized engineer shall be registered on the list of authorized engineers maintained by the
Czech Chamber of Authorized Engineers and Technician Involved in Construction.
An authorized technician shall be registered on the list of authorized technicians maintained by the
Czech Chamber of Authorized Engineers and Technicians Involved in Construction.
The Czech Chamber of Authorized Engineers and Technicians Involved in Construction shall grant
authorization for the fields of
a) building engineering structures,
b) transport structures,
c) water supply structures and landscape engineering,
d) bridges and civil engineering constructions,
e) technological facilities of structures,
f) indoor environment installations of structures,,
g) statics and dynamics of structures,
h) urban engineering,
i) geotechnics,
j) fire resistence of buildings,
k) landscaping

- survey of activities liable to a special legal regime related to building-up (authorized persons,
authorized supervisors, persons entitled to exercise further activities related to building-up)

 is obligated to take care of preparations and realization of the structure;

 At the same time the developer must particularly bear in mind the protection of lives and health
of persons or animals, protection of the environment and property, and a considerate treatment
of the neighborhood.
 The developer has these duties also in case of structures and their changes not requiring the
building permit or notification or in another similar programmer, for example, establishing the
advertising installation.
 The developer is obligated to notify of commencement of works on the structures exempted
from permits the persons directly affected by these works sufficiently in advance.
 The developer is obligated to procure the prescribed documentation for the purpose of
proceeding of the program pursuant to the act of Building Code. If the law requires making the
design documentation by the person authorized to that, the developer is obligated to ensure
elaboration of the design documentation by such a person, if he/she him/herself has not such an

Contractor´s site manager and the building supervision

Contractor´s site manager is obligated to:

 manage the structure construction in accordance with the decision or another measure of the
building office and the verified design documentation,
 to ensure the observance of duties related to protection of life, health, environment and labour
safety arising from the special regulations,
 to ensure a due building site arrangement and the operation there and observance of general
requirements for construction ,or other technical regulations and standards.
 In case of existence of public infrastructure in the location the contractor´s site manager is
obligated to ensure the laying out the routes of public infrastructure in the location of their
collision with the structure.

The person making the building supervision together with the developer is responsible for:
 the conformity of the spatial location of the structure with the verified documentation, the
observance of general requirements for construction, barrier less use of the structure and other
technical regulations and for observance the decisions and other measures issued for the
structure realization.
 monitors the manner and procedure of the structure realization, especially the safety of
installations and operation of technical devices at the site, appropriateness of laying and
application of products for construction
 and keeping the site diary or a simple record on the construction;

Owner of the structure and installations

The owner of the structure is obligated to

 notify the building office, immediately, of the defects in the structure, which endanger lives and
health of persons or animals,
 enable the structure inspection and to participate in this inspection, if serious reasons do not
prevent that,
 archive the site diary for the period of 10 years from the issuance of the final inspection approval,
or from the construction completion, if the final inspection approval is not required,

 to archive, for the whole structure duration, the documentation of its actual realization, decision
certificates, approvals, verified design documentation, or other documents related to the

- concept of professional standards for performance and documentation in land planning (including
the setting fee)
- concept of professional standards for performance and documentation in the designing of buildings
(including the fee settings = soft cost of the project)

Soft costs include architectural, engineering, financing, and legal fees, and other pre- and post-
construction expenses.