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Construction
Economics

Design
Economics
Economic of Building Design
• The cost of building is influenced by many factors.
• The main objective of the design team is to get the best value
for money for the client.
• An economical building is a building that does not only give
value at the lowest cost but also fulfils the design and
function required.
• Different design will cost differently.
• Factors to be considered for economics in building design:
– Design factors
– Site factors
Economic of building design (Cont’d)
• The shape of the site also determines the building plan shape
• Design factors
– Building plan shape
– Grouping of buildings
– Building size
– Building storey height
– Building total height
– Number of storeys
– Circulation area
Design Factors
Building Plan shape
• The plan shape of a building influences the structure, environment, construction cost
and management and maintenance cost of a building
• Most economical design is circular shape.
• A square plan shape structure provide most economic solution.
• The more complex the shape, the higher overall cost of structure.
• The theory is known as wall to floor ratio. The lower the wall to floor ratio, the more
economic will be the design.
• The height of the building is 3 meter

A B C

A B C
Floor area 100m2 100m2 100m2
Perimeter length 40m 58m 54m
Wall area 120m2 174m2 162m2
Wall to floor ratio 1.20 1.74 1.62
Design Factors
• The higher the wall to floor ratio, the higher the cost of the
building because:
– Increase in measurement works, foundation works,
external walls, wall finishes, etc.
– Construction works become more complicated and will
increase labour costs.
– Installation works for electrical wiring, piping and air-
conditioning system also increase.
– Roofing construction become more complex. Installation of
rainwater drainage system, gutter, fascia, barge board and
eaves will increase.
– Higher cost of maintenance.
Design Factors
Grouping of buildings
• If the building are grouped together, there will be generally
savings in cost resulting from the combined use of the party
wall.
Design Factors
Building size
• Increase in size of a building
will decrease its unit cost
• The greater the floor area of a
building, the lower the cost per
square meter.
• An increase in size means
increase in the quantity of
construction material, increase
in electricity, bigger mechanical
plant, etc. However, lower
terms of unit cost.
• The fixed cost is not directly
proportionate to the increase
in size of building.
• Fixed cost – Cost of
transportation, construction
and demolishing of
temporary buildings,
construction store, temporary
access road, site office, etc.
• Therefore, more economical
to construct big building than
few small buildings
Design Factors

Building Size (m) GFA (m2) Wall Wall Ratio

perimeter area (m2) wall
(m) area/
GFA
A 10 x 10 100 40 160 1.6
B 20 x 20 400 80 320 0.8
C 40 x 40 1600 160 640 0.4

The wall height is 4 meter

Design Factors
Building storey height
• If the building storey height is too high, the total number of building storey
will reduce.
• The storey/ building height are subjected to building approval by relevant
parties., subject to regulations especially regulation in the Street, Drainage
and Building Act
• A height of 3.5m is considered practical or most buildings
• Variation of storey height will cause change in building cost
• Major cost that will change due to building storey height are:
– Construction cost for the foundation and structural frames
– Construction cost of stairs, escalators and lifts
– Ceiling construction
– Installation of air conditioning system
– Installation cost of electrical wiring and piping for water supply
– Building maintenance cost.
Design Factors
Building total height
• The construction cost of high structure is more than for low building that provides the same
GFA
• Factors to be considered when designing high-rise buildings:
– Build a high-rise building in order to get a bigger GFA, aesthetic and prestige purposes or to get the
maximum floor use for expensive land.
– Cost changes according to type, shape and construction of building. For example, where the increase in
the number of storey does not affect the structure, the unit cost of the building will decrease. This is also
true when construction of structural frame is needed to replace construction of load-bearing wall. The cost
will increase especially when the number of storey exceeds four storeys.
– The foundation cost/GFA will decrease with an increase in height of storey if the foundation construction
shape does not change. But if piling or a special foundation is needed, then the foundation cost will
increase.
– The cost of lift, escalator and stairs will also increase when the height increases. There is strict control to
provide stairs as a safety exit during fires. Cost of installation, operation and maintenance of lifts and
escalators increases according to increase in height.
– Maintenance cost increases because the higher the building, the more difficult it is to do work and there is
a need for special equipment.
– There is increase in space occupied by structural components and circulation area compared to usable
space. The structure sizes especially at the lower levels are bigger.
– Increase in wiring, piping and air-conditioning system.
Design Factors
• Summary of the effects of addition of height to building cost

Fire protection

Engineering
services Structural frame

Vertical transportation

Foundation
Design Factors
10m
5m
Changes in the number of
storeys 5m
10m B
• If two buildings with the A
same GFA are different
in no of storeys, the cost
for the higher building is 3m
more expensive
3m
Design Factors
Building A Building B
No of storey 2 8
Storey height (m) 3 3
GFA (m2) (10 x 10) 2 = 200 (5 x 5) 8 = 200
Perimeter of external (10 + 10) 2 = 40 (5 + 5) 2 = 20
walls (at ground level)
(m)
External wall area (m2) (40 x 3) 2 = 240 (20 x 3) 8 = 480
Wall to floor ratio 1.2 2.4
Design Factors
Circulation Area
• The gross floor area and net floor area should be as close as
possible. A multi-storey building need stairs and probably lifts,
refuse chute, ducts, etc. All these use spaces, which would
otherwise be included in the net floor area.
• The cost per net floor area can be one of the good yardsticks
to express the cost but it can give a yardstick that is far
different than the cost/GFA. Hence, even though the costs per
square meter may be similar; the cost for the net area will be
different.
 9m 9m

5m 5m

2m Corridor 2m Corridor

Stair
5m 5m well

Single storey building Double storey building

Single storey building Double storey building
Usable area (m2) 90 150
Circulation area (m2) 18 33 x 2 = 66
Gross floor area (m2) 108 216
% of circulation area 17 31
Economic of building design (Cont’d)
Site factors
– Affect of site on building size
– Affect of site on design shape of building
– Affect of site on plot ratio
– Affects of site condition on design structure
– Affects of site location on design
Site factor
Affect of site on building size
• The limited size of land will limit the size of the building to be built.
• I.e. Sites in the “Golden Triangle" in Kuala Lumpur, are large in size and so
the buildings large and vertically built in comparison to other traditional
areas which have less fragmented sites.
Site factor
Affect of site on design shape of building
• The site affects the design/shape of a
building.
• I.e., the Bank Rakyat building has an
irregular diamond shape design in order to
maximize the site, which is almost
triangular.
• The lines of the Wisma Shaw building
follow the shape of the site that is
polygon.
Site factor
Affect of site on plot ratio
• The plot ratio is the ratio of the site area with the total construction area.
• The total construction ratio is calculated by totaling the gross floor area on
all levels, that is, usable areas, circulation areas, ancillary areas and
internal partition wall areas.
• I.e. Majlis Bandaraya Shah Alam (MBSA) has decided on the maximum plot
ratio allowed for the use of offices, businesses, industries, institutions,
hotels, public amenities and mixed development is 1:3. If the area of the
site is 1000m2, the total construction area should be 3000m2
Site factor
Affects of site condition on
design structure
• Land that has a safe load bearing
capacity 600kN/m2 may be
supported by the pad foundation.
Some sites have a high water table
and this causes problems in
construction and design. A special
foundation and design is needed.
• The contour of the land has an effect
in terms of the foundation design
especially for site with steep slopes.
The cut and fill works might be
increased.
Site factor
Affects of site location on design
• If the site is situated at a location with many high-
rise buildings, there is a tendency to compete
with the existing buildings. This competitive
nature to attract attention may cause the
practical and economical aspects of the building
to be ignored.
Thank You