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ECONOMICS, MANAGEMENT AND ORGANIZATION OF CONSTRUCTION PROCESSES

INTERDEPENDENCE OF COST AND QUALITY OF ITEMS OF REAL ESTATE

Vestnik MGSU 2/2012
  • Lukmanova Inessa Galeevna - Moscow State University of Civil Engineering (MSUCE) Doctor of Economics, Professor, Head of Department of Economy and Management in the Construction Industry, Moscow State University of Civil Engineering (MSUCE), 26 Jaroslavskoe shosse, Moscow, 129337, Russia; This e-mail address is being protected from spambots. You need JavaScript enabled to view it .
  • Nezhnikova Ekaterina Vladimirovna - Moscow State University of Civil Engineering (MSUCE) Candidate of Economics, Senior Lecturer, Department of Urban Planning and Ecological Safety 8 (495) 287-49-19, Moscow State University of Civil Engineering (MSUCE), 26 Jaroslavskoe shosse, Moscow, 129337, Russia; This e-mail address is being protected from spambots. You need JavaScript enabled to view it .

Pages 170 - 174

The authors argue that the costs of design development, building and maintenance of items of real estate are interconnected, and that they depend heavily on the high quality of work performed at each of the above stages. Quality management standards, according to ISO 9001:2008 international standards, assure the satisfactory quality of building works. Classification of the quality indicators distributed into several groups is developed to ensure the target management of the quality of building works. They include indicators of consumer properties; reliability indicators; typification indicators; technology intensiveness indicators; ergonomic indicators; esthetic indicators; economic indicators. Further, an integrated indicator of quality, including all groups specified above, is developed. Improvement of the quality of building works means saving three principal groups of resources: materials, labor and funding.
Calculation of reduction of the overall cost of the real estate item that has improved quality indicators in comparison with the overall cost of the real estate item of satisfactory quality, taken as a benchmark, is made. The nature of interrelation between the quality of building works and maintenance expenses is provided. The overall cost of the item increases alongside with the increase of its quality, therefore the pre-set quality indicator should be defined by taking account of the market conditions, rates charged for building works and payable by buyers, and the amount of building works that sell at a higher price. The indicator of the overall cost of the item of real estate, if forthcoming operational expenses are taken into account, i.e. calculated for the course of the overall life cycle of the item, is essential if the investor is going to maintain the building. Investors often act as sellers of completed buildings; therefore, the product price set at the time when it is offered for sale is of particular importance.

DOI: 10.22227/1997-0935.2012.2.170 - 174

References
  1. Lukmanova I.G., Petrova I.P., Ivanov N.A. Osnovnye napravlenija razvitija sistem menedzhmenta kachestva v stroitel'stve : monografija [Basic Lines of Development of Systems of Quality Management in the Building Industry, a monograph]. Moscow State University of Civil Engineering, Moscow, MGSU, 2011, 214 p.
  2. Lukmanova I.G., Nezhnikova E.V., Kudishin D.Ju. Upravlenie proektami v investicionnostroitel'noj sfere : monografija [Project Management in Investment and Construction Industry]. Moscow State University of Civil Engineering, Moscow, MGSU, 2011, 210 p.
  3. Srinivasu R., G. Satyanarayana R., Srikanth R.R. Utility of Quality Control Tools and Statistical Process Control to Improve the Productivity and Quality in an Industry. International Journal of Reviews in Computing, Vol. 5, January, 2011.

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