Business in Construction Industry

Teachers

Included in study programs

Teaching results

Knowledge:
• Overview of the construction industry, its specifications, legislative framework, classification of the constructional production and specifications of a construction company’s business. Overview of the economics, management and organization of a construction company;
• Knowledge of material management and human resources in a construction company. Related norms and regulation of short-term assets and labor;
• Complex view at a construction company’s costs and their tracking from the point of view of the construction’s contractor and investor. Preparing the calculations and budgets. Overview of prices and price development in the construction industry and immovable assets’ price overview and its development;
• Overview of financial issues in a construction process and, on the other side, financing the procurement of an immovable asset by a client. Information on the sales process for immovable assets from the administrative-procedural and legal points of view. Marketing, its specifics and current trends in the construction industry;
• Cross-section view at the life cycle and the economic life of buildings. Knowledge of evaluation and analysis of the effectiveness of a project realization while considering the time flow and the value of money in time.
Competence:
• Effectively use essential information on a construction company as a business subject, its objectives and legal forms in practice;
• Critically evaluate the progress and specifics of a company’s transformation process in a construction company with its impact on the creation of a bid construction budget;
• Skillfully approach the business relations between a construction company, an investor, a client or a financial institution in connection to the construction project or a finished immovable asset;
• Provide solutions and defend the conclusion or recommendations for the increase of effectiveness of different activities in a construction company in order to ensure better outlet of its production.
Skill:
• Basic orientation and reading of a construction project documentation;
• Ability to create, analyze and critically evaluate a bid construction budget for a simple built structure;
• Orientation in construction costs and prices for construction materials and works;
• Basic work with a software for the management and budget-making for construction works (Cenkros) and 3D modelling software for architecture, interior design and construction industry (SketchUP);
• Selecting a convenient loan to finance the procurement of an immovable asset while considering various criteria, and creating a fixed reimbursement schedule based on a dynamic calculation of the annuity in MS Excel.

Indicative content

Thematic definition of lectures:
1. Introductory introduction of students to the subject, literature and requirements for graduation.
2. 2. 2.
3. Building Act + implementing decrees. Content of the law, basic concepts. Zoning procedure.
4. Construction enterprise and its business. Legislative forms of business of construction entities, number of business entities within the construction sector in Slovakia.
5. Material management in the construction enterprise.
6. Workforce and OSH in construction enterprises.
7. Costs of the construction enterprise. Calculation formula in the construction industry.
8. Calculation system in the construction industry.
9. Pricing in the construction industry. Law on prices.
10. Financing in construction and real estate.
11. Property of a construction company. Acquisition and depreciation of fixed assets.
12. Construction life cycle and project efficiency assessment.
13. Completion and evaluation of the semester. Discussion. Conclusion of evaluations.
Thematic definition of exercises:
1. Project assignment - Preparation of a bid budget for a simple construction object.
2. 2. Developing the ability to read simple construction drawings and budgets.
3. Familiarising students and demonstrating how to use construction software to produce construction budgets.
4. Familiarize students with and demonstrate working with architectural design software.
5. Explanation of the technical and economic background to construction work related to surfaces, floors, fillings in a simple building work.
6. Explanation of the technical and economic context for construction work related to other structures and plans in a simple building work.
7. Explanation of the technical and economic background to the construction work related to the various thermal and waterproofing systems of a simple construction object.
8. Explanation of the technical and economic background to construction work related to health and safety installations.
9. Explanation of the technical and economic background to construction work related to roof structures.
10. Explanation of the technical and economic background to construction work related to floor coverings.
11. Preparation of a recapitulation of the established bid budget in Cenkros or MS Excel software.
12.-13. Defending the semester project in student teams. Presentation and submission of the project.

Support literature

Basic literature:
1. ŠÚBERTOVÁ, Elena - UHLIAR Miroslav – KOVALEV Andrej. Podnikanie v stavebníctve. Bratislava : Vydavateľstvo EKONÓM, 2017. 192 s. ISBN 978-80-225-4433-7.
2. MESÁROŠ, Peter. Cenotvorba v stavebníctve : súčasné trendy a vízie. Bratislava : vydavateľstvo Eurostav, 2018. 172 s. ISBN 9788089228577.
3. MYERS, Danny. Construction Economics : a New Approach. London : Routledge; 4th edition, 2016, 358 s. ISBN 1138183725.
4. FELLNER, Thomas. Baubetriebslehre / Baubetrieb un Baumanagement 3. Wien : Hölzel Verlag, 2018. 290 s. ISBN 3706855690.
5. CHODASOVÁ, Alena – KOVÁČOVÁ Eva. Podnikanie v stavebníctve. Bratislava : Vydavateľstvo EKONÓM. 2006, 134 s. ISBN 80-225-2269-4.
6. CHODASOVÁ, Alena – KOTLAN Richard. Podnikanie v stavebníctve: praktikum. Bratislava : Vydavateľstvo EKONÓM, 2002. 134 s. ISBN 80-225-1486-1.
Complementary literature:
1. BUDKEOVÁ, Branislava – KLÍMEK Vojtech. Poradca stavebníka pri výstavbe rodinného domu. Návody a postupy pri príprave, zabezpečovaní a preberaní stavebných prác. Bratislava : Eurostav, 2006. 80 s. ISBN 8089228038.
2. ČAVOJSKÝ, Jozef. Oceňovanie stavebných prác, (Klasifikácie, kalkulovanie, oceňovanie a rozpočtovanie). Bratislava : Cenekon, 2012. 318 s. ISBN: 978-80-970678-1-6.
3. GRUNEBERG, Stephen - NOBLE, Francis. The Economics of Construction (The Economics of Big Business) Agenda Publishing, 2019, 240 s. ISBN 1788210014X.
4. HAČKAJLOVÁ, Ludmila. Stavební ekonomika a management. Praha : Sobotáles, 2006. 241 s. ISBN 80-85920-79-4.
5. HALPIN, Daniel W. – SENIOR, Bolivar A. – LUCKO, Gunnar. Construction Management. John Wiley & Sons, 2017. 416 s. ISBN 1119256801.
6. LEIMBÖCK, Egon - KLAUS, Ulf Rüdiger - HÖLKERMANN, Oliver. Baukalkulation und Projektcontrolling: unter Berücksichtigung der KLR Bau und der VOB. Berlin : Springer Vieweg, 2015. 198 s. ISBN 978-3-658-04871-6.
7. MESÁROŠ, Peter – MANDIČÁK Tomáš. Ekonomika stavebníctva. Košice : Technická univerzita v Košiciach, 2015. 128 s. ITMS 26110230093.
8. RUMANE, Abdul Razzak. Handbook of construction management : scope, schedule, and cost control. Taylor & Francis Group, CRC Press, 2017. 854 s. ISBN 9781482226645.
9. SCHÓBEROVÁ, Alexandra. CENKROS plus: oceňovanie a riadenie stavebnej výroby, príručka užívateľa. 1. vyd. Žilina : KROS, a. s., 2012. 504 s.
10. TRÁVNIK, Igor. Ekonomika stavebného podnikania. 2. vydanie, elektronicka forma. Bratislava : STU, 2003. 127 s. ISBN 80-227-1895-5.
11. Ministerstvo dopravy a výstavby Slovenskej republiky. Ročenky stavebníctva.
12. Zákon č. 50/1976 Zb. o územnom plánovaní a stavebnom poriadku (stavebný zákon).
13. Zákon č. 162/1995 Z. z. o katastri nehnuteľností a o zápise vlastníckych a iných práv k nehnuteľnostiam (katastrálny zákon).
14. Zákon č. 513/1991 Zb., Obchodný zákonník.

Syllabus

Thematic definition of lectures: 1. Introductory introduction of students to the subject, literature and requirements for graduation. Construction as a sector of the national economy. Specifics, basic concepts, legislative framework of business in the construction industry. Associations and societies in the construction sector. 2. Cadastral law. Content of the law, basic concepts, cadastral procedure. Registration of rights - an example of creation of a registration in electronic and documentary form. Title deed and its content. Overview of administrative fees. Working with the online version of the cadastre, search options, cadastral map. Sample of www.katasterportal.sk and https://zbgis.skgeodesy.sk/mkzbgis/ . 3. Building Act + implementing decrees. Content of the law, basic concepts. Zoning procedure. Construction procedure. Building approval procedure. Sanctions for violation of the provisions of the Building Act. Construction supervision, construction diary. Building permit, construction notification - requirements in their solution. 4. Construction enterprise and its business. Legislative forms of business of construction entities, numbers of business entities within the construction sector in Slovakia. Management of construction enterprise, examples of managerial management and organizational structure. Construction production and its breakdown. Current statistical overview of construction production. 5. Material management in the construction enterprise. Structure and examples of different traditional and modern construction materials used. Material procurement and related logistics. Standards and standardisation of the construction company's current assets. 6. Workforce and OHS in construction enterprises. Qualifications, structure of workers and labour indicators used. Remuneration and wage structure of workers in the industries. Overview of wages in the construction industry according to different criteria. Roles and responsibilities of construction workers with regard to OSH. 7. Costs of the construction enterprise. Calculation formula in the construction industry. Composition of the price of the output of a construction enterprise according to costs. Costs from the construction contractor's point of view. Costs from the investor's point of view. 8. Calculation system in the construction industry. Types of costing in the construction industry and the necessary documents for their preparation. Calculation methods in construction. 9. Prices in the construction industry. Law on prices. Content of prices and types of contract prices. Factors influencing prices in the construction industry. Methods of pricing. Development of prices for works in the construction industry. Price level and price development of residential property in the Slovak Republic by regions and types of residential property. 10. Financing in construction and real estate. Financing of the developer and financing the purchase of real estate. Mortgage loan, stages of its solution, documents for its arrangement. Annuity repayment of mortgage loan and calculation of annuity repayment.Cenkrose 11. Property of the construction enterprise. Acquisition and depreciation of fixed assets. Methods of calculating descriptions. Machinery of a construction enterprise. 12. Construction life cycle and project efficiency assessment. Life cycle phases and associated costs. Types of construction life cycle and examples of life cycle of different elements of construction. Time value of money and methods of calculating the economic efficiency of investments. The impact of inflation on investment efficiency. 13. Completion and evaluation of the semester. Discussion. Conclusion of assessments. Thematic definition of exercises: 1. Introduction and organization of the exercises. Project assignment - Preparation of a bidding budget for a simple construction project based on the construction project of a single-family house of the Bungalow type. Demonstration of sample and real projects from practice. Familiarisation of students with the content of the technical part of the project documentation for the purpose of applying for a building permit. Discussion with students. 2. Learning to read simple construction drawings and budgets. Clarification of basic technical drawings and their content. Explanation of the technical and economic background to earthworks and the construction of foundations. Demonstration and explanation of calculations on a sample project. Assignment of students to work teams. Team work on a project on a given topic. Calculation of rates and prices for materials and labour in project teams. Searching for construction material prices and labour prices on the internet. Consultation of student teams' work in class with the teacher. 3. Familiarization of students and demonstration of how to work with construction budgeting software (e.g. CENKROS). Explanation of the technical and economic context of the construction of vertical structures. Demonstration and explanation of calculations on a sample project. Team work on a project on a given topic. Calculation of dimensions and prices for materials and work in project teams. Searching for construction material prices and labour prices on the internet or in Cenkros. Consultation of student teams' work in class with the teacher. 4. Familiarizing students and demonstrating how to work with architectural design software (e.g., Google SketchUp, Chief Architect). Explanation of the technical and economic context of building vertical structures. Demonstration and explanation of calculations on a sample project. Team work on a project on a given topic. Calculation of dimensions and prices for materials and work in student teams on solved projects. Searching for construction material prices and labour prices on the internet or in Cenkros. Consultation of student team work in class with the teacher. 5. Explaining the technical and economic background to construction work related to surfaces, floors, fillings in simple construction work. Demonstration and explanation of calculations on a sample project. Team work on a project on a given topic. Calculation of dimensions and prices for materials and work in teams of projects. Searching for construction material prices and labour prices on the internet or in Cenkros. Consultation of student teams' work in class with the teacher. 6. Explaining the technical and economic background to construction work related to other structures and plans of a simple building. Demonstration and explanation of calculations on a sample project. Team work on a project on a given topic. Calculation of rates and prices for materials and labour in project teams. Searching for construction material prices and labour prices on the internet or in Cenkros. Consultation of student teams' work in class with the teacher. 7. Explaining the technical and economic background to construction work related to various thermal and waterproofing of a simple building. Demonstration and explanation of calculations on a sample project. Team work on a project on a given topic. Calculation of rates and prices for materials and labour in project teams. Searching for construction material prices and labour prices on the internet or in Cenkros. Consultation of student teams' work in class with the teacher. 8. Explaining the technical and economic background to construction work related to health and safety installations. Demonstration and explanation of calculations on a sample project. Team work on a project on a given topic. Calculation of rates and prices for materials and labour in project teams. Searching for construction material prices and labour prices on the internet or in Cenkros. Consultation of student teams' work in class with the teacher. 9. Explaining the technical and economic background to construction work related to roof structures. Demonstration and explanation of calculations on a sample project. Team work on a project on a given topic. Calculation of rates and prices for materials and labour in project teams. Searching for construction material prices and labour prices on the internet or in Cenkros. Consultation of student teams' work in class with the teacher. 10. Explaining the technical and economic background to construction work related to floor coverings. Demonstration and explanation of calculations on a sample project. Team work on a project on a given topic. Calculation of rates and prices for materials and labour in project teams. Searching for construction material prices and labour prices on the internet or in Cenkros. Consultation of student teams' work in class with the teacher. 11. Preparing a recapitulation of the bid budget created in Cenkros or MS Excel software. Demonstration on a sample project. Team work to develop a recapitulation of the semester project. Possible completion of missing parts of the project. Discussion. Consultation of student teams' work in class with the teacher. 12. Defence of semester project in student teams. Presentation and submission of the project. Evaluation of semester projects and presentations. Semester credit paper in class or via moodle.euba.sk. Discussion. 13. Defence of the semester project in student teams. Presentation and submission of the semester project. Evaluation of semester projects and presentations. Possible remedial credit paper in class or via moodle.euba.sk. Discussion. Evaluation of exercises and awarding of final grades. Evaluation and completion of the semester.

Requirements to complete the course

30 % continuous written assignments, 70 % written examination

Student workload

104 h (attendance at seminars 26 h, preparation for seminars 13 h, preparation of term paper 13 h, attendance at lectures 26 h, preparation for examination 26 h)

Language whose command is required to complete the course

Slovak

Date of approval: 11.03.2024

Date of the latest change: 14.05.2022