Economic Evaluation of Project
STAKEHOLDER ANALYSIS – lesson 2
The outcomes of a decision-making process depend on the interaction among different types
of actors, with different goals and roles. The people interested in a decision-making process
are named STAKEHOLDERS.
Stakeholder analysis is a process of systematically gathering and analysing qualitative
information to determine whose interests should be taken into account when developing
and/or implementing a policy or programme.
The resources that can be exchanged in a decision process are classified according to the
following categories: POLITICAN resources; ECONOMIC resources; LEGAL resources; COGNITIVE
resources.
Political resources are the amount of consensus an actor is able to get;
Economic and financial resources consist of the ability to mobilize money or any form
of wealth in order to modify other actors’ behaviour;
Legal resources are the advantages or disadvantages attributed to particular subjects
by legal regulations and in general by legislative and administrative authority’s decisions.
Cognitive resources can be mobilised in decisional processes, meaning the availability
of important information or conceptual models for the decisional process.
One of the fundamental features in decision-making process is the plurality of the points of
view, actors adopt in their interventions and of the criteria upon which they base their decisions.
They can be divided into 5 categories: POLITICAL, BUREAUCRATIC, SPECIAL, GENERAL and EXPERTS
Political actors base their claim of intervention in decision-making on the fact that they
represent citizens, having a significant consensus. Their idea is that in a democratic political
system, decisions can’t be made without popular consensus.
Bureaucratic actors base their claim of intervention on the consideration that legal rules
give them a specific responsibility in the decisional procedure, meaning that they have the
formal competence to intervene.
Special interests – the choice among the possible alternatives directly influences their
interests, meaning they totally or partially bear the costs, and/or can draw benefits from it.
General interests – they don’t have political or legal legitimation and they represent
subjects and/or interests that cannot defend themselves.
, Experts – have necessary knowledge to structure the collective problem and/or to find
the most appropriate alternatives to solve it.
SWOT analysis (STRENGHTS – WEAKNESSES – OPPORTUNITIES – THREATS) is a strategy analysis tool.
For strategy, this approach takes into account internal and external factors, with a view to
maximising the potential of strengths and opportunities, while minimising the impact of
weaknesses and threats. It could be used to identify possible strategic approaches.
CONSTRUCTION COST – lesson 3
An estimate is an opinion of probable cost, not an exact calculation. Factors that could
influence the estimation: purpose, how much is known about the project, and time and effort
spent.
Total cost is the sum of the: PROMOTION cost, INITIAL cost, cost IN USE, TERMINAL cost.
Initial cost is the sum of the: costs of site, professional fees, urban taxes, construction cost and
financial charges…
Cost in use is the sum of the: operating costs, energy costs, operating services, insurance costs,
management costs and maintaining costs.
The initial cost is the total amount that must be paid for the planning and construction of a
building up to the point of completion or occupancy. Cost of production is greater than cost
of construction!!
The costs of buildings are influenced by a variety of factors. Design variables that affect costs:
grouping of buildings, plan shape, site considerations, size of buildings, circulation space,
height, functions, materials, constructional techniques…
Examples: More densely group buildings are cheaper than separate ones; the simpler
the shape of the building, the lower will be its unit cost; the cost of the project will be affected
by its location;…
There are two ways to estimate the cost:
1. Preliminary Design, the method is synthetic, and the outcome is approximate
estimation of costs, due to the lack of detailed data regarding the project.
2. Detailed Design, the method is analytical, and the outcome is detailed estimating
of costs; all the information regarding the project are known (e.g. materials of
insulation, days of construction, precise height of the project…)
GROSS FLOOR AREA (GFA) – total floor area of all floors of a building calculated with the external
dimensions of the building including structures, partitions, corridors, stairs. This area is used in
calculating construction cost of the building. On the other hand, GROSS LEASABLE AREA (GLA) is the
STAKEHOLDER ANALYSIS – lesson 2
The outcomes of a decision-making process depend on the interaction among different types
of actors, with different goals and roles. The people interested in a decision-making process
are named STAKEHOLDERS.
Stakeholder analysis is a process of systematically gathering and analysing qualitative
information to determine whose interests should be taken into account when developing
and/or implementing a policy or programme.
The resources that can be exchanged in a decision process are classified according to the
following categories: POLITICAN resources; ECONOMIC resources; LEGAL resources; COGNITIVE
resources.
Political resources are the amount of consensus an actor is able to get;
Economic and financial resources consist of the ability to mobilize money or any form
of wealth in order to modify other actors’ behaviour;
Legal resources are the advantages or disadvantages attributed to particular subjects
by legal regulations and in general by legislative and administrative authority’s decisions.
Cognitive resources can be mobilised in decisional processes, meaning the availability
of important information or conceptual models for the decisional process.
One of the fundamental features in decision-making process is the plurality of the points of
view, actors adopt in their interventions and of the criteria upon which they base their decisions.
They can be divided into 5 categories: POLITICAL, BUREAUCRATIC, SPECIAL, GENERAL and EXPERTS
Political actors base their claim of intervention in decision-making on the fact that they
represent citizens, having a significant consensus. Their idea is that in a democratic political
system, decisions can’t be made without popular consensus.
Bureaucratic actors base their claim of intervention on the consideration that legal rules
give them a specific responsibility in the decisional procedure, meaning that they have the
formal competence to intervene.
Special interests – the choice among the possible alternatives directly influences their
interests, meaning they totally or partially bear the costs, and/or can draw benefits from it.
General interests – they don’t have political or legal legitimation and they represent
subjects and/or interests that cannot defend themselves.
, Experts – have necessary knowledge to structure the collective problem and/or to find
the most appropriate alternatives to solve it.
SWOT analysis (STRENGHTS – WEAKNESSES – OPPORTUNITIES – THREATS) is a strategy analysis tool.
For strategy, this approach takes into account internal and external factors, with a view to
maximising the potential of strengths and opportunities, while minimising the impact of
weaknesses and threats. It could be used to identify possible strategic approaches.
CONSTRUCTION COST – lesson 3
An estimate is an opinion of probable cost, not an exact calculation. Factors that could
influence the estimation: purpose, how much is known about the project, and time and effort
spent.
Total cost is the sum of the: PROMOTION cost, INITIAL cost, cost IN USE, TERMINAL cost.
Initial cost is the sum of the: costs of site, professional fees, urban taxes, construction cost and
financial charges…
Cost in use is the sum of the: operating costs, energy costs, operating services, insurance costs,
management costs and maintaining costs.
The initial cost is the total amount that must be paid for the planning and construction of a
building up to the point of completion or occupancy. Cost of production is greater than cost
of construction!!
The costs of buildings are influenced by a variety of factors. Design variables that affect costs:
grouping of buildings, plan shape, site considerations, size of buildings, circulation space,
height, functions, materials, constructional techniques…
Examples: More densely group buildings are cheaper than separate ones; the simpler
the shape of the building, the lower will be its unit cost; the cost of the project will be affected
by its location;…
There are two ways to estimate the cost:
1. Preliminary Design, the method is synthetic, and the outcome is approximate
estimation of costs, due to the lack of detailed data regarding the project.
2. Detailed Design, the method is analytical, and the outcome is detailed estimating
of costs; all the information regarding the project are known (e.g. materials of
insulation, days of construction, precise height of the project…)
GROSS FLOOR AREA (GFA) – total floor area of all floors of a building calculated with the external
dimensions of the building including structures, partitions, corridors, stairs. This area is used in
calculating construction cost of the building. On the other hand, GROSS LEASABLE AREA (GLA) is the
