scholarly journals Strategies of developers to housing supply within framework of project financing

2021 ◽  
Vol 112 ◽  
pp. 00012
Author(s):  
Olga V. Grushina ◽  
Natalya N. Shelomentseva
Keyword(s):  
Interest Rates ◽  
Affordable Housing ◽  
Housing Construction ◽  
Construction Sector ◽  
Construction Process ◽  
Project Financing ◽  
National Goal ◽  
Construction Organizations ◽  
Consumer Population ◽  
The Cost

The problem of providing comfortable and affordable housing for Russian citizens as a national goal has gained an impetus to solution after the introduction at the legislative level of project financing for housing construction using escrow accounts. The application of this new method of financing to the decision-making algorithm of a developer requires mathematical modeling of the economic ratios of the main indicators of the developer’s activities, taking into account the interests of other subjects in the housing construction sector: banks and population. The approach proposed by the authors is aimed primarily at expanding the supply in the housing market. We have formalized the possible sale strategies of the developer using a matrix approach in varying prices and the number of meters sold at different stages of construction, as well as interest rates for bank crediting, depending on the degree of escrow accounts accumulation. Testing the model has shown that developers should face serious problems related to increasing the cost of replenishing working capital for the construction process, which will inevitably be included in the price per square meter of housing and paid by the consumer (population). At the same time, banks become the main controllers and beneficiaries of the project financing. The model developed and tested by the authors will allow construction organizations to overcome the first difficulties of project financing application and competently and consistently make a choice of a strategy for offering housing to buyers, taking into account the variability of the economic parameters of all parties.

scholarly journals PROJECT FINANCING HOUSING CONSTRUCTION IN RUSSIA: RESULTS AND PROSPECTS

2021 ◽  
pp. 30-38
Author(s):  
N. I. Glotova
Keyword(s):  
Construction Industry ◽  
Affordable Housing ◽  
Significant Contribution ◽  
Mortgage Lending ◽  
Housing Construction ◽  
Russian Regions ◽  
Project Financing ◽  
Social Significance ◽  
The Past ◽  
Socio Economic Development

Housing construction is one of the main directions of the construction industry, while being a powerful driver of investment and consumer demand. It has a priority social significance and makes a significant contribution to the development of the economy. Currently, in Russia, an increase in the volume of housing construction and the formation of an affordable housing market through the development of mortgage lending is one of the priority tasks of socio-economic development. Over the past three years, Russia has maintained a stable positive dynamics of housing commissioning. According to preliminary estimates, the targets set by the national project have been exceeded. The article discusses the mechanism of transition of housing construction to project financing. The dynamics of opening escrow accounts in the context of Russian regions is analyzed. The assessment of the implementation of the preferential mortgage program in housing construction was carried out. The necessity of further improvement of the housing lending mechanism in modern conditions with the use of state support instruments is argued.

scholarly journals Implementation of Blockwork System in Malaysia

2019 ◽  
Author(s):  
Mohamed Nor Azhari Azman ◽  
Farul Afendi Bahari ◽  
Rini Kusumawardani ◽  
Tee Tze Kiong
Keyword(s):  
Lightweight Concrete ◽  
Construction Sector ◽  
Construction Process ◽  
Construction Costs ◽  
Concrete Blocks ◽  
Component Manufacturing ◽  
The Cost ◽  
Cost Of Construction ◽  
Block Concrete

Industrialised Building System or IBS is a method to accelerate the process of construction through prefabricated concept where each component will be built first in the component manufacturing plant. There are six categories of IBS introduced by CIDB and one of them is a system block work. The block system has several types of components under this category include the interlocking block-concrete masonry unit (CMU) and lightweight concrete blocks. Block work system introduced to replace the use of conventional bricks to accelerate the construction process and reduce construction costs. However, acceptance of the system to be less favorable than the use of conventional bricks. Statistics show there are only 31 manufacturer across Malaysia. Therefore, this study aims to identify the extent of implementation of the system of block work in Malaysia to contribute in the construction sector. This study used qualitative methods, namely through interviews and focus groups. The findings revealed that there are differences between the application methods IBS system block and conventional brick in terms of type of work performed, the number of working days and the cost of construction. Implementation of the system blocks are also influenced by three factors: the skills of workers, quality of components and component types in use. With a wide exposure is expected to expand the implementation of the system blocks in Malaysia.

scholarly journals Project financing of housing construction: domestic and foreign experience

2020 ◽  
Vol 17 (4) ◽  
pp. 219-230
Author(s):  
O. Yu. Bochkareva ◽  
Keyword(s):  
Comparative Analysis ◽  
Construction Industry ◽  
Russian Federation ◽  
Construction Project ◽  
Housing Construction ◽  
Project Financing ◽  
Foreign Experience ◽  
Supervisory Authority ◽  
Construction Organizations ◽  
The Russian Federation

Since July 1, 2019, the construction industry of the Russian Federation has switched to project financing of housing construction. In this regard, developers must provide financing of construction by using the owned and credit assets. According to this model, banks act as credit providers, as well as a supervisory authority for the appropriate expenditures of funds targeted to the project from special escrow accounts. The article discusses the concept of project financing, its main forms and types. A comparative analysis of domestic and foreign practice of project financing is made, and statistics data of transition of construction organizations to this model are presented. The system of interaction between the main participants of the construction project, namely, the consumer, the developer, the bank, is studied.

Formation Of An Estimate For A State Contract With A Firm Price In The Construction Sector

2020 ◽  
pp. 47-57
Keyword(s):  
Construction Projects ◽  
Cost Of Capital ◽  
Federal Budget ◽  
The State ◽  
Structural Elements ◽  
Construction Sector ◽  
Construction Process ◽  
Practical Application ◽  
Stage Of Development ◽  
Capital Construction

The issues of determining the estimated cost of capital construction projects with the involvement of Federal budget funds at the stage of development of project documentation, during verification of the accuracy of determining the estimated cost and the initial (maximum) contract price are considered. On the basis of the assessment of amendments to urban planning legislation for the purpose of implementing a state contract by the contractor ( based on the results of competitive procedures or without competitive procedures by decision of state authorities), the procedure for forming the estimate as part of a state (municipal) contract, the price of which is firm, is presented. For the purpose of mutual settlements between the customer and the contractor for the work performed, the formation of primary accounting documentation, as well as for checking the work performed by regulatory authorities, an example of drawing up an estimate of the state (municipal) contract on the basis of grouping costs according to structural elements and complexes of work is given. The result of the research conducted was the development of regulations and the formation of criteria for their practical application by state bodies, institutions, organizations and other participants in the investment-construction process, as well as recipients of budget funds, who perform the functions of the state (municipal) customer, developer and technical customer.

ABOUT NECESSITY OF MATHEMATICAL MODELING OF THE BUSINESS PROCESS OF COST ESTIMATE CALCULATIONS IN THE CONSTRUCTION OF OIL AND GAS FACILITIES

2017 ◽  
pp. 139-145
Author(s):  
R. I. Hamidullin ◽  
L. B. Senkevich
Keyword(s):  
Mathematical Modeling ◽  
Quality Assessment ◽  
Business Process ◽  
Oil And Gas ◽  
Oil And Gas Industry ◽  
Gas Industry ◽  
Construction Organizations ◽  
The Cost ◽  
Cost Of Construction

A study of the quality of the development of estimate documentation on the cost of construction at all stages of the implementation of large projects in the oil and gas industry is conducted. The main problems that arise in construction organizations are indicated. The analysis of the choice of the perfect methodology of mathematical modeling of the investigated business process for improving the activity of budget calculations, conducting quality assessment of estimates and criteria for automation of design estimates is performed.

scholarly journals Effects of Increase in the Cost of Building Materials on the Delivery of Affordable Housing in South Africa

2021 ◽  
Vol 13 (4) ◽  
pp. 1772
Author(s):  
Bimpe Alabi ◽  
Julius Fapohunda
Keyword(s):  
South Africa ◽  
Affordable Housing ◽  
Building Materials ◽  
Statistical Technique ◽  
Project Managers ◽  
Maintenance Cost ◽  
Cost Increase ◽  
Sequential Mixed Methods ◽  
Adequate Provision ◽  
The Cost

Adequate provision of affordable human settlements is a huge challenge in South Africa since its independence. This paper investigates the effects of the cost increase of building materials on affordable housing delivery in South Africa. With potential solutions for cost minimisation of building materials, with the aim of achieving affordable housing delivery in South Africa are provided. This study uses a sequential mixed methods approach, wherein surveys were conducted among the construction professionals (project managers, site managers architects, site engineers, quantity surveyors, contractors, building materials suppliers, and government workers) in the construction industry within Cape Town, South Africa, who were considered as the research participants. The qualitative data obtained from the survey exercise were analysed using content analysis, while the quantitative data were analysed using a descriptive statistical technique on SPSS. The findings attained show fluctuation in construction cost and a rise in maintenance cost (caused by poor workmanship) as significant effects in the cost increase of building materials for affordable housing delivery. Adequate application of the recommendations given in this study will minimise the effects of high cost of building materials and enhance affordable housing delivery. Appropriate handling of the findings given in this study will reduce the effects of the high cost of building materials and augment timely delivery of affordable housing and stakeholders’ satisfaction.

scholarly journals Inclusionary Housing: An Evaluation of a New Public Rental Housing Governance Instrument in China

Land ◽  
2021 ◽  
Vol 10 (3) ◽  
pp. 305
Author(s):  
Juan Yan ◽  
Marietta Haffner ◽  
Marja Elsinga
Keyword(s):  
Housing Market ◽  
Affordable Housing ◽  
Local Governments ◽  
Rental Housing ◽  
Analytical Framework ◽  
Point Of View ◽  
Policy Implications ◽  
Research Approach ◽  
Inclusionary Housing ◽  
The Cost

Inclusionary housing (IH) is a regulatory instrument adopted by local governments in many countries to produce affordable housing by capturing resources created through the marketplace. In order to assess whether it is efficient, scholarly attention has been widely focused on its evaluation. However, there is a lack of studies evaluating IH from a governance perspective. Since IH is about involving private actors in affordable housing production, the governance point of view of cooperating governmental and non-governmental actors governing society to achieve societal goals is highly relevant. The two most important elements of governance—actors and interrelationships among these actors—are taken to build an analytical framework to explore and evaluate the governance of IH. Based on a research approach that combines a literature review and a case study of China, this paper concludes that the ineffective governance of Chinese IH is based on three challenges: (1) The distribution of costs and benefits across actors is unequal since private developers bear the cost, but do not enjoy the increments of land value; (2) there is no sufficient compensation for developers to offset the cost; and (3) there is no room for negotiations for flexibility in a declining market. Given that IH is favored in many Chinese cities, this paper offers the policy implications: local governments should bear more costs of IH, rethink their relations with developers, provide flexible compliance options for developers, and perform differently in a flourishing housing market and a declining housing market.

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