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E-WORK IN CONSTRUCTION, REAL ESTATE AND
FACILITIES MANAGEMENT
Prof.A.Kaklauskas, Prof.E.Zavadskase-mail: [email protected]
Vilnius Gediminas Technical University, Lithuania
Examples of the Adoption of the Internet and E-Business by Major Players in Real Estate Aappraisal services,
Bbrokers,Cconsulting,Ffacility management,Iinsurance, Mmatching/listing services (MLS),Mmortgages,Pproperty management,Pproject development,Rreal estate finance,Rrelocation services etc.
Example - Real Estate Mortgage
Borrowers seeking a commercial real estate mortgage can submit their projects and get loan quotes from a variety of sources including LoopLender, C-Lender, Redbricks, MortgageSelector, CoStar Capital, C-Loans, CapitalEngine, CapitalThinking, and others. Some companies, such as Redbricks, focus on a more select list of approximately twenty-five lenders, while C-Loans claims to have rates and offerings from over 750 mortgage lenders (Muldavin, Scott 2000). Mortgages in on-line systems shorten the search process for customers/clients who obtained the initial information from their Web sites that lead to great savings in time and overhead costs. Linkages are used to link the customer/client with related services.
Example - On-Line Insurance Services
In the sphere of real estate business more companies each year offer common on-line insurance services and grant various discounts. Furthermore, now it is possible to compare, at no extra cost, different insurance alternatives and choose the one that best suits a person. Several big insurance companies offer their customers/clients to conclude insurance transactions over the Internet. Many people still tend to mistrust the Internet insurance brokers while others waste no time and take advantage of low insurance premiums.
Example - a Real Estate Residential Transactions
The real estate transaction process can be divided into five stages: listing, searching, evaluation, negotiation, and execution. Transaction costs will be reduced directly through a reduction in underwriting costs as appraisals, environmental reviews, title insurance, and other vendors are efficiently contracted and managed through the Internet. Faster and higher-quality information flow between brokers, owners, lawyers, vendors, lenders, and other participants in the transaction process will reduce costs (Muldavin, Scott 2000).
The Top Seven Facilities Management Automation Application Areas
1. Real property and lease management, 2. Strategic master planning, 3. Space management, 4. Furniture and equipment management,5. Telecommunications and cable management,6. Building operations management
Example:
In B. K. Forbes’s (2000-2) opinion, multimedia technologies in facilities management software include the integration of alphanumeric data, audio, graphics, animation, video, image recognition, and virtual reality data, while videoconferencing, chat rooms, enhanced training, design simulations, and next-generation cellular connectivity are but a few of the multimedia applications in facilities management software.
E-Work in Construction • Architecture and Design, • Building Process, • CADD Software, • Codes and Permits, • Contractors and Suppliers, • Investment Services, • Mortgages Services, • Development, • Marketing, • Consulting, • Insurance,• Inspection Services
Thousands of various purposes construction Web sites can be found on the Internet:
oArchitecture and Design, oBuilding Process, oCADD Software, oCodes and Permits, oContractors and Suppliers, oInvestment Services, oMortgages Services, oDevelopment, Marketing, oConsulting, oInsurance,oInspection Services, etc.
Integrated Utilities Package and Construction
A number of major players in construction have started incorporating communication needs for businesses as an integrated utility’s package. These Web sites bring together clients, users, architects, designers, utilities engineers, economists, contractors, maintenance engineers, building material manufacturers, suppliers, finance institutions, etc. for the development of a construction business. While setting up an integrated construction on-line systems their organizational structures also undergo certain changes.
Integrated Utilities Package and Construction
Construction products are very often sold and services are rendered on different digital markets and this creates additional inconveniences. For instance, when buying construction products, the money has to be paid to a supplier or manufacturer, the credit is obtained from a bank, an insurance company insures the construction, the contractor is paid for the transportation of construction products and other interested parties are paid for rendering other services. For construction products that are sold or services that are provided by each of these organizations, the customer must pay separately. It is foreseen that in the future e-business systems will be used to provide a full-service: the customer will be able to place orders and make payments at the same location and all these operations will be automatically directed to the appropriate digital markets. This would make it possible to offer a number of alternative possibilities (e.g. brief, design, construction, facilities management and demolition processes and their constituent parts, etc.) as well as to analyse and choose the most efficient one. Each of the alternatives may be described from various perspectives, e.g. by conceptual and quantitative information. The problem arises of how to perform an on-line design and multiple criteria analysis of the alternative variants based on this enormous amount of information. To solve this problem a new methods of multi-variant design and multiple criteria analysis were developed by authors of this paper.
Many construction, real estate and facilities management Web sites can be found on the Internet. The interested parties on these Web sites can find calculators, analyzers, software, expert and decision support systems, neural networks, e-business, etc.
Construction, Real Estate and Facilities Management is an
Information Business
Technological innovation mainly through changes in the availability of information and communication technology inclusive calculators, analysers, software, neural networks, decision support and expert systems, e-business that have been provided by a variety of new services developed by the construction, real estate and facilities management sectors.
Economic Versus Multiple Criteria Analysis
Most of all Web-based calculators, analysers, software, decision support and expert systems, neural networks, e-business seek to find out how to make the most economic decisions and most of all these decisions are intended only for economic objectives. Alternatives under evaluation have to be evaluated not only from the economic position, but take into consideration qualitative, technical, technological and other characteristics as well. Therefore, applying multiple criteria analysis methods and multiple criteria decision support systems may increase the efficiency of calculators, analysers, software, decision support and expert systems, neural networks and other on-line systems.
Calculators
A calculator is software application for completing mathematical calculations. Calculators range from very cheap software, capable of performing the basic arithmetic operations, to those whose capabilities extend to sophisticated mathematical and statistical manipulation and those that may be programmed with large numbers of steps.
CalculatorsFacilities management
CRESA Space Calculator (calculates office space needs), Comfort calculator (analyses thermal comfort and estimates the optimal temperature), Lighting calculator (identifies and analyses options for reducing lighting costs), Ventilation calculator (examines the supply of outside air ventilation to a space), Moving calculator (estimates how much your local or interstate move might cost), Home Improvement Calculators, etc.
Real Estate
Mortgage, Improve & Repair, Home Valuation, Home Improvement, Home Buying, Financing, Home Affordability, Retirement & Care of the Elderly, Small Business, Landlords & Tenants, Consumer & Travel, Debt & Bankruptcy, Cars & Tickets, etc.
Construction. Example:
Home Improvement (e.g. Carpeting, Ceramic Tile, Insulation, Paint Estimator, Sheet Vinyl Floor Covering, Vinyl Floor Tile and Wood Flooring) Calculators. When one is planning a remodelling job, it is helpful to know what one will need. Paint, tile, carpet, lumber, appliances, patience and more and these calculators will quickly figure out and estimate in square feet, board feet, gallons or units to give a rough idea what the project will require, and how much it will cost. It is also allows one to calculate the approximate cost of various do-it-yourself projects.
Example of Calculators
A Analyzers
WWeb sites might also contain various purpose analyzers, which help customers analyze various situations. Financenter.com for instance helps solve the following issues: · How much will my mortgage payments be? How much will my adjustable rate payments be? Which is better: fixed or adjustable rate? Should I pay points to lower the rate? Which is better: 15 or 30 year term? How much should I put down for a new home? How much can I save in taxes? What will my closing costs be? Am I better off renting? Am I better off refinancing? What will my refinancing costs be? How can I reduce mortgage insurance costs? Which lender has the better loan? Which loan is better? How advantageous are extra payments? What home can I afford?
SSoftware TThe facilities management software (ARCHIBUS/FM, FM Systems, SPAN, Drawbase, Aperture) offers various modules and tools: lease management, move management, strategic space planning, maintenance management, accounting charge-back, communication/cable management and personnel management.
RReal Estate Software can be divided into the following groups: legal, contract, mortgages, property valuations and value analysis, accounting, estimating, rent, buyer’s assistant, property management, education, market and investment analysis, land surveying, zoning and land use regulations & mapsonline, consultants, innovations, etc.
CRonstructionAArchitecture and Design, Building Process, CADD Software, Codes and Permits, Contractors and Suppliers, Investment Services, Mortgages Services, Development, Marketing, Consulting,
Insurance and Inspection Services, etc.
Expert Systems
Expert systems today generally serve to relieve a ‘human’ professional of some of the difficult but clearly formulated tasks.
Example – Construction:Automated Schedule Updating PLATFORM, Layout of Temporary Construction
Facilities SITEPLAN, Safety Analysis System HOWSAFE (Stanford University, USA), Predicting Time and Cost of Construction During Initial Design, Brickwork Expert BERT, (Reading University, United Kingdom), Cost Estimating from Preliminary Design HI-COST, Masonry Construction MASON (Carnegie Mellon University, USA), Differing Site Conditions Analysis Systems DSCAS (University of Colorado, USA), Expert System for Strategic planning of Construction Projects ELSIE (University of Salford, United Kingdom), Intelligent Construction Risk Identification System IRIS (University of Texas University, USA). Plus the following, Vertical Construction Schedules (University of Illinois, USA) and Failure Diagnosis Expert System FDES (Ohio State University, USA).
Decision Support Systems (DSS)
Facilities management DSS developers try one’s best to help clients in their facilities, financial, and professional services organizations become more efficient in automated asset management, to retrieve, filter, sort and deliver information, and to make decisions. To perform this purpose, facilities management DSS developers have developed and managed DSS for senior executives, strategic planners, analysts, and managers who need to have the full-scale information on time in order to make decisions and to increase the overall efficiency.
Multiple criteria decision support systems developed by authors for construction as follows:
Multiple criteria analysis of construction projects,
Project total quality analysis,
Multiple criteria analysis of a building life cycle,
Multi-variant design and multiple criteria analysis of refurbishment of residential houses,
Multi-variant design and multiple criteria analysis of in-situ buildings,
Multi-variant design and multiple criteria analysis of one-family house, etc.
Neural Network
Neural network is a method of computing that tries to copy the way the human brain works. A group of processing elements receives data at the same time and links are made between the elements, as repeated patterns are recognized. Many various-purpose neural networks can be found on the Internet. For example, solimar.net [7] that uses a Solimar Valuation Technology is an intelligent, neural network valuation technology that powers collateral valuation products. It uses a continuously updated nationwide data store to gather specific data on the subject property and then estimates the value of properties in real time, based on comparable sales data.
E-Commerce
In B. K. Forbes’s opinion, the corporation of tomorrow must successfully intertwine facilities management with finance and administrative activities, sales and marketing, human resources, information management, manufacturing, distribution, and must be Web centric. Also B. K. Forbes emphasizes, that the use of e-commerce by facilities management professionals is still new, but there is little doubt that its presence will be lasting and more significant in the years to come.
The Integration Process
Many construction, real estate and facilities management Web sites can be found on the Internet. The electronic-market does not need so many Web sites and it is unclear as to how many on-line systems can survive. The integration process among construction, real estate and facilities management Web sites has already been observed.
E-Work in Vilnius Gediminas Technical University
Multiple criteria Web based decision support systems developed by authors with colleagues (M.Gikys, V.Trinkunas, A.Gulbinas) as follows:
· On-Line Export Decision Support System.
· Decision Support Web-Based System for Real Estate.
· On-Line Construction Decision Support System.
· Decision Support Web-Based System for Facilities Management.
Multiple Criteria Decision Support On-Line System for Facilities Management (VGTU)
The Multiple Criteria Decision Support On-Line System for Facilities Management (OLSFM) consisting of a database, database management system, model-base, model-base management system and user interface.
Database
The presentation of information needed for decision-making in the OLSFM may be in a conceptual form (i.e. digital/numerical, textual, graphical, diagrams, graphs and drawing, etc), photographic, sound, video and quantitative forms.
The presentation of quantitative information involves criteria systems and subsystems, units of measurement, values and initial weights that fully define the provided variants. Conceptual information means a conceptual description of the alternative solutions, the criteria and ways of determining their values and the weights, etc.
In this way, the OLSFM enables the decision-maker to receive various conceptual and quantitative information on facilities management from a database and a model-base allowing him/her to analyse the above factors and to form an efficient solution.
The presentation of information needed for decision-making in the OLSFM may be in a photographic form
The presentation of quantitative information in the OLSFM (grouped decision making matrix of space
management multiple criteria analysis)
TThe following tables form the OLSFM’s database:
IInitial data tables. These contain information about the facilities (i.e. building and complexes). TTables assessing facilities management solutions. These contain quantitative and conceptual information about alternative facilities management solutions: space management, administrative management, technical management and management of other services, complex facilities management, market, competitors, suppliers, contractors, renovation of walls, windows, roof, etc.
According to the user’s needs, various models may be provided by a model management system. When a certain model (i.e. search for facilities management alternatives) is used the results obtained become the initial data for some other models (i.e. a model for multiple criteria analysis and setting the priorities). The results of the latter, in turn, may be taken as the initial data for some other models (i.e. determination of utility degree of space management, administrative management, technical management and management of other services, complex facilities management, market, suppliers, contractors, renovation of walls, windows, roof, etc.).
Model-Base
SSince the analysis of facilities management is usually performed by taking into account economic, quality, technical, technological, management, legal, social, space and other factors, a model-base should include models which will enable a decision-maker to carry out a comprehensive analysis of the available variants and make a proper choice. The following multiple criteria analysis methods and models as developed by the authors are used by the OLSFM in the analysis of the facilities management alternatives:1. A new method and model of complex determination of the weight of the criteria taking into account their quantitative and qualitative characteristics was developed. 2. A new method and model of multiple criteria complex proportional evaluation of projects enabling the user to obtain a reduced criterion determining the complex (overall) efficiency of the project was suggested. 3. In order to find what price will make a valuated project competitive on the market a method and model for determining the utility degree and market value of projects based on the complex analysis of all their benefits and drawbacks was suggested. 4. A new method and model of multiple criteria multi-variant design of a project’s life cycle enabling the user to make computer-aided design of up to 100,000 alternative project versions was developed.
Model-Base
TTypical facilities management problems solved by Multiple Criteria Decision Support On-Line System
for facilities management: Analysis of space management, administrative management, technical management and management of other services alternatives.AAnalysis of complex facilities management alternatives.AAnalysis of interested parties (competitors, suppliers, contractors, etc.),DDetermination of efficient loans, analysis and selection of rational refurbishment versions (e.g. roof, walls, windows, etc.), MMultiple criteria analysis and determination of the market value of a real estate (e.g. residential houses, commercial, office, warehousing, manufacturing and agricultural buildings, etc.),AAnalysis and selection of a rational market, dDetermination of efficient investment versions, etc •
Example - Analysis of administrative management alternatives
Example - Analysis of FM organizations alternatives
Practical capabilities of the Internet Based DSS for Real Estate (VGTU)
Internet Based DSS for Real Estate (IBSRE) can create value in next important ways:
· Help customers assess their needs.
· Identify suitable real estate to fulfill needs.
· Compare and evaluate real estate.
· Help customers evaluate the usefulness of the real estate in the after-purchase evaluation stage.
At present moment the developed IBSRE allows performance of functions as follows:
· Search of real estate.
· Finding out of alternatives and making of comparative tables.
· Alternatives multiple criteria analysis stage.
· The after-purchase evaluation stage, etc.
Further brief examination of these stages is given.
A consumer may perform a search of alternatives from databases of different brokers
A consumer may perform a search of alternatives from databases of different brokers. It is possible since the forms of data submission are standardized in a specific level. Such standardization creates the conditions to use the special intelligent agents performing search of the required real estate in various databases, and gathering information about them.
FINDING OUT OF ALTERNATIVES AND MAKING OF COMPARATIVE TABLES
Consumers specify requirements and constraints and the system queries the information of a specific real estate from a number of online brokers. The system performs the tedious, time-consuming, and repetitive tasks of searching databases, retrieving and filtering information, and delivering it back to the user. Results of search of a specific real estate are submitted in tables, which may include direct links to a Web page of a brokers. By submission such a display, the multiple criteria comparisons can become more effectively supported.
Presentation of information in different types of real estate Web pages may be in conceptual (digital, textual, graphical, photographic, video) form. Conceptual information means a conceptual description of the real estate, the criteria and ways of determining their values and weights. Conceptual information is needed to make a more complete and accurate valuation of the real estate considered.
DETAILED CONCEPTUAL INFORMATION REQUIRED FOR A USER IS PROVIDED IN THE SEARCH RESULT OF THE SYSTEM
The comparable real estate (commercial premises) is located in Savanoriu Avenue in Vilnius. There is a separate entrance to the premises from Savanoriu Avenue. The interior decoration of the premises are as follows: the interior has been painted, one part of the walls in the sale room is covered with tiles, and the other part is decorated with decorative planks. The premises overall still need to be renovated. The four-story building where the comparable real estate is located was erected in 1960 and is used as a dwelling house with commercial premises on the ground floor. The construction elements of the building include the foundation which is made of concrete, interior walls made of bricks and which are plastered, partitions made of bricks, the roof is covered with metal sheets, joist ceilings are made of Ferro-concrete; and it has wooden doors and windows frames. The physical depreciation of the building stands at 34 per cent. Functional and economic depreciations have been estimated by expert’s method and make up 42 and 24 per cent, respectively. There is a warehouse in the yard of the building, which was sold together with the premises. The premises, except the warehouse, like the whole building, are equipped with water supply, sewage systems, electricity, gas, district heating and one telephone line. The alarm system is absent. The land plot was not sold together with the building. There are no restrictions on the use or possession of the property. The district where this property is located is a conglomeration of many enterprises, offices, and commercial companies. The real estatestands in a busy place next to basic transport and highways with a heavy traffic flow. The premises are marketable due to the location’s characteristics. This object, located on the main street of the district, is suitable for commerce and trade because it has an entrance and its windows which face the street. Further, the property’s position allows to good advertising conditions. There is an auxiliary building in the yard of the building, which is suitable for warehousing purposes. The premises, however, need renovation and a modern interior. The selling price for the premises stands at 186 000 Lt, etc.
DESCRIPTION OF THE FIRST COMPARABLE REAL ESTATE IN TEXTUAL FORM
DESCRIPTION OF THE FIRST COPARABLE REAL ESTATE IN PHOTOGRAPHIC FORM
DETAILED QUANTITATIVE INFORMATION REQUIRED FOR A USER IS PROVIDED IN THE SEARCH RESULT OF THE SYSTEM
Presentation of information in different types of real estate Web pages is in quantitative form. Quantitative information presentation involves criteria systems and subsystems, units of measurement, values and initial weight fully defining the variants provided. Quantitative information of real estate is submitted in a form of grouped decision making matrix. In this way, the system enables the decision maker to receive varied conceptual and quantitative information on real estate from a database and a model-base, allowing him/her to analyse the above factors and make an efficient solution.
DETAILED QUANTITATIVE INFORMATION REQUIRED FOR A USER IS PROVIDED IN THE SEARCH RESULT OF THE SYSTEM
- The sign z i ( ()) indicates that a greater (less) criterion value corresponds to a higher weight for a client
Model-base IBSRE stores and processes information and data from various sources. By using different MCDM models it provides the decision-maker with information necessary for analysing, compiling and evaluating the possible decision alternatives, making decisions and effecting the output and storage of the obtained results. The developed IBSRE enables consumers to transform unprocessed data into information necessary for the analysis of a particular problem and to be used for further decision-making. IBSRE provides a framework through which decision-makers can obtain the necessary assistance for a decision through an easy-to-use menu system. Generally, an IBSRE provides help in formulating alternatives, accessing data, developing models and interpreting their results, selecting options or analysing the impacts of the selection made.Since the analysis of real estate is usually performed by taking into account economic, quality, technical, legal, social and other factors, a model-base should include models which enable will a decision maker to carry out a comprehensive analysis of the variants available and make a proper choice. The following methods and models developed by authors are aimed at performing the next functions:•A method and model for criteria weight establishment. •A method and model for multiple criteria analysis and setting priorities. •A method and model for the determination of real estate utility degree and market value.
ALTERNATIVES MULTIPLE CRITERIA ANALYSIS STAGE
WCapabilities to use the Real Estate E-Business System in alternatives multiple criteria analysis stage are: Real estate valuation from various aspects (i.e. determination of market value, value in use, and investment value). Multiple criteria analysis of alternatives and selection of most efficient ones. Valuation of factors affecting the value of real estate (for example, valuation of real estate location, real estate and depreciation).
MULTIPLE CRITERIA ANALYSIS OF ALTERNATIVES AND SELECTION OF MOST EFFICIENT ONES
Conclusions
Many Web-based construction, real estate and facilities systems are processing and submitting only economic information for decisions. Alternatives under consideration have to be evaluated not only from the economic position, but take into consideration qualitative, technical and other characteristics. Therefore, the efficiency of Web-based systems (of calculators, analysers, software, neural networks, expert and decision support systems, e-business, etc.) may be increased by applying multiple criteria decision support systems. The more alternatives investigated the greater the possibility to achieve a more rational end result. Strong and weak sides of investigated alternatives are given in the analysis. Facts of why and by what degree one version is better than another are also established. All this is done basing oneself on conceptual and quantitative information. For example, following such information and with the assistance of the Internet Based DSS for Real Estate, the user is able to perform the following: real estate valuation in different aspects e.g. determination of market value, value in use, investment value, the valuation of special factors affecting value of real estate (for example, valuation of real estate location, and real estate depreciation) and the multiple criteria analysis of alternatives and selection of most efficient ones.
