MODEL OF ECONOMIC JUSTIFICATION OF CONSTRUCTIONS' RENOVATION

misbe2011 Tracking Number 168

In the life cycle of constructions we often cope with the problem if it is economic justificated to renovate certain construction. On the market we meet growing problem of older constructions which are more and more neglected and unkept. This is the consequence of high number of new apartments and other constructions. General crisis has also an influence on negligence and has forced owners of constructions to economize and consequently at negligence of older constructions what brings to diladaptation. This will also happen to new constructions because owners act too less responsible or economic, therefore the reason of diladaptation is the lack of knowledge of owners. They do not know how to take care of constructions and how to maintain them regularly and when to sanitate them. By originating the damages are often connected high cost which means that the issue of preventing diladaptation is important not only from the view of security and aesthetic but also from the view of national economies and sustainable development. Only with maintenance we ensure further exploitative ability of constructions where it is necessary to execute the renovations at the basis of previous reasons’ finding of beginning of damages and condition of damaged construction. For each construction separately it is necessary to find out costs, risks and advantages of existing constructions’ renovations fundamentally or advantages of new building. Built constructions as fixed property represent important issue of national wealthy of society or country because the aim of each country is to keep functional ability of its fixed property as long as possible which is only possible with suitable relation to fixed property and with good husbandry. Thus we are developing multicriteria decisive model of economic justification of renovation or substitutional building. In this paper we will represent the model of economic justification of constructions’ renovation. We have researched existing multicriteria decisive models and on this basis we decided for new model which will help at deciding whether it is economically justificated to renovate certain construction. In this model were also included criteria which reduce the value of construction: physical deterioration, functional obsolescence and economic obsolescence. Physical deterioration is the consequence of exploitation and damages of the construction or fixed property. Each part which is exploitated or damaged can be curable or incurable. Functional obsolescence means that something in or on the construction or fixed property obsolete or it is not appropriate for usage any more. Economic obsolescence means obsolete because of location or environment, which is caused by reasons which are out of construction’s area. In the model is also included profit of the construction at the business constructions while at the non-business construction there is no profit. Therefore it can be expected higher profit at the renovated construction than at unrestored construction. Model does not include constructions which are inscribed in the register of cultural inheritance which means that are certain architectural changes allowed only on the basis of very reasonable causes and on the basis of fundamental studies where it is necessary to check existing possibilities. Basic guidance at the regular maintenance and investments in the object of cultural inheritance is keeping the genuineness – authenticity. Thus we have to renovate that kind of objects, as a rule not regarding on the costs. Built constructions as fixed property represent important issue of national wealthy of society or country because the aim of each country is to keep functional ability of its fixed property as long as possible which is only possible with suitable relation to fixed property and with good husbandry. Model gives appropriate results which are very helpful at taking decisions whether to renovate the construction or not and therefore appropriate keep manage. Proposed model was checked in the real situations and we have got positive results in connection with using the model of economic justification of constructions' renovation in practice.