C – Compendium of Real Estate Terms & Concepts

Critical success factors (CSF) are those actions that must be performed well in order for the objectives or goals established by an organisation to be met satisfactorily. Within each CSF will be one or more key performance indicators (KPI).

This is just a promise made in a contract under seal. In other words, it covers an agreement involving promises in writing, signed, sealed and delivered requiring no consideration before it becomes binding on the parties to it. Covenant may be positive or negative.

This concept is a technique that is applied in the preliminary stages of a development or building projects to assist in the determination for example, of the best materials to be incorporated in the development. Each item is considered in terms of initial cost, annual maintenance cost and its expected…

A cost overrun, also known as a cost increase or budget overrun, is an unexpected cost incurred in excess of a budgeted amount due to an under-estimation of the actual cost during budgeting. Cost overrun should be distinguished from cost escalation, which is used to express an anticipated growth in…

Usually the replacement cost (new) of subject buildings is determined by applying a unit cost of construction to the gross floor area. The valuer encounters difficulty in the choice of appropriate cost index especially in situations where the services of cost experts may not be directly engaged.

This concept is a technique that is applied in the preliminary stages of a development or building projects to assist in the determination for example, of the best materials to be incorporated in the development. Each item is considered in terms of initial cost, annual maintenance cost and its expected…

Cost in common usage means the monetary value of goods and services that producers and consumers purchase. In a basic economic sense, cost is the measure of the alternative opportunities forgone in the choice of one good or activity over others. This fundamental cost is usually referred to as opportunity…

Corporate Social Responsibility (CSR) describes what some see as a company’s obligation to be sensitive to the needs of all the stakeholders in its business operations. The principle is closely linked with the imperative of ensuring that these operations are ‘sustainable’.

CREM refers to real estate in use by corporations. Dewulf et al. (2000, p.32) defines CREM as follows: “The management of a corporation’s real estate portfolio by aligning the portfolio and services to the needs of the core business (processes), in order to obtain maximum added value for the businesses…

Contract life cycle management is the process of systematically and efficiently managing contract creation, execution and analysis for maximising operational and financial performance and minimising risk.