Project Feasibility Study and Timeline Residential Duplex Development

Question: Discuss about the Project Feasibility Study and Timeline Case Study of Residential Duplex Development Project. Answer: Introduction This project is based on real estate development project for construction of Residential Duplex with a cash reserve of $800,000.00. The objective of the project is to develop a small residential development in a regional centre that has to be completed within a timeframe of nine months. The location for the project that has been chosen is Edwardstown in Adelaide of South Australia. The land that has been determined for construction of the duplex building has a size of 3000 sq. m. and minimum land allotment size of 1000 sq. m. The evaluation on project feasibility has been presented in the Appendix along with the project timeline. The sections of this report presents the constraints and goals of this project along with discussion on macro and micro environment business drivers for determining feasibility of the project. Constraints and goals The constraints of this project are almost similar to that of any other construction project as illustrated below: Economic constraints: This constraint mainly occurs due to limited budget and due to this condition, the construction system been adopted may not be suitable for achieving the goals and quality of the project. Legal constraints: In construction projects, there may occur various legal constraints mainly related to work law, regulations in safety and plan for supervising the project. Technical constraints: There may occur various technical constraints that may arise from restrictive site area and congested surroundings. The goal of this project is to develop a Residential Duplex with two attached residences in the city of Adelaide. This project will help to complete the construction of a small residential duplex in a regional centre. Macro-environment business drivers The macro-environment business drivers that have been taken into consideration for determining feasibility of the project are illustrated as below: Economic: The economic condition is an essential factor for the construction project as it have to be completed within the available cash reserve of $800,000.00. The price for the land that have to be purchased is $350,000 and estimated value that will be returned from the duplex project is $750,000. Thus, the economic factors associated with the project have to be determined for success of the project. Competitive: The project have to be completed by maintaining a competitive advantage by keeping the costs at a minimum rate so that other builders do not emerge in the market. The project must be completed within the estimated budget. Resourcing: The resources required for the project have to be analyzed critically so that the project is successful and resources are not over allocated for a particular activity. Demographic factors: The residential duplex will be situated in the suburbs of Adelaide thus providing an elegant feel to the residents. The residents will find it very pleasant to stay in the duplex building as it will be developed far from the crowded populace and mostly focused on retired personnel who wants to lead a peaceful life after their retirement age. Micro-environment business drivers The micro-environment business drivers that have considered in context to this project are illustrated as below: Technical /internal expertise: The skills and knowledge of the workers for completion of the project have to be evaluated prior to allocation of the resources. The resources to be allocated for the project must have knowledge on latest construction tools and techniques. Time pressures: The project have to be accomplished within nine months hence there is a need to stick to the developed plan. There is a need to complete the project with quality within the estimated timeline. The builder that has been determined for completion of the project will have to handover the Residential duplex building within nine month timeframe. Other people-related considerations: The project must not affect interests of the people in the location of land in which the residential duplex building will be constructed. The environmental impact should also be considered so that the local residents does not face any difficulties due to construction works. Conclusion From the discussion it has been identified that macro and micro environment business drives have an essential role to play in feasibility study of a project. The results achieved from feasibility study on the project depicts that it is economically feasible as the equity value of the residential duplex has been calculated to be $103000.00. The net monthly rental income is calculated to be $1000.00 that means it is totally feasible to carry out the project. Bibliography Aarseth, W., Ahola, T., Aaltonen, K., kland, A. and Andersen, B., 2017. Project sustainability strategies: a systematic literature review.International Journal of Project Management,35(6), pp.1071-1083. Fewings, P., 2013.Construction project management: an integrated approach. Routledge. Heldman, K., 2015.PMP project management professional exam deluxe study guide: updated for the 2015 Exam. John Wiley Sons. Heralova, R.S., 2017. Life Cycle Costing as an Important Contribution to Feasibility Study in Construction Projects.Procedia Engineering,196, pp.565-570. Kerzner, H., 2013.Project management: a systems approach to planning, scheduling, and controlling. John Wiley Sons. 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