Project Feasibility Study For Duplex Residency In Friargate, Preston, Australia

You are required to read the following case study and prepare a Project Feasibility Study and Timeline based on the information contained in the case study.

Project feasibility study

The paper focuses on the development of project timeline and feasibility for the construction of duplex residency in 126, Friargate, Preston, Australia. The main purpose of construction is to increase both the equity as well as income from the rent as much as possible. It is identified that the business generally has $800,000 as cash in their cash reserves for the funding the construction of residency duplex so that the residency duplex can be completed within the timeframe of 9 months. In this entire paper, both statistical as well as real information and data are used in order to prepare the timeline as well as project feasibility.

Project feasibility is generally referred as an analysis which is mainly used for measuring both the likelihood as well as the ability of finishing the entire project successfully by including all the important factors of the project. It is identified that the project feasibility is undertaken in order to illustrate the success of the project in order to make sure that the project that will be undertaken is economically feasible (Schadde et al. 2015).  It is found that in order to check the feasibility number of factors needs to be considered and the factors are illustrated below:

Stamp duty: It is defined as a task that is generally needed to be levied on the documents that are associated with land transaction. It is found that when the land is transferred then the stamp duty is generally imposed on the land which is mainly known as the stamp tax. It is found that in this project, the stamp tax that is mainly paid will be around $12,000 (Ma, Yang and Lu 2014).

Minimum size allotment: It is found that the land size allotment is generally measured with the help of either perches or poles. This technique of measuring the land generally assists in reflecting that around 10 poles is mainly equal to 250 sq. meters and thus it is found that the land for the project is generally allotted in either perches or poles (Channell 2018).

Conveyancing fees: It is mainly considered as one of the act that is generally utilized in order to engage within the activity of land transfer from the landlord owner to the buyer. It is found that Conveyancing fees is mainly a document that is mainly written which assists in involving both the lease as well as deeds for transferring the legal title of the land from the land owner to the person who will buy the land.

Constraints and goals

Monthly rate of the council: Monthly rate to the local council is one of the charge that is generally paid in the month end for the construction of residency duplex in 126, Friargate, Preston, Australia (Breen et al. 2016). It is found that it is the money that is mainly paid to the council once in a month depending on number of factors and therefore the value that is paid to the council is not constant.

Estimated duplex value: It is found that the entire amount of money that is mainly needed in order to construct the duplex residency is mainly known as the estimated value. It is analyzed that for constructing the residency duplex, the amount of money that will be generally required will be around $800,000.00

Monthly rental income: It is generally considered as the income that is mainly collected in a month from the rents of the residential duplex (Song 2017). IT is found that most of the business when starts a project does not have sufficient amount of fund and then for purchasing the premise they generally pay the money on a monthly basis which is mainly collected by the owner as rent.

Monthly agent fees: It is the fee that is paid to the agent on monthly basis in order to carry out some of the activities for the construction of the residency duplex. It is found that the agent uses this money and assists in giving proper amount of resources which are needed for the project.

Monthly landlord insurance: it is generally referred as one of the policy of insurance that is useful for the landlords as according to the policy any type of financial loses to the landlords including the hamper of residential premise will generally provide coverage for the property to the owner so that the owner does not need to face much difficulty (Diamond, McQuade and Qian 2018).

Equity value: It is found that the project equity value is mainly found as the one of the best ways within the business organization to achieve profit in context to sales standpoint (Chen, Chen and Jin 2015).  It is found that this concept is mainly used for giving proper valuation.

The feasibility study that is mainly conducted for constructing the residential duplex is reflected in the table below:

Constraints

The project constraints are:

Time: It is necessary to finish the project within the timeline of 9 months. If the project does not get completed within this time then the budget of the project will increase which will further enhance financial pressure.

Constraints

Budget: It is quite necessary to finish the entire project of construction within the approved project budget. If the project us not finished within the budget that is approved then the project manager faces lot of issues and challenges for the project.

Scope: It is quite necessary to use the scope of the project effectively so that the entire project can be able to accomplish the objectives of the project. Improper utilization of scope can lead to number of challenges for the project manager.

Goals

The main goal of the project is to develop proper timeline as well as project feasibility for constructing the residential duplex in 126, Friargate, Preston, Australia. It is analyzed that both the project feasibility as well as timeline of the project is needed to be analyzed for success of the project.

Macro environment is mainly defined as the collection of factors that generally assists in creating proper impact on the business which are generally beyond the power of the organization. The macro environment business drivers that helps in driving the project are mainly illustrated below:

Resourcing: It is found that proper resourcing of project is considered to be important for the business. It is identified that proper selection of project resources are very much necessary for driving the business as they generally assist in enhancing the credibility, interaction level as well as power of targeting the clients (Ngo et al. 2016).

Economic: It is found that the economic factors are quite helpful in driving the purchasing as well as spending power of the organization.  It is found that the income is mainly achieved in the form of proper rent and then the money that is achieved as income is generally compared with the money that is mainly spend on the construction.

Competitive: The population of Preston is not so low and therefore the residencies that are located in that area are quite high (Gurhan-Canli, Hayran and Sarial-Abi 2016).  It is necessary to give some unique services and opportunities to the various customers so that the clients can get attracted and the business will be able to compete successfully

Demographic: It is found that the demographic factors are generally related with people who are considered to be the business drivers who generally helps in affecting the entire business positively. It is identified that demographic factors are helpful in providing appropriate prospects to the business (Todeschini et al. 2017). As the area of Preston is large and demographic therefore the residential duplex business will generally be affected with the help of the forces.

Goals

The microenvironment business drivers generally comprise of all the factors that are helpful in affecting the procedure of decision making as well as the performance of the business. It is found that the analysis is mainly done so that the business-related decision can be taken for achieving the success of the business. The micro environment factors that generally drive the business are mainly elaborated below:

Technical expertise: Proper technical skills as well as knowledge of the staffs are very much necessary for driving the business towards success (Testa et al. 2016).  This is mainly because, skilled employees are able to manage the work as well as the risks that are related with the work and thus the chances of failure of the business generally reduces.

Time related pressure: It is found that it is very much necessary to manage the pressure of time quite effectively. If the project staffs can be able to handle the time pressure properly then it can drive the business positively towards successes (Fathi et al. 2016). Thus, it is identified it is quite necessary to manage the time pressures by the staffs of the organization properly.

Other significant considerations: The clients are generally found as the most significant as well as central part of the business that generally helps in attracting more number of customers towards the business and thus the revenue of the business also enhances (Maak, Pless and Voegtlin 2016).  It is quite necessary for the business of the duplex residency to adopt various kinds of marketing strategies so that the business can become successful.

Conclusion

It can be concluded that proper development of project timeline and project feasibility are very much helpful in making proper analysis about the time that is needed for the project and to check whether the project that will be undertaken is feasible. It is analyzed that the duplex residency construction will generally get completed within the budget of around $800,000 within the time period of 9 months. Additionally, the paper undertakes micro and macro business analysis for knowing the factors that drive the business towards success.

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