Project Feasibility And Timeline For Construction Of Residential Duplex In Armidale, Australia

Project Feasibility Study

The paper mainly reflects on the preparation of project feasibility and timeline for the construction of a residential duplex in 140, Rusden Street, Armidale, Australia.  It is found that the area of Armidale is mainly selected as the population of that area is more than 10,000 and as a result the he business of residency de

dvelopment can flourish in that area. The main aim of the project is to enhance both the income as well as equity as much as possible. It is found that the development business has $800,000 in their cash reserves in order to fund for the residential duplex project and it is analyzed that the needed timeframe for the project completion will be around 9 months. In this paper proper and real statistics as well as information are generally used for preparing both the project feasibility study as well as project timeline.

Project feasibility study is defined as an analysis that is mainly conducted in order to measure both the likelihood as well as ability for completing the project successfully by including all the significant factors (Schadde et al. 2015). It is found that the feasibility analysis is mainly conducted for evaluating the success of the potential projects and for ensuring that the project is economically feasible as well as justifiable. The feasibility study that is mainly conducted for the construction of residential duplex mainly depend on number of factors that are mainly elaborated below:

Stamp duty: It is found that stamp duty is mainly a task that is generally levied on the land transaction related documents (Ma, Yang and Lu 2014). When the land is transferred then stamp duty is mainly imposed on the land and it is also referred as stamp tax. In this project, the stamp tax which is given for the land is around $9000. This amount is mainly paid as stamp tax for transferring the land. 

Conveyancing fees: It is generally referred as an act which is mainly used for engaging in the activity of property transfer from the owner to the buyer. It is mainly a written document that helps in involving both deeds as well as lease for proper transfer of the legal title that is mainly related with buyer as well as seller of the land.

Minimum size of allotment: The land size allotment is mainly measured by utilizing poles as well as perches (Channell 2018). This method of land measurement reflects that 10 poles is mainly equal to 250 square meters and thus the entire land that is mainly allotted for the project is mainly measured in poles.

Constraints of the Project

Monthly rates of the council: It is mainly considered as one of the charge that is mainly paid to the local council every month so that they can be able to construct the residential duplex in the area of Armidale (Breen et al. 2016). The money that is mainly paid to the local council on monthly basis generally changes with number of factors and thus the value is not constant.

Estimated value of duplex: The total amount of money that is mainly estimated for completing the construction of entire residential duplex is known as the estimated value. It is found that in order to construct the residential duplex, the amount that is estimated will be $800,000.00

Monthly rental income: It is mainly referred as the money that is mainly collected on a monthly basis from various tenant of the residential duplex (Song 2017). Most of the business that does not have much fund with them utilizes this opportunity for purchasing the premise and then pays the amount which is generally collected from the tenant on a monthly basis.

Monthly agent fees: The fee that is mainly paid to the agent on the monthly basis for completing the project of residential duplex construction. The agent utilizes this fee by providing proper resources as well as requirements of the project on a daily basis. 

Monthly landlord insurance:  It is mainly defined as one of the insurance policy that mainly aims to cover an owner of property with any types of financial losses which generally can occur due to number of reasons including the rental properties (Diamond, McQuade and Qian 2018).

Equity Value: Both the equity value and the enterprise value are mainly referred as proper ways that can be utilized within the business in order to evaluate profit from the sales standpoint (Chen, Chen and Jin 2015). This concept is mainly utilized together in context to sales as well as for providing valuation and it is very much helpful in providing proper as well as different view.

 It is found that feasibility study is mainly undertaken for the construction of residential duplex within Armidale for analyzing the budget feasibility of the project. The detailed calculation that is mainly done in order to analyze the feasibility of the project is provided in the table below:

Project Feasibility Study
1. Land Information			2. Purchase Information
Land Address:	140, Rusden Street, Armidale		Land Price:	3,00,000
Suburb/Town:	Armidale		Stamp Duty:	$15,000
Land Size:	11,000 square feet		Conveyancing Fees:	$9,000
3. Local Council Information			4. Construction Information
Local Council Name:	Armidale Regional Council		Builder Name:	ADCO construction
Minimum Land Allotment Size:	10,000 square feet		Duplex Construction Costs:	$3,50,000
Development Planning Fees:	$90,000
Monthly Council Rates:	$4,000
5. Duplex Information
Duplex Estimated Value:	$8,00,000
Monthly Rental Income:	$90,000
Monthly Agent Fees:	$6,000
Monthly Landlord Insurance:	$7,000
6. Project Results
Equity Value =$100,000	Duplex Value of $800000	less	Total Outgoings of $764000	equals $36000
Net Monthly Rental Income = 70,000	Gross Monthly Rent of $90000	less	Holding Costs of $17000	equals $73000

Constraints

The constraints of the project are listed below:

Scope: It is very much important to utilize the project scope properly so that the objectives as well as goals of the project can be easily accomplished. If the project scope is not used during the project progress then the project manager will not able to achieve the objectives and goals of the project.

Macro-Environmental Factors

Budget: It is the responsibility of the project manager to finish the residential duplex construction within the budget that is approved. If the resources of the project are not properly managed then the budget of the project can enhance which further can create lot of issues and challenges for the project manager.

Time: It is the responsibility of the project manager to finish the project of residential duplex construction within 9 months. Extension in the project timeframe can generally enhance the budget of the project which generally can create number of challenges and problems for the project.

Goals

 The main goal of project is to prepare both project feasibility as well ad timeline for the construction of residential duplex within 140, Rusden Street, Armidale. It is found that both feasibility as well as timeline of the project is created for analyzing the feasibility as well as time that is required for successful completion of the project. 

Macro environment is mainly the collection of factors like economic, social as well as technological factors that generally can be able to create impact on the business that are generally beyond the control of the firm (Barnes et al. 2015). This term is mainly applied to the business in order to analyze how the terms are helpful in driving the business. It is found that the residential duplex that is constructed will be mainly utilized for the rental purpose. The macro environment factors that are generally helpful in driving the business are mainly elaborated below:

Economic: The economic factors of the macro environment generally help in driving the spending as well as purchasing power. The money will mainly be received from the duplex residential building in the form of rent and therefore it is then compared with the investment that is made on the construction (Ngo et al. 2016). The result will generally be helpful in reflecting that whether the economic forces are helpful in driving the business positively or not.

Resourcing: It is analyzed from the project that proper resourcing is considered as one of the significant factors that generally assists in driving the business of the organization. It is found that appropriate resource selection assists in giving excellent opportunities to the business and thus the credibility, level of interaction as well as the power of targeting the audience

Demographic: Demographic factors are mainly associated with the people and the people are mainly found as one of the micro environment business drivers that affects the business positively (Gurhan-Canli, Hayran and Sarial-Abi 2016). It is found that demographic factors assist in giving proper opportunities to the business. As the area have large and different demographics thus it is identified that the residential duplex related business will be affected positively with the help of this forces.

Conclusion

Competitive: The population of Armidale is not so low and thus the competition that will be faced by the residential duplex business is high (Todeschini et al. 2017). It is quite necessary for the business to provide some different services as well as opportunities to the clients so that the clients can get attracted and the business can easily compete with other competitors of that area. 

The micro environment generally includes different types of factors that assists in affecting the decision-making process, performance of the business as well as number of business strategies. Micro environment analysis is mainly conducted before taking appropriate decisions that are related with business in order to achieve proper success. It is analyzed that there are number of micro environment related business factors or drivers that helps in affecting the business are mainly illustrated below:

Time related pressure: Proper management of time related pressure is necessary for driving the business positively (Testa et al. 2016). If the staffs who are associated with the project are not able to take the pressure of the work then there are high chances of occurring issues. In order to make the business successful one needs to be effective in time management.

Other people associated considerations: The customers of the business are generally referred as the central as well as most important part of the business that assists in attracting more customers for raising the chances of revenue generation (Maak, Pless and Voegtlin 2016). Thus, it is quite important for the business of residential duplex to adopt proper marketing strategies so that the business can successfully able to attract the customers of the organization by making appropriate business-related considerations for fulfilling demands.

Technical expertise: Technical expertise as well as skills of the employees generally plays a great role in driving the business towards success. If the staffs who are involved with the business are skilled and experienced they can be able to manage the business quite effectively. It is analyzed that their actions generally assist in influencing the strategies that are utilized by the business and thus the business can be able to accomplish its aims quite easily.

 Marketing intermediaries: They are considered as the elements or factors that are mainly associated with micro environment business drivers that generally assists in playing a great role for accomplishing the marketing strategies as well as processes of the business (Fathi et al. 2016). This are generally considered as the factors that must be utilized by the business in order to promote as well as to get profit from the business.

Suppliers: Suppliers are generally considered as one of the significant factors that generally assists in driving the business quite effectively. They generally help in linking the business with appropriate value delivery (Grimstad and Burgess 2014). It is analyzed that the suppliers who are mainly associated with the business of residential duplex construction assists in providing proper resources for making the business successful. If the suppliers face problems

Conclusion

It can be concluded from the entire assignment that development of project feasibility as well as timeline are helpful in analyzing the time as well as feasibility of residential duplex construction in Armidale. It is found that the residential duplex construction will be completed within $800,000 in 9 months. In addition to this, the paper analyzes the micro as well as macro business drivers for analyzing the factors that helps in driving the business successfully. 

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