Feasibility Study for Residential Duplex Construction in Bendigo, Victoria

Running head: PROJECT MANAGEMENT
Feasibility Study
Name of the Student
Name of the University
Author Note

1
PROJECT MANAGEMENT
Introduction
The feasibility study is one kind of analysis study by which it can understand properly
that the project is executable within time as well as budget or not (Wang 2014). Generally,
the success of the project depends on two important factors such as time and budget. Any
kind of project must complete within its budget and also within the provided time frame.
Apart from that, the other factors like macro-environment business drivers and micro-
environment business drivers also includes to give a success in a construction project. The
project becomes a feasible project when it completes within proper budget and time,
otherwise it may considers as a failure project. Here, this case project provides a residential
duplex which has to create in Bendigo in Victoria state in Australia where population is more
than 10,000 residents (Heralova 2017). The overall budget may consider as $800,000 and the
time frame refers as nine months. The paper provides a feasibility study of this case project
and also mention the dependable factors on this case project.
Feasibility study of project
In general, different kind of project depends different type of factors and for that it
must be concern that the factors are related to the particular project or not (Naik and
Stenstrom 2016). The feasibility study of a construction project analyses that the project will
be feasible legally as well as technically. Also, the project must justified economically.
This case project represents a residential duplex construction in Bendigo in the state
of Victoria and thus, the feasibility study includes some type of factors.
Project Feasibility Study
1. Land Information
2. Purchase
Information

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PROJECT MANAGEMENT
Land Address:
168A, Aspinall Street,
Bendigo, Victoria Land Price: $3,00,000
Suburb/Town: Bendigo Stamp Duty: $10,000
Land Size: 10,000 square feet
Conveyancing
Fees: $8,000
3. Local Council
Information
4. Construction
Information
Local Council Name: Greater Bendigo City Builder Name:
Paul Grey
Builder
Minimum Land
Allotment Size: 10,000 square feet
Duplex
Construction
Costs: $4,50,000
Development Planning
Fees: $45,000
Monthly Council
Rates: $30,000
5. Duplex
Information
Duplex Estimated
Value: $8,00,000
Monthly Rental
Income: $9,00,000
Monthly Agent Fees: $5,000
Monthly Landlord
Insurance: $2,500
6. Project Results

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PROJECT MANAGEMENT
Equity Value
=$100,000 Duplex Value of $800000
le
ss
Total Outgoings
of $300000
equals
$500000
Net Monthly Rental
Income = 70,000
Gross Monthly Rent of
$900000
le
ss
Holding Costs of
$7500
equals
$892500
Planning Permission – Any type of construction project, planning is the important factor for
execution of the project. Without planning, a project cannot execute in an appropriate way.
But, it must need to pass the planning of the project through any kind of higher authority. The
Higher authority may be as government authority or the local council. The planning
permission is necessary not for only the execution of the project, or it may needful for usage
of land in any construction project or construction license etc (Singh and Abraham 2016). But
sometimes, this planning has not permitted from the government authority due to some issues
like having dispute on land or overlapping on other’s land etc. So, for the accurate execution
of any construction project, it must concern about the land having any dispute and it may
leads several problems.
Legal Approval – It is the most observable part of having any kind of dispute or claims on
selected land for a particular construction project (Fewings and Henjewele 2019). Because
due to having claims on land, the legal conditions will not approved for the project. So it
must observed at the initial time that the land has any dispute or any claims and if the land is
totally free from any claims, then the legal approval can easily get from the higher authority.
Budget or client related requirement – In any type of construction related project, Budget
plays an important role because without budget any project cannot run properly (Wang, Dai
and Ning 2015). This case project provides $800,000 budget and the residential duplex
construction must complete within this budget to become as feasible. Client related