Proposed Building Project Assignment Report

in partnership with
CPC50210 Diploma in Building and Construction
CPCCBC5002A
Monitor costing systems on medium rise building and
construction projects
Assessment
Student name: XXXXXX
Student number: XXXXXX
Assessment: 32673/01
Staffing for the proposed Project

My report as the person tasked with estimating work for Sullivon Construction, also
preparing the building cost and investigating the feasibility study, writing a report of the how
worthy is the building, my report is of importance to the client and the management team at
large. The building project to be executed is called Elsternwick, which is a duplex, with the
ground floor plan comprising of a living room, kitchen, laundry, entrance lobby, and a
garage. While the upper room comprises of a master suit, two bedrooms with shared cloak
and bathrooms, and a space for a staircase for accessing the lower floors.
The staff needed to do the estimates will be Philip Denis a quantity surveyor that I have
delegated to all the estimating works. Under my supervision will the cost estimates be
prepared and presented, the work of my office is to ensure that all the tasks are done well, all
the work done by the suppliers and labourers are taken into account in the estimates. The two
key components that we shall be keen on are the labour and the materials costs. As the main
person in the project estimating team, the document that comes from my office will be
scrutinised to ensure it has thoroughly done cost estimates, and comparison Bills of
quantities, so that the cheapest and sustainable prices are picked to be shared with the client’s
firm.
Before submitting the cost estimates, there shall be a harmonizing meeting so that our
estimates are looked at, to allow us come up with an unquestionable document which we can
defend before other alternatives. The first part shall be to budget for constructing a site office,
and a store where meetings shall be attended, by the professionals to check the project
progress and store materials that shall be used to implement the project respectively.
Preparation of the financial report.
1. Risk Assessment of the project
This is the point where the risks involved in the project are analysed; these entails an analysis
of the project result might change due to the occurrence of risk in the project. In the
construction project risks are the chances that an event would interfere with the viability of a
project. The project success is a complete development of a residential home to someone. The
risks involved in any project comes from various sources; from the project team that comes
from different companies to manage the project in one way or the other, the site itself, the
tools involved in the construction of the project, the financial source etc. The financial risk
involved in the project is what this stage will focus on. These financial risks identified could
be like, inflation, lack of solvency, currency fluctuation, taxation etc. Inflation – this is where
the prices of commodities consumed have increased persistently or the decline in the
purchasing power of a currency. Inflation is brought about by having more money in the
circulation than the commodities, therefore the prices of the commodities increases. In other
words, inflation can be sustained by the increase in level of consumer goods and services
prices. This poses a risk in project in that the money put a side for construction might be less
and making the client to seek other ways of funding the project. Construction as we know it,
takes time, over a year sometimes, that means without a proper time management, there could
be serious threat. That makes time management as a way of mitigating this risk. So, the
construction manager will keep some very strict deadlines and make sure they meet them.
Inflation can be mitigated by overestimation of the materials, so that the overheads, if
inflation occurs the money can supplement, if not then the client takes the money.
Effect of insolvency – insolvency is notable to pay debts; this mostly involves the client. Most
projects are done with proceeds from loans or grants, or soft loans from friends and family.
The client in the course of construction, might fail to pay back the money within the timeline
they agreed to pay. Insolvency, might affect workers, or employees on site, or professionals
like engineers, architects and so on. This might affect the progress of the project thereby

forcing it to stall or take a lot of time. To mitigate this issue, the client and trough the team
implementing the project needs to work around the clock, to keep deadlines, because more
often, especially with the bank, there’s a grace period where the money borrowed should start
being returned. First the client will have to sit with the team, and examine the timelines very
well and their budgetary allocations.
Currency fluctuation – this effect like inflation, cannot be controlled at the individual level.
This factor is where the money value goes down. That means when buying something, say
three years ago, it might be more expensive now if the value of the money went down. This
might dent the budget once more in that the materials might be expensive in the years to come
during the construction. Project planning in terms of time, and considering the contingency
money are the major ways in preventing this from happening.
Taxation – evading tax might not be a good thing, in fact might land someone in jail or some
trouble which involves punitive measures that could take a way a lot of money. Taxation laws
might change in a country, there might be an increase there and the other. This factor is not in
the circle of the client’s influence. So, the only way to beat this is by managing time and
resources.
2. Feasibility study
The feasibility study is done in form of a report summarized in a form of budget so that we
make the economic sense of the project. The table below shows the considerations, the
expenditure and the profit margin projection for the project. With a profit of $649,467.40,
which translates to a percentage of 91.41% meaning the project is viable/feasible and should
be pursued
3. Codes and Standards
The project complies with the building requirements, it has taken care of the stamp duty, these
are duties that were levied on the legal recognition of the duties. This also implies that the
drawings of the building went through approvals and other legal requirements that would
sustain development of the building
4. Schedule of Project Expenditure
The schedule is programmed in a Gantt chart shown below, which stipulates the date for
starting the projects and completion of the project. This project shall begin on 01/06/2016,
and it’s projected to end on 5th May 2019, which is the sales time, though the sales date cannot
be determined by the client or anybody, since it is dependent
Sullivon Constructions

Development Fiesability Study
The user of this template must enter all costs in the Cost column & notes in th Workings Column. The user must seek
professional advice on all costs
Date
Job
Cost Centres Description Workings Cost Total Cost of Item
Purchase Price Property purchase price Enter workings / Notes in this column
Enter $ value in this
column
existing old house & land Land purchasing money, block No. 10 $450,000.00 $450,000.00
Stamp Duties Stamp Duties on purchase price $18,450.00
i.e. $200k=3.2% +.9% Per $200k $27,600.00
stamp duty as above $18,450.00 $64,500.00
Conveyancing fees Convey. Fees on purchase price
freds solicitors $0.00
Finance Costs Application Fee
Interest on total loan amount 3.2% of $750,000 of the project finance $24,000.00
brokers fee $500.00 $24,500.00
Demolition Costs
existing Demolition Demolishion of the existing building $20,000.00
Tree's inc Arborist reports
Removal of the trees, uprooting the existing
trees $1,000.00
Remove existing driveway Removal of the paving that were existing $1,500.00
make good ground and compact
The lose soil is compacted and made a solid
ground $2,376.00
Enter extra item here $24,876.00
Sub-Division Costs Drafting Fee's Architectural, and services drawings $1,500.00
Structural Fee's Structural drawings by a civil engineer $1,200.00
Hydraulics Eng
water reticulation report (hydrogeological
survey) $1,250.00
Soil Reports & Remediation Soil assessment for building suitability $2,500.00
Energy Reports Energy report on the utilzation of energy $650.00
Sundrie fee's $500.00
Enter extra item here $7,600.00
New Services Electrical inc Pits Electrical installation $17,000.00
Stormwater inc Retention Including plumbing works $21,000.00
Sewer Points inc Contributions Digging of serwer channels $4,300.00
Water Tapping Water connection from local authorities $1,350.00
Enter extra item here $43,650.00