Residential Duplex Development Project

This assignment focuses on a real estate development project for constructing a Residential Duplex in Edwardstown, Adelaide, with a budget of $800,000. It analyzes project constraints (economic, legal, technical), goals, macro-environmental business drivers (economic, competitive, resourcing, demographic), and micro-environmental drivers (technical expertise, time pressures, stakeholder considerations). The assignment includes a feasibility study and timeline for the project, demonstrating its economic viability with a projected equity value of $103,000 and net monthly rental income of $1,000.

Running head: STRATEGIC PROJECT MANAGEMENT
Project Feasibility Study and Timeline: A Case Study of Residential Duplex
Development Project
Student Name:
University Name:

1STRATEGIC PROJECT MANAGEMENT
Table of Contents
Introduction......................................................................................................................................2
Constraints and goals.......................................................................................................................2
Macro-environment business drivers...............................................................................................3
Micro-environment business drivers...............................................................................................4
Conclusion.......................................................................................................................................4
Bibliography....................................................................................................................................5
Appendix..........................................................................................................................................7
Project Feasibility study..............................................................................................................7
Project Timeline...........................................................................................................................7

2STRATEGIC PROJECT MANAGEMENT
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.

3STRATEGIC PROJECT MANAGEMENT
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.

4STRATEGIC PROJECT MANAGEMENT
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.

5STRATEGIC PROJECT MANAGEMENT
Bibliography
Aarseth, W., Ahola, T., Aaltonen, K., Økland, 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.
Mir, F.A. and Pinnington, A.H., 2014. Exploring the value of project management: linking
project management performance and project success. International journal of project
management, 32(2), pp.202-217.
Tamošaitienė, J., Zavadskas, E.K. and Turskis, Z., 2013. Multi-criteria risk assessment of a
construction project. Procedia Computer Science, 17, pp.129-133.
van den Ende, L. and van Marrewijk, A., 2014. The ritualization of transitions in the project life
cycle: A study of transition rituals in construction projects. International Journal of Project
Management, 32(7), pp.1134-1145.
Walker, A., 2015. Project management in construction. John Wiley & Sons.

6STRATEGIC PROJECT MANAGEMENT
Wang, W.C., Weng, S.W., Wang, S.H. and Chen, C.Y., 2014. Integrating building information
models with construction process simulations for project scheduling support. Automation in
construction, 37, pp.68-80.

7STRATEGIC PROJECT MANAGEMENT
Appendix
Project Feasibility study
1. Land Information 2. Purchase Information
Land Address: Ground floor, 101 Grenfell Street Land Price: $350,000
Suburb/Town: Adelaide SA 5000 Stamp Duty: $12,000
Land Size: 3000 sq m. Conveyancing Fees: $15,000
3. Local Council Information 4. Construction Information
Local Council Name: Adelaide City Council Builder Name: Urban Construction Limited
Minimum Land Allotment Size: 1000 sq m. Duplex Construction Costs: $245,000
Development Planning Fees: $25,000
Monthly Council Rates: $19,000
5. Duplex Information
Duplex Estimated Value: $750,000
Monthly Rental Income: $25,000
Monthly Agent Fees: $3,500
Monthly Landlord Insurance: $1,500
6. Project Results
Equity Value = Duplex Value of $750000 less Total Outgoings of $647000 equals $103000
Net Monthly Rental Income = Gross Monthly Rent of $25000 less Holding Costs of $24000 equals $1000
Project Feasibility Study
Project Timeline
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38
Settlement Period on Land Purchase
Council Development Approval
Duplex Construction
Finalizing design
Project review
Weeks
Project Timeline