Strategic Project Management: Residential Development Project

This paper discusses the feasibility study of a residential duplex construction project in Queensland Town of Tara. It covers factors like planning permission, environmental impact assessment, legal/statutory approvals, budget, operational and maintenance issues, and procurement options. It also includes project constraints, goals, economic considerations, timeline, resources, and budget. Subject: Strategic Project Management, Course Code: N/A, Course Name: N/A, College/University: N/A

Running Head: STRATEGIC PROJECT MANAGEMENT
Strategic Project Management: Residential Development Project
Name of the Student
Name of the University

1STRATEGIC PROJECT MANAGEMENT
1.0 Introduction
Feasibility study of a project is defined as an analysis that is conducted in order to ensure
the project is doable based on a certain set of parameters set previously. Commonly, the
feasibility of a project is judged using time or budget as the standard but some other macro-
environment and micro-environment factors are also considered. In this particular case project, a
residential duplex will be constructed in the Queensland Town of Tara in order to promote the
growth and development of the population of that particular region. The total budget of the
project is set at $800,000 and a total time period of 9 months has been said for the execution of
the project.
This paper is mainly based on feasibility study of the overall case project in addition to
the development of a suitable timeline and cost feasibility analysis.
2.0 Feasibility Study on the Case Project
Project feasibility is the analysis of project based on certain criteria in order to determine
whether the project will be successful or not. Different types of project have different criteria for
success and the feasibility is reached only when all the factors are suitable for the organization to
fulfill.
This particular project is based on the development of a residential duplex and the
feasibility of the project will depend on the following factors.
Planning Permission – Construction of any concrete structure requires approval from a
relevant authority. For buildings and other large concrete structures, prior approval must be

2STRATEGIC PROJECT MANAGEMENT
received from the government in the form of construction permit. In some cases, permit is also
required regarding the use of land for construction or receiving construction license for
proceeding with the work (Kerzner and Kerzner 2017). In certain projects, the permission for
construction is not received due to various factors like dispute over land, overlapping on the
neighbor’s land and others. In these cases, the project is not considered as feasible. In this chosen
case, there are no such disputes or issues and the permit for construction has also been received
from the local council of the government.
Environmental Impact Assessment – Building constructions should also seriously take
into consideration the environmental impact during the project work. In many cases, during the
construction process, the surrounding environment is negatively affected and polluted. Hence,
construction projects must be executed with great caution and ensuring the environment is not
impacted (Shakir and Nørbjerg 2015). This includes dumping of residual construction materials
at suitable places, fly dirt and ash, noise and others. There are certain standards available
regarding the use of construction materials and execution of the construction process that must
be followed closely during the entire project.
Legal / Statutory Approvals – In many cases, it has been seen that the selected piece of
land has some legal problems due to dispute or multiple claims on a single piece of land. In these
cases, permissions are generally not allowed to conduct construction on the land unless the
disputes are settled properly (Vukomanović 2016). Hence, before purchasing the land and
proceeding with the construction, it must be ensured that there are no disputes over the land and
permit can be earned easily for the initiation of construction.

3STRATEGIC PROJECT MANAGEMENT
Budget and Client Requirements – Budget is often on the primary criteria based on
which, the feasibility of the project is judged. When a client books a project for execution, it
must be feasible with the budget or else it may fail at the later stages. In order to ensure sufficient
budget is available for the project, a feasibility test needs to be conducted to determine whether
the proposed budget is sufficient. In the case of this residential duplex project, a total budget of
$800,000 is proposed and it needs to be ensured that this budget will be sufficient for the
construction of the residential duplex.
Operational and Maintenance Issues – Feasibility of building construction also depends
significantly on the operational and maintenance issues that may arise due to several factors. One
major factor behind the occurrence of the issue is the landscape. Buildings in hilly landscape will
require more maintenance than the buildings on the plain land (Andersson and Chapman 2017).
The location of the building in this project case is on a plain landscape and hence, chances of
occurrence of operational and maintenance issues are less although they might be encountered
due to some unforeseen incidents. However, they will be manageable and the project can be
considered as feasible in terms of this particular factor.
Procurement Options – The final feasibility factor chosen for construction of building is
the procurement option. For the designs of technically advanced and ultramodern approach to the
buildings, procurement options for the materials are often limited as there are huge varieties of
requirements for such buildings. Again, if the building site is located at a remote area, the
procurement options are significantly limited.

4STRATEGIC PROJECT MANAGEMENT
2.1 Constraints and Goals of the Project
2.1.1 Project Constraints
The constraints of the project are determined as follows.
Location – The location of the construction site is on the outskirts of the city and hence, it
will not be convenient for the suppliers to provide resources and materials as well as the workers
to travel long distances every day for working on the construction site. Moreover, due to the
location, the transportation costs for the construction materials will be extremely high.
Budget – The overall budget of the project is $800,000, which might be a constraint as
various factors like transportation of materials, extra costs, penalties and others have not been
considered.
Time Period – The overall time period of the project is set at 9 months that may or may
not be sufficient. It has been automatically assumed that this time period will be sufficient for the
construction. However, while making this assumption, it has also been considered there will be
no unforeseen incidents like accidents or natural calamities. In these cases, if there is significant
damage to the project, the overall time period will also increase significantly.
2.1.2 Project Goals
The goals of the project are as follows.
 To select a piece of land in the Queensland town of Tara for the construction of
the duplex
 To receive permit from the government for the construction
 To construct the duplex on the selected piece of land

5STRATEGIC PROJECT MANAGEMENT
2.1.3 Project Economic Considerations
Project Feasibility Study
1. Land Information
2. Purchase
Information
Land Address:
30, Smith Road, Tara
Town, Queensland Land Price: 500,000
Suburb/Town: Tara Stamp Duty: $10,000
Land Size: 12,000 square feet Conveyancing Fees: $8,000
3. Local Council
Information
4. Construction
Information
Local Council Name:
Tara Town Regional
Council Builder Name:
ABCD
construction
Minimum Land
Allotment Size: 10,000 square feet
Duplex Construction
Costs: $800,000
Development Planning
Fees: $100,000
Monthly Council Rates: $5,000
5. Duplex Information
Duplex Estimated Value: $1,200,000
Monthly Rental Income: $100,000
Monthly Agent Fees: $5,000

6STRATEGIC PROJECT MANAGEMENT
Monthly Landlord
Insurance: $4,000
6. Project Results
Equity Value =$100,000
Duplex Value of
$1200000
le
ss
Total Outgoings of
$1418000
equals $-
218000
Net Monthly Rental
Income = 70,000
Gross Monthly Rent
of $100000
le
ss
Holding Costs of
$14000
equals
$86000
2.1.4 Project Timeline, Resources, Budget
Task Name Duration Start Finish Resource Names Cost
Construction of
Residential
Duplex
197 days
Mon
8/27/18
Tue
5/28/19
$800,000.00
Preliminary
Planning and
Discussion
17 days
Mon
8/27/18
Tue
9/18/18
$26,520.00
Meeting of
the Project
Management
Team
17 days
Mon
8/27/18
Tue
9/18/18
$26,520.00
Decision on
the Building of
2 days Mon Tue Construction
Manager,Finance
$3,120.00

7STRATEGIC PROJECT MANAGEMENT
Residential
Duplex
8/27/18 8/28/18
Manager,Project
Manager,Site Supervisor
Submit
Proposal for
Project
2 days
Wed
8/29/18
Thu
8/30/18
Construction
Manager,Finance
Manager,Project
Manager,Site Supervisor
$3,120.00
Present
Proposal to Client
2 days Fri 8/31/18 Mon 9/3/18
Construction
Manager,Finance
Manager,Project
Manager,Site Supervisor
$3,120.00
Propose
Overall Budget for
the Project
1 day Tue 9/4/18 Tue 9/4/18
Construction
Manager,Finance
Manager,Project
Manager,Site Supervisor
$1,560.00
Feasibility
Testing of the
Project
10 days
Wed
9/5/18
Tue
9/18/18
Construction
Manager,Finance
Manager,Project
Manager,Site Supervisor
$15,600.00
Approval of
the Project
0 days
Tue
9/18/18
Tue
9/18/18
Project Manager $0.00

8STRATEGIC PROJECT MANAGEMENT
Project
Planning Phase
28 days
Wed
9/19/18
Fri
10/26/18
$14,920.00
Develop Team
for Project
2 days
Wed
9/19/18
Thu
9/20/18
Project Manager $1,200.00
Determine
Project Roadmap
3 days Fri 9/21/18
Tue
9/25/18
Construction Manager $840.00
Prepare
Project Charter
13 days
Wed
9/26/18
Fri
10/12/18
$7,280.00
Determine
Project Scope
2 days
Wed
9/26/18
Thu
9/27/18
Construction
Manager,Site Supervisor
$1,120.00
Determine
Project Schedule
0.5 days Fri 9/28/18 Fri 9/28/18
Construction
Manager,Site Supervisor
$280.00
Determine
Project Budget
0.5 days Fri 9/28/18 Fri 9/28/18
Construction
Manager,Site Supervisor
$280.00
Determine
the Overall
Feasibility of the
Project
10 days
Mon
10/1/18
Fri
10/12/18
Construction
Manager,Site Supervisor
$5,600.00

9STRATEGIC PROJECT MANAGEMENT
Print Tender
for Contract
2 days
Mon
10/15/18
Tue
10/16/18
Construction
Manager,Site Supervisor
$1,120.00
Hire Suitable
Contractor
2 days
Wed
10/17/18
Thu
10/18/18
Construction
Manager,Site Supervisor
$1,120.00
Discuss the
Project
4 days
Fri
10/19/18
Wed
10/24/18
Construction
Manager,Site Supervisor
$2,240.00
Discuss
Required Human
Resources
1 day
Thu
10/25/18
Thu
10/25/18
Construction
Manager,Site Supervisor
$560.00
Discuss Time
Frame and
Material
Resources
1 day
Fri
10/26/18
Fri
10/26/18
Construction
Manager,Site Supervisor
$560.00
Finalize the
Project
0 days
Fri
10/26/18
Fri
10/26/18
Construction
Manager,Site Supervisor
$0.00
Project
Initiation
39 days
Mon
10/29/18
Thu
12/20/18
$668,600.00
Receive
Building Permit
5 days
Mon
10/29/18
Fri 11/2/18 Construction Manager $1,400.00
Receive 4 days Mon Thu Construction Manager $1,120.00

10STRATEGIC PROJECT MANAGEMENT
Construction
License
11/5/18 11/8/18
Develop
Blueprint of the
Duplex
10 days Fri 11/9/18
Thu
11/22/18
Construction Manager $2,800.00
Review
Duplex Blueprint
2 days
Fri
11/23/18
Mon
11/26/18
Construction Manager $560.00
Recruit
Construction
Workers
5 days
Tue
11/27/18
Mon
12/3/18
Construction Manager $1,400.00
Procure
Materials for the
Construction
10 days
Tue
12/4/18
Mon
12/17/18
Construction
Manager,Construction
Materials and Other
Costs[1]
$660,480.00
Hire
Construction
Vehicles
3 days
Tue
12/18/18
Thu
12/20/18
Construction Manager $840.00
Initiate the
Project
0 days
Thu
12/20/18
Thu
12/20/18
Construction
Manager,Site Supervisor
$0.00

11STRATEGIC PROJECT MANAGEMENT
Project
Execution
106 days
Fri
12/21/18
Fri 5/17/19 $84,800.00
Clear the Site
for Construction
4 days
Fri
12/21/18
Wed
12/26/18
Workers $3,200.00
Excavate the
Site
4 days
Thu
12/27/18
Tue 1/1/19 Workers $3,200.00
Build
Foundation on the
Site
4 days
Wed
1/2/19
Mon 1/7/19 Workers $3,200.00
Prepare
Building
Framework
35 days Tue 1/8/19
Mon
2/25/19
Workers $28,000.00
Install
Structural
Materials
10 days
Tue
2/26/19
Mon
3/11/19
Workers $8,000.00
Divide
Apartments inside
the Duplex
Framework
5 days
Tue
3/12/19
Mon
3/18/19
Workers $4,000.00
Clear 2 days Tue Wed Workers $1,600.00

12STRATEGIC PROJECT MANAGEMENT
Openings for
Doors and
Windows
3/19/19 3/20/19
Install
Electrical Wirings
2 days
Thu
3/21/19
Fri 3/22/19 Workers $1,600.00
Install Water
Connections
2 days
Mon
3/25/19
Tue
3/26/19
Workers $1,600.00
Apply Mortar
and Concrete on
Framework
10 days
Wed
3/27/19
Tue 4/9/19 Workers $8,000.00
Plumbing 5 days
Wed
4/10/19
Tue
4/16/19
Workers $4,000.00
Plastering of
the Buidling
2 days
Wed
4/17/19
Thu
4/18/19
Workers $1,600.00
Finishing
Electrical
Connections
2 days Fri 4/19/19
Mon
4/22/19
Workers $1,600.00

13STRATEGIC PROJECT MANAGEMENT
Installation of
Doors and
Windows
2 days
Tue
4/23/19
Wed
4/24/19
Workers $1,600.00
Installation of
Equipments and
Utilities
2 days
Thu
4/25/19
Fri 4/26/19 Workers $1,600.00
Additional
Works
10 days
Mon
4/29/19
Fri 5/10/19 $8,000.00
Add Colors
to Building
Interior
2 days
Mon
4/29/19
Tue
4/30/19
Workers $1,600.00
Add Colors
to Building
Exterior
2 days
Wed
5/1/19
Thu 5/2/19 Workers $1,600.00
Installation
of Basic Domestic
Equipments
2 days Fri 5/3/19 Mon 5/6/19 Workers $1,600.00
Installation
of Apartment
Requirements like
2 days Tue 5/7/19 Wed 5/8/19 Workers $1,600.00

14STRATEGIC PROJECT MANAGEMENT
Taps, Bells, etc.
Safety
Installations in
Each Apartment
2 days Thu 5/9/19 Fri 5/10/19 Workers $1,600.00
Completion of
the Duplex
Building
5 days
Mon
5/13/19
Fri 5/17/19 Workers $4,000.00
Project
Handover
0 days Fri 5/17/19 Fri 5/17/19 Workers $0.00
Project Closure 7 days
Mon
5/20/19
Tue
5/28/19
$5,160.00
Review of the
Project
2 days
Mon
5/20/19
Tue
5/21/19
Project Manager $1,200.00
Project
Appraisal
2 days
Wed
5/22/19
Thu
5/23/19
Project Manager $1,200.00
Pay All Wages 2 days Fri 5/24/19
Mon
5/27/19
Project Manager $1,200.00
Stakeholder
Sign Off
1 day Tue
5/28/19
Tue
5/28/19
Construction
Manager,Finance
Manager,Project
$1,560.00

15STRATEGIC PROJECT MANAGEMENT
Manager,Site Supervisor
Project Closed 0 days
Tue
5/28/19
Tue
5/28/19
Project Manager $0.00
2.2 Macro-Environment Business Drivers
Macro-environment business drivers are different national scale factors that have
significant impact on the project. These drivers are generally considered during the consideration
of feasibility of the project. The macro-environment drivers for this particular project are
discussed below.
Economic Factor – Australia as a country is sufficiently stable in terms of economy and
hence, construction of the residential duplex on the selected land will not be any problem.
Moreover, the future residents of the duplex will be able to afford apartments if they choose to
live in the city outskirts.
Competitive Factor – Competitive factor comes into play when several similar
organizations run similar types of project at the same time with the same goal or objective.
However, unlike product manufacturing, the competitive factor in this case will be beneficial to
the community as it will help the growth of population and economy of the selected region as
well as the nation as a whole.
Resourcing Factor – Australia has sufficient resources to supply for construction and
other similar projects. Hence, for the construction of the duplex, it will not be hard for the project

16STRATEGIC PROJECT MANAGEMENT
manager to procure sufficient resources for the project. However, due to the location of the
project, the costs of transport and supply of the materials may increase significantly.
Demographic Factor – Demographic factor will play a significant role in the feasibility
of the project. While the main objective of the project is to develop an outskirt of the city and
promote the growth of population in this area, it is not sure whether the people will agree to
relocate to such an inconvenient location in the city outskirts. Some detailed survey is required in
order to determine whether the project will be feasible in terms of the demographic factors.
2.3 Micro-Environment Business Drivers
The micro-environment business drivers of the project are discussed below.
Technical / Internal Expertise – The main micro-environment factor of the project
involves the technical / internal expertise related to the workers working on the project. It is
often seen that due to lack of technical expertise, the project outcome is not satisfactory. Hence,
for the project, selection of appropriate and technically skilled personnel is necessary.
Time Pressure – Time pressure for the project is a significant constraint due to the
limitation of the overall time period within just 9 months that may or may not be sufficient.
While preparing the time schedule, it has been assumed that this time period will be sufficient for
the construction. However, while making this assumption, considerations for unforeseen
incidents like accidents or natural calamities were not made. In these cases, if there is significant
damage to the project, the overall time period will also increase significantly.
People Related Considerations – The people involved in the project must be sufficiently
committed to the project and follow all ethical and other rules and guideline in order to ensure
the project is completed on time and within budget.

17STRATEGIC PROJECT MANAGEMENT
3.0 Conclusion
In this report, a feasibility study has been conducted on the proposed construction of
residential duplex in a city outskirt. As per the case of the project, a residential duplex will be
constructed in the Queensland Town of Tara in order to promote the growth and development of
the population of that particular region. This particular project is based on the development of a
residential duplex and the feasibility of the project will depend on a number of micro and macro
business drivers.

18STRATEGIC PROJECT MANAGEMENT
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