Feasibility Study of Residential Duplex in Australia

This feasibility study analyzes the construction project of a residential duplex in Warwick, Queensland, Australia. It examines factors such as budget, time period, location, and macro and micro environment business drivers. The study concludes that the project is feasible if executed within the proposed budget and time frame.

Running head: RESIDENTIAL DUPLEX ON AUSTRALIA
Feasibility study
Name of the Student
Name of the University
Author Note

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RESIDENTIAL DUPLEX ON AUSTRALIA
1.0 Introduction
The feasibility study is the analysis of the construction project which helps to make sure
that the project is executable on selected time as well as within the selected budget
(Aapaoja and Haapasalo 2014). Generally, the feasibility study of any project is analysed
with the help of time as well as budget. But the other two factors like micro environment
business drivers and macro environment business drivers are also included in this
feasibility study of a particular project (Balo 2015). Here, the residential duplex will be
constructed in Warwick in the state of Queensland to increase the growth of the
population more than 10,000. The overall budget will be estimated at $800,000 and the
overall time period will be settled at 9 months (Fung et al. 2014). The feasibility study of
the construction project must include the project constraints, micro-environment
business drivers and macro-environment business drivers (Gusakova and Gusakov
2015). This following represents the feasibility study of the particular case project which
will has to complete on time within the proposed budget.
2.0 Feasibility study of the project
The feasibility study is one kind of analytical report of any construction project. With
the help of this feasibility study it may know about the project that is executable
within the budget and time or not (Hubbard et al. 2015). Generally, for various type of
projects, factors must be difficult and feasibility is touched at that point where all the
factors are suitable and appropriate for this particular project.
This case project is grounded on the construction of the residential duplex and
therefore the feasibility report is based on such particular factors.
Project Feasibility Study

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RESIDENTIAL DUPLEX ON AUSTRALIA
1. Land
Information
2. Purchase
Information
Land Address: 21, Walker Street East,
Warwick, Queensland
Land Price: 3,00,000
Suburb/Town: Warwick Stamp Duty: $12,000
Land Size: 12,000 square feet Conveyancing
Fees:
$7,000
3. Local Council
Information
4. Construction
Information
Local Council
Name:
Warwick City Council Builder Name: CPD Building
Services Ltd.
Minimum Land
Allotment Size:
8000 square feet Duplex
Construction
Costs:
$3,50,000
Development
Planning Fees:
$44,000
Monthly Council
Rates:
$2,000
5. Duplex
Information
Duplex Estimated
Value:
$8,00,000
Monthly Rental
Income:
$1,00,000
Monthly Agent Fees: $20,000
Monthly Landlord
Insurance:
$6,000

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6. Project Results
Equity Value
=$100,000
Duplex Value of $800000 le
s
s
Total Outgoings
of $300000
equals $500000
Net Monthly Rental
Income = 70,000
Gross Monthly Rent of
$100000
le
s
s
Holding Costs of
$20000
equals $80000
Planning Permission – In the construction project, permission from the higher
authority is necessary for execution of this project in an appropriate way. In the case
of building or any large type of concrete structure, it is required to take the permission
from the government in terms of construction permission (Irizarry and Costa 2016). In
some cases, permission also require for the utilization of land in construction purpose
or construction license. Not only that issues, but also other type of issues like dispute
on land or overlapping on the other’s land etc. and therefore the project is not referred
as feasible. In the case project, no certain dispute issues has not been seen and the
permission will take from the local council of the place (Jebelli et al. 2018).
Assessment on environmental reflection – In the construction project, it must be
concern about the environmental reflection which is the serious factor. Because, due
to the construction project, the surrounded environment may be polluted (King et
al.2014). Due to the construction, the reasons for the pollution are mainly the
dumping of the construction materials, fly ash as well as noise. It must concern that
the pollution may not happen due to any construction project (Krüger et al. 2014). To
reduce the environmental pollution, it must be maintained some rules in the case of
construction.

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RESIDENTIAL DUPLEX ON AUSTRALIA
Legal approval – In some case, it has been observed that the selected land for the
construction project may have some legal issues due to the dispute or various claims
on land (Ling, Rahman and Ibrahim 2014). In that particular cases, permission are not
gotten for execution of the project. So, before buying any piece of land, it must
concern that the land might not have any dispute to construct any project and
therefore the permission will easily receive from the higher authority (McArthur
2015).
Budget and client requirements – Budget is one kind important factors where the
feasibility of the project depends. The project must be feasible when it executes
within the budget, otherwise the project may fail without proper budget. With the help
of feasibility study, it must ensure that the project is constructed within the proposed
budget. Here in this case project, the total budget is estimated at $800,000 that is
enough for the construction of the residential duplex.
Operational and Maintenance issues – The feasibility study of the project depends
on the operational as well as maintenance issues. These kind of issues creates an
important role in the feasibility study (Muhwezi, Acai and Otim 2014). Usually, the
more maintenance is required for the construction in hilly landscape than the plane
region landscape. Here, in the case project, the construction of the residential duplex
will construct in plain landscape and therefore in that cases there is no chances of
operational as well as maintenance issues (Paul 2014). The other type of issues like
some unforeseen incidents such as natural calamity or accidents consider as
operational issues but they are manageable and thus the project may referred as
feasible.
Procurement options – The procurement options are vital factor for the feasibility
study. Generally, the procurement options are limited for the construction project. But

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RESIDENTIAL DUPLEX ON AUSTRALIA
the construction of the residential duplex will belong in advanced technological
designs, then the procurement options may increase. Apart from that, if the
construction of the project is execu8ted in an isolated area, then also the procurement
options may increase.
2.1 Constraints and goals of the project
2.1.1 Project constraints
The project constraints are given as below:
Location – Location is the important factor in the case of feasibility study of the
construction of residential duplex. As because, the location of the residential duplex is almost
at the edges of the city, and for that it is tough for the material suppliers to supply the
construction material in that particular places. Therefore the transportation cost for carrying
the materials is considered as the extra cost (Qolipour, Mostafaeipour and Tousi 2017).
Moreover, the workers are travelling a long distance for working in that particular
construction site.
Budget – Budget is considered as a constraint of the project report. Here in this case,
the total budget for this particular project has settled at $800,000. But the other factors like
transportation of resources, extra costs as well as penalties are not included in the budget
section. If the project will not complete according to the budget, then it may failure.
Time period – Time period is also an important factor in the feasibility study. In this
project, the estimated time period is settled at 9 months. When scheduling the time period,
there was no unforeseen incidents such as natural calamities or any kind of accidents. If these
issues may happen during the construction project, then the project may require the extra time
which means the project is not considered as feasible. Therefore, in that cases, the budget
related problems have been observed (Ruparathna and Hewage 2015).

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RESIDENTIAL DUPLEX ON AUSTRALIA
2.1.2 Project goals
The project goals are as follows:
 Selection of land for the construction of residential duplex.
 Receive permission from the local council for this project.
 Construction of residential duplex on the particular land.
2.1.3 Project economic considerations
In the construction of residential duplex, the estimated budget is considered as
$800,000. All the factors should include in the proper budget. The factors in
the construction project be like planning cost, labour charges, taxes, raw
materials, transportation charges of materials etc. As the planning cost, it may
consider as $45,000. The raw materials charges is as $1, 00,000. The labour
charges be like $30,000. The transportation cost may refer as $20,000.
2.1.4 Project timeline

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2.2 Macro-Environment Business Drivers
The macro-environment business drivers are another type of factors that reflects on
the feasibility study of the project. They are considered as business drivers during the
feasibility study of the project. The macro environment business drivers are as
follows:
Economic Factor-
It must be known to all that Australia is the economically stable country and
therefore, there will not arrive any problem during the construction of the residential
duplex. Moreover, in future, due to the stability in terms of economic, the residential
duplex will offer the adorable apartments.
Competitive Factor-
Competitive factor is the crucial factor in the case of feasibility study. This
factor arise when various organization execute similar kind of project at the similar
time with equal objective (Wang 2014). The competitive factor is very important in
the case of development of residential duplex for this particular project.
Resourcing Factor –
Australia has enough amount of resources for the construction or similar type
of projects. So it is not difficult for the project manager to supply the sufficient
resources for this particular project. In addition to this, the transportation cost as well
as supply cost for the materials may increase in this project because of this location.
Demographic Factor –
Demographic factors create a crucial factor in the case of feasibility report of
the project. As because the development of the residential duplex will be occurred in
the edges of the city and for that, the people will not agree to shift to that places. With
the help of detailed survey, it has been observed that there is no sufficient amount of

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business sector. Due to this, people will not want to move in that particular isolated
place.
2.3 Micro-Environment Business Drivers
Not only the macro environmental business drivers, but also micro environmental
business drivers also reflect on the feasibility study of the project.
Technical / Internal expertise –
The first factor of the micro-environment business drivers includes the
technical or internal expertise in the construction project. This kind of factor will arise
when there will occur the shortage number of technically expertise workers. For that
reason, the outcome of the project has not been reached in the satisfactory point. To
decrease this factor, it is required to involve the technically expertise worker in the
construction project.
Time pressure –
The overall time period for this particular project is estimated at 9 months. In
the case of construction of the residential duplex, this limited time period may be or
may not be sufficient. During the time of scheduling, there was not considered any
unforeseen incidents like natural calamities or workers related accidents. If these kind
of incidents will happen, then the project might be failure due to the shortage of time
period. In that cases, the time period may increase for the execution of this particular
project.
People related considerations –
People related considerations is not as vital factor in this feasibility report. But
it must ensure that the people involving in the construction project must obey some

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ethical rules and responsibilities. In this way, the construction of the residential
duplex will complete within time as well as within budget.
3.0 Conclusion
In the conclusion part, it has been concluded that, the residential duplex will conduct
in Warwick in the state of Queensland in Australia. The overall budget is $800,000 and the
time for execution of project is 9 months. The making of feasibility report on the construction
of residential duplex depends on such factors like time as well as budget. The location of the
residential duplex is almost at the edges of the city. For that, it has faced some kind of
problems to the project manager like labour issues or transportation cost etc. According to the
case project, the feasibility study focuses on the development of residential duplex and
depends on macro and micro environment business drivers. The project becomes feasible
when all the elements of the particular project are sufficient and the project will execute
within proper time.

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