Strategic Project Management: Duplex Construction Project in New South Wales, Australia

This report depicts the role of the strategic project management practices and their application in the practical field to gain commercial profit and competitive advantages as well. For this real estate project the chosen location is 33, Englorie Park Drive, New South Wales, Australia. It is possible that, the success of this project will increase the income and the equity.

Running head: STRATEGIC PROJECT MANAGEMENT
Strategic Project Management: 33, Englorie Park Drive, New South Wales, Australia duplex
construction project
Name of the student:
Name of the university:

1STRATEGIC PROJECT MANAGEMENT
Introduction
This report depicts the role of the strategic project management practices and their
application in the practical field to gain commercial profit and competitive advantages as well.
For this real estate project the chosen location is 33, Englorie Park Drive, New South Wales,
Australia. It is possible that, the success of this project will increase the income and the equity.
The project defines a real estate business for which cash is reserved for commercial funding
development project. The total investment estimated for the successful implementation of the
project is $800,000. Besides the funding the total time that has been allotted for the completion
of this project is 9 months. A feasibility calculation study details along with a details timeline are
also represented in this report for this project.
1. Constraints and goals
1.1 project constraints
For this specific duplex construction project triple project constraints are chosen in terms
of time, budget and scope. It is determined that if three of these constraints are properly chosen
by the project manager then the project will meet the success criteria and all other components.
Budget
This is mandatory for the construction project manager to define the project budget
accurately to ensure that the planned cost and the actual cost of the project are almost equal. This
is the responsibility of the finance manager to allot the budget in such a way so that within
estimated time it can accomplish the activities within the estimated budget. It is also determined

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that if the finance manager fails to estimate the budget then, the project will face different
construction level challenges. The total budget estimated for this project is $800,000.
Time
Based on the project requirements it is estimated that, the duplex construction project
should be completed within 9 months. If the project time is increased then the cost of the project
will also be interrupted. For reducing the project complexity the project manager should divide
the large project in small activities. Again, for each of the project activity resources and budget
will be allotted accordingly. It is the role of the resources to accomplish their allotted job roles
within the estimated timeframe without any kind of extension.
Scope
The project scope is the approved project documentation. The documentation stars with
project charter, which demonstrates the details of the project including the project goals, in scope
and out scope also. Not only this but also the stakeholders associated to the project are also
mentioned in the document. The scope creep, kick off meeting, communication patter, resource
management and also risk management approaches considered for this project are also elaborated
in the project scope. Whether the estimated budget according to time and activity are feasible are
not is calculated for the duplex construction project. In addition to this, representation of the
project timeline is another scope of this project.
1.2 Project goals
The goal of the project is define and calculate a project feasibility study based on the
macro environment and the mocro environment of the project. The macro environment of the
project is determined considering the economic, competitive, demographic and resource factors.

3STRATEGIC PROJECT MANAGEMENT
On the other hand, the micro environment of the project is estimated based on the technical,
internal expertise, externals factors etc. The feasibility report of the project is dependent on the
timeline that has been allotted as to be 9 months for the project.
2. Feasibility study for the construction project
2.1 Feasibility report
Project Feasibility Study
1. Land
Information
2. Purchase
Information
Land Address: 33, Englorie Park Drive,
New South Wales,
Australia
Land Price: 250,000
Suburb/Town: Glen Alpine
(Subrub)
Stamp Duty: $18,000
Land Size: 12,000 square feet Conveyancin
g Fees:
$8,000
3. Local Council
Information
4.
Construction
Information
Local Council Campbell town City Builder Silverdale building Pty Limited

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Name: Council Name: (Builders an building
construction)
Minimum Land
Allotment Size:
12,000 square feet Duplex
Construction
Costs:
$350,000
Development
Planning Fees:
$80,000
Monthly
Council Rates:
$8,000
5. Duplex
Information
Duplex
Estimated
Value:
$800,000
Monthly Rental
Income:
$90,000
Monthly Agent
Fees:
$8,000
Monthly $9,000

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Landlord
Insurance:
6. Project
Results
Equity Value
=100,000
Duplex Value of
$800000
les
s
Total
Outgoings of
$706000
equals $94000
Net Monthly
Rental Income
= 70,000
Gross Monthly Rent
of $90000
les
s
Holding
Costs of
$25000
equals $65000
The feasibility of any project is analyzed considering some important factors. It can
evaluate the potential or success of any project thus, for credible study of the potential project
investors well as lending institution feasibility is an important factor to be considered (Mir &
Pinnington, 2014). Different types of feasibility calculation applications are available such as
technical feasibility, economic feasibility, legal, operational and schedule feasibility etc. If any of
the result shows negative resultants then the project will be identified as a loss one.
The key benefits that may gained from the successful implementation of the project
include the followings:
 It can improve the focus of the project team members towards their assigned job
roles

6STRATEGIC PROJECT MANAGEMENT
 New business opportunities can be identified with the help of its result
 The business alternatives get narrower and not provides valid information to the
associates
 Increase the project success rate and aids proper decision making on the project
For the duplex resident building construction project the factors that are considered,
demonstrated in the below section:
Conveying fees: This is referred to as a legal act that is applied while selling and buying
home (Takey & de Carvalho, 2015). This act is again differentiated in two different parts such as
legal fees and disbursements. The cost which the solicitors require to pay to the third party is the
solicitor charge. For the duplex building construction project the cost is $8000.
Stamp duty: The stamp duties are different for different countries. In order to avoid
frauds it is mandatory for the building owner to have a legal ownership (Ling & Yanti, 2016).
During the registration of the building the stamp pay is the particular money amount that needs
to be paid by the owners to the government to won the legal ownership For this project the tax
amount requires to be paid by the owners are $18,000.
Value for duplex project: For the successful completion of the construction of the
duplex project is $800,000.
From the feasibility report it has been found that, the total outgoing and holding cost for
the project are respectively $706000 and $25000. The total rental income for the project is
$70,000 and the equity value for the construction project is $100,000. In addition to the gross
monthly rent is also being calculated which is $90,000 for the duplex construction project.

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2.2 Gantt Chart
Figure 1: Time schedule developed for the project
(Source: Created by author)
3. Macro environment business drivers
Macro environment is referred to as a condition which exists within the economy as a
whole. The estimated project macro environment deals with different trends in the gross
domestic products, inflation rate, employment, fiscal policy and other spending. With the general
business life cycle of the business is highly related (Martens & Carvalho, 2017). It is found that
the business life cycle process opposed to the performance of a complete business sector. In
order to drive the duplex residential construction project towards commercial success these
macro environmental factors are considered. The factors are demonstrated in the below section:

8STRATEGIC PROJECT MANAGEMENT
3.1 Economic
In the real estate industry the role of all the economic factors play very crucial role. From
the current market analysis it has been analyzed that, for inventory fluctuation both the unstable
market situation and tight lending requirements the construction companies have to adjust along
with the new economy (Backlund, Chronéer & Sundqvist, 2014). Thus, it can be said that with
the help of the proper economic support the health of the construction industries will become
much stronger. Apart from the economy can also affect the competition. If the economies are
found to get booming then that time the manager need not to worry much about the competition.
The economic support acts as a business driver and can easily drive the project towards massive
growth and success. As the residents will be ready for rent hi income can be gained from that.
Basically with the help of the economic support whether the driving forces are helpful or not can
be calculated accordingly.
3.2 Competitive
The location that has been chosen for this construction project is in New South Wales
(NSW), Australia, where the population is growing simultaneously and currently has a more than
around 10,000 residents. Additionally, many similar service providers are also there thus, it is the
responsibility of the project head to provide some additional services to grab and attract more
number of clients throughout. With quality service, high competitive advantages can be gained
by the project owners.
3.3 Resource
In order to complete the duplex residential construction project successfully it is
mandatory for the project manager to assign accurate resources (physical and human) to the
project (Cao et al., 2015). The construction resources for this project include products, materials,

9STRATEGIC PROJECT MANAGEMENT
plat or location for the duplex building construction, space and facilities, equipments and tools,
sub contractors, contractors and financial support. The issues with the traditional resource
management can be mitigated if proper automated resource management plan s implemented for
the project. The overall construction level efficiency of the business will increase if the
automated system is implemented.
3.4 Demographic factors
Demographic factor deals with the gender, age, monthly income or status of individuals
(Yang et al., 2018). This is mandatory for the project manager to consider these demographic
factors accurately so that the issues of the construction project can be minimized accordingly.
While promoting advertisement for the building for rent proper promotional activities are to be
considered. In addition to this, accurate target audience should be set to make the project
possibly successful.
4. Micro Environment business drivers
The micro environment for any project deals with business performance, decision making
approaches, business strategies etc. It is expected that if these factors are properly managed and
adopted by the project manager then the project will surely meet the objectives and other success
factors within estimated time period and budget (Fulford & Standing, 2014). These factors are to
be analyzed accurately in order to get commercial success and distributive competitive
advantages. Before taking proper business level decision, project managers should individually
analyze the technical, internal expertise, time pressure and people related factors.

10STRATEGIC PROJECT MANAGEMENT
3.1 Pressures regarding time
Time management is referred to as one of the most important factor for any project
success (Serpella et al., 2014). It is the role of the project manager to design the structure of the
project in such a way so that the work pressure gets reduced from the assigned team members. If
time for the project completion gets reduced then that will increase the work pressure. Therefore,
proper time management is referred to as an important factor to be considered for the successful
accomplishment of the duplex building construction project.
4.2 Technical expertise
In this current era of technology different technical supportive actions have been
designed. In order to design the blueprint of the construction project some of these technologies
can be utilized by the project manager (Rowlinso et al., 2014). For operating these technical
applications technical experts are required to be hired and assigned by the project manager. If the
project manager successfully hires technical experts then it will lead the project towards
measurable success.
4.3 Other people related considerations
Based on the skills and knowledge of the staffs reward program must be arranged for
motivating the project associates.
Conclusion
From the overall discussion it can be concluded that with a structured construction
management planning the overall efficiency of the business will increase a lot. From the result of
feasibility analysis it has been found that for successful accomplishment of the construction

11STRATEGIC PROJECT MANAGEMENT
project 9 months and $800,000 cost will be accurate. The location and size selected for the
construction, monthly rate of council and other estimated values in terms of monthly rental
income, monthly agent fees, insurance of the landlord based on the construction information and
the purchase information are positive. Moreover, feasibility resultant shows positive ROI in the
income from the duplex building rent and positive equity values as well.
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