Residential Duplex Construction in Majuli, Assam, India

Running Head: STRATEGIC PROJECT MANAGEMENT
Residential Duplex Construction in Majuli, Assam, India
Name of the Student
Name of the University

1STRATEGIC PROJECT MANAGEMENT
Project Background and Introduction
This project involves the construction of a residential duplex in an Indian town of Majuli,
Assam. This project is a part of a recent government initiative to set up residential areas in
various sparsely populated areas so that further development can be initiated including industry,
healthcare, transport, education and others. Without the growth in population, these
developments will only be possible when there is a constant population growth. Currently,
Majuli is a small river island town in Assam where the population is just more than 20,000 and
thus population growth is required. In order to help the population growth, the local Majuli
Development Council, on approval from Assam State Government, has released tender for
construction companies to build a residential duplex in a particular piece of land and based on
the performance in this project, further contract will be allowed to build more duplexes. The
current selected land area has dimension of 8000 square feet and an overall budget of $800,000
have been allowed for the construction of the duplex. Bhartia Infra Projects Limited has won the
tender and will now proceed to build the residential duplex as per the requirements set by the
authority.
This report is based on the feasibility study of the project in order to identify if the project
is profitable and how much income can be expected from the project.
Project Constraints and Goals
The main constraints of the project are as follows (Kerzner 2019).
 The chosen site is not very well developed and hence, it is unlikely that many
people will be interested in renting the duplex.

2STRATEGIC PROJECT MANAGEMENT
 There are no high grade healthcare and education systems nearby and thus, people
will not be interested in moving in such a location.
 Majuli is located on a river island and hence, sustainability of the duplex
construction is a question of doubt.
The main goals of the project are as follows (Harris 2017).
Economic development of the region
Population growth of the region
Demographic development of the town
Project Feasibility Study
A project is considered to be feasible when it fulfils certain conditions and is profitable
based on the investment made (Papke-Shields and Boyer-Wright 2017). For this particular
project, the most feasibility aspect is economic i.e. this project must be feasible economically so
that the authority can proceed with the project. The economic feasibility aspect has been
conducted and shown in the following table.
Project Feasibility Study
1. Land Information 2. Purchase Information
Land Address:
25, Jengraimukh Road, Majuli,
Assam, India Land Price: 5,00,000
Suburb/Town: Majuli Stamp Duty: $5,000
Land Size: 8,000 square feet Conveyancing Fees: $6,000

3STRATEGIC PROJECT MANAGEMENT
3. Local Council Information
4. Construction
Information
Local Council Name: Majuli Development Council Builder Name:
Bhartia Infra Projects
Limited
Minimum Land Allotment Size: 8,000 square feet Duplex Construction Costs: $8,00,000
Development Planning Fees: $5,00,000
Monthly Council Rates: $4,000
5. Duplex Information
Duplex Estimated Value: $20,00,000
Monthly Rental Income: $1,00,000
Monthly Agent Fees: $2,000
Monthly Landlord Insurance: $5,000
6. Project Results
Equity Value =$100,000 Duplex Value of $2000000
les
s
Total Outgoings of
$1811000 equals $189000
Net Monthly Rental Income =
93,000
Gross Monthly Rent of
$100000
les
s Holding Costs of $11000 equals $89000
Project Timeline
The main resources associated with the project are as follows.
Resource Name Type Initials Max. Units Std. Rate