Feasibility Study Report: Warrnambool Duplex Housing Project Analysis

This report presents a comprehensive feasibility study for a residential duplex development project in Warrnambool, Australia. It analyzes various aspects, including land information, purchase costs, local council regulations, construction expenses, and potential rental income. The study evaluates b...Read More

Running head: DUPLEX HOUSING PROJECT
Feasibility report for Duplex Housing Project in Warrnambool
Name of the student:
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1RESIDENTIAL DUPLEX DEVELOPMENT PROJECT
Introduction
This project portrays the role of construction details and feasibility analysis report in
success and failure of any project. Success of a project is dependent on the feasibility structure
developed for a project. A land size of 1.5 Acre in 45 Dobson Way, Warrnambool VIC 3280 is
purchased by the construction owners for the building the duplex residential. This location is
selected because it maintains all the design and constriction criteria.
The number of population in this location is lesser than 10,000 and estimated selling
price for the project is also affordable for the clients or customers. However, before final
planning and execution of the duplex residential construction project the internal and external or
global business factors or drivers are required needed to be analyzed. Based on these factors if
the project structure is prepared then the project will become easier to implement.
Constraints and goals
Project constraint is a limiting factor that helps to shape and keep a project under proper
measurement. For any project, consideration of constraints will help to bring commercial and
economical profit to the project owners and customers. However, it is obligatory for the project
team associates and supervisor to uphold a balance among all the constraint- scope, budget, time,
quality, risk and resources.
The scope of this project is to accomplish the duplex residential building construction
project in 9 months and $800,000 budget. Some other types of constraints are also there that
project team needs to follow are categorized into environmental constraints, organizational and
procurement constraints (Lapidus and Abramov 2018). Each of the project constraints are related

2RESIDENTIAL DUPLEX DEVELOPMENT PROJECT
to each other. Therefore, it is job of the team associates to consider each of the project
constraints for understanding the dependencies and differences. For this project labors law of
state is also required to be considered by the project supervisor. Proper assumptions and
dependency between project constraints are needed to be maintained thoroughly the project
development life cycle. In order to conformance quality of the project CMMI quality model has
to be set as a benchmark. In order to execute the duplex housing project, skill and competent
human resources are needed to keep the project on track and towards success line (Almarri and
Abu-Hijleh 2017). Apart from that, it is duty of a project sponsor to impose limitation in funding
and make sure that the scheme will be completed in estimated budget that can bring commercial
benefits. The project should be completed as per the primary contact and within the estimated
timeline of 9 months. In addition to this, the project supervisor should consider potential risks
also may bring commercial loss for the project in future.
The purpose of duplex residential structure construction project is to submit the project in
the budget of $800,000 and time of 9 months followed by all primary project objectives. If these
measures are properly followed and maintained by the project associates throughout the three
construction phases then, it will bring a high monthly income rate and commercial profit as well
(Saarikoski et al., 2016). For preparing this project a suitable local council, landlord insurance
rate, agent fees and developing planning fees are needed to be considered by the supervisor and
other team associates. However, final finishing of the duplex project both internal and external
business driving factors should also be considered by the associates.

3RESIDENTIAL DUPLEX DEVELOPMENT PROJECT
Macro-environment business drivers
Economic: Economic forces deal with those factors that may influence the purchasing
power of the customers and sending power of the consumers as well. From the financial report
of the local city council it is determined that, owners should never export to any country before
examining people affordability in the location. Other crucial criteria those are required to be
analyzed by supervisor include GDP, GNI, import duty rate, VAT, tax, inflation etc. The
economic forces are also related to political, socio cultural and business environmental factors.
The owners should insist the local city council and government body of Warrnambool to invest
enough capital amounts so make the duplex residential construction project a successful one.
Resources: In order to implement this project human and physical both resources are
needed to be considered. The human resources who will be assigned to the construction project
include project manager, contractors, local city council, construction supervisor, labors, civil
engineer and architect (Dennis, Wixom and Roth 2018). On the other hand, the physical
resources that will be required for the project include: raw materials, construction equipments,
other materials, tools and manpower.
Competitive market: After details market analysis it is determined that, the construction
industry of Warrnambool, Australia is not much competitive due to less population
approximately 10,000. However, the local city council has taken this decision because the
population is this location is growing nowadays. Therefore, in order to accommodate theses
people the council has decided to construct the residential duplex in an affordable price limit.
Demographic factor: It is determined that, demographic forces or demographic factors
are related to the people associates to the project. The factor includes age, gender, occupation,

4RESIDENTIAL DUPLEX DEVELOPMENT PROJECT
statistics, monthly rate of income etc (Newcomer, Hatry and Wholey 2015). For duplex
residential construction project the age group or people who are targeted fall under age group of
30 and 65. The selling price of the project is not so high therefore, people with a medium income
rate can afford.
Micro environment business drivers
Technical or internal expertise: the design outline must be prepared by skilled civil
engineers and architects. Thus, technical skills, knowledge and experience the project team
associates are must essential of the successful deliver of the construction model. The technical
expertises of the associates are measures with the help of the technical performance
measurement matrices. If these measures are not considered then during the project execution
period major risks or challenges may arise (Khalfan et al., 2015). Different project management
tools and techniques will be used by the project associates to accomplish the project. If proper
skills, knowledge and experiences are missing then due to lack time the project associates will
not be able to finish the project in assigned time of 9 months.
Time pressures: Time is the other essential factor that can create operational and
functional project challenges. The duplex housing construction project is large as well as
complex in size therefore, based on complexity of specific activities the supervisor needs to
assigned proper resources to each project activity. If an issue of project over allocation occurs
then it will hamper both the primarily estimated project budget and time. Though, it is job of the
project associates to complete specific activities in allocated time and budget.
Other people related considerations: In order to complete the duplex construction
project not only team members are important but also stakeholder and steering committee play

5RESIDENTIAL DUPLEX DEVELOPMENT PROJECT
important roles. Therefore, in order to keep the stakeholder engaged to their assigned job roles
and duties proper stakeholder engagement strategies are needed to be used by the supervisor
(Borkovskaya, Degaev and Burkova 2018). In addition to this all the steering committee
members needs to take equal participation in the construction decision making approach.
Feasibility report
Feasibility analysis is an evaluation or analysis report proposed for any project to
calculate whether the project will be technically, economically and commercially beneficial or
not. Whether the project will give opportunities to owners or not is measured using feasibility
study. In order to complete the project in assigned timeframe and budget of 9 months and
$800,000 the below considerations should be essentially followed:
Land Information: The assessment is related to construction of a residential duplex in a
location where the current population is approximately not more than 10000. A 1.5 Acre size of
land is purchased in suburb Warrnambool, Victoria (the complete address of the chosen location
is - 45 Dobson Way, Warrnambool VIC 3280) where the duplex residential construction will
take place.
Purchase Information: In order to construct the duplex residential in Warrnambool,
Victoria, a land in purchased in 45 Dobson Way, Warrnambool VIC 3280 with a purchase cost
of $350,000.
Stamp duty is a specific amount that the buyers need to pay as tax to their government
body (stamp-duty 2019). This value is dependent on the land purchase amount and for different
suburb region this value also varies. On the other hand, the conveyancing fee is the legal service
cost that buyers need to pay for any construction project.

6RESIDENTIAL DUPLEX DEVELOPMENT PROJECT
Construction information: Donehues Enterprise Pty Limited is the construction of
Builder Company nominated for successful completion of the duplex residential and construction
cost for the duplex is estimated as $290,000.
Local council information: In order to initiate this project the owner or project
supervisor needs to get approval from the local council- Warrnambool City Council. The
minimum land size that the local council allows for such duplex residential construction is 0.5
Acre but for this project the purchased land size is 1 Acre (Rent in-warrnambool 2019). Planning
plays indispensable role in different construction project. Similarly, in order to expand the plan
for this project a total cost which is $40,000. In addition to this, the local council rate for the
project is $500.
Duplex information: After analyzing the project case scenario it is resolute that the net
cost allocated for building and construction of duplex residential complex is $800,000. From the
annual report of Warrnambool city council and Australian statistical bureau, it is considered that
the rental income in Warrnambool is $350 per week approximately. Therefore, the gross monthly
rent that the owner can obtain from the project is $1500. Apart from this, the monthly agent fees
and fees for monthly landlord insurance of the project are respectively $60 and $50.
Project Feasibility Study
1. Land
Information
2. Purchase
Information
Land Address: 45 Dobson Way,
Warrnambool VIC 3280
Land Price: $350,000
Suburb/Town: Warrnambool Stamp Duty: $13,870

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Land Size: 1.5 Acre Conveyancing
Fees:
$10,000
3. Local Council
Information
4. Construction
Information
Local Council
Name:
Warnambool City
council
Builder Name: Donehues
Enterprises Pty Ltd
Minimum Land
Allotment Size:
1 Acre Duplex
Construction
Costs:
$290,000
Development
Planning Fees:
$40,000
Monthly Council
Rates:
$500
5. Duplex
Information
Duplex Estimated
Value:
$800,000
Monthly Rental
Income:
$1,500
Monthly Agent
Fees:
$60
Monthly Landlord
Insurance:
$50

8RESIDENTIAL DUPLEX DEVELOPMENT PROJECT
6. Project Results
Equity Value = Duplex Value of
$800000
les
s
Total Outgoings
of $703870
equals $96130
Net Monthly
Rental Income =
Gross Monthly Rent of
$1500
les
s
Holding Costs of
$1500
equals $890
Conclusion
From the overall project feasibility report structure it is measured that, if before final
execution of the project theses above mentioned aspects and factors are followed then the project
will successfully meet the primary project objectives, goals and aims. The micro and macro
business drivers and business factors are individually analyzed before final project execution.
The local council of Warrnambool, Victoria and the project supervisor have take all the valuable
project measure that will help to bring commercial profit to the government and overall Suburb
town. The final measurement defined that, both values of total outgoing and gross monthly rent
for the project are positive and around primary expectation. It is also identified that the total
profit that the owners will get after the final execution and implementation of the project is
$96,130 and the total monthly rental income that will be generated from the project is $890.

9RESIDENTIAL DUPLEX DEVELOPMENT PROJECT
References
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systems, methods and scheduling tools. In MATEC Web of Conferences (Vol. 86, p. 04063). EDP
Sciences.
Almarri, K. and Abu-Hijleh, B., 2017. Critical Success Factors for Public Private Partnerships in
the UAE Construction Industry-A Comparative Analysis between the UAE and the UK. Journal
of Engineering, Project & Production Management, 7(1).
Borkovskaya, V., Degaev, E. and Burkova, I., 2018. Environmental economic model of risk
management and costs in the framework of the quality management system. In MATEC Web of
Conferences (Vol. 193, p. 05027). EDP Sciences.
Dennis, A., Wixom, B.H. and Roth, R.M., 2018. Systems analysis and design. John wiley &
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Domain in-Warrnambool., 2019 realestate.com.au. [online]
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sustainable construction amongst construction contractors in state of Victoria, Australia. Journal
of Economics, Business and Management, 3(10), pp.940-947.
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construction timelines. In MATEC Web of Conferences (Vol. 193, p. 05033). EDP Sciences.

10RESIDENTIAL DUPLEX DEVELOPMENT PROJECT
Newcomer, K.E., Hatry, H.P. and Wholey, J.S., 2015. Cost-effectiveness and cost-benefit
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arXiv:1812.04116.

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Appendices
Appendix 1
Figure 1: Timeframe of the project
(Source: Created by Author)