Detailed Economic Feasibility Study: Leisure and Community Centre

This report presents an economic feasibility study for a proposed leisure and community centre, evaluating its potential viability. The study includes a project proposal outlining the scope, budget of $18 million, and key requirements such as a large sports hall, squash courts, cafeteria, fitness suite, and outdoor pitches. It details the project budget, potential income streams from various activities like yoga classes, sports hall rentals, and cafeteria sales, and estimates expenditures including land acquisition, construction costs, and operational expenses. The analysis concludes that the project is economically feasible, projecting an annual income of $20 million against estimated expenditures of $16 million, resulting in a profit of $4 million. Desklib provides access to this and similar solved assignments.

Economic Feasibility
Study Project

Table of Contents
INTRODUCTION...........................................................................................................................1
Stage 1: Develop project proposal or scope.....................................................................................1
Stage 1: Requirements............................................................................................................1
CONCLUSION................................................................................................................................4
REFERENCES................................................................................................................................4

INTRODUCTION
The construction economics is branch associated with the general economics and
consists of the application of the technique and exercises in the field of economics to effectively
study the feasibility level of construction firm (Himri & et. al., 2020). The current project is
based on development and feasibility analysis for a new leisure and community centre. An initial
discussion about the project budget, potential income and estimate expenditure has been
provided in this project proposal report.
Stage 1: Develop project proposal or scope
The current project proposal is based on carry out and analysing the feasibility level of the
development of a new Leisure and community centre. The current project comprises of the
Client own the land (approx. 120 m long by 90m width (108,000 Sq. meters)) provided in with
an approved budget of $18 million only for the Centre.
Thus, based on the above budget and description, it has been decided that the development
of the current new Leisure and community centre would comprises of a large sports hall, squash
courts, cafeteria, licensed bar, fitness suite, aerobics studios, outdoor grass and/or artificial
pitches for football and hockey. The current idea of making of leisure and community centre is
seemed to be feasible and justifiable as a new leisure and community centre would supports an
improvement in the balance and strength of community through supporting healthy games and
yoga for peace of mind. Further, the development of the new leisure and community centre
would also develop string and more positive relation between the members of community and
also build stronger bonds and sharp mind through providing a place where people can enjoy
leisure time while paying games and interacting with other people.
Stage 1: Requirements
The key requirements and main heading of proposal comprises of estimation of budget
along with possible income and expenditure to effectively analysis and evaluate the feasibility
level of a project. The main requirements of the current new leisure and community centre has
been provided as below:
Project Budget
A project budget is basically a written document that provides a total sum total of the
money that is being allocated for a particular purpose and activity or specific task of a project for
1

a specific period of the time (Zhou, & Cao, 2020). The main purpose and goal behind making
project budget is to set an effective control over the costs of the budget along with estimating the
delivery of the expected project goals. Following project budget has been prepared for current
leisure and community centre:
Description Total Amount ($)
Land acquisition 2000000
Construction 10000000
Legal 1000000
Processional service 500000
General Fund 2000000
Furniture, Fixture and equipment 1000000
City contingency 500000
Other Miscellaneous 1000000
Total 18000000
Potential Income
This head of research proposal tends to comprises of the information about he expected
amount that might get earned from the launch and development of a project. The potential
income that would be earned from the development of the leisure and community centre has
been provided below that is reflecting a justification for its feasibility level.
Basis of income Amount earned per year ($)
Yoga classes 1000000
Sports hall 5000000
Squash courts 3000000
Cafeteria 4000000
Fitness suite 2000000
Aerobics studios 1000000
Football and hockey 4000000
Total 20000000
2

Expenditure estimates
This section of the research proposal tends to present and reflect about the vital
components of a construction process and entails a process of forecasting costs. The expenses
expected for a building or a physical structure are an essential aspect of the construction process
which tend to form part of the cost estimates for every kind of construction project. The main
expenditure estimated that are related and associated with the current project of developing a
leisure and community centre has been provided and reflected below with the help of the
following table:
Basis of expenditure Amount ($)
Land purchase and acquisition 2000000
Designing Costs 500000
Service connection and provides 3000000
Professional and expertise cost 1000000
Labour cost 500000
Material cost 2000000
Construction cost 4000000
Plumbing costs 500000
Electricity cost 2000000
Other miscellaneous expenditure 500000
Total 16000000
3

CONCLUSION
On the basis of the above provided report and discussion about the expenditure and income
associated with the development of the new leisure and community centre it has been observed
that it seemed to be feasible and justifiable enough to construct and develop this leisure and
community centre. It has been summarised that the annual income of the leisure and community
centre is near around $2000000 while the estimate expenditure is $1600000 that is clearly
presenting a profit of $4000000. Thus, it is feasible and justifiable to construct and invest in the
current project of developing leisure and community centre.
REFERENCES
Books and journal
Agyekum, E. B., & Nutakor, C. (2020). Feasibility study and economic analysis of stand-alone
hybrid energy system for southern Ghana. Sustainable Energy Technologies and
Assessments, 39, 100695.
Himri, Y. & et. al. (2020). Potential and economic feasibility of wind energy in south West
region of Algeria. Sustainable Energy Technologies and Assessments, 38, 100643.
Sarker, S. A. & et. al. (2020). Economic feasibility and determinants of biogas technology
adoption: Evidence from Bangladesh. Renewable and Sustainable Energy Reviews, 123,
109766.
4

Zhou, Y., & Cao, S. (2020). Coordinated multi-criteria framework for cycling aging-based
battery storage management strategies for positive building–vehicle system with
renewable depreciation: Life-cycle based techno-economic feasibility study. Energy
Conversion and Management, 226, 113473.
5