Project Feasibility Study: Residential Duplex Construction - MBA641

This report presents a comprehensive project feasibility study for a residential duplex construction project in Maroubra, Australia. It begins with an overview of the project, outlining the goals, constraints, and the selection of Maroubra as the location due to its population and desirability. The report then details a nine-month project timeline, breaking down the construction process into weekly phases, from land purchase and approvals to construction and interior decoration. A key component is the project feasibility study, which analyzes land information, purchase details, local council regulations, and construction costs to determine the project's financial viability. Furthermore, the report explores the macro environment business drivers, including demographic, economic, competitive, resource-based, and political/legal factors, and how these elements influence the project's success. Finally, it examines the micro environment business drivers, such as technical expertise, time pressure, and supplier relationships, providing insights into the operational aspects of the residential duplex construction. The report concludes by emphasizing the importance of adapting to environmental changes and strategic resource allocation for project success.

Running head: PROJECT MANAGEMENT
Strategic Project Management
Name of the Student
Name of the University
Author’s Note

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Table of Contents
1. Overview of the project...............................................................................................................2
2. Project timeline............................................................................................................................3
3. Project feasibility.........................................................................................................................3
4. Macro environment business drivers...........................................................................................4
5. Micro environment business drivers............................................................................................7
References......................................................................................................................................10

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1. Overview of the project
In this project, focus is on the residential duplex construction in Maroubra which is one
of the beachside suburbs within the eastern part of Sydney, Australia. For successfully
constructing the residential duplex, the owner must have a real estate development related
business with amount of $800,00 as cash reserve for the entire project. Maroubra is selected for
the construction of duplex as the regional Centre have more than 10,000 of population and is
considered as one of the best places to live in Australia. The construction of the duplex is mainly
undertaken by “Quality projects Australia” which is a construction company in Brown Rd,
Maroubra NSW 2035, Australia. The project will generate enough equity and income by
constructing the residential duplex in Maroubra.
Project goal: The project focused on generating high amount of income as well as equity
by undertaking the residential duplex construction in Maroubra, Australia.
Project constraints: The restrictions which can hamper or obstruct the progress of the
project are mainly listed below:
 Budget overshoot can be a restriction while undertaking the residential duplex
construction project as the problem of budget overshoot can create financial complexities
for the project manager.
 The problem of scope creep occurs due to regular changes in the requirement of the
project which further cause delay as well as extension in the execution date of the project.

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2. Project timeline
The timeline that is showcased generally helps in depicting that the construction work
will get accomplished within the time period of 9 months.
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38
Settlement Period on Land Purchase
Selecting appropriate land
Getting approval from the local council of Maroubra
Payment of conveyancing fees
Providing documents
Verification of the documents
Payment
Duplex Construction
Hiring team members and allocating resources
Creating design
Procurement management
Land prepration
Construction of duplex
Constructing residential duplex
Interior decoration
Painting and application of electrical appliances
Weeks
Project Timeline
Figure 1: Project timeline
(Source: Created by Author)
3. Project feasibility
The project feasibility study which is showcased below assists in reflecting that the aim
of the project is achieved and the undertaken project is very much feasible. It is found that for
constructing the residential duplex, land size of 10,000 square feet is selected in Maroubra,
Sydney. The work of construction will be undertaken by the project quality Australia which is a
construction company in Maroubra. In order to properly undertake the feasibility analysis proper
information about the local council is provided as per which the allocated development planning
fees was around $92,000 and the monthly council rate are around $5,000 (Ramo et al. 2015). In
addition to this, duplex construction related information are also provided that helps in

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suggesting that monthly rental income of around $90,000 is provided as well as monthly agent
fees that will be given is around $8,000 and a monthly landlord insurance of budget $7,000. The
detailed analysis on the project feasibility is showcased below:
1. Land Information 2. Purchase Information
Land Address: Maroubra Land Price: $2,40,000
Suburb/Town: Sydney Stamp Duty: $16,000
Land Size: 10,000 square feet Conveyancing Fees: $12,000
3. Local Council Information 4. Construction Information
Local Council Name: Maroubra regional council Builder Name: Project quality Australia
Minimum Land Allotment Size: 10,000 square feet Duplex Construction Costs: $3,40,000
Development Planning Fees: $92,000
Monthly Council Rates: $5,000
5. Duplex Information
Duplex Estimated Value: $8,00,000
Monthly Rental Income: $90,000
Monthly Agent Fees: $8,000
Monthly Landlord Insurance: $7,000
6. Project Results
Equity Value = Duplex Value of $800000 less Total Outgoings of $700000 equals $100000
Net Monthly Rental Income = Gross Monthly Rent of $90000 less Holding Costs of $20000 equals $70000
Project Feasibility Study
Figure 2: Project feasibility study
(Source: Created by Author)
4. Macro environment business drivers
Micro environment is considered as the external environment which is uncontrollable by
the business and therefore the success of the entire business will be dependent on the ability of
adapting as well as reacting towards various types of changes that mainly occurs. It is found that

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when residential duplex was considered, it is analyzed that there are a number of macro factors
which can be able to drive this business properly and for this, the business needs to properly
monitor the different types of element on which the business is dependent (Kasim and Dzakiria
2016). This helps in providing proper understanding about the entire dynamic environment and
also assists in adapting to the entire change that mainly occurs within the entire environment.
The various factors within the macro environment which can drive the residential duplex
business are illustrated below:
Demographic factors
Demographics is mainly dependent on the population of an area and it is found that most
of the business generally grows in context to those factors and therefore demography can be
considered as one of the success factors for the business. It is found that Maroubra have more
than 10,000 populations, therefore the chances of failure of business is quite low (Gurhan-Canli,
Hayran and Sarial-Abi 2016). Due to population, there will always a need for the residential
building and thus there are no chances of low income from the residential duplex that will be
constructed in Maroubra.
Economic factors
It is found that the economic condition of the business and its performance are quite
related and the economy of the entire business is dependent on the various inputs. It is found that
as Maroubra is one of the beachside suburbs which is very much attractive and therefore the
chances of boom in the economic profit from the residential duplex is quite high (Barkauskas,
Barkauskiene and Jasinskas 2015). If the rate of income from the duplex will be high, then new
capital will be available which can be utilized for other purpose.

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Competitive factors
A competitive advantage is considered as a significant business driver which allows a
company to be unique and provide different types of services with which the competitors are
unable to match. It is found that for achieving proper competitive advantage within Maroubra, it
is very much necessary to utilize its resources, people as well as capabilities effectively
(Reinhardt et al. 2017). It is necessary to follow the differentiation-based strategies with which
the existing competitors cannot match including performance, higher quality as well as other
services which can attract a customer. In addition to this, they can be able to differentiate their
business strategies with the help of various types of intangible benefits including reputation as
well as image that helps in providing the residents of the building to take rent in that building
(Hillary 2017). Moreover, creating barriers is also considered as an important factor for gaining
competitive advantage and this generally avoids other people to get entry within that market
easily.
Resource based factors
In order to achieve success within a particular business, it is important to focus on the
right resources which are helpful in supporting those goals. It is very much important to pay
proper attention to various types of strategic resource allocation in order to effectively support
the growth of the business and proper ways through which the resource related requirement can
evolve within the entire lifespan of the business (Popescu, Popescu and Popescu 2016). Within
the residential duplex construction, it is necessary to allocate the project resources properly. The
business must use the accurate tools as well as resources for achieving success for improving
efficiency and for achieving the goals of the project effectively. As the resources are the areas
where the business can be able to make and save money therefore investing within the right

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resources is considered to be useful for the success of the business. When the present
requirements are properly known then one needs to educate different types of predictions that are
associated with the staffs.
Political and legal factors
The political environment of Australia generally combines three branches of the
government including legislature, judiciary as well as executive. It is found that within the
political environment, it mainly depends on a number of factors as well as ideologies which are
mainly present at the central as well as state levels (Reinhardt et al. 2017). The construction of
the duplex is allowed by taking permission from the local regional government who mainly
provides permission after reviewing the documents and the reasons for the project. Thus, the
permission from the local regional government is quite significant for starting the work of the
project successfully.
5. Micro environment business drivers
The micro-environment is one of the operating environments that have a direct as well as
immediate bearing on the entire business. They are generally interlinked with the business of
residential duplex that play an important role in driving the entire business towards success.
They are the factors that create direct impact on the entire business operations as well as on the
success of the business (Thatcher et al. 2016). If a business properly understands the various
microeconomic factors then it will generally help in planning as well as preparation for creating
business strategy for achieving success within the environment. The different types of micro-
economic based factors that will create impact on the business of residential duplex are mainly
illustrated below:

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Technical/internal expertise
It is quite necessary to employ staff with different types of skills as well as experiences
so that they can handle the work quite effectively. This procedure generally starts at the
recruitment stage which generally continues within the entire employment of the employees with
the help of ongoing training as well as promotion related opportunities. It is found that training
as well as development generally plays an important role in properly achieving the competitive
edge especially within the entire service sector marketing (White 2018). It is found that if the
business generally employs various staffs with proper motivation, experience as well as skill
such that it will affect the entire service of the customers and therefore the profit that will earned
from the business increases which further helps in creating positive impact on the business
environment (Wang et al. 2016). In addition to this, it is quite important to have link with proper
suppliers who can be able to transfer materials in order to carry out the various business
activities. It is found that a supplier’s behavior will generally create proper impact on the
business from where it supplies. Furthermore, it is identified that increase in the prices of raw
materials will affect the construction of the residential duplex as it will generally increase the
total expenditure on the project (Pham and Irhamna 2017).
Time pressure
It is found that time management is essentially important for organizing s well as
planning the time that is needed to be spent on the project. The result of time pressure within a
business is quite good as it generally helps in increasing both productivity as well as
effectiveness. It is considered as one of the key aspect of project management that mainly
includes a number of skills including planning for proper as well as better performance of the
residential duplex business (Kozubíkova, Homolka and Kristalas 2017). The time pressure helps

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in managing the work that is needed for achieving success quite efficiently that further helps in
reflecting that one needs to properly structure the time so that the work gets finished as per the
estimation. Furthermore, planning helps in properly identifying the tasks that is mainly needed
for finishing the project efficiently. Moreover, when the work needs to be completed within time
constraint then there are a number of strategies that helps in executing the various tasks as well
as project work effectively.
People related consideration
Customers are generally considered as the most important factor within the
microenvironment. It is necessary for the entire business to promote strategies and campaigns for
attracting as well as retaining its customers by properly understanding them effectively. It
generally helps in properly generating proper revenue stream for selling the entire customer base
if you understand the various types of preferences better (Maak, Pless and Voegtlin 2016).
Business generally helps in properly strengthening the entire customer connection as customer
engagement is one of the important key focuses for the entire business because of the growing
competition. It is identified that the customers generally have a direct microeconomic impact on
the entire business such that it helps in operating properly within the entire company for
attracting the targeted customers (Ngai and Omido 2015). It is necessary to know the various
ideal customers properly for properly developing as well as presenting different types of
marketing strategies so that the business can be able to achieve profit. As Maroubra is one of the
residential areas with more than 10,000 populations therefore more customers will be attracted
towards the business and as a result it is analyzed that customers are one of the significant factor
that helps in exploring the business towards success.

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References
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Ngai, S. and Omido, K., 2015. Investigation of the effects of regulatory framework on youth
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