University Project: Strategic Project Management Feasibility Report

This report provides a comprehensive feasibility study and timeline for a residential duplex development project, focusing on a case study in Armidale, Australia. It begins with an introduction outlining the project's objectives of achieving equity and income within a nine-month timeframe and a b...Read More

Running head: STRATEGIC PROJECT MANAGEMENT
Residential duplex development project
Name of the Student
Name of the University
Author’s Note

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Table of Contents
1. Introduction..................................................................................................................................2
2. Feasibility analysis.......................................................................................................................2
3. Constraints and goals..................................................................................................................6
3.1 Project constraints..................................................................................................................6
3.2 Project goals...........................................................................................................................6
4. Macro environment business drivers...........................................................................................7
5. Micro-environment business drivers...........................................................................................8
6. Conclusion...................................................................................................................................9
References......................................................................................................................................10

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1. Introduction
The paper mainly focuses on the preparation of project feasibility report and timeline
that is mainly based on the information which is achieved from the residential duplex project
which is situated in 140, Rusden Street, Armidale, Australia. The aim of undertaking this project
is to gain both equity and income as much as possible. It is found that the current business-
related project that is undertaken will get finished within the timeframe of 9 months and the cash
reserve that is allocated for the project will be around $800,000. The entire paper provides proper
explanation that is required to be supported by evidence and further which is mainly sourced by
each of the item. In addition to this, the paper elaborates both the macro and micro business
drivers.
2. Feasibility analysis
According to Rodrigues et al. (2016), the feasibility analysis that is undertaken within the
entire project is mainly utilized for successfully determining the viability of a particular idea for
ensuring that the project of duplex construction is feasiable. The feasibility analysis that is done
on the project mainly includes the terms which are elaborated below:
Information about land council: It is found that the duplex residency project that is
undertaken in 140 Rusden Australia is under the Armidale regional council. It is identified that
the council allotted 10,000 square feet of land and provides planning fees of around $90,000. In
addition to the monthly rates of the council is around $4000 on average as the amount that is paid
to the council varies.
Development planning fees: The development planning fees which are mainly under the
2016 regulation and as per the planning, it is found that an amount of money is generally

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required to be paid for making the entire plan for accomplishing the development of duplex
residential project (Njoh 2016). For the duplex project, the development planning fees which is
required to be provided by the local council will be around $90,000.
Monthly council rates: It is stated by Hans et al. (2015) that monthly rate of the council
is a amount of money that is mainly paid in every month for completing the work of
development in context to residential duplex. Moreover, the amount of money that is mainly paid
generally chances every month as it is dependent on a lot of fcators and therefore the value is not
constant.
Duplex estimated value: The money which is assumed to be sufficient for the
development of the duplex residency in 140, Rusden Street is defined as the duplex estimated
value which is around $800,000.
Monthly rental income: It is stated by Naik (2015) that the amount of money which is
gathered by the landlord from tenant for utilizing the residential duplex is known as the monthly
rental income. In some of the cases, the business does not have sufficient funds that is mainly
required for purchasing the premises will generally need to make the entire payment in
instalment basis. If the residential duplex is constructed then the landlord can keep tenants and
get money in monthly form which is considered as the income.
Monthly agent fees: The agent is paid on a monthly basis for their engagement within
the project. In the duplex development project, it is found that around $7,000 is paid as agent
fees on monthly basis for their involvement in the project.
Monthly landlord insurance: It is mainly based on different types of insurance policy
which mainly aims for taking the entire coverage about the property of the owner as well as the

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financial issues that mainly occurs due a number of challenges including the issues that are
related with various types of rental properties.
Equity value: Equity value is simply defined firm’s equity value which is further known
as the market capitalization. It is further calculated by successfully calculating the market value
per share by the total number of shares outstanding. It is necessary for the seller to know the
equity value while selling a business or property (Heaton 2018).
Stamp duty: It is defined as the tax which is properly levied on different types of
documents including the receipts, cheques as well as land transactions. In this specific project,
the amount of money that is mainly paid as stamp duty is around $17,000.
Conveyancing fees: It is an act that is used for getting engaged within the a specific
activity of property transfer from the land owner to the person who is buying the land. The price
of conveyancing fees generally varies and it mainly depends on a number of factors (Abbey,
Richards and Richards 2017). For the development of duplex, the conveyancing fees that is
required will be around $10,000.
The table that is provided below showcase the value of money that is used for each of the
criteria and the results helps in reflecting that the project is feasible. It is found that values that
are utilized in the below table are gathered from the website of Armidale Regional Council
(Armidaleregional.nsw.gov.au.2019).
Project Feasibility Study
1. Land Information 2. Purchase
Information

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Land Address: 140, Rusden Street,
Armidale
Land Price: 2,50,000
Suburb/Town: Armidale Stamp Duty: $17,000
Land Size: 11,000 square feet Conveyancing Fees: $10,000
3. Local Council
Information
4. Construction
Information
Local Council Name: Armidale Regional
Council
Builder Name: ADCO
construction
Minimum Land
Allotment Size:
10,000 square feet Duplex Construction
Costs:
$3,50,000
Development Planning
Fees:
$90,000
Monthly Council Rates: $4,000
5. Duplex Information
Duplex Estimated Value: $8,00,000
Monthly Rental Income: $99,000
Monthly Agent Fees: $7,000
Monthly Landlord
Insurance:
$8,000
6. Project Results
Equity Value =$100,000 Duplex Value of
$800000
le
ss
Total Outgoings of
$717000
equals
$83000

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Net Monthly Rental
Income = 70,000
Gross Monthly Rent
of $99000
le
ss
Holding Costs of
$19000
equals
$80000
3. Constraints and goals
3.1 Project constraints
A constraint in project management is considered as restriction that helps in defining the
limitations of the project which can obstruct the progress of the project. The most significant
constraints that generally limits the entire project are mainly elaborated below:
Schedule: The project of duplex construction should be accomplished within 9 months
however if the project manager and the contractors are unable to execute the activities of the
project as per the schedule then schedule slippage can occur which further can cause delay
within the entire project.
Cost: It is found that around $800,000 cash reserves are allocated for the project but if
the project cannot be executed within the allocated budget then a number of financial issues and
thus the progress of the project can get obstructed. In addition to this, it is quite important to
manage the cost of duplex construction properly for avoiding financial challenges.
Scope: Scope of the project needs to be followed while executing the project otherwise
the project will face a number of issues in accomplishing the project objectives due to a number
of scope creep which further can cause obstruction during project progress.
3.2 Project goals
The main goals of the project to have both equity and income as much as possible by
preparing both feasibility and timeline report on the duplex residential development project in
140, Rusden street Australia.

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4. Macro environment business drivers
According to Barkauskas, Barkauskienė and Jasinskas (2015), macro environmental
business drivers are mainly considered as the external factors that are helpful in properly
influencing the entire procedure of decision making within an organization and further helps in
affecting the business performance as well as business related strategies. The different types of
macro environment factors like economic, competition, resourcing and other demographic
factors which are mainly considered during the duplex development project are depicted below:
Economic: It is identified that different economic factors are those that generally assists
in affecting the buying and the power of expenditure. The money which will be gained from the
project is mainly compared with the money which is invested on the project in order to achieve
the economic benefit from the entire project (Blanco and Cohen 2017). The results that are
achieved helps in showcasing that the construction of the duplex will further be beneficial in
driving the entire business quite positively.
Competitive: The location “140, Rusden street Armidale which is selected for the duplex
project has not low population and therefore the services that are needed to be provided by the
business must be unique in order to gain competitive advantage and for attracting number
customers towards the services which are delivered.
Resourcing: Resourcing within the project is found as a significant technique that further
assists in affecting the progress of the project positively. It is necessary to estimate as well as
select the required resources properly which will further provide lot of opportunities to the
business for achieving success (Makori 2019). Therefore, the credibility and the targeting power
of the spectators enhances.

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Demographic factors: These factors are linked with the people and further the people
are considered as the drivers of the macro business environment which helps in affecting the
business positively. These specific factors are helpful in giving a lot of opportunities to the entire
business.
5. Micro-environment business drivers
It is opined by Gu et al. (2019) that micro environment mainly focuses on various factors
that mainly helps in properly creating proper impact on the entire procedure of performance and
decision making within the business. The analysis that is mainly done before taking proper
decisions are mainly linked with the success of the project. Furthermore, it is identified that there
a lot of micro environment factors including internal expertise, time pressure as well as people
related consideration in context to the project are illustrated below:
Time related pressure: It is necessary to manage the time-based pressure effectively in
order to achieve the objectives. If the time related pressure is not handled successfully then a
number of issues including schedule slippage as well as shortfall of budget occurs which further
can create construction in the project progress.
Marketing intermediaries: There are a number of factors as well as elements which are
generally linked the different drivers of the micro environment that further helps in playing a
significant role in successfully achieving different types of marketing related strategies for the
business (Lancaster and Massingham 2017). This are mainly found as the important factors that
are mainly used by the businesses for promoting as well as for achieving success within the
entire business.

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Suppliers: Suppliers plays a significant role in in making the business of the project
successful. They help in developing appropriate link that exists between the delivery value and
the business. The suppliers who are linked with the project generally helps in providing all the
necessary required resources for the development of the duplex residency.
Another people consideration: In order to generate revenue, customers are considered
as one of the significant parts of the entire business (Anggadwita and Dhewanto 2016). In
addition to this, it is necessary for the residential complex to utilize different types of marketing-
based strategies for attracting more customers that will further be beneficial in fulfilling the
demands.
6. Conclusion
It can be concluded that entire project which is mainly conducted is economically
feasible and thus the entire project will get accomplished within the 9 months of time. It is found
that the report discusses different types of criteria that are required for developing the feasibility
report. In addition to this, both the micro and macro business drivers are properly elaborated
which further helps in driving the success of the duplex project in Rusden street successfully.
Moreover, the paper also elaborates the various types of limitations that generally obstructs the
progress of the project.

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References
Abbey, R., Richards, M.B. and Richards, M., 2017. A practical approach to conveyancing.
Oxford University Press.
Anggadwita, G. and Dhewanto, W., 2016. Women’s entrepreneurial intentions in micro and
small enterprises (MSEs) in Indonesia: The influence of environmental factors on perceived
behavioral control. Journal of Administrative and Business Studies, 1(1), pp.1-7.
Armidaleregional.nsw.gov.au. 2019. Welcome - Armidale Regional Council. [online] Available
at: https://www.armidaleregional.nsw.gov.au/ [Accessed 27 Aug. 2019].
Barkauskas, V., Barkauskienė, K. and Jasinskas, E., 2015. Analysis of macro environmental
factors influencing the development of rural tourism: Lithuanian case. Procedia-Social and
Behavioral Sciences, 213, pp.167-172.
Blanco, J.M. and Cohen, J., 2017. Macro-environmental factors driving organised crime.
In Using Open Data to Detect Organized Crime Threats (pp. 137-166). Springer, Cham.
Gu, S.S., Hu, X.S., Wang, X.S., Li, Z., Traugh, N., Bu, X., Xing, X., Freeman, G., Brown, M.
and Liu, X.S., 2019. Abstract A077: Microenvironmental factors shape resistance patterns to
immune checkpoint blockade.
Hans, B., Baffes, J., Emelyanova, O., Ulatov, S. and Vashakmadze, E., 2015. Russia Monthly
Economic Developments, July 2015.
Heaton, J.B., 2018. Positive Equity Prices with Insolvency Under Legal Solvency Tests. Journal
of Forensic Economics, 27(1), pp.63-70.

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Lancaster, G. and Massingham, L., 2017. The development of a strategic approach to marketing:
Its culture; internal macro-and external micro-environmental issues. In Essentials of Marketing
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Makori, E.M., 2019. Response Strategies And Sustainability Of Hebrew Immigrant Aid Society
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Njoh, A.J., 2016. Tradition, culture and development in Africa: Historical lessons for modern
development planning. Routledge.
Rodrigues, S., Torabikalaki, R., Faria, F., Cafôfo, N., Chen, X., Ivaki, A.R., Mata-Lima, H. and
Morgado-Dias, F.J.S.E., 2016. Economic feasibility analysis of small scale PV systems in
different countries. Solar Energy, 131, pp.81-95.