MBA641: Project Feasibility Study and Timeline for Duplex Development

This report provides a comprehensive project feasibility study and timeline for a residential duplex development, focusing on a property located in North Geelong, VIC. It begins with an introduction highlighting the importance of feasibility analysis and time management in project implementation. The report outlines project constraints, including scope, cost ($800,000), and time (9 months), and defines project goals. A detailed feasibility analysis is presented, considering land price, stamp duty, conveyancing fees, and projected rental income. The report also analyzes macro-environment business drivers, such as economic factors, competitiveness, resourcing, and demographic considerations, as well as micro-environment business drivers like technical expertise, time pressures, and people-related factors. The project timeline is broken down into phases: land purchase settlement, council approval, and construction. The report concludes with a summary of findings and recommendations, emphasizing the project's viability and the importance of adhering to the proposed timeline and budget. The analysis includes all relevant financial data, construction costs, and market analysis to support the project's feasibility.

Running head: PROJECT FEASIBILITY STUDY AND TIMELINE
Assessment 2 – Project Feasibility Study and Timeline
Residential Duplex Development Project
Name of the student:
Name of the University:

1PROJECT FEASIBILITY STUDY AND TIMELINE
Table of Contents
Introduction......................................................................................................................................1
Constraints and goals.......................................................................................................................1
Constraints...................................................................................................................................1
Project goal..................................................................................................................................2
Feasibility analysis and timescale for the residential duplex construction project..........................2
Feasibility report..........................................................................................................................2
Timescale for the project.............................................................................................................6
Macro environment business drivers...............................................................................................7
Economic.....................................................................................................................................8
Competitiveness...........................................................................................................................8
Resourcing...................................................................................................................................8
Demographic factors taken into account when determining feasibility study.............................8
Micro-environment business drivers...............................................................................................9
Technical /internal expertise........................................................................................................9
Time pressures...........................................................................................................................10
Other people-related considerations..........................................................................................10
Conclusion.....................................................................................................................................10
References......................................................................................................................................12

2PROJECT FEASIBILITY STUDY AND TIMELINE
Introduction
This report portrays the importance of using feasibility analysis and time management
plan before implementing any project. The location chosen for construction of the project is 71
Walsgott St, North Geelong, VIC 3215. A feasibility analysis report and detail timescale are
presented by the project supervisor, contractors and finance manager to ensure that it would
bring competitive advantaged in the regional area and profit at the same time (Geelong Australia
2019). The budget and time estimated for the project is 9 months. A detail statistical
measurement is presented in the feasibility report. Apart from this, the macro and micro business
environment are also analyzed before presenting the paper.
Constraints and goals
Constraints
The project constraints are illustrated in the below section:
Scope: For any project design of project scope statement ad use it properly is much
crucial. The scope statement needs to be shared properly among the project team associates to
make sure that these are properly understood by rest (Svejvig and Andersen 2015). If project
scope is not accurately followed while implementing the project then a complete project may fail
to meet the primary aim and objectives.
Project cost: For this project a budgetary plan is developed which identifies that the total
cost for the project would be $800,000. All the measures needs to be done accurately to keep the
project in the limit of $800,000. It is duty of the finance and project manager to finish the project

3PROJECT FEASIBILITY STUDY AND TIMELINE
in the predicted cost (Osei-Kyei and Chan 2017). If the resources are not appropriately managed
then the project may face issues of budget over allocation and overrunning time as well.
Project time: Time management plays important role in project success and failure. The
total time that has been estimated for the duplex building construction project is 38 weeks or 9
months. The large project is differentiated into three work packages in terms of settlement period
on purchasing the land, council approval and duplex construction. Depending on task complexity
the time slots are divided by the project manager (Soomro and Zhang 2015). It is the
responsibility of the project supervisor to complete the project in the assigned time slot only
otherwise it could result overrunning budget due to addition of extra resources/cost etc.
Project goal
Feasibility analysis and timescale for the residential duplex construction
project
Feasibility report
Feasibility analysis is a process or mechanism that helps measuring success and failure of
a project. For the residential duplex building construction project 71 Walsgott St, North Geelong,
VIC 3215, a feasibility analysis is also conducted where the cost for land price, stamp duty and
Conveyancing fees are considered respectively as $550,000, $24,970 and $10,000. It is also
measured that the monthly rental income, agent fees and monthly landlord insurance fees for the
project will be respectively $5,000, $1,000 and $1,000 (City of Greater Geelong 2019). The
factors individually calculated for the residential duplex project are elaborated in the below
section:

4PROJECT FEASIBILITY STUDY AND TIMELINE
Land price: The land or location selected for the implementation of the project is 71
Walsgott St, North Geelong, VIC 3215 (Geelong - Greater Region, VIC 2019). Current
population of the location is less than 10,000. The size or block of land purchased for the
construction of this duplex building is around 1.35 Acre. However, for the construction
minimum size of land is being allotted. Not only this but also the price set for the block is
affordable enough from the construction business perspectives.
Conveyancing fee: It is mandatory for any project to have a proper communication
between the owners and the buyers. The Conveyancing fee is an act used to establish proper
engagement between the project owners and buyers. This document is presented in written form
and it also helps to involve lease and deeds for accurate legal transfer (Goessens, Mueller and
Latteur 2018). This process is limited between the contractors and the local council.
Land size: The land size allotted for the duplex building construction project is
approximately 1.35 Acre, in 71 Walsgott St, North Geelong, VIC 3215.
Cost estimation: The net cost or budget estimated or measured for the construction
project is $800,000.
Estimated time: The total time that has been estimated for the residential duplex
building construction project is 9 months.
Monthly council rate: This is a non fixed amount changed by the local council in
monthly basis. The rate changed by City of Greater Geelong Council for the residential
construction project is $1100 (Council-rates 2019). The charge for monthly rate varies in
different projects.

5PROJECT FEASIBILITY STUDY AND TIMELINE
Stamp duty: Stamp duty is an activity mainly demeanors for construction projects. In
other words this activity is applicable for different land transaction related documentations. As
soon as a land or site is purchased by the project owners stamp duty or stamp taxes become
obligatory on them (Stamp duty savings 2019). The total budget estimated for the duplex
residential building construction project is $800,000 and the stamp duty rate imposed for the land
is approximately $24,970.
Monthly rental income and landlord insurance: The monthly rental income measured
or expected from the construction project is approximately $25,000 and along with that the
landlord insurance estimated for the project is approximately $25,000.
1. Land
Information
2. Purchase
Information
Land Address: 71 Walsgott St,
North Geelong, VIC
3215
Land Price: $550,000
Suburb/Town: North Geelong Stamp Duty: $24,970
Land Size: 1.35 Acre Conveyancing
Fees:
$10,000
3. Local Council
Information
4. Construction
Information
Local Council
Name:
City of Greater
Geelong Council
Builder Name: Clark Homes Pty Ltd
Minimum Land
Allotment Size:
1.35 Duplex
Construction
$130,000

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Costs:
Development
Planning Fees:
$14,000
Monthly Council
Rates:
$1,100
5. Duplex
Information
Duplex Estimated
Value:
$800,000
Monthly Rental
Income:
$5,000
Monthly Agent
Fees:
$1,000
Monthly
Landlord
Insurance:
$1,000
6. Project
Results
Equity Value = Duplex Value of
$800000
less Total Outgoings of
$728970
equals $71030
Net Monthly
Rental Income =
Gross Monthly Rent
of $5000
less Holding Costs of
$3100
equals $1900

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Timescale for the project
After analyzing the project details it is recognized that the construction would be
successfully completed in 9 months. The entire project is comprises of three phase settlement
period on purchasing land, council development approval and Duplex project construction phase.
Settlement period on load purchase phase would take approximately 7 weeks or 28 days
(Kerzner 2018). The planning phase council development approval phase will take around 11
weeks or 77 days and the final duplex construction phase will be completed in the rest of days.
The project must not exceed the primary estimated budget of $800,000 and time of 9 months.
Figure 1: Timescale for the Resident duplex building construction project

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(Source: created by author)
Macro environment business drivers
Macro business environment deals with different factors such as performance of local
council, competitive actors, resources and demographic factors etc. If these factors are not
properly followed throughout the residential duplex building construction project then the project
may not be completed in the budget of $800,000 and time of 9 months as well (Takey and de
Carvalho 2015.). In order to drive this project wards primary objectives these actors are properly
analyzed.
Economic
In order to drive the residential building construction project economic factors are
properly analyzed. A total budget of $800,000 is estimated for the completion of the project. The
local council of Geelong, sponsored for the construction of the project. The government of
Geelong has also helped the project team associates and supervisor to build the duplex residential
in 71 Walsgott St, North Geelong, VIC 3215 (Rowlinson et al. 2014). The land was purchased
with local council’s investment.
Competitiveness
Throughout the regional area there are many builders available who delivers quality
services for their clients. The builder who has taken the responsibility of building the residential
duplex is Clark Homes Pty Ltd Builders & Building Contractors. With timely and quality
delivery the company has become one of the tough competitors throughout Geelong.

9PROJECT FEASIBILITY STUDY AND TIMELINE
Resourcing
Accurate resource allocation is referred to as a one of the most significant actions
required to be served for commercial and operational success of any project. For this duplex
residential construction project also resources are needed to be assigned accurately to avoid
insufficient resource allocation risk. Based on nature, types, size and features of the activities the
most suitable resources are needed to be assigned to each activity (Svejvig and Andersen 2015).
The resourcing must be completed followed by resource identification, resource analysis and
resource allocation.
Demographic factors taken into account when determining feasibility study
The success and failure of any project completely depends on its target customer.
Behavior of customer measures the profit that may generate from any project. Similarly for this
project also a target customer group is identified who belongs to the age group of 35 and 60. The
project supervisor has conducted many promotional activities to attar the target customers.
Advanced managerial and business strategies are developed and followed by the local council,
contractors, sub contractors and finance manager as well throughout the project development life
cycle period (Harris and Krueger 2016). If demographic factors are successfully analyzed then it
would be able to bring business opportunities for the owners.
Micro-environment business drivers
In the other hand, the micro business environment deals with different factors like
technical or internal experts associated to the project, time measurement and people related
considerations as well. Proper micro environment analysis can also lead any project towards

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proper primary objectives. Before taking any ultimate decision the micro business environment
need to be successfully analyzed. The analysis is elaborated in the below section:
Technical /internal expertise
The project failure and success are no dependent only n overall project performance but
also on individual’s performance. Therefore, each of the project associates are required to have
enough knowledge and skill on their assigned roles and duties. The internal experts who are part
of the duplex construction project are experienced enough. Therefore they would be able to
handle even complex and tough situations. The knowledge and experiences will also help to
design and implement high level business strategies. The technical experienced who are assigned
in the project have enough of technical knowledge.
Time pressures
Time management is the other knowledge project management areas that require
significant focus and analysis. The project team member needs to develop proper time
management program so that project gets completed in the time of 9 months without any sort of
experiences (Takey and de Carvalho 2015). Time management can be identified as a business
driver that can assist the project to primary objectives. If proper timeline is developed then the
issues over allocation of cost can also be reduced or avoided as well. For this project also the
time management plan is properly managed and implemented as well.
Other people-related considerations
Besides the civil engineer, architect, contractors and subcontractors the other people who
are considered for the duplex building construction project by Master Builders Association of
Clark Homes Pty Ltd Builders & Building Contractors (Geelong Australia 2019). The contracted

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project suppliers also supply quality material for executing the construction plan within 9 months
and $800,000 budget. Other than suppliers marketing consultant also played significant role in
the construction project. The marketing consultant suggested the project owner to design the
project in such a way so that it can deliver quality as well as affordable land to the customers.
Conclusion
After complete analysis of the project timeline and feasibility report it is concluded that
the project is completed in the estimated budget of $800,000 and time of 38 weeks or 9 months.
The macro business environment such as economic, competitive and resource and demographic
factors are analyzed. In addition to this, the micro business environment in context with internal
or technical experts, time stress and human resources are also analyzed before the executing the
residential duplex building construction project in the selected location 71 Walsgott St, North
Geelong, VIC 3215.