MBA641: Feasibility Study and Timeline for Duplex Construction Project

This report presents a feasibility study and timeline for a residential duplex construction project located at 156 King St, Bendigo, VIC 3550. The project aims to construct a duplex within a budget of $800,000 and a timeframe of nine months. The study includes an overview of project constraints, goals, ...Read More

Running head: FEASIBILITY STUDY AND TIMELINE
Project Feasibility Study and Timeline: Residential Duplex Construction project in 156 King St,
Bendigo, VIC 3550
Name of the Student:
Name of the University:

1FEASIBILITY STUDY AND TIMELINE
Table of Contents
Overview..........................................................................................................................................2
Project constraints and goals...........................................................................................................2
Constraints...................................................................................................................................2
Goal..............................................................................................................................................3
Feasibility report..............................................................................................................................3
Feasibility details.........................................................................................................................3
Timescale.....................................................................................................................................7
Macro-environment business derivers.............................................................................................7
Economic.....................................................................................................................................8
Competitive..................................................................................................................................8
Resourcing...................................................................................................................................8
Demographic factors....................................................................................................................9
Micro-environment business drivers...............................................................................................9
Technical or internal expertise.....................................................................................................9
Time pressure.............................................................................................................................10
Other people related considerations...........................................................................................10
Bibliography..................................................................................................................................11

2FEASIBILITY STUDY AND TIMELINE

3FEASIBILITY STUDY AND TIMELINE
Overview
These days for construction industry duplex are one of the solid areas of investment that
can bring commercial benefits and competitive advantages for local council and regional centre
of Bendigo as well. The location that has been chosen for the construction of residential Duplex
building is 156 King St, Bendigo, VIC 3550. Fixed cost contract is signed for this construction
project. Though, the planned cost and actual cost for this project can be different. The triple
project constraints scope, time and budget for the project are to complete the residential duplex
building construction project in budget of $800,000 and time of 9 months. Whether the project
will be commercially successful of not is measured with the help of a feasibility report. Not only
this but also a project timeline is also presented in the report. In addition to this, before final
execution of the project activities both the micro and macro business environment are also
analyzed by the project supervisor (Mok, Shen and Yang 2015). The project team is allocated
after analyzing all the above mentioned factors. Therefore, the project should be prepared in such
a way so that it can be identified as a feasible.
Project constraints and goals
Constraints
Constraints are the most valuable factors that help in increasing business values an
commercial profit as well. The project constraints are referred to as a restriction that restricts the
project to process or floe beyond identified boundaries. The scope of the project is to sign a fixed
contract and make sure that it is completed in the assigned time of 9 months and budget of
$800,000. It is determined that if the construction is done successfully then the growing

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population in 27 Wentworth Ave, Bendigo, would be able to give high level facilities to the
citizens. The block of land purchased for the construction is 0.5 Acre and builder will consider
the price for this affordable. However, appropriate real estate statistics for Bendigo are needed to
be considered by the project supervisor before final execution of the project (Qazi et al., 2016). If
triple project constraints are properly followed and based on that if the project is accomplished
then the project owner would be able to deliver quality outcomes. Apart from this, before final
execution of the project, supervisor should make professionally discuss with the other project
stakeholders.
Goal
The goal of the project is to conduct a feasibility study and construct a respective project
timeline to make sure that it is completed in 9 months and budget of $800,000. Before the final
execution of the project the other components on which the supervisor and team associates need
to focus on include business macro-environment and micro-environment analysis. The project
needs to be structured in such a way so that it can meet all the primary project goals and
objectives (Ahmed 2018). If the duplex building is constructed in assigned timeline and budget
then the growing population of selected location in 156 King St, Bendigo, VIC 3550 will get
additional living opportunities.
Feasibility report
Feasibility details
In order to determine, that the practicabilities of construction level ideas like legal,
economical and technical feasibility of the project are justified, a feasibility study is essential. In
order to calculate feasibility of the duplex project different project level aspects are needed to be

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considered and analyzed accordingly. At the very first stage, the factors that would be
individually considered for the project feasibility are identified. The feasibility report calculated
for the construction project is elaborated in the below section:
1. Land
Information
2. Purchase
Information
Land Address: 156 King St,
Bendigo, VIC 3550
Land Price: $400,000
Suburb/Town: Bendigo Stamp Duty: $13,490
Land Size: 1 Acre Conveyancing Fees: $10,000
3. Local Council
Information
4. Construction
Information
Local Council
Name:
Greater Bendigo City
Council
Builder Name: Paul Gray Builders
Minimum Land
Allotment Size:
0.5 Acre Duplex
Construction Costs:
$250,000
Development
Planning Fees:
$10,000
Monthly Council
Rates:
$400
5. Duplex

6FEASIBILITY STUDY AND TIMELINE
Information
Duplex Estimated
Value:
$800,000
Monthly Rental
Income:
$1,500
Monthly Agent
Fees:
$300
Monthly Landlord
Insurance:
$400
6. Project Results
Equity Value = Duplex Value of
$800000
less Total Outgoings of
$683490
equals $116510
Net Monthly
Rental Income =
Gross Monthly Rent
of $1500
less Holding Costs of
$1100
equals $400
Based on price of the purchased property for construction, the stamp duty needs to be
calculated. It is calculated that purchase cost of the property is $400,000; therefore the stamp
duty for this construction project will be $13,490 which excludes the first home purchaser
allowance. However, the value of stamp duty varies in different countries. A Conveyancing fees
for the project is calculated as $0,000, which is a legal procedure used to transfer one property
another person. The seller, contractors and buyers give equal attention while documenting the

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legal process. The supervisor is responsible to ensure that, each step is followed to complete the
legal documentation. Pre-contract, exchange, adverse matter that are affecting the property,
deposit cheque, stamp duty, pre-settlement inspection and cooling off period all the properly
followed to conduct the feasibility study. Paul Gray Builders and local government have taken
the responsibility of constructing the duplex building in 156 King St, Bendigo, VIC 3550. The
construction planning fees estimated for the project is $10,000. The Monthly council rate, fees
for agent, landlord insurance cost and expected rental income for the project are respectively
$4,000, $300, $400 and $1,500 (Bendigo Best Agents 2019). After conducting the feasibility
study and analysis it is recognized that, the for this construction project total Outgoings of
$683490 and Holding Costs of $1100. Additionally, if theses above structure are followed then
the project will be completed by 9 months and budget of $800,000.
Timescale
Figure 1 Timescale for the duplex construction project

8FEASIBILITY STUDY AND TIMELINE
(Source: Created by Author)
Macro-environment business derivers
There is a huge difference between the macro and micro business environment. Micro
environment deals with external business environment and the macro business environment deals
with the internal business environment. If any one of the factor is not considered and analyzed
accurately then the project owner would fail to get expected objectives and benefits. For this
project the immediate macro environment deals with the project economy, resources,
demographic factors and competitiveness.
Economic
In order to construct the residential duplex building in 156 King St, Bendigo, VIC 3550,
the local council and government have invested the needful capita amount. The contract that has
been established for the project is a fixed rate contract which implies that the project would be
completed in the estimated budget and no such additional investment will be required to
accomplish the building construction. Apart from this, it is also determined that, economic trends
are followed considering exchange rates, customer confidence, consumer purchasing power,
seasonality and project development economic cycle. In addition to this, it is also determined
that, trade agreement are also established before the final execution of the project.
Competitive
Wentworth Ave, Bendigo holds approximately 1000 residents and the successful
implementation of the project would be give high living opportunities to the project associate.
There are many similar construction companies and builders leading the Bendigo construction
market and real estate industry of Bendigo. In order to become competitive in the real estate

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market some components on which the project developers need to focus include- implementation
of business strategic ideas and marketing strategies as well. If proper business and marketing
strategies are followed throughout the project design and development life cycle period then it
would be able to grab and attract more numbers of customers on the competitive market.
Resourcing
Proper resource management is the other factor that requires major focus. Both human
resources and physical resources are needed for the overall project success. If any one of the
factor is not followed or considered by the project supervisor then the entire project will fail to
meet the primary objectives and success criteria as well (Owusu, Chan and Shan 2019). In order
to implement an error free construction project, firstly the large project needs to be differentiated
into smaller segments and for each activity separate resources needs to be assigned. This project
is subdivided into three work pancakes and for each work package activities based of knowledge
and skills different resources (physical and human) are assigned.
Demographic factors
The price ranges estimated for the project are affordable from the client’s and customer’s
perspectives. The price for residents are developed based on socioeconomic characteristics
expressed by the country in terms of age, sex, age, level of monthly income, occupation, religion
etc. The most effective business strategy on which the supervisor needs to focus is the
demographic factors. The customer identifies for the residents are belongs to age group of 30 and
60 and most of them are business person.

10FEASIBILITY STUDY AND TIMELINE
Micro-environment business drivers
Technical or internal expertise
For managing data and keeping information secured from external attackers technical
experts are required. However, during construction of the residential building no technical
experts are required. In order to give higher level clarity to the project requirements the architect
should design and implement a 3D construction model for the residential duplex construction.
However, in order to implement the project in assigned time and budget it must be tracked and
monitored. The collected information should keep protected from all external attackers and the
users should possess enough technical skills and knowledge.
Time pressure
After details analysis of the project, it is determined that the total time estimated for
successful completion of the project is 9 months only. Due to high project complexity it can be
said that 9 months of time are not enough. The large project is comprises of three phases. Each of
the three phases are again comprises of different activities. After completion of the project
initiation phase, a tracking and monitoring approach identified that, addition of some resources
are needed to reduce the issue of rime pressure (Bendigo Victoria 2019). In order to reduce time
pressure proper business strategies are needed to be selected and implemented to manipulate the
project success.
Other people related considerations
In order to accomplish the residential duplex building construction project different
people are also needed in terms of contractors, sub contractors, project manager, finance
manager, operation manager, civil engineer, architect etc. The success of any project is not only

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dependent on skills and behavior of the project supervisor but also depends on behavior of the
project team associates. The Australian Bureau of Statistics identifies that, in order to complete
any residential construction project the project leader must take approval from the local council,
government as well. People who are considered as part of the construction must improve the
focus of project team and identify potential opportunities for project success. They are
responsible to make effective decisions to ensure that the project will gain measurable
commercial and operational success as well.

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Bibliography
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Bendigo Best Agents., 2019. stamp-duty. [online] Bendigo Best Agents. Available at:
https://www.bendigobestagents.com/stamp-duty-calculator/ [Accessed 9 Sep. 2019].
Bendigo Victoria., 2019. Bendigo.vic.gov. [online] Rates and your property. Available at:
https://www.bendigo.vic.gov.au/Payments/Rates-and-your-Property [Accessed 9 Sep. 2019].
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