Project Feasibility Study: Residential Duplex Development, MBA641

This report presents a feasibility study for a residential duplex project in Wangaratta, Victoria, Australia. It analyzes various aspects, including project goals, constraints, and economic considerations. The study examines feasibility requirements such as planning permissions, environmental impact assessments, and legal approvals. It also addresses budget considerations, resource allocation, and project timelines. The report delves into macro and micro-environment business drivers influencing the project's success. The project aims to construct a duplex within a budget of $800,000 and a timeline of nine months, focusing on increasing the population in the region. The study also includes detailed financial information, resource allocation, and potential risks, making it a comprehensive analysis of the project's viability and strategic project management principles. This assignment is contributed by a student and is available on Desklib, a platform providing AI-based study tools for students.

Running Head: STRATEGIC PROJECT MANAGEMENT
Strategic Project Management: Residential Duplex Project
Name of the Student
Name of the University

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Table of Contents
1. Introduction and Background of the Project................................................................................2
2. Feasibility Study of the Residential Duplex Project....................................................................2
2.1 Feasibility Requirements.......................................................................................................2
2.2 Project Goals, Constraints and Other Attributes....................................................................5
2.2.1 Goals of the Project........................................................................................................5
2.2.2 Constraints of the Project................................................................................................5
2.2.3 Economic Considerations of the Project.........................................................................6
2.2.4 Resource, Timeline and Budget......................................................................................7
2.3 Macro Environment Business Drivers...................................................................................8
2.4 Micro Environment Business Drivers...................................................................................9
3. Conclusion.................................................................................................................................10
References......................................................................................................................................11

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1. Introduction and Background of the Project
According to the project, the feasibility study can referred as the analytical study that helps
to ensure the project so that the project is possible to execute that is constructed on a number of
parameters set initially. Generally, the feasibility report of a project is measured by using time or
budget. Furthermore, the macro-environment as well as the micro-environment elements are
considered in this feasibility report. But in the project case study, the construction of the
referential duplex will be done in the Wangaratta, Victoria, Australia for stimulating the growth
as well as the increment of the population in this specific region. Currently, this town has around
28,000 population and the government is looking to increase the population within the next few
years. The whole project budget stands on $800,000 and for execution purpose of the project the
requirement of the time is allotted for 9 months.
This following is mainly proposed about the feasibility report on this particular case
project along with the timeline as well as cost feasibility study on the growth of the population.
2. Feasibility Study of the Residential Duplex Project
2.1 Feasibility Requirements
Feasibility is one kind of analysis of the project that depends on certain parameters if the
execution of the project is successful in the required field. Because the different project have
different kinds of parameters and therefore the feasibility is measured when the project is
successful in an appropriate way.

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This specific project mainly focuses on the growth of the residential duplex and the
feasibility study of this particular project depends on the certain factors that are given below:
Permission for planning – The approval from the higher authority is always necessary to
construct any kind of concrete project. Sometimes, the construction related permission from the
government authority is required in the case of the construction of any type of building or any
kind of large concrete projects (Bible, Bivins and Bivins 2011). But in the requirement of land
for the building construction or for to receive the construction license, the construction related
permission are mandatory for the project execution. Sometimes, the permission is not
acknowledged while the construction projects have different kinds of problems such as dispute in
land or the overlapping on the neighbour’s land or many other issues. In this type of cases, the
feasibility report for the project is not measured. But in this particular project case, there is no
other dispute issues so that the feasibility study is properly analysed.
Assessment for the environmental impact - It is the important part to concern on the
environmental impact during the construction project. It is seen that, most of the times, due to the
construction project, the pollution has occurred in the surrounding environment. So, it must be
careful about the construction related projects so that the environment pollution cannot happened
(Roberts 2012). The following reasons for the environmental pollutions are such as unloading the
construction materials, fly ash as well as noise etc. To avoid these pollution related problems,
there must have some rules and regulations that should be maintained proper in the construction
projects.
Legal / Statutory approval – Sometimes, it has happened that the particular land for the
construction project has already some legal problems and for that issue, the permissions have not

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passed properly since the clearance of the disputed land is done properly (Blomquist and Müller
2006). Thus, before paying for the land for the construction purpose, it must be concerned about
the land having any dispute because in future, it will be faced lots of problems.
Budget and client related requirements – Budget may consider as a primary criteria for
any kind of construction related project, where the feasibility is properly measured for the
project. The client should be concern about the feasibility of the project when he has confirmed a
project for execution purpose, otherwise the project may be failed without sufficient budget
(Haugan 2001). The feasibility report of the project always determine whether the budget is
satisfactory for the project or not. It gives the exact idea of the budget for the project. Here, the
proposed budget for the residential duplex has been settled $800,000 and it requires to make sure
that the proposed budget is enough for the residential duplex project.
Operational as well as maintenance related issues – The other factor that is operational
and maintenance related issues in which the feasibility study of the project depends. These kind
of issues may occur because of various problems such as landscape. Mainly the more
maintenance will require in the case of construction of building in hilly region landscape than the
plain region landscape (Harris 2017). But in this case project, the construction happen in the
plain landscape, therefore there is no possibility of occurring the operational as well as
maintenance related issues. But the other type of issues such as unforeseen incidents which are
manageable for this project report and the project can be referred as feasible.
Procurement options – The last factor in which the feasibility study of the project
depends is procurement option. Generally the material related procurement options are limited
for the construction project whereas these options are high for the advanced technological

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designed construction building (Kerzner 2019). Apart from that, the procurement options are also
limited in the case of construction where the location of the building site is in isolated area.
2.2 Project Goals, Constraints and Other Attributes
2.2.1 Goals of the Project
The project goals are as follows:
 The requirement of selecting land in Wangaratta, Victoria for these residential
duplex construction.
 The requirement of permission from the government for this construction.
 Construction of duplex on the proposed land.
2.2.2 Constraints of the Project
The project constraints are as follows:
Location – As the location of the construction project is far from the nearby big city, so it
is too much difficult for the suppliers to supply the resources as well as materials for this project.
Also the workers are travelling a long distance every day for this project. In addition to this, the
transportation cost will also high for the construction materials.
Budget – The proposed budget for this construction project is $800,000 that might be
considered as constraint as different kind of factors such as transportation cost for the materials,
extra cost as well as penalties etc. which have not been measured (Schwalbe 2015).
Time Period – For this construction project, the total time period has been considered as
9 months which is assumed approximately. This time period may be or may not be enough for
this construction project. When the assumption of this time period has made, there was no

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unforeseen incidents as natural calamities as well as accidents. But if these kind of incidents
happen during construction, then the time period may be increase for this project.
2.2.3 Economic Considerations of the Project
Project Feasibility Study
1. Land Information 2. Purchase Information
Land Address:
45, Hardisty Street,
Wangaratta, Victoria Land Price: 3,00,000
Suburb/Town: Wangaratta Stamp Duty: $8,000
Land Size: 10,000 square feet Conveyancing Fees: $10,000
3. Local Council Information
4. Construction
Information
Local Council Name: Rural City of Wangaratta Builder Name:
Vaughan
Constructions
Minimum Land Allotment Size: 10,000 square feet Duplex Construction Costs: $7,00,000
Development Planning Fees: $1,00,000
Monthly Council Rates: $6,000
5. Duplex Information
Duplex Estimated Value: $12,00,000
Monthly Rental Income: $1,00,000
Monthly Agent Fees: $3,000

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Monthly Landlord Insurance: $3,000
6. Project Results
Equity Value =$100,000 Duplex Value of $1200000
les
s
Total Outgoings of
$1118000 equals $82000
Net Monthly Rental Income = 70,000
Gross Monthly Rent of
$100000
les
s Holding Costs of $12000 equals $88000
2.2.4 Resource, Timeline and Budget
The proposed project timeline is shown as follows.
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
Council Development Approval
Duplex Construction
Booking and Handover
Weeks
Project Timeline
The resource requirements of the project are specified along with the estimated budget
for each resource are as follows.
Resource (Human and Material) Estimated Cost
Contractor Fees $150,000
Workers’ Wages $50,000
Council Approval and Licensing $50,000
Building Materials (Bricks, Iron, Mortar, Cement) $250,000

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Electrical and Water Connections $150,000
Rent for Heavy Machineries (Crane, Lifter,
Bulldozer, Cement Blender)
$100,000
Contingency $50,000
TOTAL $800,000
2.3 Macro Environment Business Drivers
Macro-environment business drivers are other type key elements and the impact of these
factors are reflected on the construction project. These factors play an important ant role during
the feasibility of the construction project (Samset and Volden 2016). The macro-environment
drivers for this project are given as follows:
Economic Factor – As it is known to all that Australia is an economically stable country
and hence there will not be any kind of problem on the residential duplex project (Papke-Shields
and Boyer-Wright 2017). Moreover, in future if there will be happen any construction project of
the residential duplex on this particular place, it may get a number of affordable apartments.
Competitive Factor – When various organization execute similar type of project with
equal objectives at the same time, then the possibility may happen in occurrence of competitive
factor (Meredith, Mantel Jr and Shafer 2017). However, except product manufacturing, another
competitive factor is community which helps to increase the growth of the population as well as
economy of the particular place.

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Resourcing Factor – As there is enough availability of resources in Australia for the
construction projects so that, it is not difficult for the project managers to acquire enough
resources for construction project (Kerzner 2017). In addition to this, the transportation cost as
well supply cost of the materials may increase because of the project site.
Demographic Factor – In the construction project, demographic factor creates an
important role because the main purpose of the project is develop the residential duplex in the
edges of the city and increase the growth of the population in this particular place (Harrison and
Lock 2017). In that cases, it may create problems as people will not agree to move in such
isolated places in the region of the edges of the city. Thus, due to this problem, it needs to survey
on the feasibility of the project according to the demographic factors.
2.4 Micro Environment Business Drivers
Macro-environment business drivers of the project are as follows:
Technical / Internal Expertise – In the micro-environment business drivers of the
project, technical expertise is an important factor which relates to the workers working in this
particular construction project (Serra and Kunc 2015). This kind of problem arise when the
project has shortage number of technically expertise workers and for that, the project outcome is
not adequate. Thus, for the proper execution of the project, it must include the technical experts
in this project.
Time Pressure – Time pressure is the important factor for the execution of the project in
a correct way because the total time for the project is considered is about 9 months which may be
or may not be enough for the project (Ansoff et al. 2018). There was no possibility of occurrence
of natural calamity or accident related incident during the scheduling of time period of this

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particular project. But if these incidents will happen during the construction, then the time period
may increase for that reasons.
Considerations on people – The people who are involved in this particular project, must
obey some ethical and legal rules and responsibilities about the construction project so that it will
completed on the proposed time as well as considered budget without falling in legal
complications (Romero 2018).
3. Conclusion
In this above report, a feasibility report has been generated on the selected construction of
the residential duplex in the edges of the city. According to the report, the residential duplex will
be created in Wangaratta to stimulate the growth as well as the development of population in this
particular place. This selected project is constructed on the construction of residential duplex and
the feasibility of this project will depend on micro as well as macro environment factors.

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References
Ansoff, H.I., Kipley, D., Lewis, A.O., Helm-Stevens, R. and Ansoff, R., 2018. Implanting
strategic management. Springer.
Bible, M.J., Bivins, S. and Bivins, S.S., 2011. Mastering Project Portfolio Management: A
Systems Approach to Achieving Strategic Objectives. J. Ross Publishing.
Blomquist, T. and Müller, R., 2006. Practices, roles, and responsibilities of middle managers in
program and portfolio management. Project Management Journal, 37(1), pp.52-66.
Harris, E., 2017. Strategic project risk appraisal and management. Routledge.
Harrison, F. and Lock, D., 2017. Advanced project management: a structured approach.
Routledge.
Haugan, G.T., 2001. Effective work breakdown structures. Berrett-Koehler Publishers.
Kerzner, H., 2017. Project management: a systems approach to planning, scheduling, and
controlling. John Wiley & Sons.
Kerzner, H., 2019. Using the project management maturity model: strategic planning for project
management. Wiley.
Meredith, J.R., Mantel Jr, S.J. and Shafer, S.M., 2017. Project management: a managerial
approach. John Wiley & Sons.
Papke-Shields, K.E. and Boyer-Wright, K.M., 2017. Strategic planning characteristics applied to
project management. International Journal of Project Management, 35(2), pp.169-179.