MBA641 Strategic Project Management: Duplex Development Report

This report provides a detailed analysis of a residential duplex development project. The report begins with an introduction to the project, outlining the goal of developing equity and income from a real estate investment. A comprehensive feasibility analysis is conducted, including calculations for stamp duty, conveyancing fees, land allotment, development planning fees, council rates, rental income, and agent fees, demonstrating the project's viability. The report identifies key project constraints, such as time and budget limitations, and defines the project's goals. It also examines both macro-environmental factors (demographics, economics, and competition) and micro-environmental factors (technical expertise, time pressure, and people-related considerations) that influence the project's success. The conclusion summarizes the project's feasibility and highlights the importance of managing constraints and leveraging environmental drivers for achieving the desired outcomes. All the calculations and analysis are based on the project brief requirements, which includes the need to select a regional center with a growing population, purchase land, build a duplex, and sell the completed project for maximum profit within a nine-month timeframe and within a specified budget.

Running head: STRATEGIC PROJECT MANAGEMENT
Strategic project management
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...................................................................................................................7
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 generally focuses on the project of residential duplex development in which a
real-estate for business is owned with the cash reserve of around $800,000 for finishing the work
of project development in 619, Lonsdale Street, Victoria, Australia. The project aims to develop
equity and income as much as probable. It is found that that for progressing with the project, it is
necessary to create both the feasibility study and the project timeline for reflecting the real
information. Additionally, the paper properly illustrates different types of constraints and project
goals so that the project manager can reduce the limitations and can progress properly for
achieving the goals. Moreover, the paper also highlights micro and macro environmental
business drivers in the project.
2. Feasibility analysis
According to Bhosekar and Ierapetritou (2018), feasibility study is defined as one of
assessment of the proposed project that helps in uncovering the strengths as well as weaknesses
of the proposed project successfully. It is identified that the feasibility analysis is helpful in
determining the viability of the idea by properly making sure that the undertaken project is quite
feasible and very much economical. In order to develop the feasibility study for this specific
project, few terms are needed to be used which are mainly reflected below:
Stamp duty: It is generally referred as one of the taxes that is charged on different types
of equipment’s including different types of legal documents including the receipts as well as
cheques (Scanlon, Whitehead and Blanc 2017). The stamp duty value varies and it mainly
depends on the area in which the land is situated and the value of property that is present within
the market. For this specific project, it is found that around $ 15,000 is paid as stamp duty.

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Conveyancing fees: The conveyancers are mainly the qualified professionals who are
specialized in all the different aspects of property related dealings and in order to deal a property
they charge a fee which is further known as the conveyancing fees. For undertaking the
residential project, the work that is associated with ownership transfer as well as preparing and
lodging of different types of documents for successfully finishing the property transaction, it is
analyzed that around $9,000 is charged as the conveyancing fees.
Minimum land allotment: It is opined by Dippel and Frye (2019) that the procedure of
land allotment is mainly followed by lease deed execution such that the lease deed certification
gets issued by the authority for different types of permissive possession. For the residential
duplex project, the land that is allotted is around 9,000 square feet within the Glen Eira Town
Hall and city council.
Devolvement planning fee: It is found that the development planning fee is the
compulsory charge that needs to be paid for the development of duplex residency in Australia. It
is found that the contractor generally charges $42,000 as development planning fee for
successfully developing the residential duplex in Australia.
Monthly council rates: Each of the council generally collects rates from different
residents as well as businesses that are present in its municipality in order to fund the money for
the local infrastructure as well as services (Snyder et al. 2017). It is found that the councils
generally utilize different types of property values in order to distribute the burden of rating. The
money which is generally paid as rates to the council can generally be calculated by determining
the total amount of rate that is needed as well as by dividing the total value with the help of
various types of relatable properties for successfully establishing the rates in dollar. For this
particular project, it is found that around $4,000 is paid on monthly basis to the council.

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Monthly rental income: The money which is gathered by the landlord from different
groups of tenants by utilizing a particular space. It is found that for developing the residential
duplex, it is found that around $72,000 is achieved as monthly rental income.
Monthly agent fees: The agent fees mean the money that the Borrower needs to pay to
the agent that is mainly agreed upon by the borrower as well as the agent. It is found that around
$7,000 is paid as to the agent as monthly fees (Rud, Rabanal and Horowitz 2018).
Monthly landlord insurance: Proper insurance is found to be essential for protecting the
valuable investment. It is found that the first part helps in protecting the physical structures on
the property while it is identified that the second part generally helps in offering proper liability
protection in case of slippage or other types of claims against the property.
Equity value: It is opined by Faccio and Xu (2018) that it is one of the values that is
mainly required by the company owners as well as different shareholders. It generally accounts
for the different types of ownership interest within the firm that mainly includes the value that is
unexercised stock related options. For this specific project the identified equity value is around
$100,000.
Moreover, the feasibility that is showcased in the below table suggests that the
undertaken project is quite feasible and the various information that is mainly needed for
conducting the feasibility study is mainly collected from local real estates, local council
documentation as well as local builders’ website.
Project Feasibility Study
1. Land Information 2. Purchase

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Information
Land Address: 619, Lonsdale Street,
Victoria, Australia
Land Price: 2,00,000
Suburb/Town: Lonsdale street Stamp Duty: $15,000
Land Size: 10,000 square feet Conveyance Fees: $9,000
3. Local Council
Information
4. Construction
Information
Local Council Name: Glen Eira Town Hall &
City council
Builder Name: Smart build
construction
Minimum Land
Allotment Size:
9000 square feet Duplex
Construction
Costs:
$3,90,000
Development Planning
Fees:
$42,000
Monthly Council
Rates:
$4,000
5. Duplex
Information
Duplex Estimated
Value:
$8,00,000
Monthly Rental
Income:
$72,000
Monthly Agent Fees: $7,000
Monthly Landlord
Insurance:
$6,000

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6. Project Results
Equity Value
=$100,000
Duplex Value of
$800000
le
ss
Total Outgoings of
$656000
equals
$144000
Net Monthly Rental
Income = 70,000
Gross Monthly Rent of
$72000
le
ss
Holding Costs of
$17000
equals $55000
3. Constraints and goals
The restrictions which can limit the residential duplex project progress are mainly
elaborated below:
Time: If the entire duplex project does not get accomplished within 9 months then the
project gets delayed and then extra amount of money is needed for finishing the project that
further creates financial burden on the project.
Budget: It is identified that around $800,000 is required for finishing the project and if
the project is not executed then a number of financial challenges can occur within the project
which act as a constraint for the progress of the entire project.
The main goal of the project is to get income and equity as much as possible from the
residential project and develop proper timeline and feasibility report for reflecting the
information of the project.
4. Macro environment business drivers
According to Todeschini et al. (2017), macro environment is referred as one of the
conditions that mainly exists within the project economy rather within a specific region. It is
considered as one major that generally helps in properly influencing the decision within an

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organization which further helps in affecting both the strategies and project performance. The
different types of macro environment factors which can drive the project of residential duplex are
elaborated below:
Demographic factors: The various factors are related to the people and therefore it
mainly focuses on the size, density as well as other important statistics. The customers are
considered as one of the driving forces within the business that helps in offering both
opportunities as well as challenges (Reinhardt et al. 2017). As the population of Victoria is more
than 10,000 therefore the people of that area play an improper role in properly driving the entire
business for achieving success.
Economic: The economic forces generally help in creating proper impact on the way in
which both purchasing as well as expenditure are mainly done. If the budget of the project is
spent in a proper way then the duplex development project will be executed with the provided
cash reserve which will further helpful in creating positive impact on the success of the project.
Therefore, it is found that the way in which purchasing as well as expenditure are done while
undertaking the project generally helps in driving the entire business or project towards success.
Competitive: If the competition in a specific area is low then the business does not need
to be unique. However, as there are more than 10,000 people in that area therefore, the duplex
residency construction should do in such a way that it provides services which are unique which
will further help the organization in existing within the market (Martinez-Martinez et al. 2019).
5. Micro-environment business drivers
It is stated by Testa et al. (2016) that there are a lot of factors or elements within the
immediate operations of the organization which generally helps in affecting the performance as

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well as the entire procedure of decision making. The different micro environmental business
factors that generally creates impact on business are mainly illustrated below:
Technical expertise: Technical skill and expertise is quired for the residential duplex
development and it will further help in completing the work properly. The actions as well as
activities of the workers are mainly helpful in driving the entire strategy of the business which
further helps in proper project development.
Time-pressure: If sufficient time is not allocated to the managers then they will face a
lot of issue in making the entire work stable and therefore, they face a number of issues. For
making the entire business proposer, it is quite important to work properly within the project by
managing time pressures (Leonidou et al. 2017). Similarly, the time pressure within the duplex
development project should be effectively managed so that the entire project can be executed on
time.
People related consideration: The clients are mainly referred as one of central part for
the entire business who helps in retaining as well as attracting for generation of revenue (Cassells
and Lewis 2017). It is quite important for the project to utilize different types of marketing
related strategies that further assists in attracting a lot of customers for making the entire project
quite successful.
6. Conclusion
It can be concluded that the duplex development in Victoria is quite economical and
feasible such that the work gets accomplished within the cash reserve that is around $800,000.
Moreover, it is identified that both the micro and macro environmental business drivers are
elaborated successfully. In addition to this, the constraints that are linked with the project are

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elaborated so that the project manager can be able to determine the constraints and can determine
proper ways to avoid them in order to achieve success.

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References
Bhosekar, A. and Ierapetritou, M., 2018. Advances in surrogate based modeling, feasibility
analysis, and optimization: A review. Computers & Chemical Engineering, 108, pp.250-267.
Cassells, S. and Lewis, K.V., 2017. Environmental management training for micro and small
enterprises: the missing link?. Journal of Small Business and Enterprise Development, 24(2),
pp.297-312.
Dippel, C. and Frye, D., 2019. The effect of land allotment on native american households
during the assimilation era. Technical report, Working Paper.
Faccio, M. and Xu, J., 2018. Taxes, Capital Structure Choices, and Equity Value. Journal of
Financial and Quantitative Analysis, 53(3), pp.967-995.
Leonidou, L.C., Christodoulides, P., Kyrgidou, L.P. and Palihawadana, D., 2017. Internal drivers
and performance consequences of small firm green business strategy: The moderating role of
external forces. Journal of Business Ethics, 140(3), pp.585-606.
Martinez-Martinez, A., Cegarra-Navarro, J.G., Garcia-Perez, A. and Wensley, A., 2019.
Knowledge agents as drivers of environmental sustainability and business performance in the
hospitality sector. Tourism Management, 70, pp.381-389.
Reinhardt, R., Domingo, S.G., García, B.A. and Christodoulou, I., 2017, June. Macro
environmental analysis of the electric vehicle battery second use market. In 2017 14th
International Conference on the European Energy Market (EEM) (pp. 1-6). IEEE.
Rud, O.A., Rabanal, J.P. and Horowitz, J., 2018. Does competition aggravate moral hazard? A
Multi-Principal-Agent experiment. Journal of Financial Intermediation, 33, pp.115-121.

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Scanlon, K., Whitehead, C. and Blanc, F., 2017. A taxing question: Is stamp duty land tax
suffocating the English housing market. Epsom: Family Building Society.
Snyder, D.M., Beckers, K.F., Young, K.R. and Johnston, B., 2017. Analysis of geothermal
reservoir and well operational conditions using monthly production reports from Nevada and
California. Trans Geotherm Resour Council. 2017a, 41, pp.2844-56.
Testa, F., Gusmerottia, N.M., Corsini, F., Passetti, E. and Iraldo, F., 2016. Factors affecting
environmental management by small and micro firms: The importance of entrepreneurs’
attitudes and environmental investment. Corporate Social Responsibility and Environmental
Management, 23(6), pp.373-385.
Todeschini, B.V., Cortimiglia, M.N., Callegaro-de-Menezes, D. and Ghezzi, A., 2017.
Innovative and sustainable business models in the fashion industry: Entrepreneurial drivers,
opportunities, and challenges. Business Horizons, 60(6), pp.759-770.