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Introduction : Epm5750 Project Investment Analysis Group Project
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Site development plan
The implication or inclusion of a site development plan has increased the engagement of employees and the feasibility of transportation and marketing activities. The site development plan has proceeded by making an effective plan of acquisition and implication of development elements in the specific site. As has been mentioned in the above section that the “site development plan” for constructing a two-storied building with 12 units. The disposition development elements that will be used to develop construction sites are reuse and recycle, land filling by using construction wastes, professional navigation, professional visual design, equipment and tool safety, and inventory management. The sites will be developed by proper utilisation of used and unused resources.
The sites will develop by using effective illustrations and design for the building to attract investors and buyers for the two stories house (Lederer et al. 2021). The design of the sites will be conducted on a horizontal plane to provide a proper view from above. However, the elevation plan will be designed on a vertical plan to reflect a verticle depiction of the site. However, section drawing will draw based on vertical depiction to segregate 12 units in a two-stories building.
The “Gross Floor Area (GA)” and “Net sellable area (NSA)” of the construction project at “10-12 Lindsay Street Brighton” will be planned to be 25000 square feet. The land size and plot ratio have been multiplied to get GFA Area. However, the plot size is 5 and the land area is 5000 square feet. The carpet area that has been used has been identified as a Net saleable area (NSA), it will be planned by summing up the area of the living room, bedrooms, balconies, kitchen and hall thickness of walls. It will be 20000 square feet excluding the thickness of walls and other external areas.
Cost Plan
The cost plan has created specialisation in cost determination and provided effective utilisation of resources to minimise the overall cost incurred by a project (Armstrong, 2019). The cost plan will be conducted to identify the total cost that will be incurred after the completion of the construction project.
Buidling Cost plan |
||
Details |
% |
Amount ($) |
Cement |
11.8% |
1252072 |
Steel |
11.8% |
1247536 |
Sand |
7.5% |
796000 |
Gravel |
6.1% |
645800 |
Transportation |
11.4% |
1200000 |
Bricks |
7.6% |
800000 |
colour |
1.6% |
170000 |
Tiles |
1.2% |
130000 |
Finishing |
0.1% |
6496 |
Sanitary |
2.8% |
300000 |
Plumbing |
1.9% |
200000 |
Marketing |
1.4% |
150000 |
Doors |
1.1% |
120000 |
Windows |
1.2% |
125600 |
Fittings |
5.9% |
625400 |
Electrical |
5.7% |
600000 |
Total material cost |
79.2% |
8368904 |
Labour cost |
9.5% |
1000000 |
Architect or engineers cost |
11.4% |
1200000 |
Total Construction cost |
10568904 |
Table 1: Cost Plan for the project
The above table has reflected the cost that will require constructing two-storey building in the decided location. It will be planned that the total construction cost will be $10568904 in the decided location. The cost per unit of the building area will be estimated to be $800 per sq m. it has been identified that the cost of the area of the building will be $20000000 and the cost that will be incurred has been planned to be $37706777 after completion of the project value. The cost will be planned by including the GFA of the building to introduce a high level of estimation.
Cash flow Projection
Cash flow will reflect the cash incurred in a project after the completion of the respective project. It has been analysed that as per the GFA of the building the constructor can make a cash outflow for land site cost of $20000000 while the cash outflow for construction cost is $10418904. This will provide an effective projection for the net cash received after selling the building for $40000000. Moreover, after paying financial, development and construction expenses the project will provide a net cash flow of $2722287.4 after the end of 24 months after completion of the construction project.
The above figure has provided a visual overview of the cash outflow and inflow in the project at the end of 2 years. It has been identified that site cost will be estimated to be $20000000 at the rate of $800 per sq meter of 25000 sq m GFA. Furthermore, the legal charges and taxation has been estimated for the required period to complete the project. Moreover, it has been analysed that if the building has sold at $40000000 then it will provide the positive value of net cash that will be a profit of the entity amounted to $2722287.4 after the end of 24 months.
References
Armstrong, N. (2019). Planning for Sustainable Development: An Analysis of the State of Planning in the City of Kingston through an Official Plan Evaluation. Retrieved on18th October 2022, from: https://qspace.library.queensu.ca/handle/1974/26172
Lederer, J., Fellner, J., Gassner, A., Gruhler, K., & Schiller, G. (2021). Determining the material intensities of buildings selected by random sampling: A case study from Vienna. Journal of Industrial Ecology, 25(4), 848-863. Retrieved on18th October 2022, from: https://onlinelibrary.wiley.com/doi/abs/10.1111/jiec.13100
Bibliography
Kent, R. A., & Bu, D. (2020). The importance of cash flow disclosure and cost of capital. Accounting & Finance, 60, 877-908. Retrieved on18th October 2022, from: https://onlinelibrary.wiley.com/doi/abs/10.1111/acfi.12382
Vigneault, M. A., Boton, C., Chong, H. Y., & Cooper-Cooke, B. (2020). An innovative framework of 5D BIM solutions for construction cost management: a systematic review. Archives of Computational Methods in Engineering, 27(4), 1013-1030. Retrieved on18th October 2022, from: https://link.springer.com/article/10.1007/s11831-019-09341-z