An investor should be benefited from the construction project; the benefits include profits, business development, utilization of resources and jobs. The investors will be interested to invest in the project only when there are accurate forecasts that would provide long term benefits. The construction industry is highly uncertain, and there is a possibility of risk. As the risks influence the profits, it is important to anticipate the assumption of risks and be calculated into a feasibility analysis and this would avoid the risks for the benefit of the investor. (Firmansyah, 2006). Construction industry has many problematic issues in the United Kingdom and majority of the problems have been the direct consequences of the decisions taken by the professionals of the construction industry, and the financial institutions. Project feasibility study enables optimization to provide the profits. The present study will suggest some changes to be adapted for the feasibility of the construction project.
Construction industry in the economic downturn has problems from the financial institutions and professionals. This constraint has reduced the profits and the constraints are largely associated with the decisions of the professionals. An effective planning requires the adoption of some changes that make the project feasible in order to get the profits. Zenith is a construction company is losing profits as the projects are not feasible due to the non-adoption of changes in decision making by the professionals and financial institutions.
The present study is a project feasibility study that analyses the problems associated with the construction industry and suggest the changes to be adopted by the management of the Zenith construction company for the project to be feasible.
Problems and issues of the construction industry in UK
House purchase credit facilities
Owning a house is becoming increasingly difficult to various sectors in the society due to the lack of funds to invest on commercial development projects.
Population size and demographics
Population is increasing and also becoming older, and an important aspect is that there is no correlation between the population growth and the households. The growth of the households is disproportionate with the increasing population. Consequently there is also a significant change in the demographics.
Density of the population
United Kingdom has become one of the densely populated areas of Europe and this creates a lot of pressure that cannot be sustained. This pressure is mostly towards the countryside with limited natural resources.
The Government has restricted the construction work on the green fields, and sixty percent of the construction work should be targeted on the brown fields.
Environmental impact on buildings
There are environmental concerns arising due to the unsustainability emanating from millions of buildings which are existing and the new building that are built every year. The activities of the construction industry such as demolition, maintenance, repair and conversion poses an immediate and long term problems to the environment. However, this has decreased relatively with reference to the construction industry.
Brown field development
The Government of UK introduced a planning policy that aims at increasing the use of Brown field sites for construction. This policy promotes greening and addresses the public fears on the spreading of the cities to the low density rural lands. There are certain empty lands left by the major manufacturing industries that incurred heavy losses and some areas of the city which require regeneration. The development of these areas may provide some solution at least to some extent to the demand for housing in the commercial market of UK. The target set out by the government to develop new houses was sixty percent by 2008,...