Project report

Topics: Loan, Debt, Health care Pages: 7 (1476 words) Published: November 5, 2013
An offer has been given by a charitable trust to develop and build a facility on a 10,000 sq m of plot in a prime locality of Pune where 5000 sq m of area will be used by the trust for housing, health facility for senior citizens. 5000 sq m will be given free to developer as a cost of development. Cost of land is Rs. 10,000/ sq m

Specifications for flooring:
10% Granite
40% Kotta stone
50% Mosaic cement tiles
RCC framed structure
Aluminumsliding windows – Class A
Rest specifications as used for Class A construction
Discuss the financial viability of the project and the financial planning of the project. Developer would like to have minimum 18% net profit on his investment. Developer can invest only Rs. 10 lakhs as his own funds and can raise not more than Rs. 50 lakhs as bank loan.

Ref:
http://articles.economictimes.indiatimes.com/2011-03-21/news/29171255_1_flooring-tiles-ready-reckoner http://nicmarprojectmanagements.blogspot.in/2011/07/construction-finance-management.html http://unpan1.un.org/intradoc/groups/public/documents/un/unpan006235.pdf http://www.wikihow.com/Determine-a-Building's-Construction-Type http://www.upfro.com/Inspectors/ISO%20Consturction%20Class.htm http://wiki.answers.com/Q/Define_each_ISO_building_class_1_through_6 http://economictimes.indiatimes.com/topic/inflation-rate-india http://www.tradingeconomics.com/india/inflation-cpi

Projects Scope/ Specifications

The charitable trust wants to develop and build facilities on 10,000 sq m of land in prime locality of Pune. Where 5,000 sq of area will be used by the trust for housing, health facility for senior citizens. 5000 sq m will be given free to developer as a cost of development. The cost of land is Rs. 10,000/ sq m. The specifications of flooring for housing, health facility: 10% Granite

40% Kotta stone
50% Mosaic cement tiles
RCC framed structure
Aluminumsliding windows – Class A
Rest specifications as used for Class A construction

Technical Studies
Technology
The technology used for Building Class A
In class A the exterior walls, partitions, structural floors, roof and their supports are made of wood or light gauge metals. Which also known as Frame type buildings. Advantages:
Easy to erect and alter
Economical
Versatile
Performs well in Earthquake areas – can move
Disadvantages:
Fire can spread rapidly
Highly damageable
May become unstable in a fire
May include enclosed spaces where fire can spread undetected The technology used for Health facility

Manpower requirements or cost
This offer gives the developer an opportunity to make profit from the parcel of land given to him by the trust. The challenge here is to generate capital and cash flow during the construction period, in which there will be no revenue generation. Since the present capacity is restricted to Rs 60 lakhs (Rs. 10 lakhs as developer’s own fund and Rs. 50 lakhs as bank loan) the developer has to look into other sources to finance the project from the 5000 sq m of land given by the charitable trust.

Design adequacy and alternatives for financing
The developer will have to build either housing or a commercial healthcare facility on his parcel of land which can be then sold at a profit. It is assumed here that both housing and healthcare are the approved land-use since the charitable trust is making these facilities on the same parcel of land. Of the two, housing is more preferable as these can be marketed before the construction starts and sold before the start of project, during the construction phase and at the completion of project. Developer will get funds by stage wise completion of sold out houses. Hence this method will generate cash flow during all stages of the project. However for making a healthcare facility developer will have to find a financer or go into an alliance with established healthcare leaders in the industry which will finance the project.

Work schedule on quarterly basis
Typical project of this...
Continue Reading

Please join StudyMode to read the full document

You May Also Find These Documents Helpful

  • Summer Internship Project Report Format Essay
  • PROJECT REPORT FORMAT FOR MANAGEMENT SUMMER TRAINEES (1) Essay
  • short report Essay
  • Recommendation Report Essay
  • Report Writing Essay
  • Statutory Disclosure Analysis of Annual Report Essay
  • How do I write a report Essay
  • Adidas Annual Report Essay

Become a StudyMode Member

Sign Up - It's Free