Reference no: EM133134469 , Length: 4500 words

7202ENG Project Evaluation and Control - Griffith University

PROJECT

You can choose any mega project (either proposed, currently undertaking or recently completed)

Select a real life Big budgeted project whose information are available online so that you can work comfortably

Your company has been chosen as the consultants to prepare a feasibility report on the proposed project. Your report for the Government/Client should address the following areas:

Question 1. Project appraisal: examine the feasibility of the project; examine the surrounding population and real demand from the population; examine environmental concerns etc.

Question 2. Develop a conceptual design: decide on a conceptual design (basic specification and design details only). Discuss any issues associated with your proposed hospital(s). You should detail any design and procurement considerations for each segment of your project.

Question 3. Contract strategy: what contract strategy will you adopt and why; risk evaluation; contractual issues that may evolve from the project; discuss the advantages and disadvantages of a number of contract strategies and your reasoning for choosing one.

Question 4. Project finance options: Examine a number of project finance options for the project and illustrate the advantages and disadvantages of each option. Describe the chosen finance option and why? What is the best financial package for a project of this kind? Where will the funding come from i.e. Government, private company, consortium, or a combination of these?

Question 5. Develop project estimate: develop a preliminary estimate for the project considering all costs associated with the project, such as, design, construction, operation, etc. Note: a detailed estimate of costs is not required.

Question 6. Project cash flow projections: develop cash flow projections for the project; undertake a basic sensitivity analysis for the most critical factors influencing the cost and revenue from the project; develop a cost control strategy.

Question 7. Risk management and environment: develop a basic risk management plan and conduct a preliminary environmental impact study.

Question 8. Profitability analysis: considering the contract strategy and finance approach adopted, conduct a profitability analysis for the project. Illustrate to the Government, whether the project is financially viable. Illustrate the Return of Investment (ROI) of the project over its predicted life. If you do not believe that the project is profitable now, when should the project commence e.g. commence construction in 2013 etc.

All the above-mentioned items should be included in your consulting report in addition to other pertinent issues that you believe should be discussed/evaluated for a project of this nature.

Note: all assumptions should be documented.