Analyse commercial aspects of a construction project

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Reference no: EM132332205

Code Description

A1 knowledge and critical understanding of the production of a development appraisal

A2 knowledge and comprehensive understanding of the techniques used in the provision of cost advice provided during the pre-contract phase of a construction project

A3 knowledge and critical understanding of how design solutions impact on initial and life cycle costs and the methods used to establish such costs

A4 knowledge and comprehensive understanding of the impact that sustainability has on construction projects through the use of value engineering and life cycle cost exercises

B1 define, investigate and analyse commercial aspects of a construction project encountered during the pre-contract phase

B2 appraise possible solutions to issues relating to commercial aspects of a construction project encountered, during the pre-contract phase

C1 integrate theory and practice to allow appropriate recommendations to be provided on matters relating to the commercial aspects of a construction project during the pre- contract phase

D1 communicate effectively with stakeholders in the context of commercial aspects relating to the pre-contract phase of a construction project

Scenario

You are part of the cost consultancy team working for a speculative developer at the pre-contract phase of a project. The developer has purchased a site in a prime urban location near a railway station and obtained planning permission for a six-storey office building.

The developer has identified that minimum running, repair and maintenance costs are a top priority to ensure that they are able to let the building for a high rent. An excellent BREEAM rating is required to demonstrate this. The developer is also looking to receive a return on their investment as soon as possible. They are currently negotiating a contract with a management contractor and want to be assured that they will be receiving value for money for this project. The developer is therefore looking for advice on alternative funding options for the project.

The project details are as follows:

Grade A specification offices, designed to meet the energy efficiency requirements of a modern business.

Gross floor area:                  16,000 m2

Lettable area:                       90%

Required yield:                     8%

Anticipated rent:                   £450 per m2

Target Construction cost:       £2,800 per m2

Construction period:             3 years

Finance rate:                        5%

Assume all other information not provided.

Task

Write a report that explains how the developer's profit on the project would be established and critically appraise the risks that might adversely affect this and the mitigating measures that could be taken. Include a residual profit calculation to support your discussion.

Include a critical evaluation of the factors to be considered to achieve an excellent BREEAM rating and also meet the developer's requirement for minimum running, repair and maintenance costs.

Also include advice on alternative funding options for the project.

It is anticipated that around 2,000 words would be required on the residual appraisal and its analysis and then a further 1,000 words for the discussion on the BREEAM ratings, a further 1,000 words on funding options and the balance of 200 words for your conclusion.

Attachment:- Building Economics.rar

Verified Expert

In this assignment, the residual valuation component has been discussed.First of all, a brief introduction of this report has been given.Then the different factors which the construction team has to consider to get excellent BREEAM rating has been discussed.Then the conclusion including different finding of this report has been given.

Reference no: EM132332205

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Reviews

len2332205

7/2/2019 10:10:49 PM

Development of arguments • Use of analysis to develop and sustain arguments and justifications. Arguments and justifications are incoherent and deficient. There is minimal evidence of an attempt to develop or sustain an argument. Arguments and justifications are unsatisfactory and ineffective. The development of arguments is incomplete and not sustained. Arguments and justifications are confused and inaccurate. The development of arguments is inconsistent and partially sustained with significant omissions Arguments and justifications are satisfactory and sufficient to meet the learning outcomes. The development of arguments is basic and sustained adequately. Arguments and justifications are clear and reasonable. The development of arguments is fair and sustained competently. Arguments and justifications are advanced and sophisticated. The development of arguments is sophisticated and sustained comprehensively Arguments and justifications are ambitious and exceptional. The development of arguments is insightful and fully sustained.

len2332205

7/2/2019 10:10:40 PM

g g g g Critical analysis • Analysis of source materials Analysis of the source materials is superficial, deficient or minimal Analysis of the source materials is shallow ineffective or incomplete. Analysis of the source materials is insubstantial, inaccurate or inconsistent. Analysis of the source materials is adequate and of sufficient depth to meet the learning outcomes. Analysis of the source materials is substantial clear and competent. Analysis of the source materials is rigorous, accurate and comprehensive. Analysis of the source materials is profound, proficient and very advanced. • Application of analysis to the demands of the task Analysis is not applied to the demands of the task. Analysis is applied unsatisfactorily to the demands of the task. Analysis is partially applied to the demands of the task. Analysis is satisfactorily applied to the demands of the task Analysis is reasonably applied to the demands of the task. Analysis is perceptively applied to the demands of the task. Analysis is innovatively applied to the demands of the task.

len2332205

7/2/2019 10:10:33 PM

4. EVIDENCE BASED CRITICAL ANALYSIS 20 0–3 Inadequate 4–7 Limited 8–9 Below threshold 10–11 Threshold 12–13 Good 14–15 Excellent 16–20 Outstanding Practical understanding of how established techniques of research and enquiry are used to create and interpret knowledge Minimal understanding of how established techniques of research and enquiry are used to create and interpret knowledge. Unsatisfactory understanding of how established techniques of research and enquiry are used to create and interpret knowledge Insufficient understanding of how established techniques of research and enquiry are used to create and interpret knowledge Sufficient understanding of how established techniques of research and enquiry are used to create and interpret knowledge Effective understanding of how established techniques of research and enquiry are used to create and interpret knowledge Sophisticated understanding of how established techniques of research and enquiry are used to create and interpret knowledge. Insightful understanding of how established techniques of research and enquiry are used to create and interpret knowledge.

len2332205

7/2/2019 10:10:08 PM

Grammar • Selection of words, sentence construction, spelling and punctuation. Use of grammar is deficient and meaning is obstructed. Significant grammatical errors and meaning lacks clarity. Several grammatical errors and meaning conveyed insufficiently clearly. Notwithstanding some minor errors and oversights, grammar and clarity of meaning are sufficient to meet the learning out Grammar usage is capable and conveys meaning effectively. Grammar usage is advanced and conveys meaning precisely. Grammar using is exceptional and conveys meaning eloquently.

len2332205

7/2/2019 10:10:01 PM

Structure and presentation • Organisation and presentation of ideas A lack of structure beyond a loosely connected list of points. Largely unstructured and does not have a clear logical flow. Inconsistent structure and logical flow. Adequate Structure and logical flow. Capable structure and logical flow. Advanced structure and logical flow. Proficient structure and logical flow. • Format appropriate to the intended audience and/or industry protocols • How structure and presentation enable communication. Presentation format is inappropriate. Communication is obstructed. Presentation format is ineffective. Communication is hindered. Presentation format is confused. Communication is only partially effective. Presentation format is satisfactory. Communication is sufficient to meet the learning outcomes. Presentation format is effective. Communication is sound. Presentation format is sophisticated. Communication is articulate. Presentation format is innovative. Communication is insightful.

len2332205

7/2/2019 10:09:54 PM

1. COMMUNICATION 15 0–2 Inadequate 3–5 Limited 6–7 Below threshold 8 Threshold 9–10 Good 11 Excellent 12–15 Outstanding Relevance to task • The relevance of the information provided to the context of the task • The way the needs of the intended audience have been addressed. Irrelevant and addresses neither the task nor the needs of the intended audience. Largely irrelevant and does not effectively address the task or the needs of the intended audience. Partially relevant and attempts to address the task and the needs of the intended audience with significant irrelevance or omissions. Sufficiently relevant to the task and the needs of the intended audience to meet the learning outcomes. Consistently relevant to the task and focussed on the requirements of the intended audience. Highly relevant to the task and precisely focussed on the requirements of the intended audience. Completely relevant to the task and fully focussed on the requirements of the intended audience.

len2332205

7/2/2019 10:09:45 PM

Marking guidance for students This guidance is designed to help you to do as well as possible in your assessments by explaining how the person marking your work will be judging it. This should ensure you are aware of what they are looking for when you prepare your assessment. When you receive feedback on your assessment, the guide should also help you to see where you gained marks and how you could have improved your mark.

len2332205

7/2/2019 10:09:11 PM

I have done 1400 words and need 2800 words more: Introduction (200 - 300) Residual Appraisal (2000 words) I have done the calculation. BREEAM ratings (1000 words) I have done Funding options (1000 words) - 500 + 500 Debt Finance (500 words) Equity Finance (500 words) Conclusion (200 words) - I am taking a Msc in Quantity Surveying. There is an essay about the residual method for the new development.

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