Reference no: EM131171918 , Length: word count:1000

ASSESSMENT -

You are working for a local builder, who has just sold a new house which is to be constructed.

The home is a large 3 bedroom house that includes a large open plan living area, accessible from the rumpus, bedrooms and courtyard. This house is a quality home for an affordable price.

The home payment structure follows a standard HIA Victorian New Homes Contract, and is as follows:

Deposit	5%	$13,274
Base Stage	10%	$26,546
Frame Stage	15%	$39,819
Lock-up Stage	35%	$92,912
Fixing Stage	25%	$66,366
Completion	10%	$26,546
Total Contract Price (Excluding Variations)		$265,463

For this assessment, you are required to prepare an budget for the construction of this house. You are required to research appropriate costings to ensure the budget is relevant to current expected construction expenses. You will need to use your building and construction knowledge for this task to ensure all stages are covered, including:

• Expected Site Costs
• Security of premises (fencing)
• Surveying
• Plumbing / Electrical
• Base Stage - Foundation ("M" Class Slab)
• Framing
• Lock-up - External wall cladding, Roof coverings, Flooring, External Doors / windows
• Fixing - Internal cladding, architraves, skirting, doors, built in shelves, baths, basins, troughs, sinks, cabinets, cupboards
• Completion (Refer to provided fixture list)

Be sure to

• Undertake discussions with stakeholders (Your instructor will role play these parts) to determine any specific budget objectives and set milestones and / or performance indicators
• Discuss and review assumptions and budget parameters - review these during the budget process as needed.
• Clearly details any Cash, expenditure and revenue items
• Ensure your budget objectives are clear & conform with the business' expectations
• Include milestones and performance indicators to monitor financial performance
• Include a detailed breakdown of your annual budget into stages as required by the business
• Identify any financial risks and incorporate protection strategies according to business

Details: Students should keep the following points in mind when creating the budget

• Identify the non-current asset requirements and consider alternative asset management strategies
• Prepare cash flow projections to enable business operation in accordance with business plan and legal requirements
• Select budget targets to enable ongoing monitoring of financial performance
• Relevant taxes such as GST and BAS should also be included.

Students must ensure that estimates of future cash flow, costs and revenues are realistic in context of the available information at the time of creating the budget. Changes in circumstances should be anticipated as best as possible with particular emphasis on financial risks and creating protection strategies in accordance with organisational procedures. Any liaison with the proprietor of the business to determine milestones, policies, goals etc. should be carried out with your instructor, who will role play the relevant parts.