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 5,000 sq.m of area will be used by the trust for housing,...

SOM
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 5,000 sq.m of area will be used by the trust for housing, health facilities for senior citizens. 5,000 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% Kota stone
50% Mosaic cement tiles
R.C.C Framed structure.
Aluminum sliding windows – Class A.
Rest specifications as used for Class A. Constructions.
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. 10lakhs as his own funds and can rise not more than Rs. 50lakhs as bank loan.
1. FINANCE MANAGEMENT:-
Financial management is dealing with the procurement of funds to meet financial needs. Finance and capital are seen as a considerable problem for cooperative, the sources being the members and loans from banks or other institutions and individuals. The sources of capital available to any firm are quite numerous but as noted public limited companies have the greatest variety of sources available for their use and the single person enterprise.
The capital structure of any firm is related to the form of the enterprise, its objectives, and the cost of capital. The cost of capital is subject to and governed by many variables, which often operate independently of each other. The firm must consider these influence and their effects on the cost of the individual types of capital to determine the most suitable capital structure.
Cash budgeting will play an important role in any type of construction project also capital revenue, finance resource mobilization, cost accounting; management accounting will give proper planning of inflow as well as outflow resources in project.
2. PROJECT SCOPE:-
To develop a commercial site of 10,000 sqm and in that 5000 sqm developed area will be used by the owner and the balance 5000 sqm area will be utilized by the developer to get investment and a profit of 18% on this investment.
Construction should be with RCC framed structure with Aluminum sliding Window- Class A. The flooring details are 10% Granite, 40% Kota stone, and 50% Mosaic cement tiles. The other construction specification is pertaining to Class A type.
COST CALCULATION
Manpower requirement
In general without this, project cannot be run. One should know the requirements of manpower to run the show. Based on the site requirements, project will have the following categories:
· Management staffs.
· Professional staffs.
· Supervising staffs.
· Workers (skilled, semiskilled and un-skilled).
Selection of manpower totally depends up on the nature of work, type of work, scope of work. Based on the scope of work, the organization chart should be prepared. Work distribution should be done according to the organization chart. For workers duration of working hour, cost per hour or day, output can do assessed based on the nature of work.
For example, for labours, one labour can do the earthwork excavation up to 2-3 cubic meters for 8-hour upto the lead and lift of about 0.5-1 meter. Based on the above calculation number of manpower for certain activity can be assessed.
Earthwork excavation can be done with manually as well as mechanically. Now days generally this work are ca
ied out by mechanically since the latter will take lot of time to excavate. Moreover compared to manual work is faster and cheaper also
Suppose we need to excavate about 5000 cubic meters of earthwork excavation. One labor can do 2 cubic meter of soil.
So number of labours required to do this activity is = (5000/2) = 2500nos.
According to priority of the works, within the time frame, it has to complete, suppose assume this has to be done within 25 days.
( No. of labours to be engaged/day = 2500/25 = 100 labours.
Keeping labours such a longer duration for a smaller quantity of work will lead to delay in work and loss to the contractor.
But the same activity with the machine, anyone can do within a week times or so. One TATA Ex-200 Excavator can load min 25–30 trips/2-hours.
No. of trip / day = (8 X 25 / 2) = 100 trips.
( Assume qty. / trip = 8 m3.
( Total qty. executed / day = 8 X 100 = 800 m3.
( Number of days required to excavate = 5000 / 800 = 6.25 days.
Say = 7days.
Suppose here if we do the cost analysis:
Labours: -
We have to keep the labours for 25 days to complete this activity. Assume rate of excavation = Rs. 80 per m3.
Total amount = (100 X 25 X 80) / 2 = Rs. 100000 m3.
Machine: -
But if we do this activity by machine,
Assume rate of excavation = Rs. 25 / m3.
( Total amount = 5000 X 25 = Rs.125000.
By seeing the above comparison, machine oriented work can be done fast and economically in term of days and with less manpower. Now a day’s world is very fast, ones do not have time to do this type of work for longer duration. If the project duration increases, we have the following deficiencies: -
· Profit will decrease.
· Manpower will be blocked.
· Further planning hampered.
· Slow work more overheads.
· Loss in profit.
Design adequacy
The considerations given while designing and checked with alternative design were also checked. Provide weather and sun protection, such as overhangs, awnings, canopies, and etc. to mitigate climate and solar conditions. The building’s, not the parking lots has been designed to establish the image and character for the development along street frontages. Short-term parking has been provided in close proximity to office check in area. Delivery and loading areas should be screened to minimize adverse visual and noised impacts to adjacent uses. Recreational facilities should be designed to offer privacy to facility users. The scale of buildings should be compatible with the su
ounding development patterns. Walkway, stairway and balcony railings and other similar details are stylistically. Consistent with the building design minimize impacts on adjacent uses. Air conditioning units are not visible from public streets. Structures have been incorporated for interior access to guestrooms. Room entrances directly adjacent to parking lots or exterior walkways were not provided. Articulate fades to provide a visual effect that is consistent with the community’s character and scale.
Free standing accessory structure
Enclosed service areas and covered parking should be designed to be an integral part of the building architecture. The forms, colors, textures and materials used on the main building should be applied to all sides of these structures generally visible to the public.
3. ENVIORNMENT SENSITYVITY
While not specifically guideline items, the following measures that promote environmental sensitivity are offered for consideration by the development community:
· Orient and design new structures and addition for minimum solar gain, reflectivity and glare.
· Shelter entries and windows and use architectural shading devices and landscaping to minimize cooling losses.
· Use energy efficient materials in doors and windows.
· Use energy efficient lighting.
· Mitigate u
an heat island...