Feasibility report
EVERYTHING YOU CONSTRUCT IS BUILDING YOUR
REPUTATION
PURPOSE OF THE DOCUMENT
The objective of the pre-feasibility study is primarily to facilitate potential
entrepreneurs to facilitate investment and provide an overview about
housing construction business. The project pre-feasibility may form the basis
of an important investment decision and in order to serve this objective, the
document covers various aspects of housing construction business concept
development, start-up, production, marketing, finance and business
management. The document also provides sectoral information, brief on
government policies and international scenario, which have some bearing on
the project itself.
Project history
This report is based on field observation, record drwing observatios
environmental impact assesment. Analysis of the budget relative to client
requirements. Assessment of any site information provided by the client.
Site appraisals, including geotechnical studies, assessment of any
contamination, availability of services, uses of adjoining land, easements and
restrictive covenants, environmental impact and so on. Considering different
solutions to accessing potential sites. Assessing operational and
maintenance issues.
PROJECT PROFILE
Housing is one of the basic human requirements, as every family needs a roof.
Providing shelter to every family has become a major issue as a result of rapid
urbanization and higher population growth. The improvement of slums and katchi
abadies and provision of affordable housing to shelterless population will not only
help alleviate the urban and rural poverty but also increase the productivity of the
low income population through improved public health. The multiple effects of the
housing and construction sector have the potential to create maximum employment
opportunities besides generating industrial, commerce and trade activities. Project
preparation and formulation It has a four steps
Feasibility study
Project document formulation
Establishment of baseline and target data
Project implementation planning
Feasibility study
A feasibility study should form the core of the proposal preparation process.
Its purpose is to provide stakeholders with the basis for deciding whether or
not to proceed with the project and for choosing the most desirable options.
The feasibility study must provide answers to the following basic questions:
Is the project technically and scientifically sound, and is the methodology the
best among the available alternatives?
Is the project administratively manageable?
Is there adequate demand for the projects outputs?
Is the project financially justifiable and feasible?
Is the project compatible with the customs and traditions of the beneficiaries?
Is the project likely to be sustained beyond the intervention period?
Project document formulation
Project preparation and formulation and project document formulation are
simultaneous processes. Once the feasibility study has taken place and
implementation arrangements are agreed upon, the concept proposal (which would
have been revised throughout the process) is transformed and expanded into a
project document throughout the project preparation and formulation phase. The
project document is a summary of the situation assessment, justification of
methodology and strategies for achieving the targeted changes, which come from
each step taken.
Project implementation planning
Success of project implementation often depends on the quality of project planning
before the project begins. The following P&D project submission checklist is
designed to assess the feasibility of projects and the readiness of project managers
to undertake them. The checklist is designed as the project managers reference
guide in planning for effective and efficient project implementation.
Name of the Project
Indicate name of the project.
Location
Provide name of District/Province. Attach a map of the area, clearly indicating the
project location. Authorities responsible
For Indicate name of the agency responsible for sponsoring, execution, operation
and maintenance. For provincial projects, name of the concerned federal ministry be
provided.
DESIGN ASSESSMENT/VERIFICATION
Design Assessment/Verification services aim at ensuring design quality in terms of
correctness of the solutions chosen by the designer. The objective of this service is
to check constructors design, drawings, calculations and specifications with
applicable codes, standards, legal requirements (legislation) and purchase
specification to assure safety, functionality and comfort for the users.
In particular, the design is assessed in order to evaluate the risk in terms of
Completeness, suitability and compliance of project documents
Reliability of technical choices in time
The goals of assessment/verification services can be mainly summarised as follows
Guarantee that the project can be awarded
Minimise the risks of the introduction of variants due to non-exhaustive or
incomplete design
Avoid consequent delays and cost overruns in delivering the works
Minimise the friendly suits with contractors
Reliability of works in time
Minimise management fees
Site information for design and construction
Site information refers to information about a proposed site for a
development that might be relevant to the consultant team, contractor or
operators of the completed development.
This could include information about:
Existing uses.
Existing drawings.
Site availability.
Boundaries.
Covenants, easements, rights of way and rights to light.
Site history.
Land registry drawings.
Planning history.
Legal searches.
Insurance details.
Flood risk.
Natural drainage.
Known hazards.
Information about neighbours and party wall issues.
Key views.
Pedestrian and vehicular access, roads and rights of way.
Local transport facilities.
Traffic surveys.
Site access conditions.
Information about existing buildings and property condition.
Information about existing services and statutory utilities (such as
capacities).
Information about tunnels, wells or other underground obstructions.
Leases.
Ownership issues.
Parking restrictions and allowances.
Existing planning consents, likely planning conditions and the likelihood
of requiring an environmental impact assessment.
Waste storage and collection.
Biodiversity and protected species.
Trees and hedges (including tree preservation orders).
Hours of operation.
Local amenities.
Legislative constraints.
Existing policies (such as environmental policies).
Management structure and manpower requirements
Administrative arrangements for implementation of the project.
Manpower requirements during execution and operation of the project be
provided by skills/profession.
Job description, qualification, experience, age and salary of each job be
provided.
TECHNICAL DUE DILIGENCE
The Due Diligence Service aims at checking the state of buildings through a
documented and physical analysis to evaluate the overall conformity status. The
outcome of this service is a document which declares the buildings conformity to
current legislations, based on the documental, technical and functional compliance
compared to the actual status and which may be used for property transactions.
The service can be divided into two main activities
Document Inspection
Direct Inspection
Strategic Recommendations
The construction industry is only profitable if the projects are completed in time.
Quality of materials used ensures quality of houses built. Superior quality is the
best competitive advantage these days. Careful selection of residential area
counts towards selling price and timely sales the investment in good architectural
design is worth it. A good look is the first thing buyers would be looking for at the
first place.
Production Process Flow
The production process includes the following steps.
Procurement of Land
Architecture Design
Materials Procurement
Erection of Foundations
Construction of Structure
Installation of Electrical Wire Pipes
Construction of roof.
Plaster of cement
Sewerage and water pipe installation
Construction of floors and bathrooms
Paints and electrification
Raw Material Requirement
Following raw materials will be used:
Bricks
Steel Doors and Grills
Sand
Wood
Crush
Win board
Steel
Chipboard
MudGlass
Cement
Varnish Floor Tiles
Paint
Bath Room Fittings
Wires
Lighting accessories
electrification equipment
Machinery Requirement
All the required machinery like Mixer, Lifts etc are available widely on rental basis.
Swot analysis
SWOT Analysis is the foundation for developing tactics & strategies that become the
road map for writing or planning business operating plans or strategies.
SWOT = Strengths + Weaknesses + Opportunities + Threats
Strength is defined as an internal asset, technology, motivation, finance business
links etc. that can help to exploit opportunities and to fight off threats.Weakness is
an internal condition which hampers the competitive position or exploitation of
opportunities.
Strength
Employment and training opportunities in the field of construction.
Construction of the multi building projects on the feasible locations in the
country.
Low cost well- educated and skilled labour force is now widely available
across the country.
Sufficient availability of raw material, manpower and natural resources in the
country is supportive for the industry.
WEAKNESS
Distance between construction projects reduces business efficiency.
Training itself has become a challenge in todays competitive environment.
Changing skills requirements and an ageing workforce may emphasize the
skills gap.
Improvement in long-term career prospects is highly required to encourage
staff retention and new entrants.
Lack of clearly defined processes and procedures for construction and its
management lead to higher risk and uncertainty.
Huge amount of money needs to be invested in this industry.
OPPORTUNITY
Continuous private sector housing boom will create more construction
opportunities.
Developing supply chain through involvement in large projects is likely to
enhance the chances in construction.
More flexible training delivery techniques are now available.
Financial supports like loan and insurance and growth in income of people is
in support of construction industry.
THREAT
Long term market instability and uncertainty may damage the opportunities
and prevent the expansion of training and development facilities.
Current economic situation may have an adverse impact on construction
industry.
Political and security conditions in the region and Late legislative
enforcement measures are always threats to any industry in Pakistan.
Infrastructure safety is a challenging task in construction industry.
Lack of political willingness and support on promoting new strategies.
What are the construction programs business processes?
While the construction program is involved in a wide range of activities
during the life of a highway construction project, the business functions that
are of the highest priority to the construction program, but also at the
greatest risk of failure, fall within three areas. These areas are progress and
contract documentation, billing/payments, and project closeout.
The progress and contract documentation business functions include:
Start-Up Tasks.
These are the activities performed at the beginning of each construction
Project; such as setting up project office facilities and communication,
relocating staff, Compiling design documents, taking pictures and
documenting the original job site, ensuring Utilities are moved from the job
site, and meeting with the contractors to review the design, Develop
schedules and resolve issues.
Contract Inquiry/Updates.
During the bidding process, contractors submit questions or requests for
clarification to district/region construction divisions. Responses are posted
on the Internet notifying all bidders of the question and answer. Depending
on the situation, some questions result in a contract.
Contractor Information Input.
The contractors are required to fill out dozens of Department forms regarding
project and contract activity. The information provided on these forms
includes, in part, payroll data, amounts of material on hand, and notices of
potential claim.
Daily Diary/Inspection Input/Update.
These are the tasks that the RE, ARE, or inspection staff performs primarily at the
construction job site. They record project progress, note issues and concerns, record
how much labor, equipment, and materials are used, and inspect the work to ensure
the project is built to expected quality standards.
Contract Item Quantity Calculation.
This is the function the RE or field office staff performs to determine how many
people, how much equipment, and how much construction material was used each
day on a construction project, and how much the contract allows the contractor to
be paid for those items in the monthly pay estimate.
Contract Change Order (CCO).
Construction projects often encounter unforeseen problems that create additional
work or require additional equipment or materials of the contractor. The CCO
function is the process that handles changes to the contract due to increases or
decreases in project size, scope, or cost.
Reporting
A large part of the construction programs responsibility is providing information on
highway construction projects and contracts.
Environmental Management Planning
Most of the identified impacts such as dust, noise, HIV/AIDS can be mitigated and
others such as loss of vegetation are reversible. The contractor will use a number of
interventions to control negative impacts from the project. Some of the mitigation
measures include incorporation of appropriate environmental designs into the
project, use of water to control dust, supervision of implementation of mitigating
measures by various authorities.
Recommendations
The Contractor should comply with legal obligations related to this project
and should use the National Environmental Standards as a guide for emission
limits. In absence of any emission limits in the national standards, the
contractor should use other internationally acceptable standards for the
limits;
There is public concern over the safety of road users in view of the fact that,
the planned area for the by-pass is largely a cattle grazing zone;
All displaced parties and other groups who will lose property should be fairly
and promptly compensated;
The contractor should follow all the formalities related to development control
and approval systems for this nature of projects;
The Contractor should fully rehabilitate campsites, borrow pits and road sides
after project completion
A comprehensive programme should be developed to facilitate sensitizations
and training of workers and the general public
INTEGRATED SERVICES TO HELP MEET QUALITY, BUDGET
AND SCHEDULE OBJECTIVES IN CONSTRUCTION PROJECTS
