Professional Documents
Culture Documents
1. Course
- NCP 29
- Construction Finance
2. Course Title
Management
3. Assignment No.
-1
- Of Assignment at SODE
office
Submitted By;
Name
Gulshan
Registration No.
: 213-09-31-12800-2154
10% Granite
Developers would like to have minimum 18% net profit on their investment.
Developer can invest only Rs. 10 lakhs as his own funds and can raise not
more than Rs. 50 lakhs as bank loan.
Technical Studies
The technical study is to determine the needs for material and human means
necessary to achieve the objectives. These take account of the market
(availability of raw material, there is a demand, customer requirement),
regulatory and standards-related product and also the financial (amount to
invest and returns expected).
The study focuses on two general areas: study of supply and the study of
transformation. To carry out critical analysis of technical feasibility, there
must
be
enough
environment.
knowledge
of
technical,
economic
and
regulatory
Cost of Construction
The cost of construction includes both the initial capital cost and the
subsequent operation and maintenance costs. Each of these major cost
categories consists of a number of cost components.
The capital cost for a construction project includes the expenses related to
the initial establishment of the facility:
Land acquisition, including assembly, holding and improvement
Planning and feasibility studies
Architectural and engineering design
Construction, including materials, equipment and labor
Field supervision of construction
Construction financing
Insurance and taxes during construction
Equipment and furnishings not included in construction
Inspection and testing
The operation and maintenance cost in subsequent years over the project
life cycle includes the following expenses:
Land rent, if applicable
Operating staff
Labor and material for maintenance and repairs
Periodic renovations
Insurance and taxes
Financing costs
Utilities
The magnitude of each of these cost components depends on the nature,
size and location of the project as well as the management organization,
Rs./sq
.ft
Cost of Superstructure
450
Cost of Brick work, plaster
etc
90
Cost of Electric work
108
Cost of Plumbing
90
Cost of Finishing
54
130
40
40
TOTAL COST
Amoun
t
242190
00
484380
0
581256
0
484380
0
290628
0
699660
0
215280
0
215280
0
539276
40
Outline
Number
Name
1
2
1.0
1.1
Contracts
__Supply Lot Sale Agreement
3
4
5
6
7
8
9
1.2
1.3
1.4
1.5
1.6
1.7
2.0
10
2.1
Durati
on
Start
Finish
0.00d
QUARTER
1
1-May-2010
1-May-2010
0.00d
0.00d
0.00d
0.00d
0.00d
0.00d
1-May-2010
1-May-2010
1-May-2010
1-May-2010
1-May-2010
1-May-2010
1-May-2010
1-May-2010
1-May-2010
1-May-2010
1-May-2010
1-May-2010
15.00d
2-May-2010
26-May2010
27-May2010
16-Jun2010
18-Jun2010
23-Jun2010
23-Jun2010
23-Jun2010
15-Jun2010
17-Jun2010
22-Jun2010
23-Jun2010
23-Jun2010
23-Jun2010
26-Jun2010
27-Jun2010
28-Jun2010
29-Jun2010
1.00d
24-Jun2010
27-Jun2010
28-Jun2010
29-Jun2010
30-Jun2010
QUARTER
2
2-Jul-2010
1.00d
0.00d
1.00d
1.00d
1.00d
15.00d
0.00d
1.00d
1.00d
2.00d
1.00d
1.00d
3-Jul-2010
4-Jul-2010
5-Jul-2010
6-Jul-2010
7-Jul-2010
8-Jul-2010
22-Jul-2010
22-Jul-2010
23-Jul-2010
24-Jul-2010
26-Jul-2010
27-Jul-2010
3-Jul-2010
4-Jul-2010
5-Jul-2010
6-Jul-2010
7-Jul-2010
22-Jul-2010
22-Jul-2010
22-Jul-2010
23-Jul-2010
25-Jul-2010
26-Jul-2010
27-Jul-2010
1.00d
4.00d
4.00d
2.00d
28-Jul-2010
29-Jul-2010
2-Aug-2010
6-Aug-2010
3.00d
8-Aug-2010
28-Jul-2010
1-Aug-2010
5-Aug-2010
7-Aug-2010
10-Aug2010
11
2.2
20.00d
12
2.3
1.00d
13
2.4
5.00d
14
2.5
0.00d
15
2.6
0.00d
16
17
2.7
3.0
0.00d
18
3.1
__Clear Lot
3.00d
19
3.2
1.00d
20
3.3
1.00d
21
3.4
1.00d
22
3.5
2.00d
23
24
4.0
4.1
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
4.2
4.3
4.4
4.5
4.6
4.7
4.8
4.9
4.1
4.1
4.1
4.1
5.0
5.1
5.2
5.3
5.4
Foundation
__Layout footings
__Dig
Footings
&
Install
Reinforcing
__Footing Inspection
__Pour footings
__Pin Footings
__Stock Block, Mortar, Sand
__Build Block Foundation
__Foundation Certification
__Fill Block Cores w/ Concrete
__Steel Delivery
__Set Lintels, Bolts, Cap Block
__Lumber Delivery
__Waterproofing and Drain Tile
Rough Carpentry
__Set Steel
__1st Floor Deck Framing
__1st Floor Wall Framing
__2nd Floor Deck Framing
42
5.5
1-Jul-2010
2-Jul-2010
43
5.6
2.00d
44
5.7
__Frame Roof
7.00d
45
5.8
5.00d
46
5.9
2.00d
47
5.1
__Frame Basement
3.00d
48
49
5.1
6.0
2.00d
10-Aug2010
11-Aug2010
18-Aug2010
23-Aug2010
25-Aug2010
10-Aug2010
10-Aug2010
17-Aug2010
22-Aug2010
24-Aug2010
27-Aug2010
11-Aug2010
12-Aug2010
14-Aug2010
15-Aug2010
16-Aug2010
17-Aug2010
18-Aug2010
19-Aug2010
13-Aug2010
14-Aug2010
15-Aug2010
16-Aug2010
17-Aug2010
18-Aug2010
19-Aug2010
20-Aug2010
22-Aug2010
23-Aug2010
21-Aug2010
22-Aug2010
27-Aug2010
50
6.1
51
6.2
52
6.3
__Slab Inspection
1.00d
53
6.4
1.00d
54
6.5
1.00d
55
6.6
1.00d
56
57
6.7
7.0
1.00d
58
7.1
__Plumbing Sub-slab
2.00d
59
7.2
__Plumbing Layout
1.00d
60
61
7.3
8.0
__Plumbing rough-in
Electric Rough-in
5.00d
62
8.1
2.00d
63
64
8.2
8.3
2.00d
1.00d
28-Aug2010
30-Aug2010
1-Sep-2010
65
66
8.4
9.0
__Electrical Rough-wire
Specialty Rough-ins
14.00d
2-Sep-2010
29-Aug2010
31-Aug2010
1-Sep-2010
15-Sep2010
67
9.1
5.00d
68
69
9.2
9.3
5.00d
5.00d
16-Sep2010
21-Sep2010
26-Sep-
20-Sep2010
25-Sep2010
30-Sep-
70
9.4
5.00d
71
9.5
5.00d
72
10.0
Electrical inspection
0.00d
73
74
11.0
12.0
Framing Inspection
Roofing
0.00d
75
12.1
3.00d
76
12.2
1.00d
77
78
12.3
13.0
7.00d
79
13.1
__Siding
3.00d
80
13.2
__Exterior Trim
7.00d
81
13.3
1.00d
82
83
13.4
14.0
__Brick Veneer
Insulation
45.00d
84
14.1
1.00d
85
14.2
1.00d
86
14.3
__Insulation
3.00d
87
15.0
Floor Finishes
88
15.1
__Ceramic Tile
15.00d
89
15.2
4.00d
90
15.3
5.00d
91
15.4
__Install Carpet
4.00d
92
93
15.5
16.0
2.00d
94
16.1
2.00d
95
16.2
2.00d
2010
1-Oct-2010
6-Oct-2010
10-Oct2010
10-Oct2010
2010
5-Oct-2010
10-Oct2010
10-Oct2010
10-Oct2010
10-Oct2010
12-Oct2010
14-Oct2010
12-Oct2010
13-Oct2010
20-Oct2010
20-Oct2010
20-Oct2010
20-Oct2010
20-Oct2010
20-Oct2010
20-Oct2010
20-Oct2010
20-Oct2010
20-Oct2010
22-Oct2010
24-Oct2010
QUARTER
3
27-Oct2010
11-Nov2010
15-Nov2010
20-Nov2010
24-Nov2010
21-Oct2010
23-Oct2010
26-Oct2010
26-Nov2010
28-Nov2010
27-Nov2010
29-Nov2010
10-Nov2010
14-Nov2010
19-Nov2010
23-Nov2010
25-Nov2010
30-Nov2010
2-Dec-2010
96
97
16.3
16.4
2.00d
2.00d
98
16.5
10.00d
99
10
0
10
1
10
2
10
3
10
4
10
5
10
6
10
7
10
8
10
9
11
0
11
1
11
2
11
3
11
4
11
5
11
6
11
7
11
8
11
9
12
0
16.6
14.00d
16.7
16.8
17.0
Exterior Landscaping
17.1
1.00d
1-Jan-2011
1-Jan-2011
17.2
__Patios
7.00d
2-Jan-2011
17.3
__Porches
5.00d
17.4
__Sidewalks
7.00d
17.5
__Decks
7.00d
17.6
__Driveways
2.00d
17.7
3.00d
9-Jan-2011
14-Jan2011
21-Jan2011
28-Jan2011
30-Jan2011
8-Jan-2011
13-Jan2011
20-Jan2011
27-Jan2011
29-Jan2011
18.0
Hardware
18.1
__Door Hardware
2.00d
1-Feb-2011
2-Feb-2011
18.2
__Bath Hardware
2.00d
3-Feb-2011
4-Feb-2011
18.3
__Mirrors
5.00d
18.4
__Shower Doors
10.00d
18.5
0.00d
5-Feb-2011
10-Feb2011
19-Feb2011
9-Feb-2011
19-Feb2011
19-Feb2011
19.0
Cleaning
19.1
__Windows
3.00d
19.2
__Rough Clean
3.00d
19.3
__Final Clean
2.00d
19-Feb2011
22-Feb2011
25-Feb2011
21-Feb2011
24-Feb2011
26-Feb2011
20.0
Final Walk-through
4-Dec-2010
14-Dec2010
28-Dec2010
30-Dec2010
QUARTER
4
1-Dec-2010
3-Dec-2010
13-Dec2010
27-Dec2010
29-Dec2010
31-Dec2010
1-Feb-2011
12
1
21.0
Move-in
accounting
Financial
accounting
consists
of
recording,
machinery,
new
plants,
new
products,
and
research
Capital Structure
Asset
Equity
Debt
50,000,0
00.00
1,000,0
00.00
4,000,0
00.00
The debt raised by the promoter is Rs 40 lacs. The total debt would not be
taken all at once rather it would be disbursed in 4 equal quarterly
installments. This debt will carry a fixed interest expense as follows:
Month
Apr-10
May-10
Jun-10
Jul-10
Aug-10
Sep-10
Oct-10
Nov-10
Dec-10
Jan-11
Feb-11
Mar-11
Amou
nt
(Rs.)
100000
0
100000
0
100000
0
100000
0
Int.
Payable
Monthly
10000
10000
10000
20000
20000
20000
30000
30000
30000
40000
40000
40000
Int.
Payable
Quarterly
30000
1000000
1000000
1000000
60000
2000000
2000000
2000000
90000
3000000
3000000
3000000
120000
4000000
4000000
4000000
Profit Measures
Closing
bal
Loan
return over cost". The IRR gives the return of an investment when the capital
is in use as if the investment consists of a single outlay at the beginning and
generates a stream of net benefits afterwards. However, the IRR does not
take into consideration the reinvestment opportunities related to the timing
and intensity of the outlays and returns at the intermediate points over the
planning horizon. For cash flows with two or more sign reversals of the cash
flows in any period, there may exist multiple values of IRR; in such cases, the
multiple values are subject to various interpretations.
3. Adjusted Internal Rate of Return. If the financing and reinvestment
policies are incorporated into the evaluation of a project, an adjusted internal
rate of return (AIRR) which reflects such policies may be a useful indicator of
profitability under restricted circumstances. Because of the complexity of
financing and reinvestment policies used by an organization over the life of a
project, the AIRR seldom can reflect the reality of actual cash flows.
However, it offers an approximate value of the yield on an investment for
which two or more sign reversals in the cash flows would result in multiple
values of IRR. The adjusted internal rate of return is usually calculated as the
internal rate of return on the project cash flow modified so that all costs are
discounted to the present and all benefits are compounded to the end of the
planning horizon.
4. Return on Investment. When an accountant reports income in each
year of a multi-year project, the stream of cash flows must be broken up into
annual rates of return for those years. The return on investment (ROI) as
used by accountants usually means the accountant's rate of return for each
year of the project duration based on the ratio of the income (revenue less
depreciation) for each year and the un-depreciated asset value (investment)
for that same year. Hence, the ROI is different from year to year, with a very
low value at the early years and a high value in the later years of the project.
5. Payback Period. The payback period (PBP) refers to the length of time
within which the benefits received from an investment can repay the costs
incurred during the time in question while ignoring the remaining time
periods in the planning horizon. Even the discounted payback period
indicating the "capital recovery period" does not reflect the magnitude or
direction of the cash flows in the remaining periods. However, if a project is
found to be profitable by other measures, the payback period can be used as
a secondary measure of the financing requirements for a project.