1

CONSTRUCTION OF A 6 STOREY CONDOMINIUM

MAPUA UNIVERSITY
SCHOOL OF CIVIL, ENVIRONMENTAL, AND
GEOLOGICAL ENGINEERING

CONSTRUCTION
OF A 6 STOREY CONDOMINIUM

Submitted by:

QUINTANA, Kimberly
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CONSTRUCTION OF A 6 STOREY CONDOMINIUM

TABLE OF CONTENTS

TITLE PAGE 1

TABLE OF CONTENTS 2

EXECUTIVE SUMMARY 3

INTRODUCTION 4-6

PROJECT STRATEGIC CONTEXT 7

TECHNICAL ANALYSIS 8 - 12

INSTITUTIONAL ASSESSMENT 13

ENVIRONMENTAL ASSESSMENT 14

STAKEHOLDER ANALYSIS 15 - 21

FINANCIAL and SOCIO-ECONOMIC ANALYSIS 22 - 26

CONCLUSIONS 27
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CONSTRUCTION OF A 6 STOREY CONDOMINIUM

PROJECT IMPLEMENTATION PLAN 28 - 33

APPENDIX 34 - 36

EXECUTIVE SUMMARY

The aim of this study is to determine whether it is feasible or not to build a six-story

condominium at Reposo St., Sta. Mesa, Manila which is expected to be complete and functional

by 2018. This study may only be applicable for a certain span of time depending on the growth of

the economy of the country for it will affect the status of the whole of the Philippines and especially

the rise and fall of demands on the capital city Manila.

Numbers used in this study were based on the present prices and rates of similar or related

commodities that are available in the market and they are collected during the 4th week of the

month of August 2016. Some of these are the fixed costs like price of land acquisition which is

64.6 million pesos and cost of application and processing of construction permits with an average

amount of 84,763 pesos. The team considered a 12% interest rate on loans since it is assumed that

there will be a need of borrowing money during construction of the building that results from

limited resources or capital.

The capital budgeting evaluation technique, the Net Present Value (NPV) method in

particular is used to analyze the investment decision and give the company management a clear
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CONSTRUCTION OF A 6 STOREY CONDOMINIUM

way to tell if the investment will add value to the company. Regarding the financial and economic

aspect, it can be said that this study is feasible based on the return of the investment (ROI).

I. INTRODUCTION

A. Background of the Study

The Philippines is fast becoming one of Asia’s favorite real estate investment hotspots.

With the number of condominium developments being planned and built in the country, the

average gross rental yield of Philippine real estate is among the highest in the Asian region. This

may be attributed to a couple of factors – the BPO industry, which is steadily attracting expatriates

and top Philippine talent alike, and to some extent, the influx of retirees, both local and foreign.

With this new breed of tenants, it’s quite tempting to take advantage of the investment opportunity

being presented by the market.

Nowadays, the need of condominium units has been highly in demand, especially to those

who are working in the city who originally lives a far from their respective jobs. However, not all

are able to invest to such luxuriant investment. It cannot be denied that condominium units are a

bit costly that workers who earn at a minimum wage a day is certainly not able to pay for the cost

of housing. Consequently, this feasibility study was made with the aim of providing a stable
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CONSTRUCTION OF A 6 STOREY CONDOMINIUM

housing plan to people earning at minimum cost. Furthermore, this study caters on providing a 6-

storey condominium for housing on the land of Manila, more specific in Reposo St., Sta. Mesa

Manila, which has a 1700 square meters lot area, 1440 square meters floor area and occupying 22

units per floor with two to three-bedroom type.

B. Significance of the Study

The following individuals and groups are benefited in the study:

Researchers. The study fulfils the researchers’ requirement on their course. As future civil

engineering professionals, the knowledge gained by the students after doing the research can be

used in their future profession in the industry.

City of Manila. The study can help the local government resolve the problems that exist in

the city and further improve the programs being implemented with regards to housing facilities

and designation of residential areas. It can also make the Manileños develop a sense of need to

improve their way of living.

Business Sector. The study can encourage land developers to pursue the proposed business

after taking every aspect into consideration and conducting a more thorough feasibility study.

Furthermore, considering the establishment of this condominium, it will also open business

opportunities within the vicinity. The condominium shall serve as a demand generator in terms of

food, laundry, entertainment, health and wellness as well as the transportation sector. Starting from

the construction phase, it will generate employment and will continue to generate more once it

opens.

Future researchers. The study could be a ground for future feasibility studies as a reference

as it helps source ideas and information for the future researchers.

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CONSTRUCTION OF A 6 STOREY CONDOMINIUM

National Community. The study brings awareness to the national community on the good

points to consider in living in a condominium type of home with reference to the growing demand

but limited space for residential areas in the cities of Metro Manila. The national community may

also benefit from the study as the issue being addressed affects the community socially and

economically.

C. Scope and Limitations

The aim of this study is to determine whether it is feasible or not to build a six-story

condominium at Reposo St., Sta. Mesa, Manila which is expected to be complete and functional

by 2018. The proposed number of condominium units per floor is 22 composing of 18 two-

bedroom units and 4 three-bedroom units. While the building’s ground floor is intended for the

location of the lobby, administration office and multi-purpose halls, as well as staff quarters and

some other business offices, the next floors, 2nd to 6th floor, will be used for the condominium

units. This study may only be applicable for a certain span of time depending on the growth of the

economy of the country for it will affect the current status of the whole of the Philippines and

especially the rise and fall of demands on the capital city Manila.

Numbers used in this study were based on the present prices and rates of similar or related

commodities that are available in the market and they are collected during the 4th week of the

month of August 2016. Some of these are the fixed costs like price of land acquisition which is

64.6 million pesos and cost of application and processing of construction permits with an average

amount of 84,763 pesos. The team also considered a 12% interest rate on loans since it is assumed

that there will be a need of borrowing money during construction of the building that results from

limited resources or capital.

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CONSTRUCTION OF A 6 STOREY CONDOMINIUM

The data presented in this study are mostly from online postings and advertisements to

enable the team to go along with the latest trend of other similar business structures and to make

the calculations close to reality. The figures utilized are generally the average of various items

belonging to the same category to avoid significant errors in the estimation of prices. By doing so,

our finding will be considerably accurate, and we could arrive to appropriate conclusions. Actual

prices may be subjected to change due to inflation or deflations as well as to further negotiations

to be made.

II. PROJECT STRATEGIC CONTEXT

Under Presidential Decree No. 1151, also known as the “Philippines Environmental Policy”, it is

stated that every corporation and firms in the Philippines is required to have an environmental impact

system by the Environmental Impact Statement System. According to Section 4 of the said policy, it

requires “all agencies and instrumentalities of the national government, including government-owned and

controlled corporations, as well as private corporations, firms and entities to prepare an environmental

impact system (EIS) for every action, project or undertaking which significantly affects the quality of the

environment.”

The data gathered on the 4th week of August 2016 were from the current amount and rates of similar

or related materials that are available in the market. Part of these costs were fixed costs such as the purchase

of land property which amounts to 64.6 million pesos and the cost of application and processing of
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CONSTRUCTION OF A 6 STOREY CONDOMINIUM

construction permits which cost a total of 84,763.00 pesos. A 12% interest rate on loans was also considered

since it is assumed that there will be a need of borrowing a money due to limited resources or capital over

the duration of the construction of the building.

To go along with the latest trends of other similar business structures and to make the calculations

much more realistic, the data presented are mostly based on online postings and advertisements. The figures

utilized are generally the average of various items belonging to the same category to avoid significant errors

in the estimation of prices. Through this, the findings of our team can attain a substantially accurate and

suitable conclusion. Actual prices may vary and subjected to change due to inflation and deflation over time

as well as to further negotiations to be made.

III. TECHNICAL ANALYSIS

This part of the feasibility study deals and discusses about the technical aspects of the

condominium. It also states the equipment used to operate the facilities inside the condominium,

the location of the condominium, the plant size, the technology used by the condominium, and the

manpower used to create the building.

A. Location Map

The condominium property is located at Sta. Mesa Manila, specifically at Reposo St., Sta.

Mesa, Manila, at the vicinity of Brgy. 595, Brgy. 590, and Brgy. 570. It is surrounded by busy

streets and places along Sta. Mesa. Along Reposo St. is The Sta. Mesa Hardware, and across
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CONSTRUCTION OF A 6 STOREY CONDOMINIUM

is going to V Mapa St. is a nearby hospital, the Unciano General Hospital, and besides I across

the street of V Mapa is a construction Depot named Stop, and Shop Construction Supply.

DIMENSION = 50m x 34m

LOT AREA = 1700 square meters

B. Vicinity Map
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CONSTRUCTION OF A 6 STOREY CONDOMINIUM

Access and Transportation

To get to the location, one can take a train from LRT 1 Gil Puyat Station, then get off at

Doroteo Jose Station, transfer to LRT line 2, take a train on route Santolan Station, drop at V Mapa,

then walk for 8 minutes to get to Reposo St. Another route to is take a public transportation jeepney

on route to Quiapo, drop off at V Mapa then take a walk to Reposo St. If you own a car or a prvate

vehicle, one can get there via Recto Ave. and R-6 with a travel time of 24 minutes, despite the

usual traffic.

Size Area and Layout

The Condominium covers a lot area of 1700 sq. m (50m x 34m) along Reposo St. while

the building itself covers a floor area of 1440 sq. m per floor. From the 2nd floor up to the 6th floor

the building consists of 22 condominium units per floor, with 18 two-bedroom units and 4 three-

bedroom units every floor.

Design and Layout of the building

The condominium is a 6-story building, or consists of 6 floors, every floor of the building

covers a floor area of 1440 sq. meters. From the second floor up to the 6th floor of the

condominium, the floors are dedicated to the condominium units of the building, one floor consists

of 22 condominium units, where 18 of those are two-bedroom units and the remaining 4 are three-

bedroom units. For a two-bedroom unit, the covered floor area is 56 sq.m with dimensions of 14m

x 4m. A two-bedroom unit consists of a living room area, a kitchen and dining area, two common

bedrooms, one bathroom and one balcony, as for the three-bedroom unit, it covers a floor area of
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CONSTRUCTION OF A 6 STOREY CONDOMINIUM

84 sq. m with dimensions 14m x 6m. A three-bedroom unit consists of a larger kitchen, a larger

living room and dining area, two common bedrooms and one master’s bedroom, two bathrooms,

and two balconies. The ground floor of the condominium is intended for the lobby and the

administration office, as well as staff quarters and a multipurpose hall, and other business offices.

C. Floor Plan

FLOOR AREA = 1440 square meters

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CONSTRUCTION OF A 6 STOREY CONDOMINIUM

2-bedroom unit (56.0 sq m) 3-bedroom unit (84.0 sq m)

Dimension: 14m x 4m Dimension: 14m x 6

Utilities

The utilities of the building include a ventilation system, a generator that are common in

medium to high rise buildings such as condominiums. Utilities are being maintained and check

yearly.

Topography and Drainage

Since it is in Sta. Mesa, the topography of the area is relatively flat as some of the areas in

sta. mesa are urbanized and the land level is evened out. There is a drainage system in Sta. Mesa

along Magsaysay Boulevard but lacks inner drainage systems in more places such as Reposo St.

Street Design

Streets are relatively narrow compared to some streets in manila but has space enough for

double lanes and opposite lanes. The street has been layed out with asphalt and expansion on the

streets with rolled concrete have been applied, but drainage systems must be improved.

Current Zoning

Sta. Mesa is a district within Manila, Philippines. At its South western side, it is being

surrounded by the Pasig River, and at its Southern and Eastern side it is being surrounded by the

San Juan River. It is made up of 51 barangays, in which Brgy. 590 and 595 is one of them. Its
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CONSTRUCTION OF A 6 STOREY CONDOMINIUM

geography covers the eastern section of Manila, bounded to the west by Lacson Avenue, separating

it from San Miguel, and by Ramon Magsaysay Boulevard to the north bordering it from Sampaloc.

Easements, Conditions, and Restrictions

The proposal made for the building was a 6-story building with 22 units per floor which

will aim to provide housing for people with minimum wage by providing a stable housing plan at

a minimum cost.

Flooding Issues

Due to poor drainage systems, the area is very prone to frequent flooding during the rainy

season. Drainage systems also need to be improved due to the smell they cause.

Environmental Hazzard Issues

The building proposed poses no environmental issues of any significance as it is to be

constructed as a residential building, posing no danger and hazardous effects to nearby structures.

IV. INSTITUTIONAL ASSESSMENT

Planning, legal compliance and construction are all conducted simultaneously, with

planning and permits being done ahead of construction start times. Planning and construction

process involves qualified professionals to make sure that each modification and enhancement

measures required will be monitored accordingly and be properly maintained. The Building is

designed in accordance with the National Structural Code of the Philippines (NSCP) considering

all the elements required for the condominium. The purpose of this code is to provide for all

buildings and structured, a framework of minimum standards and requirements by guiding,

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CONSTRUCTION OF A 6 STOREY CONDOMINIUM

regulating, and controlling their location, siting, design, quality of materials, construction, use,

occupancy, and maintenance, including their environment, utilities, fixtures, equipment, and

mechanical electrical, and other systems and installations. According to Engr. Carlos Villaraza, a

building compliant with the code “can resist up to a magnitude 8.4 earthquake, which is the highest

possible earthquake that will hit the Philippines.” Therefore, the building is safe no matter their

proximity from a fault line. The building materials and techniques were also checked by the

inspectors throughout the process such as reinforced concrete, steel, blocks, wood, glass etc. Steel

is mainly used in this project, so the professionals were very strict on applying it, they make sure

that the product has mill certificate to certify that the quality and size are accurate. With regards

to the establishment concerns, the building ensures to follow Republic Act No. 4726, an act to

define condominium, establish requirements for its creation and government of its incidents. The

building goes through several process to guarantee it can withstand different calamities such as

earthquakes and hurricanes.

V. ENVIRONMENTAL ASSESSMENT

Minimizing the effect of our society in our natural environment involves addressing the

condominiums or buildings. Infrastructure consists of different aspects like condominiums which

utilize other aspects such as land, water, energy and raw materials during utilization, maintenance

and demolition. With this, Condominiums directly and indirectly affect the natural environment

using services in the span of their lifestyle.

The factors that improve the environmental performance of condominiums are the following:

 Knowing the environmental impacts of condominiums through research and study

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CONSTRUCTION OF A 6 STOREY CONDOMINIUM

 Targets to address to drive the development into desirable

 Time, Economic resources, good will of all involved parties and proper decision making

of the structure of the building enables the environmental aspects to be included in the

design and management processes of buildings

In assessing the environmental effects of a condominium, there is a large of variety tools

that can be used. Stretching from simple checklist to approaches that quantify the environmental

effects associated with condominiums considering their life cycle is a methodological approach.

Condominiums necessitate many different actors, with differences in their respective fields of

interest, and differences in occupational and educational backgrounds. All of them should consider

the environmental detail within their typical decision-making. For this reason, assessing

environmental aspects for condominiums requires large demand for tools with a large community

of potential users.

VI. STAKEHOLDER ANALYSIS

A. Definition of Stakeholders

A stakeholder is any group or individual who can affect, or is affected by, an organization

or its activities. It includes any individual or group that can help define value propositions for the

organization. In identifying its stakeholders, it includes all locally affected communities or

individuals and their formal and informal representatives, national or local government authorities,

politicians, religious leaders, civil society organizations and groups with special interests, the

academic community, or other businesses.

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CONSTRUCTION OF A 6 STOREY CONDOMINIUM

B. Identification of Stakeholders

The following have been identified as this project’s stakeholders because of one or all the

following reasons:

a. they are affected directly or indirectly by the construction of a 6 storey condominium

b. they have interests in a condominium construction project or activity

c. they can influence the project’s outcome, either positively or negatively.

The Stakeholder Management of the condominium project can be found in the supporting

activity ´Corporate relations´ within its´ Value Chain.

The GRI Report defines Stakeholders as “entities or individuals that can reasonably be

expected to be significantly affected by the organization’s activities, products, and services; and

whose actions can reasonably be expected to affect the ability of the organization to successfully

implement its strategies” (GRI and ISO, 2014, p. 9).

The condominium management defines Stakeholders as “the various groups directly or

indirectly related to that company”, furthermore, “The management is actively committed to

nurturing constructive dialogue and open communication with all of its stakeholders, both within

the Company and in the community”

Stakeholders do have certain interests in the condominium project. From a macro

perspective, stakeholders´ interests can be:

 Variable and not steady state

 Socially constructed, not objective or even reality

Stakeholder’s consciousness or willful exercise of their interest may or may not be articulated to

the hotel at present (Mitchell, Agle, & Wood, 1997).

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In order to further analyze its stakeholders, the condominium management

 Identifies Stakeholders

 Prioritizes Stakeholders

 Identifies Stakeholders´ interest and power levels

This process helps to “identify and engage the right people”.

Priority Stakeholders of a Condominium Reason/s

Property Stakeholder

Clearance Agencies (DOT, DOH, BFAR, - The timely or delayed issuance of

PPA) license can affect the outcome of the

project

LGUs - They are proponents of construction

projects most of the time.

- Can support or oppose a construction

project located in their territorial

jurisdiction.

- Can greatly affect project timetable and

outcome

Government Financial Institutions - Delay in funding has impact on project

construction and implementation and

in meeting financial obligations of a

condominium
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CONSTRUCTION OF A 6 STOREY CONDOMINIUM

Informal Settlers/ Affected Communities/ - Lives and livelihood are affected

Fisher folk directly or indirectly by construction

projects of the condominium

- Can delay project through the filing

and pursuit of court actions – e.g.

application for Writ of Kalikasan

COA - Adverse audit findings can delay the

implementation of a project

Media, political personalities and Opinion - Can shape/affect public opinion and

makers generate public support or opposition

to a proposed or ongoing construction

project.

Business Sector - Business interests may be affected

directly or indirectly by construction

projects

- Can provide support or delay

implementation of projects through

legal maneuverings

Other government agencies with mandate - Can pose jurisdictional issues on who

to reclaim has authority to reclaim

- Can make it difficult to ensure a

nationally coordinated, economical

and efficient reclamation of lands

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CONSTRUCTION OF A 6 STOREY CONDOMINIUM

Church/ Interest and Environmental - Can effectively shape public opinion

Groups - Can delay or stop the implementation

of a construction project through legal

and political acts

SC and the judiciary - Can stop a project through judicial

environmental remedies such as the

issuance of a Temporary

Environmental Protection Order

(TEPO) and ultimately a Writ of

Kalikasan

Contractors - Can delay completion of project due to

non-compliance or mere partial/sub-

compliance with contractual

undertakings

DPWH - Can also pose jurisdictional issues and

compromise efficiency of project

implementation

- Can delay construction activities

DOTC - Can affect construction project targets

and income generation because of

projects with a transport-facility

element
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CONSTRUCTION OF A 6 STOREY CONDOMINIUM

- Has interest in specific reclamation

components of infrastructure projects

that are within its mandate

GCG - As the central advisory, monitoring,

and oversight body with authority to

implement and coordinate policies for

the GOCC sector, can stop or delay the

implementation of reclamation

projects;

- Has a major say on the grant of

employee incentives for GOCCs

depending on agency performance

C. Stakeholder Analysis and Mapping

The team conducted stakeholder analysis to examine the extent of stakeholders’ ability to

influence the condominium construction process and outcome, especially in project

identification, implementation and post construction activities. The analysis also rated the

support or opposition of the stakeholders using the following criteria:

RATINGS FOR POWER AND SUPPORT

POWER SUPPORT

5: High Capacity to formally and informally 5: Active Support: Provides positive support

instruct change/damage and advocacy for the plan/decision/company

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4: High Capacity to formally instruct 4: Passive Support: Support but not

change/damage reputation/disrupt process or actively advocating

Significant informal capacity to cause change, 3: Neutral: Is neither supportive nor

may have input/influence on decision- opposed

makers/regulators 2: Passive Opposition: Will make negative

3: Some capacity to formally instruct change; statements/have negative opinion on

must be consulted or must approve plan/decision/company but will not do

2: Significant informal capacity to cause anything to affect its success and failure

change, may have input/influence on 1: Active Opposition: Is outspoken against

decision-makers/regulators plan/decision/company and may even

1: Relatively low levels of power; cannot

generally cause much change

Based on the power – support ratings, a stakeholder map was drawn to provide an easy

guide for designing the appropriate stakeholder engagement. The map is divided into 4 basic

engagement strategies – mitigate impact/defend against (for stakeholders with high power but

low support), monitor (for stakeholders with low power and low support), collaborate with (for

stakeholders with high power and high support) and involve/empower/secure interest (for

stakeholders with low power but high support).

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VII.A. FINANCIAL ANALYSIS

A. Investment Cost Calculation

Capital Investment : Php 63,000,000.00
External Loan : Php 256,000,000.00
Interest Rate : 12% annually = 1% monthly
Interest will be paid monthly --- Simple Interest
B. Operation and Maintenance Cost:

Condominium Unit List Price (Php 57,100.00 per square meter)

2-Bedroom Unit (56 m2) : Php 3,200,000.00

3-Bedroom Unit (84 m2) : Php 4,800,000.00

Building Permits: Building Cost:

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o Electrical Fee Php 32,000.00 per floor

o Mechanical Fee (1440 m2 x 6) = 8640 m2

o Plumbing Fee 8640 x 32,000 = Php 276,480,000

o Accessory

o Accessories of the Building

o Certificates of the Company

o Annual Inspection

o Other Certifications

 First year will be the construction period

 Year 1 Sales (half price)
From January to June
From July to December
 Year 2 Sales (whole price)
From January to June
From July to December
 Marketing Expense = 10% of sales
In Net Present Value, assume that the net investment will be back within 2 years.
: 2units (2Bedroom) / month = 3.2M
: 2units (2Bedroom) + 1unit (3Bedroom)
/ month = 5.6M
: 4units (2Bedroom) + 2units (3Bedroom)
/ month = 22.4M
: 10units (2Bedroom) + 3units (3Bedroom)
/ month = 46.4M

VII.B. SOCIO-ECONOMIC ANALYSIS

A. Return on Investment (ROI)
𝑐𝑎𝑠ℎ 𝑓𝑙𝑜𝑤
𝑅𝑂𝐼 (%) = %
𝑖𝑛𝑖𝑡𝑖𝑎𝑙 𝑖𝑛𝑣𝑒𝑠𝑡𝑚𝑒𝑛𝑡
YEAR 1
Initial

Investment
63000000.00
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Period Ending Balance ROI

January 286,470.00 0.45

February 493,394.55 0.78

March 763,849.09 1.21

April 804,303.64 1.28

May 1,109,758.18 1.76

June 1,180,212.73 1.87

July 1,690,667.27 2.68

August 1,981,121.82 3.14

September 2,051,576.36 3.26

October 2,397,030.91 3.80

November 2,686,100.45 4.26

December 2,725,170.00 4.33

YEAR 2
Initial
63000000.00
Investment
Period Ending Balance ROI

January 2,818,470.00 4.47

February 2,892,770.00 4.59

March 2,942,070.00 4.67

April 2,968,370.00 4.71

May 2,973,670.00 4.72

June 3,059,970.00 4.86

July 13,128,270.00 20.84

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August 23,496,570.00 37.30

September 34,164,870.00 54.23

October 45,133,170.00 71.64

November 57,101,470.00 90.64

December 98,662,770.00 156.61

B. Net Present Value (NPV)

where: PV = present value

F = future value

n = number of years/months

i = percent interest

YEAR 1

Net Investment = 63,000,000.00

Accumulated
N Period Net Cash Flow PV
Cash Flow

1 January 286,470.00 283,633.66 286,470.00

2 February 206,924.55 202,847.32 493,394.55

3 March 270,454.55 262,500.52 763,849.10

4 April 40,454.55 38,876.03 804,303.65

5 May 305,454.55 290,629.52 1,109,758.20

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6 June 70,454.55 66,371.37 1,180,212.75

7 July 510,454.55 476,110.17 1,690,667.30

8 August 290,454.55 268,229.90 1,981,121.85

9 September 70,454.55 64,419.40 2,051,576.40

10 October 345,454.55 312,735.50 2,397,030.95

11 November 289,069.55 259,099.89 2,686,100.50

12 December 39,069.55 34,672.24 2,725,170.05

YEAR 2

Net Investment = 63,000,000.00

Accumulated
N Period Net Cash Flow PV
Cash Flow

13 January 93,300.00 81,979.22 2,818,470.05

14 February 74,300.00 64,638.25 2,892,770.05

15 March 49,300.00 42,464.53 2,942,070.05

16 April 26,300.00 22,429.20 2,968,370.05

17 May 5,300.00 4,475.20 2,973,670.05

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18 June 86,300.00 72,148.29 3,059,970.05

19 July 10,068,300.00 8,333,933.79 13,128,270.05

20 August 10,368,300.00 8,497,282.93 23,496,570.05

21 September 10,668,300.00 8,656,580.47 34,164,870.05

22 October 10,968,300.00 8,811,890.61 45,133,170.05

23 November 11,968,300.00 9,520,085.96 57,101,470.05

24 December 41,561,300.00 32,732,272.09 98,662,770.05

NET PRESENT VALUE 79,400,306.08

C. Payback Period

(63,000,000−57,101,470.05)
𝑃𝑎𝑦𝑏𝑎𝑐𝑘 = 23 𝑚𝑜𝑛𝑡ℎ𝑠 + 𝑚𝑜𝑛𝑡ℎ𝑠
98,662,770.05

𝑃𝑎𝑦𝑏𝑎𝑐𝑘 = 23.06 𝑚𝑜𝑛𝑡ℎ𝑠 𝑜𝑟 1.92 𝑦𝑒𝑎𝑟𝑠

VIII. CONCLUSION

The primary goal of a corporation or company is to maximize the wealth of its stockholders.

Taking this into account, long-term investments that will be undertaken by a firm should be

evaluated based on their contribution to the wealth maximization goal. The capital budgeting

evaluation technique that clearly relates the capital investment to the wealth maximization goal is

the net present value (NPV) method. This is used to analyze an investment decision and give

company management a clear way to tell if the investment will add value to the company. It

essentially determines the present value of the gain or loss of an investment. Thus, NPV makes the

decision-making process relatively straight forward.

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CONSTRUCTION OF A 6 STOREY CONDOMINIUM

Considering the financial and economic aspect, it can be said that this study is feasible. The

calculated net present value is greater than the net investment which indicates that the projected

earnings generated by the said project or investment exceed the anticipated costs. Generally, an

investment with a positive NPV will be a profitable one and one with a negative NPV will result

in a net loss.

Furthermore, a business needs to ensure that it will get a good return on investments. It is

also inter-related to the payback period which is the number of years it takes to settle the initial

investment of a capital project from the cash flows that the project produces. Based on the

calculation, the net investment will be back within 2 years. Thus, this feasibility study shows that

the project has a short payback period which corresponds to less investment risk.

Summing it up, this study is economically feasible and viable in the market considering

the economic indicators that were interpreted and analyzed to help assess the investors in the

decision-making process.
 29
CONSTRUCTION OF A 6 STOREY CONDOMINIUM

IX. PROJECT IMPLEMENTATION

PLAN

Project Name: 6 Storey Condominium

Project Manager Name: Engr. Jonas

Estabillo

Project Start Date: 01/01/16

Project Schedule Last Updated Date:

02/05/18

Expect Actua Baseli Expect Actua

ID Task Name ed l ne ed l

Start Start Finish Finish Finish

0 CDC UP Project Schedule 01/01/ NA NA 02/09/ NA

16 18

1 Project Management Activities 01/01/ NA NA 01/02/ NA

16 18

2 Complete Project Charter 01/01/ NA NA 01/01/ NA

16 18

3 Complete Project Management 01/02/ NA NA 01/02/ NA

Plan 16 18

4 Conduct Monitoring & 01/01/ NA NA 01/01/ NA

Controlling Activities 16 18
 30
CONSTRUCTION OF A 6 STOREY CONDOMINIUM

5 UP Management Activities 01/01/ NA NA 01/01/ NA

Completed 16 18

6 Initiation/Planning 01/01/ NA NA 01/03/ NA

16 18

7 Conduct Feasibility Study 01/01/ NA NA 01/01/ NA

16 18

8 Complete Business Case 01/02/ NA NA 01/02/ NA

16 18

9 Complete Project Planning 01/03/ NA NA 01/03/ NA

16 18

10 Initiation/Planning Activities 01/03/ NA NA 01/03/ NA

Completed 16 18

11 Requirements Analysis 01/04/ NA NA 01/05/ NA

16 18

12 Complete Requirements 01/04/ NA NA 01/04/ NA

Gathering 16 18

13 Complete Security Planning 01/05/ NA NA 01/05/ NA

16 18

14 Requirements Analysis 01/05/ NA NA 01/05/ NA

Completed 16 18

15 Design 01/08/ NA NA 01/11/ NA

16 18
 31
CONSTRUCTION OF A 6 STOREY CONDOMINIUM

16 Complete High-Level Design 01/08/ NA NA 01/08/ NA

16 18

17 Complete Proof of Concept 01/09/ NA NA 01/09/ NA

16 18

18 Complete Detailed Design 01/10/ NA NA 01/10/ NA

16 18

19 Complete Technical 01/11/ NA NA 01/11/ NA

Specification 16 18

20 Design Completed 01/11/ NA NA 01/11/ NA

16 18

21 Development 01/12/ NA NA 01/23/ NA

16 18

22 Complete Build/Develop 01/12/ NA NA 01/12/ NA

16 18

23 Complete Integration Planning 01/15/ NA NA 01/15/ NA

16 18

24 Complete Documentation 01/16/ NA NA 01/16/ NA

16 18

25 Complete Test Planning 01/17/ NA NA 01/17/ NA

16 18

26 Complete Deployment Planning 01/18/ NA NA 01/18/ NA

16 18
 32
CONSTRUCTION OF A 6 STOREY CONDOMINIUM

27 Complete Training Planning 01/19/ NA NA 01/19/ NA

16 18

28 Complete Business Continuity 01/22/ NA NA 01/22/ NA

Planning 16 18

29 Complete Transition Planning 01/23/ NA NA 01/23/ NA

16 18

30 Development Completed 01/23/ NA NA 01/23/ NA

16 18

31 Test 01/24/ NA NA 01/31/ NA

16 18

32 Complete Unit test 01/24/ NA NA 01/24/ NA

16 18

33 Complete Function Test 01/25/ NA NA 01/25/ NA

16 18

34 Complete Integration Test 01/26/ NA NA 01/26/ NA

16 18

35 Complete Regression Test 01/29/ NA NA 01/29/ NA

16 18

36 Complete System Test 01/30/ NA NA 01/30/ NA

16 18

37 Complete User Acceptance Test 01/31/ NA NA 01/31/ NA

16 18
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CONSTRUCTION OF A 6 STOREY CONDOMINIUM

38 Test Completed 01/31/ NA NA 01/31/ NA

16 18

39 Implementation 02/01/ NA NA 02/05/ NA

16 18

40 Complete Deployment 02/01/ NA NA 02/01/ NA

16 18

41 Complete Training 02/02/ NA NA 02/02/ NA

16 18

42 Complete Support 02/05/ NA NA 02/05/ NA

16 18

43 Development/Implementation 02/05/ NA NA 02/05/ NA

Completed 16 18

44 Operations & Maintenance 02/06/ NA NA 02/07/ NA

16 18

45 Complete Operations Activities 02/06/ NA NA 02/06/ NA

16 18

46 Complete Maintenance 02/07/ NA NA 02/07/ NA

Activities 16 18

47 Operations & Maintenance 02/07/ NA NA 02/07/ NA

Completed 16 18

48 Disposition 02/08/ NA NA 02/09/ NA

16 18
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CONSTRUCTION OF A 6 STOREY CONDOMINIUM

49 Complete Archive 02/08/ NA NA 02/08/ NA

16 18

50 Complete Disposal 02/09/ NA NA 02/09/ NA

16 18

51 Retirement Completed 02/09/ NA NA 02/09/ NA

16 18

52 Project Completed 02/09/ NA NA 02/09/ NA

16 28
 35
CONSTRUCTION OF A 6 STOREY CONDOMINIUM

X. APPENDICES

Table X.1 Return on Investment (ROI)

YEAR 1

Initial

Investment 63000000.00

Period Ending Balance ROI

January 286,470.00 0.45

February 493,394.55 0.78

March 763,849.09 1.21

April 804,303.64 1.28

May 1,109,758.18 1.76

June 1,180,212.73 1.87

July 1,690,667.27 2.68

August 1,981,121.82 3.14

September 2,051,576.36 3.26

October 2,397,030.91 3.80

November 2,686,100.45 4.26

December 2,725,170.00 4.33

YEAR 2

Initial Investment 63000000.00

Period Ending Balance ROI

January 2,818,470.00 4.47

 36
CONSTRUCTION OF A 6 STOREY CONDOMINIUM

February 2,892,770.00 4.59

March 2,942,070.00 4.67

April 2,968,370.00 4.71

May 2,973,670.00 4.72

June 3,059,970.00 4.86

July 13,128,270.00 20.84

August 23,496,570.00 37.30

September 34,164,870.00 54.23

October 45,133,170.00 71.64

November 57,101,470.00 90.64

December 98,662,770.00 156.61

Table X.2 Net Present Value (NPV)

YEAR 1

Net Investment = 63,000,000.00

Accumulated
N Period Net Cash Flow PV
Cash Flow

1 January 286,470.00 283,633.66 286,470.00

2 February 206,924.55 202,847.32 493,394.55

3 March 270,454.55 262,500.52 763,849.10

4 April 40,454.55 38,876.03 804,303.65

5 May 305,454.55 290,629.52 1,109,758.20

6 June 70,454.55 66,371.37 1,180,212.75

 37
CONSTRUCTION OF A 6 STOREY CONDOMINIUM

7 July 510,454.55 476,110.17 1,690,667.30

8 August 290,454.55 268,229.90 1,981,121.85

9 September 70,454.55 64,419.40 2,051,576.40

10 October 345,454.55 312,735.50 2,397,030.95

11 November 289,069.55 259,099.89 2,686,100.50

12 December 39,069.55 34,672.24 2,725,170.05

YEAR 2

Net Investment = 63,000,000.00

Accumulated
N Period Net Cash Flow PV
Cash Flow

13 January 93,300.00 81,979.22 2,818,470.05

14 February 74,300.00 64,638.25 2,892,770.05

15 March 49,300.00 42,464.53 2,942,070.05

16 April 26,300.00 22,429.20 2,968,370.05

17 May 5,300.00 4,475.20 2,973,670.05

18 June 86,300.00 72,148.29 3,059,970.05

19 July 10,068,300.00 8,333,933.79 13,128,270.05

20 August 10,368,300.00 8,497,282.93 23,496,570.05

21 September 10,668,300.00 8,656,580.47 34,164,870.05

22 October 10,968,300.00 8,811,890.61 45,133,170.05

23 November 11,968,300.00 9,520,085.96 57,101,470.05

24 December 41,561,300.00 32,732,272.09 98,662,770.05

 38
CONSTRUCTION OF A 6 STOREY CONDOMINIUM

Distribution of Tasking

Row D

NAPALAN, Red (D1) = Executive Summary and Introduction

PASCUAL, Erica (D2) = Project Strat. Content
PLATON, Sigmon (D4) = Technical Analysis
QUINTANA, Kimberly (D5) =Institutional Assesment
TALOSIG, Cezanne Chan (D6) = Environmental Assesment
TOLENTINO, Arly (D7) = Stakeholder Analysis
VALIENTE, JM (D8) = Financial and Socio- Economic Analysis
WAD-ASEN, April Jane (D9) = Conclusion
YAPO, Andre Joshua (D10) = Project Implementation Plan and Appendices