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P.M Homework 3
P.M Homework 3
Introduction
The Cyprus International University is interested in encouraging development of additional
affordable dormitories for students both boys and girls as the university continues to expand
with multiple number of students, the need to construct new affordable rental dormitories for
good student’s experience is paramount. There are presently, six number of dormitories in the
school campus for both boys and girls and it has become very competitive or almost
impossible to secure a room at the middle of a semester. Therefore, the land selected has the
potential of having two dormitories and other facilities.
The study was conducted in two ways; the site survey where we went to different sites on the
campus and see which site has the best alternatives and also make use of google earth to get
the exact size and shape of the land in which the construction will be carried out.
Cost analysis
In this phase, the land cost, construction cost and the finances are discussed. The appendices
provided the detailed calculation on how the land cost and the construction cost is estimated.
Building Costs
Construction Costs are rapidly increasing in Cyprus. Contributing factors are increased
building material costs, higher labor costs due to a shortage of labor and rising wages, and the
high demand affording contractors higher profit margins than were not possible during the
economic downturn. High cost of materials is affecting the construction industry including
the developers.
Financing Costs for affordable housing are based on overall development costs. It is
important to note that, generally, reducing project costs by a dollar is as good as finding a
dollar of gap funding. So, anything the City or a developer can do to bring costs down is also
helpful in achieving financial feasibility.
Land Costs are another significant cost for development. In the case of Cyprus international
University dormitory project, the cost is of land is provided.
Cost analysis of the project
The cost of land for the construction will be 50$/m 2, the building construction cost will be
550$/m2 and the sports facility will be 150$/m2.
As the feasibility study is to prepare a report (carry out market, technical and financial
analysis) for XYZ Company and assume all missing data.
Based on our findings and missing data collected, the cost for the construction project by
XYZ company is calculated below with all missing data in records that make up the total
estimated cost of the project
TOTAL UNIT
ITEMS QUANTITY AREA COST TOTAL COST
(m2) ($/m2)
Land 1 30,000 50
1,500,000.00
Boy’s dormitory (single
120 17 550
bedrooms) 1,122,000.00
Boy’s dormitory
150 23 550
(double bedrooms) 1,897,500.00
Girl’s dormitory (single
120 17 550
bedrooms) 1,122,000.00
Girl’s dormitory
150 23 550
(double bedrooms) 1,897,500.00
Stationery 1 80 550
44,000.00
Number of Units 2
USES OF FUNDS
Construction $7,227,000
Construction $300,000
Contingency
Architecture/Engineering $485,000
&
Consultants
Planning, Building & $400,200
Impact Fees
Legal Construction $15,000
TOTAL $11,030,000
Risk Assessment
Project risk can be assessed in a variety of ways. Factors to be considered include site control
(including the availability of the site), whether a project sponsor would be interested,
financial competitiveness given the size of the project, the amount of time a project could
take from start to finish, and whether there are unknowns, regarding costs and site control.
For the case of the haspolat construction, the risks are minimized.
The feasibility study was based on XYZ Company planning to build a dormitory complex,
facility building, sports facility, and parking lot in a land of 30,000m2area near EMU. The
dormitories will be rented by CIU students. The project will be consisting of 540 bedrooms.
The 540 bedrooms to be constructed consist of:
Boys Dormitories: The boy's dormitories will consist of 120 single bedrooms (bedroom,
small kitchen, with sitting room and toilet and bathroom), and also 150 double bedrooms
((bedroom, small kitchen, with sitting room and toilet and bathroom).
Girls Dormitories: The girl's dormitories will consist of 120 single bedrooms (bedroom, small
kitchen, with sitting room and toilet and bathroom), and also 150 double bedrooms
((bedroom, small kitchen, with sitting room and toilet and bathroom).
In this feasibility study, we also have a facility building that will be constructed by XYZ
Company on the following plot of land and with the following facility.
Conclusions
Therefore, from the above analysis the required investment for the project of two dormitories
having, five hundred and fourty bedrooms at Haspolat is calculated to be $11,030,000 and the
factors to hinder the process are minimized.