MSc Construction Project Management 2020/2021

Project Evaluation

Coursework 2

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Contents
Introduction ........................................................................................................................................... 3
The UK housing market ................................................................................................................... 3
UK Economy and Economic Growth .............................................................................................. 3
Interest Rates..................................................................................................................................... 4
UK Unemployment rate ................................................................................................................... 4
Supply and Demand.......................................................................................................................... 4
Consumer confidence........................................................................................................................ 5
Summary of market research .......................................................................................................... 5
Key Environmental and planning issues............................................................................................. 6
Planning ............................................................................................................................................. 6
Design ................................................................................................................................................. 7
Construction ...................................................................................................................................... 7
Elemental cost plan ............................................................................................................................... 9
The influence of Coronavirus (COVID) and Brexit on the build cost and timeline ................... 9
Calculations ..................................................................................................................................... 10
Embodied Carbon Emissions ......................................................................................................... 12
Incorporating Embodied Carbon data ..................................................................................... 13
Profit Evaluation ................................................................................................................................. 14
Discounted Cashflow Forecast (DCF) for profitability ............................................................... 14
Assumptions & Calculations ...................................................................................................... 14
Sensitivity Analysis ......................................................................................................................... 16
Conclusions and Recommendations .................................................................................................. 17
References ............................................................................................................................................ 18
Appendices ........................................................................................................................................... 24
Appendix A – UK GDP & Stock market ...................................................................................... 24
Appendix B – UK interest rates ..................................................................................................... 24
Appendix C – UK Unemployment rate ......................................................................................... 24
Appendix D – Supply and Demand ............................................................................................... 24
Appendix E – Laws and Legislations ............................................................................................ 24
Appendix F – CLC COVID PRODUCTIVITY RISK FACTOR ESTIMATE ......................... 25
Appendix G – Elemental cost plan ................................................................................................ 26
Appendix H – Embodied Carbon Comparison ............................................................................ 28
Appendix J – Discounted Cashflow Forecast (DCF) ................................................................... 29

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Introduction
This is report is a study to confirm how feasible the 29 – 43 Sydney Road project is and
whether it will be profitable based on information provided and assumed. The report is
structured to first review the current UK economy, the housing market and general consumer
confidence. Given the environmental requirements surrounding the project a review of the
current environmental and planning applications will be conducted. This will focus on what
could be potentially applicable to the project. Following on from this, the elemental cost plan
will be reviewed and discussed incorporating the relevant risk of COVID & Brexit.
Alongside this, embodied carbon will be explored to see how this could aid sustainability
requirements as well as financial benefits. A full Discounted Cashflow Forecast (DCF) will
be produced and reviewed to determine if the project has the potential of being profitable or
not. Finally, a sensitivity analysis will be conducted to add credibility to the DCF. This will
confirm whether fluctuations in certain inputs will affect the overall NPV.

The UK housing market

As the site has now been purchased, a review of the UK Economy and housing market is
required. This is to establish the trend of the current market and the likelihood of profitability
of the site itself. The UK housing market is majorly influenced by the following;

 UK Economy and Economic Growth

 Interest Rates
 UK Unemployment Rate
 Supply and Demand
 Consumer Confidence

UK Economy and Economic Growth

UK households and businesses have required help and support from the financial system due
to the economic disruption caused by COVID-19. It has been estimated that companies could
face a deficit of over £200 billion in cash flow (Bank of England , 2020). Although, UK
households seem to be in a stronger position now in comparison to the 2008/2009 global
financial crisis. This is mainly due to financial policies that were implemented to prevent an
increase in highly indebted households. Further support saw 1.9 million mortgage holidays
granted to households so that debt serving pressure remained low (Bank of England , 2020).

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Thus, the central bank showing a much stronger resilience in comparison to previous
economic crashes.

This global pandemic has seen residential property prices in the UK drop but has also shown
great resilience and rapid recovery especially in London and the surrounding areas. One
principal reason this has happened is the level of overseas investment, with places in and
around London seen as a good place to live on a global scale and the UK housing market seen
as buoyant for the typical investor (London's Economic Plan, 2020).

A review of the current UK GDP and stock market has shown the same trends that the UK
central bank and residential sector have experienced during these times. Initially when the
pandemic struck there was a massive crash in the market, but it has shown strong signs of
recovery heading in an upward trend resisting further decline upon reaching its lowest point
(Trading Economics, 2020). Please refer to Appendix -A UK GDP & stock market for trend
tables.

Interest Rates
Since the 2008-2009 crash the base rate has hovered at 0.5% for the past 10 years up, until
2018 where a further increase of 0.75% meant there seemed to be some stability/growth
forming back in the Economy. Brexit has produced some uncertainty, but up to this point did
not really affect the trend of interest rates. Since then, a pandemic has struck the world in the
form of a virus called COVID-19. Its arrival has wiped out the economy as we know it,
resulting in the banks now having the lowest base rate ever recorded of 0.1% (Bank of
England , 2020). Please refer to Appendix B for a graphical representation.

UK Unemployment rate
Over the past 10 or so years there has been a contrast in the UK unemployment rate. The
highest percentage recorded in 2011 was 8.5%, which was the aftermath that followed the
2008/2009 financial crash. Since then, there has been a general downward trend as the
economy looked to recover. 2018 was the lowest recording in this timeframe of 3.8% which
has since crept back up to 4.1% as of June 2020 and seems to be on the upward trend (Office
for national statistics , 2020). Please refer to Appendix C for a graphical representation.

Supply and Demand

As of August 2020, the average house price in the UK is £239,196, and the index stands at
125.45. Property prices have risen by 0.7% compared to the previous month and risen by

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2.5% compared to the previous year (GOV.uk , 2020). A surge in market activity has driven
house prices up through the post-lockdown summer period, fuelled by the release of pent-up
demand, a strong desire amongst some buyers to move to bigger properties, and the
temporary cut to stamp duty (Halifax, 2020). Please refer to Appendix D for a graphical
representation.

Consumer confidence
Applications for mortgages are now more difficult to attain with the major factor being that
deposit contributions are at an all-time high. Recent research has revealed that the average
deposit for a first home has risen to over £47,000, which equates to about a fifth of the
average house price in the UK. To put this into perspective, it was calculated that if
borrowers were to start saving for a deposit from today, aiming to accumulate £47,000 over
the next five years, they would need to save around £780 per month (Moneyfacts, 2020). The
help to buy scheme has aided this issue as only 5% of the deposit is required as opposed to
10-15%. Although, the COVID-19 influence on the economy has meant that applying for
mortgages at this very moment would seem far trickier than ever before due to the economic
stress on the central banks.

Summary of market research

The negative impact that COVID-19 is having on the UK economy and central banks is clear
to see. This coupled with the uncertainty that comes with Brexit can see investments in the
residential sector as high risk. Further investigation, specifically in the housing sector, has
seen that recent financial policies (such as the mortgage payment holiday and exclusion of
stamp duty up to a particular threshold) has aided the housing market sector with a level of
resilience. Out of all the sectors at present, this seems to be one of the most buoyant.
Although there are risks at present, the information obtained would indicate that there is a
higher level of certainty of success and profit from this sector than any other out there at
present. This information will add assurances that all apartments built for 29 – 43 Sydney
Road will be sold as soon as they are put on the market.

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Key Environmental and planning issues
With the acquisition of the site complete, it is important that before any construction
commences that the key environmental assessments and planning applications are in place.
When looking into this, it is important to consider not only the submission of planning
permissions, but the design and physical construction of the site as well.

Planning
When applying for planning permission for the site there are several factors to consider;

 Surrounding neighbours – As you will be applying for planning through the local
council, the opinions of local neighbours will be taken into consideration and original
plans may need to be reviewed/amended to suit
 Road/highways – Although the construction of the site is not on the road itself, the
ongoing works will have impact on the road logistics. Site logistic plans of how and
where deliveries are offloaded will need to be produced
 Nature and wildlife – The effects of the intended works on site will need to be
assessed as to what effect it may have on any wildlife. This is covered under the
Wildlife and Countryside Act 1981. There is a wildlife assessment check online
which identifies what areas are protected
 Environmental health – This covers how safe the living and working environment is
for people in that area and is required under The Town and Country Planning Order
2015. With the size of the development an ‘Environment Impact Assessment’ will
need to be conducted and submitted alongside the planning application to the local
authority’s environmental health department. The application is broken down into 5
parts

Screening - Working with the local authority to determine if an assessment is required

Scoping - What information is to be included in the assessment
Preparing - Preparing an environmental statement
Applying - Submitting the application and assessment for public viewing
Deciding - The local authority decides the application and makes the result public.
For the scoping section some items to consider would be

Loss of sunlight, noise or disturbance, capacity of physical infrastructure, effect on listed

buildings and conservation area, layout and density of building design, finishing materials,

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overlooking and loss of privacy, overshadowing and loss of outlook, smell or fumes, loss or
effect on trees, incompatible or unacceptable uses, highway issues including traffic
generation, vehicular access and highway safety. There are also several other laws and
legislations that need to be considered when applying considering environmental factors and
for planning permission. A comprehensive list can be found under Appendix E ‘Law and
Legislations”.

Design
Another key environmental issue to address is global warming which causes climate change.
The Climate Change Act 2008 (UK 2050 zero emissions target) and Panning and Energy Act
2008 (sustainable design and use) are legislations that look to help address this issue. The
legislations impose targets for the design and operation of buildings to meet, so that that they
are more sustainable as well as energy efficient. For the site to pass the requirements stated
by legislation it is important to adopt a robust standard at the early design phase of the project
so that the sustainable ethos is well embedded. One such governing body which could be
adopted is BREEAM.

BREEAM is the world’s leading sustainability assessment method for master planning
projects, infrastructure and buildings. It recognises and reflects the value in higher
performing assets across the built environment lifecycle, from new construction to in-use and
refurbishment. BREEAM does this through third party certification of the assessment of an
asset’s environmental, social and economic sustainability performance, using standards
developed by BRE. This means BREEAM rated developments are more sustainable
environments that enhance the well-being of the people who live and work in them, help
protect natural resources and make for more attractive property investments. Clients choose
BREEAM certification because it helps them deliver and validate the sustainability value of
their assets cost effectively and to an internationally recognised and robust standard.
Adopting BREEAM helps clients manage and mitigate risk through demonstrating
sustainability performance during planning, design, construction, operation or refurbishment,
helping to lower running costs, maximise returns through market value and attract and retain
tenants with desirable places to live and work (BREEAM, 2020).

Construction
Due to the impact that construction sites can have on the local public, there are several
environmental elements to consider before construction takes place.

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  Any footpaths, bridleways or restricted byways required – Application to the local
authority should be done under section 257 of the Town and Country Planning Act
1990 (Planning Portal, 2020).
 Hazardous substances consent (HSC) – There is a current list of hazardous substances
and thresholds allowed on sites and any site which uses such substances needs to
apply for an HSC. This is a legal requirement for a site to have in place before
operation commences (Planning Portal , 2020).
 Highway/Road stopping up or diversion orders – If there is a requirement for this,
section 247 & 248 of the Town and Country planning Act 1990 outline the conditions
these permissions can be granted under (Planning Portal , 2020).
 Site logistics/deliveries - The law says you must conduct your business without
putting members of the public at risk. This includes the public and other workers who
may be affected by your work (HSE, 2020). Therefore, it is important that HSE
guidelines are followed with a full logistics plan produced before construction
commences. Failure to do so could result in site closure until remediated
 Noise/Air/Light pollution – Due to the nature and practices on a construction site, it is
common for there to be a level of site pollution. This has the potential to cause
physical, social and environmental damage to the general public and local neighbours.

For the construction site to keep compliant with the law and face minimal resistance from
members of the public against works on this site, certain codes of practice need to be adopted
and adhered to throughout the construction of the site. The considerable contractors’ scheme
(CCS) is an initiative for site to sign up to and adopt their codes of practice to help improve
and maintain site conditions to a great standard. Respect for the community, care about
appearance, protecting the environment, care about safety and valuing the workforce are the 5
codes of considerate practice that they implement.

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Elemental cost plan
The influence of Coronavirus (COVID) and Brexit on the build cost and timeline
There are some important influences that COVID will have on the construction industry
which should be considered for cost/time purposes on this project

 Health and safety – New site rules and regulations surrounding the pandemic will see
increases in costs, as there are additional requirements to make the site compliant.
Also, these rules & restrictions will hinder on site progress i.e. max number of
operatives allowed in a workspace at one time due to social distance rules (Essen &
Atkinson, 2020).
 Supply chains – Depending on where materials are being transported from could see
delays in the project due to restrictions on materials being delivered. Also labour that
is being sourced for the project (mainly specialist trade contractors) could be affected
due to the ongoing requirements and risk of members catching the virus themselves
(Essen & Atkinson, 2020).
 Planning Permission – The determination timescale for planning permission could be
delayed due to the disruption caused by coronavirus (GOV.UK, 2020).

Likewise, Brexit is another such event that has caused a considerable amount of uncertainty
which could influence costs incurred by the project. The major factors that are a cause for
concern are;

 Labour Shortage – Nearly a third of London construction workers have migrated from
the EU. Once the UK break away from the EU these migrant workers will be stripped
of their automatic right to work. The shortage in skilled workers could lead to higher
project costs with the demand outweighing the supply (pbctoday, 2019).
 Materials – Likewise, with no free movement of migrant workers, this will also apply
to materials. Higher tax and limitations of quantities distributed presents uncertainty
on items priced. This could see a considerable cost increase from tender (pbctoday,
2019).
 Housing Crisis – The knock-on effect of insufficient labour could see developers
unable to keep up with the government housing targets resulting in rises in house
prices as well as project costs (pbctoday, 2019)
 The Single Market, Product Standards, and the Environment – It’s unlikely that the
UK will remain part of the single market after the transition period ends. This will

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 mean that UK goods will slowly phase out EU standards increasing material costs for
everyone across the construction industry. Likewise, the current EU product’s
environmental protection standards will also be driven out from UK standards (UK
Construction , 2020).

Quantifying the Coronavirus and Brexit risk can be difficult to do in an elemental cost plan,
as an elemental unit rate (EUR) includes all the cost of all materials, labour, plant,
subcontractor’s preliminaries, subcontractor’s design fees and subcontractor’s overheads and
profit (RICS, 2012). For Brexit the General Building Cost Index (GBCI) would be used as it
captures changes in costs of labour, materials and plant with the GBCI covering all
construction works. This will forecast an index based on the market and apply a factor if need
be. For COVID, both the Tender price index (TPI) and the CLC productivity risk assessment
would be utilised. The TPI will cover the effect that these risks have had on the current
market which influences inflation rates. This in turn, will increase/decrease the forecasted
tender, relative to that market activity. The CLC assessment looks at the direct financial
impact that COVID will have on the project, Appendix F shows the layout, what is included
and what risks are factored into the calculation.

Calculations
The elemental cost plan was developed by incorporating costs from four different projects
that were on the BCIS analysis database to obtain the relevant £/m2 and elemental unit
rate/elemental unit quantity (EUR/EUQ). See Appendix G for Elemental cost breakdown and
details of the 4 projects that were used. The EUR/EUQ’s used, were assumed from the
following observations on benchmarks used

- Substructure: From the benchmarks evaluated this was shown to be 1/3 of the total
gross internal area (GIA). A mean value for the EUR was used from all 4 Benchmarks
- Upper floors: From the benchmarks evaluated this was shown to be 70% of the total
GIA. A mean value for the EUR was used from all 4 Benchmarks
- Stairs: The brief has stated there is a total of 18 stories therefore EUQ already
known. A mean value for the EUR was used from all 4 Benchmarks
- External Walls: Benchmarks produced an average of EUQs being 3.2 times or than
GIA. A mean value for the EUR was used from all 4 Benchmarks

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 - Internal Doors: Benchmarks produced an average of 5 doors per apartment. A mean
value for the EUR was used from all 4 Benchmarks
Constituent Cost Assumptions Note
There is assumed to be some facilitating
works to clear the original site floor
Facilitating works estimate (1) £574,740 area before works can begin See paragraph 3.10
Inclusive of contingency but excldues
Building works estimate(2) £35,303,525 design and prelim costs see paragraph 3.11
14% of the build cost which is the
Main contractor’s preliminaries estimate(3) £5,696,075.83 average over the benchmarks reviewed See paragraph 3.14
Sub-total(4) £41,574,341 [(4) = (1) + (2) + (3)]
This is assumed at 16% as per other
Main contractor’s overheads and profit estimate(5) £6,651,894.52 benchmarks See paragraph 3.16
Works cost estimate(6) £48,226,235 [(6) = (4) + (5)]
Is assumed at 12% of the construction
Consultants fees (7(a)) £5,787,148.23 costs as per brief
Main contractor's pre construction fees (7(b)) £0.00 Non applicable
8% of total costs as per benchmark
Main contractors design fee estimates (7(c)) £3,409,095.94 average
Project/design team fees estimate (7) £9,196,244.17 [(7) = (7(a)) + (7(b)) + (7(c))
Sub-total(8) £57,422,479 [(8) = (6) + (7)]
Location Factor (Watford) £62,016,278 Location index of 109
Other development/project costs estimate (if required)(9) £0 Non applicable See paragraph 3.17
Base cost estimate before COVID allowance(10) £62,016,278 [(10) = (8) + (9)]
Prouctivity factor risk estimate for COVID £65,613,222 5.8% based on CLC COVID analysis
(a) Design development risks estimate(11(a)) £353,035.25
(b) Construction risks estimate(11(b)) £353,035.25
Assumed at 1% per risk estimate [(11) = (11(a)) + (11(b)) + (11(c))+(11(d))]
(c) Employer change risks estimate(11(c)) £353,035.25
(d) Employer other risks estimate(11(d)) £353,035.25
Total Risk allowances estimate(11) £1,412,141.00 4% total See paragraph 2.15
Cost limit (excluding inflation)(12) £68,084,469 [(12) = (10) + (11)]
Tender inflation estimate(13) £70,365,298.36 TPI Forecasted for Q4 2021=336
Project function factor £68,254,339.41 Housing Facilities has a 97 index
Cost limit (excluding construction inflation)(14) £68,254,339.41 [(14) = (12) + (11)]
Construction inflation estimate(15) £2,571,823.51 GBCI at Oct 2021 is 376.9
Cost limit (including inflation)(16) £70,826,162.92 [(16) = (14) + (15)]
Non applicable as this is a residential
VAT assessment See paragraph 2.17 £0 project
Total Cost £70,826,162.92

Table 1: Summary of Elemental costs

Assumptions/clarifications on the calculations produced:

 An assumption has been made that facilitating works will be required to clear the
existing site in preparation for construction works
 The cost of preliminaries has been calculated at 14% of the build costs which was the
mean value across the benchmarks reviewed
 The main contractors overhead & profit was based on 16% of the building costs as per
benchmarks.
 CLC COVID assessment produced a 5.8% increase in total build costs
 A total risk element of 4% was assumed splitting it over the 4 categories equally
 An observation of the total costs calculated is that the base costs pre risk allowance of
COVID, Brexit and designers/employers risk sees an additional £7,580,909 which
accounts for 11% of the total construction costs.

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Embodied Carbon Emissions
For construction products, Embodied Carbon (EC) is the carbon emissions associated with
the extraction, manufacturing, transporting, installing, maintaining, and disposing of the
construction materials or product (Wrap, 2020). The unit of measurement looks at the amount
of CO2 produced per kg of the raw material (kgCO2/kg). Inherently, there are certain
materials that have a higher EC than others and therefore need to be reviewed to see what
changes could be made to assist in achieving the 2050 net zero emission targets

 Concrete – The cement element in concrete only makes up 10% of the mixture for
concrete yet it accounts for up to 90% of its EC. This is mainly due to the heating
process of the cement mix which varies from 1400oC – 2000oC which uses a
substantial amount of fossil fuels. Also, the chemical reaction itself generates its own
CO2 (Pak, 2020).
 Steel – This can be produced using an oxygen or electric arc furnace. The oxygen
furnace accounts for greater carbon emissions as it burns coal or natural gas during
the production process of steel (Pak, 2020). By weight steel has a much higher
embodied carbon footprint than concrete and according to the world steel association
makes up 6.6% of global greenhouse gas emissions (Melton, 2020)
 Aluminium – The high EC comes from the production of aluminium as it requires a
substantial amount of energy which globally accounts for around 5% of the electricity
demand (Pak, 2020),

There are several ways that the embodied carbon of a material could be reduced.

 Using a recycled version of that materials (As the materials has not been extracted
from it’s raw source, you have far less embodied carbon produced)
 Using the same type of materials but with lower carbon intensities
 Using alternative materials that can still meet the specification that also have lower
carbon intensities

Please refer to Appendix H for an EC and cost comparison for concrete, steel and aluminium.
All embodied carbon values have been taken from the BRSIA guide, the Inventory of Carbon
and Energy (ICE) book.

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Incorporating Embodied Carbon data
From the tables in the appendices, you can see that it is quite simple to do an EC comparison
between materials if all the information is made available. A suggestion is to create a
database that gives specific EC values for all items that make up different materials, sub-
elements and components. Each element would have various alternatives depending on the
specification of that project and would give you an EC value with associated costs (per kg,
tonne, or £/m2). This could promote a clear comparison exercise on costing, from what would
have been originally chosen for a project and what alternatives could be picked to identify
potential cost & EC savings.

Another suggestion to consider is to create a benchmarking system. Where you have projects
of similar gross floor area or size. There would be a standard acceptable total EC value which
would need to be achieved as a minimum. Likewise, as BCIS have their database on analysis
for costing, RICS have created a building carbon database. If projects were to merge both sets
of data together you would have a complete comparison database which could give you data
for specific building sizes or types on costing and EC for all sub
elements/materials/components used on a project. With benchmarking targets to hit for EC
values it can assist in allowing for original element materials to be substituted for more
sustainable ones so long as it still meets the required specifications.

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 Profit Evaluation
Discounted Cashflow Forecast (DCF) for profitability
Assumptions & Calculations
Key Variables Value Notes/Assumptions Sources of Information

Market Value for each property type

Gross Development Value (GDV)
1) Zoopla
2) Rightmove
There are 2 phased handovers with the initial allowing for rental 3) Weston Homes (Laundry Site) Next to
Income. The sale price of each type of property was influenced Proposed project as per brochure
depending on the type (100% for Private, 80% for Affordable 4) Oakford Homes (Whippendel Road)
£90,957,596
rent, 70% for Social rent and 50% for Shared Ownership). An Next to Proposed project as per brochure
average index of 11.38% was applied to sales for 2023 & 2024 Forecasted index for 2023/2024 sales
based on specialist predictions. 5) Homes and Properties
6) Savills
7) Hamptons
8) Knight Frank

Market Value for rent prices

Income from 1st PC to 2nd PC. Based on income from 1) Zoopla
Rental Gain £772,814 Affordable (80% of Market Value) and Social (70% of Market 2) Rightmove
Value) rental properties Forecasted index for 2023 rental
3) Knight Frank
4) ManageCasa
Rental period 13 Months From 1st PC to 2nd PC
Building cost £57,458,106 Total of Elemental costs minus professional fees & Risk allowance
Professional fees £5,787,148.23 12% of construction costs as per brief
Risk Allowance £7,580,908.62 Brexit, COVID & Design/Employer risk Total allowance
Building Cost Total £70,826,162.92 Is the sum of Building Cost, professional fees and risk allowance
Section 106 payments £1,735,349.00 As per brochure
CIL Liability £20,000.00 As per brochure
Allowances for contingenices made both in DCF and Elemental
Contingencies 5%
cost plan
VAT 0% Not applicable in the scenario
Sales fee 1.0% As per brief
It is assumed that the client has funds for
- 100% site acquisition costs
Sponsor Equity £29,630,949.07
- 100% of contingency costs
- 100% of the Finance interest costs
Based on the total elemental cost plan figure, it is assumed 100%
Loan amount (Cost of Construction)
£70,826,162.92 of the cost is required to be loaned
Interest rate 7.75% As per brief
Monthly Interest rate 0.65% As per brief
Based on lower percentage as amount being borrow is
Funding Fee 1.00%
considered high value

Cost of Finance £574,581.06 As per 1% funding fee

Interest amount (construction period) £7,310,461.38 Based on the 0.65% pm (7.75% pa) of loan amount
Void period Finance £50,032.17 Based on the 0.65% pm (7.75% pa) of loan amount
Full payment to be made at the start of the project via the
Site acquisition £16,380,000 Sponsor equity
Full payment to be made at the start of the project via the
Site acquisition costs 4% Sponsor equity
Pre-construction 11 months As per brief
BCIS Duration calculator based on Total
Construction 27 months 108 Weeks as per BCIS (4 week months) Elemental cost plan figure
Void 3 months

Total 41 months

Table 2: Assumptions that have been used to formulate the DCF

Please see Appendix J for full DCF Calculations, GDV, IRR & NPV obtained

GDV – A market value for each type of property was obtained by taking an average from
Zoopla, Rightmove, plus sale prices from the local developments from Weston Homes and
Oakford homes as per the brochure provided. This has been calculated based on 100% of the

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market value based on private sales, 80% for Affordable rent sales, 70% Social rents sales
and 50% for Shared ownership with an initial GDV totalling £81,667,875.00. With sales
forecasted for 2023/2024 an index increase of 11.38% was applied to the final GDV figure
based on an average of forecasted predictions for house prices within the Watford area (Ivey,
2020) (Savills, 2020) (Abdulla, 2020) (Knight Frank, 2020a).

Sponsor Equity – It is assumed that the client has equity to pay for 100% of the site
acquisition, contingency costs and finance interest costs on the construction loan.

Rental – It is assumed that a rental income is obtained from the social (70% of market value)
and affordable (80% of market value) rented properties for 13 months from the 1st PC date
March 2023 to the 2nd PC date April 2024. Rent prices were based on figures found on
Rightmove and Zoopla per number of bedrooms and has had an index of a 14% increase
based on forecasts for rental in Watford for 2023/2024 (Knight Frank, 2020b) (ManageCasa,
2020).

Finance – This is very important in terms of the IRR, as the amount borrowed needs to be
enough so that there is not an accumulation of negative cashflow per month. Therefore, the
finance is based on one Tranche which is 100% of the construction costs. The interest
incurred over the course of the construction & void period is structured in monthly
amortisation instalments. It is assumed that the client has agreed with the lender on a payment
holiday for the loan principle which will be split into 2 payments at each PC date when GDV
is obtained from sales income. Adopting this method will see the client not requiring
additional funds to make monthly principal repayments.

GDV (Net Present Value - NPV) – The NPV of the GDV obtained based on the above
assumptions has been calculated to £15,393,287 which is a 17% profit on the total GDV.

Internal Rate of Return (IRR) – The IRR based on the DCF is 7.73%. All outgoing costs
are covered by the construction loan and the sponsors equity. The rental income from the 1st
PC date to the 2nd PC date reflects positively as there is an income shown across most of
those 13 months.

Construction Programme - As per BCIS guidance, the construction period which is based
on the contract value of £70,826,162.92 is 108 Weeks (27 Months). A void period of 3
months at the end of the construction period has been allowed for if all financing costs cannot
be paid back due to any unsold properties,

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 Sensitivity Analysis
At 11% of the total project value, there has been a great emphasis on factoring in risk.
Although there has been allocation of funds put aside for inherent risks, the NPV of
£15,393,287 could still fluctuate depending on how certain parameters perform during the
project. Therefore, a sensitivity analysis was conducted to look at how a ±30% change in
building cost, GDV, and the combined risk allowance (Brexit, COVID and
Employers/Design risk) could influence on the final NPV figure.
Building Cost
+30% +20% +10% 0% -10% -20% -30%
NPV £15,393,287 £74,695,537.89 £68,949,727.28 £63,203,916.67 £57,458,106 £51,712,295.46 £45,966,484.85 £40,220,674.25
+30% £118,244,874.52 £22,197,631 £27,090,455 £31,983,280 £36,876,105 £41,768,930 £46,661,755 £51,554,580
+20% £109,149,114.94 £15,036,691 £19,929,516 £24,822,341 £29,715,166 £34,607,991 £39,500,815 £44,393,640
+10% £100,053,355.36 £7,875,751 £12,768,576 £17,661,401 £22,554,226 £27,447,051 £32,339,876 £37,232,701
GDV 0% £90,957,596 £714,812 £5,607,637 £10,500,462 £15,393,287 £20,286,111 £25,178,936 £30,071,761
-10% £81,861,836.20 -£6,446,128 -£1,553,303 £3,339,522 £8,232,347 £13,125,172 £18,017,997 £22,910,822
-20% £72,766,077 -£13,607,067 -£8,714,242 -£3,821,417 £1,071,407 £5,964,232 £10,857,057 £15,749,882
-30% £63,670,317.05 -£20,768,007 -£15,875,182 -£10,982,357 -£6,089,532 -£1,196,707 £3,696,118 £8,588,943
Table 3: Building costs vs GDV
Cost of Risk
+30% +20% +10% 0% -10% -20% -30%
NPV £15,393,287 £9,855,181 £9,097,090 £8,338,999 £7,580,909 £6,822,818 £6,064,727 £5,306,636
+30% £74,695,538 -£1,221,837 -£576,287 £69,262 £714,812 £1,360,362 £2,005,911 £2,651,461
+20% £68,949,727 £3,670,988 £4,316,538 £4,962,087 £5,607,637 £6,253,186 £6,898,736 £7,544,286
+10% £63,203,917 £8,563,813 £9,209,362 £9,854,912 £10,500,462 £11,146,011 £11,791,561 £12,437,111
Building Cost 0% £57,458,106 £13,456,638 £14,102,187 £14,747,737 £15,393,287 £16,038,836 £16,684,386 £17,329,935
-10% £51,712,295 £18,349,463 £18,995,012 £19,640,562 £20,286,111 £20,931,661 £21,577,211 £22,222,760
-20% £45,966,485 £23,242,288 £23,887,837 £24,533,387 £25,178,936 £25,824,486 £26,470,036 £27,115,585
-30% £40,220,674 £28,135,112 £28,780,662 £29,426,212 £30,071,761 £30,717,311 £31,362,860 £32,008,410
Table 4: Cost of risk vs Building Cost
GDV
+30% +20% +10% 0% -10% -20% -30%
NPV £15,393,287 £118,244,875 £109,149,115 £100,053,355 £90,957,596 £81,861,836 £72,766,077 £63,670,317
+30% £9,855,181 £34,939,456 £27,778,517 £20,617,577 £13,456,638 £6,295,698 -£865,241 -£8,026,181
+20% £9,097,090 £35,585,006 £28,424,066 £21,263,127 £14,102,187 £6,941,248 -£219,692 -£7,380,631
+10% £8,338,999 £36,230,556 £29,069,616 £21,908,677 £14,747,737 £7,586,797 £425,858 -£6,735,082
Cost of Risk 0% £7,580,909 £36,876,105 £29,715,166 £22,554,226 £15,393,287 £8,232,347 £1,071,407 -£6,089,532
-10% £6,822,818 £37,521,655 £30,360,715 £23,199,776 £16,038,836 £8,877,897 £1,716,957 -£5,443,982
-20% £6,064,727 £38,167,204 £31,006,265 £23,845,325 £16,684,386 £9,523,446 £2,362,507 -£4,798,433
-30% £5,306,636 £38,812,754 £31,651,815 £24,490,875 £17,329,935 £10,168,996 £3,008,056 -£4,152,883
Table 5: GDV vs Cost of risk

As we can see from tables 3-5, a fluctuation in percentage change can drastically affect the
expected NPV. GDV looks like the most influential factor seeing as this is where the profits
will be obtained from the sales of the apartments, this is closely followed by the cost of
construction as they make up the large outgoing costs on the project with finally the cost of
risk having the least effect when changed. It is important that the potential risk of these
figures changing are understood before the project proceeds so that the project team is aware
of the best, worst, and the most likely outcome and can monitor accordingly.

16
Conclusions and Recommendations
The market research conducted highlighted that although there is currently a global pandemic
taking place, there seems to be a positive forecast ahead. Consumer confidence is still high,
the economy is showing resilience and forecasts show annual increases post 2021. This
should be seen as positive for price certainty for GDV values as well as market interest which
is essential to not having any unsold apartments.

Environmental and planning factors need to be taken seriously both from a financial
perspective as well as achieving the required sustainable responsibilities. Having the correct
planning applications in place, as well as in good time is essential to not delay on the
programme. The environmental aspects that need to be picked up are not just limited to
surveys of site land, there are legal requirements which need to be adopted throughout the
project lifecycle. This report highlights the importance of being aware and adhering to both
national and local legislations in place. Failure to do so could have a detrimental influence on
the project’s success. The embodied carbon review for sourcing alternative or replacement
construction materials concluded that the reduction in both carbon emissions and costs far
outweighs the added front end work for implementation. Therefore, it is recommended to
explore options to adopt as much as possible on the project.

The elemental cost plan which consisted of benchmarking four sites totalled at £70,826,163.
Of this 11% (£7,580,909) was made up from quantifying the risk that COVID, Brexit & other
factors would have on the project. The total project duration amounts to 42 months with the
construction period based on construction costs came out at 108 weeks on BCIS. It is
recommended to allow for two sectional handovers during this period with the aim to have a
rental income from the period of the 1st handover to the 2nd which can add 5% (£772,814) to
the total NPV. The DCF conducted showed a total NPV of £15,393,287 with an IRR of
7.73%. This potential profit is seen as a very attractive investment for all involved, but it
must be noted that the finance plan set up for this project is a key factor in achieving such
returns. There are two payment holidays on the principle between handovers, without this in
place the project would not be as lucrative. Finally, the sensitivity analysis conducted showed
that construction costs and GDV were the 2 biggest risks so great attention needs to be given
to these so that costs are on budget or better, thus not having a negative impact on final NPV
profits. In short, this project from the feasibility study seems to be one which can generate a
substantial profit but only if the financing, risks and costs are managed adequately.

17
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23
 Appendices
Appendix A – UK GDP & Stock market
https://tradingeconomics.com/united-kingdom/gdp
https://tradingeconomics.com/united-kingdom/stock-market

Appendix B – UK interest rates

https://www.bankofengland.co.uk/monetary-policy/the-interest-rate-bank-rate

Appendix C – UK Unemployment rate

https://www.ons.gov.uk/employmentandlabourmarket/peoplenotinwork/unemployment/timeseries/mg
sx/lms -

Appendix D – Supply and Demand

https://www.halifax.co.uk/assets/pdf/august-2020-house-price-index.pdf

Appendix E – Laws and Legislations

Pollution Environmenal Laws

Law/Legistlation What does it cover?
The Control of Pollution Act was passed to cover a number of environmental issues such as air, noise, water and atmospheric
Control of Pollution Act 1974
pollution as well as waste on land
Established in 1974, the Environment Protection Act is the environmental law in the UK that controls waste management and
Environmental Protection Act
emissions into the environment.
Wildlife Environmental Laws
Law/Legistlation What does it cover?
The Wildlife and Countryside Act was put in place in 1981 and complies with the European Council Directives on the conservation
Wildlife and Countryside Act
of wild birds. A Statutory wildlife assessment will need to be conducted beforehand
Passed to enforce the prevention of injurious weed species on private lands in the UK, the Weeds Act primarily targets species such
Weeds Act 1959
as Broad Leaved Dock, Common Ragwort, Creeping Whistle and Spear Thistle.
Whilst not an endangered species, Badgers in the UK are protected by the Badgers Act which makes it illegal to attempt to kill,
Badgers Act
injure or interfere with the setts of badgers without a valid license.
Conservation Environmental Laws
Law/Legistlation What does it cover?
First established in 1990, the Planning (Listed Buildings and Conservation Areas) Act controls laws that help to protect listed
Planning (Listed Buildings and Conservation Areas) Act 1990
buildings and conservation areas in the UK.
Under the UK Government Agency called English Nature, the National Parks and Access to the Countryside Act control the creation
National Parks and Access to the Countryside Act 1949
of National Parks and Areas of Outstanding Beauty in the UK as well as addressing public rights of way.
The Ancient Monuments and Archaeological Areas Act 1979 was a law that was passed in the UK to protect any building or
Ancient Monuments and Archaeological Areas Act 1979
structure that has been classed as a monument. This makes it an illegal offence to damage a monument.
Established to give people the freedom and right to roam uncultivated areas of the UK such as mountains, moors, heaths and
Countryside and Rights of Way Act 2000
downs, the Countryside and Rights of Way Act was passed in 2000.
Climate change Environmental Laws
Law/Legistlation What does it cover?
Established in 2008, the Climate Change Act is an environmental law designed to reduce carbon dioxide emissions in the UK. Binding
Climate Change Act 2008
targets have been set that will reduce these emissions from levels recorded in 1990 by at least 80% by 2050.
The Planning and Energy Act 2008 is a law in the UK that allows planning authorities in England and Wales to impose requirements
Planning and Energy Act 2008
on local planning applications regarding energy use and efficiency.
The Energy Act 2011 relates to UK enterprise law which requires energy providers to meet certain energy efficiency requirements
Energy Act 2020
when providing energy to consumers. Obligations include carbon emissions reductions and home heating costs reductions.

24
Appendix F – CLC COVID PRODUCTIVITY RISK FACTOR ESTIMATE
PRODUCTIVITY RISK FACTOR ESTIMATE

COST HEADING PRE-COVID COVID PRODUCTIVITY POST COVID % UPLIFT

ESTIMATE FACTOR CALCULATIONS ESTIMATE (COVID-19
PRODUCTIVITY
RISK FACTOR)

1 MEASURED WORK
1.1 Labour 45.0% £15,761,580 Productivity Factor 95% £16,549,659 1.5%
(Post/Pre)
Productivity Loss 5%
Applied Factor 105%
Proportion of measured 100%
work affected
Total Applied Factor 105%

1.2 Plant 5.0% £1,751,287 Productivity Factor 100% £1,751,287 0.0%

(Post/Pre)
Productivity Loss 0%
Applied Factor 100%
Proportion of Measured 100%
work affected
Total Applied Factor 100%

1.3 Material 50.0% £17,512,867 No adjustments £17,512,867 0.0%

MEASURED WORK 100.0% £35,025,734 £35,813,813 1.5%

TOTAL

2 PRELIMINARIES
2.1 Total Preliminaries 14.0% £4,903,603 Additional prelims £6,178,539 2.5%
Prelims Factor 105%
Total Including additional 5,148,783

Prolongation
Pre-covid duration 52 wks
Weekly rate (including 99,015
thickening)
Covid related productivity 75%
attained
Productivity Loss (time) 25%
Mitigation Estimate 5%
Applied Factor 20%
Adjusted programme 62 wks

Sub-total £39,929,337 £41,992,352 4.0%

3 OVERHEADS & 16.0% £6,388,694 No adjustments 16.0% £6,718,776 0.6%

PROFIT

4 RISK 5.0% £2,315,902 Original Factor 5.0% £2,922,668 1.2%

Additional Covid 1.0%
Productivity Risk
Total Post Covid 6.0%

5 TOTAL £48,633,932 £51,633,797 5.8%

TOTAL COVID-19 PRODUCTIVITY FACTOR TO BE APPLIED p

+ MARKET CONDITIONS FACTOR = TOTAL ADJUSTMENT TO ESTIMATE

User input cells

User input cells using the CLC toolkit measures on productivity assessment

25
 Appendix G – Elemental cost plan

Element Notes Total Cost used Cost per m² EUQ Unit EUR Percentage
0 Facilitating Works £574,740 £30 1%
1 Substructure £2,092,054 £125 5747.4 m² £364 5%
2A Frame £4,281,813 £224 34%
2B Upper Floors £576,656 £30 13410.6 m² £43 5%
2C Roof £791,864 £41 6705.3 m² £395 6%
2D Stairs £46,863 £14 18 no £2,604 0%
2E External Walls £3,617,030 £186 61305.6 m² £59 29%
2F External Windows and Doors £1,694,286 £94 4789.5 m² £354 13%
2G Internal Walls and Partitions £1,321,902 £69 10%
2H Internal Doors £274,815 £26 1395 no £197 2%
2 Superstructure £12,605,229 £658 28%
3A Wall Finishes £1,034,532 £54 34%
3B Floor Finishes £1,475,166 £77 49%
3C Ceiling Finishes £530,038 £28 17%
3 Finishes £3,039,736 £159 7%
4 Fittings and Furnishings £1,487,938 £78 3%
5A Sanitary Appliances £389,763 £19 3069 no £127 6%
5B Services Equipment (Costs included elsewhere) £0 £0 0%
5C Disposal Installations £76,632 £4 1%
5D Water Installations (Costs included elsewhere) £0 £0 0%
5E Heat Source (Costs included elsewhere) £0 £0 0%
5F Space Heating and Air Conditioning (Costs include other elements) £3,314,334 £173 51%
5G Ventilating Systems (Costs included elsewhere) £0 £0 0%
5H Electrical Installations £1,930,169 £101 30%
5I Fuel Installations (Costs included elsewhere) £0 £0 0%
5J Lift and Conveyor Installations £593,898 £31 9%
5K Fire and Lightning Protection (Costs included elsewhere) £0 £0 0%
5L Communications and Security Installations (Costs included elsewhere) £0 £0 0%
5M Special Installations (Costs included elsewhere) £0 £0 0%
5N Builder's Work in Connection £182,001 £10 3%
5O Management of the Commissioning of Services (Costs included elsewhere) £0 £0 0%
5 Services £6,486,797 £337 14%
Building Sub-total £30,568,306 £1,610 57%
6A Site Works £3,167,456 £165 63%
6B Drainage £402,318 £21 8%
6C External Services £938,742 £49 19%
6D Minor Building Works £38,316 £2 1%
6E Demolition and Work Outside the Site £485,336 £25 10%
6 External Works £5,032,168 £263 11%
7 Preliminaries 16% of Building/Demolition work £5,696,075.83 £297 13%
8 Contingencies £277,791 £15 1%
Total (less Design Fees) £41,574,341 £2,185 92%
9 Design Fees 8% of the total costs £3,409,095.94 £178 8%
Total Contract sum £44,983,437 100%
Total Contract sum (£/m2) £2,348.02

26
27
Appendix H – Embodied Carbon Comparison

Aluminium

Embodied Energy and Carbon Coefficients

Material Cost per Kg Cost per Tonne
EE - MJ/kg EC - kgCO2/kg EC - (GHG) kgCO2e/kg
Virgin 218 11.46 12.79 £0.66 £660

Recycled 29 1.69 1.81 £0.33 £330

Alternative Material
(depending on the Timber 10 0.3 0.31 £0.73 £733.68
application)
Table 1 – Aluminium comparison from Primarily sourced, recycled and a material alterative for a
window frame application. The timber cost is slightly more but the savings in EC are far greater.

Concrete

Embodied Energy and Carbon Coefficients

Materials EE - EC -kgCO2/kg EC – (GHG)kgCO2e/kg Cost per Kg Cost per Tonne
MJ/kg
General 0.75 0.100 0.107 £0.09 £85

% Cement
Replacement 0% 15% 30% 0% 15% 30% 0% 15% 30%
- Fly Ash
£0.08 £80.75

GEN 0
0.55 0.52 0.47 0.071 0.065 0.057 0.076 0.069 0.061
(6/8 MPa)

Table 2 – Concrete comparison substituting cement with different percentages of fly ash which at 30%
could potentially half the amount of Embodied Carbon.
Steel

Embodied Energy and Carbon Coefficients

Material Cost per Kg Cost per Tonne
EE - MJ/kg EC - kgCO2/kg EC - (GHG) kgCO2e/kg
General Steel

Virgin 35∙40 2∙71 2∙89 £0.13 £130.00

Recycled 9∙40 0∙44 0∙47 £0.09 £90.00

Bar and rod

Virgin 29∙20 2∙59 2∙77 £2.90 £2,900.00

Recycled 8∙80 0∙42 0∙45 £2.03 £2,030.00

Table 3 – Steel comparison for both general and re-bar for primarily sourced and recycled

28
 Appendix J – Discounted Cashflow Forecast (DCF)
Nov-20 Dec-20 Jan-21 Feb-21 Mar-21 Apr-21 May-21 Jun-21 Jul-21 Aug-21 Sep-21 Oct-21 Nov-21 Dec-21 Jan-22 Feb-22 Mar-22 Apr-22 May-22 Jun-22 Jul-22 Aug-22 Sep-22 Oct-22 Nov-22 Dec-22 Jan-23 Feb-23 Mar-23 Apr-23 May-23 Jun-23 Jul-23 Aug-23 Sep-23 Oct-23 Nov-23 Dec-23 Jan-24 Feb-24 Mar-24 Apr-24
Item Unit Total Month Start Month End 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41
Building Costs £57,458,106 11 37 - - - - - - - - - - - 2.13 2.13 2.13 2.13 2.13 2.13 2.13 2.13 2.13 2.13 2.13 2.13 2.13 2.13 2.13 2.13 2.13 2.13 2.13 2.13 2.13 2.13 2.13 2.13 2.13 2.13 2.13 - - - -
Risk allowance £7,580,909 11 37 0.28 0.28 0.28 0.28 0.28 0.28 0.28 0.28 0.28 0.28 0.28 0.28 0.28 0.28 0.28 0.28 0.28 0.28 0.28 0.28 0.28 0.28 0.28 0.28 0.28 0.28 0.28 - - - -
Professional Fees 12.00% £5,787,148 11 37 - - - - - - - - - - - 0.21 0.21 0.21 0.21 0.21 0.21 0.21 0.21 0.21 0.21 0.21 0.21 0.21 0.21 0.21 0.21 0.21 0.21 0.21 0.21 0.21 0.21 0.21 0.21 0.21 0.21 0.21 - - - -
Contingencies 5.00% £2,872,905 11 37 - - - - - - - - - - - 0.11 0.11 0.11 0.11 0.11 0.11 0.11 0.11 0.11 0.11 0.11 0.11 0.11 0.11 0.11 0.11 0.11 0.11 0.11 0.11 0.11 0.11 0.11 0.11 0.11 0.11 0.11 - - - -
VAT 0.00% £0 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
Sales fee @ % of GDV 1.00% £909,576 28 41 - - - - - - - - - - - - - - - - - - - - - - - - - - - - 0.45 - - - - - - - - - - - 0.45

Site £16,380,000 - 1 16.38 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

Site Acquisition Costs 4.00% £655,200 - 1 0.66 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

Section 106 payments £1,735,349 - 1 1.74

CIL Liability £20,000 - 1 0.02

Loan Amount Paid back £70,826,163 11 37 - - - - - - - - - - - - - - - - - - - - - - - - - - - - 40.00 - - - - - - - - - - - - 30.83

Cost of Finance £574,581 11 37 - - - - - - - - - - - 0.02 0.02 0.02 0.02 0.02 0.02 0.02 0.02 0.02 0.02 0.02 0.02 0.02 0.02 0.02 0.02 0.02 0.02 0.02 0.02 0.02 0.02 0.02 0.02 0.02 0.02 0.02 - - - -
Finance of build cost (interest) £7,457,189 11 37 - - - - - - - - - - - 0.46 0.44 0.43 0.42 0.40 0.39 0.37 0.36 0.34 0.33 0.31 0.30 0.28 0.27 0.25 0.24 0.22 0.21 0.19 0.18 0.16 0.15 0.13 0.11 0.10 0.08 0.07 - - -
Void period finance (interest) £50,032 39 41 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 0.05 0.03 0.02

Loan used for Construction for that Month £70,826,163 - - - - - - - - - - - 2.62 2.62 2.62 2.62 2.62 2.62 2.62 2.62 2.62 2.62 2.62 2.62 2.62 2.62 2.62 2.62 2.62 2.62 2.62 2.62 2.62 2.62 2.62 2.62 2.62 2.62 2.62 - - - -
Sponsor Equity £29,630,949 1 1 - 18.79 - - - - - - - - - 0.59 0.57 0.56 0.54 0.53 0.51 0.50 0.49 0.47 0.46 0.44 0.43 0.41 0.40 0.38 0.37 0.35 0.34 0.32 0.31 0.29 0.27 0.26 0.24 0.23 0.21 0.19 - - - -
GDV £90,957,596 18 41 - - - - - - - - - - - - - - - - - - - - - - - - - - - - 45.48 - - - - - - - - - - - - 45.48
Rental £772,814 29 41 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 0.06 0.06 0.06 0.06 0.06 0.06 0.06 0.06 0.06 0.06 0.06 0.06 0.06

Cash Outflow £172,110,399 - 41 18.79 - - - - - - - - - 3.21 3.19 3.18 3.17 3.15 3.14 3.12 3.11 3.09 3.08 3.07 3.05 3.04 3.02 3.01 2.99 2.98 43.41 2.94 2.93 2.91 2.90 2.88 2.87 2.85 2.83 2.82 0.05 0.03 0.02 31.28
Cash Inflow £192,005,219 - 41 - 18.79 - - - - - - - - - 3.21 3.19 3.18 3.17 3.15 3.14 3.12 3.11 3.09 3.08 3.07 3.05 3.04 3.02 3.01 2.99 2.98 48.44 3.00 2.99 2.97 2.96 2.94 2.93 2.91 2.89 2.88 0.06 0.06 0.06 45.54

Final Total for the Month (Net cashflow) -18.79 18.79 - - - - - - - - - - - - - - - - - - - - - - - - - - 5.02 0.06 0.06 0.06 0.06 0.06 0.06 0.06 0.06 0.06 0.010 0.03 0.04 14.26
Amount Brought forward from Previous Month - -18.79 - - - - - - - - - - - - - - - - - - - - - - - - - - - 5.02 5.08 5.14 5.20 5.26 5.32 5.38 5.44 5.50 5.56 5.57 5.59 5.64
Final Cumulative Figure (Month end) -18.79 - - - - - - - - - - - - - - - - - - - - - - - - - - - 5.02 5.08 5.14 5.20 5.26 5.32 5.38 5.44 5.50 5.56 5.57 5.59 5.64 19.89

NPV (Profit) £15,393,287 17% of GDV

IRR 7.73%
Interest Rate (i.e. cost of capital) 0.65%

29